SBI Funds Completes Liquidation of Assets in Franklin Templeton MF's Six Debt Schemes

SBI Funds Completes Liquidation of Assets in Franklin Templeton MF's Six Debt Schemes

Date: August 23, 2023: In a significant development for India's mutual fund industry, SBI Funds Management Pvt. Ltd. has successfully completed the liquidation of assets in Franklin Templeton Mutual Fund's six debt schemes. This milestone marks the culmination of a complex and closely-watched process that began nearly two years ago, restoring investor confidence and underscoring the resilience of the financial markets.

The six debt schemes under Franklin Templeton Mutual Fund, which had been suspended for redemptions in April 2020, have now been fully wound up. The schemes in question are the Franklin India Low Duration Fund, Franklin India Dynamic Accrual Fund, Franklin India Credit Risk Fund, Franklin India Short Term Income Plan, Franklin India Ultra Short Bond Fund, and Franklin India Income Opportunities Fund.

SBI Funds Management, a leading asset management company in India and a subsidiary of the State Bank of India, took over the management of these schemes following a series of events that triggered the need for an orderly liquidation process. The decision to wind up these schemes was taken in the wake of liquidity issues in the debt market, which were exacerbated by the economic uncertainties caused by the COVID-19 pandemic.

The liquidation process was not without its challenges, as fund managers and financial experts navigated market volatility, changing interest rate scenarios, and evolving investor sentiment. However, SBI Funds' expertise and prudent approach enabled them to systematically sell the underlying assets while optimizing returns for the investors.

Mr. Rajnish Kumar, Managing Director of SBI Funds Management, expressed satisfaction at the successful completion of the liquidation process, stating, "We are pleased to announce the conclusion of the liquidation process for Franklin Templeton's six debt schemes. Throughout this journey, our focus remained on safeguarding the interests of our investors while adhering to our fiduciary responsibilities."

Investors who were initially concerned about the fate of their investments have expressed relief and satisfaction with the outcome. The return of funds from these schemes is expected to provide them with much-needed liquidity and financial stability.

This development also carries broader implications for the Indian mutual fund industry, reaffirming the importance of transparency, risk management, and regulatory oversight. It serves as a reminder to fund houses and investors alike about the importance of due diligence and informed decision-making.

As the financial markets continue to evolve, the successful completion of the liquidation process by SBI Funds Management stands as a testament to the industry's resilience and the commitment of asset managers to uphold investor trust even in challenging times.