Maturity profile of schemes (cash flow projections) basis Portfolio holdings as on October 15, 2020

• The below table summarises the amounts receivable on maturity dates or if put option is available then the immediately forthcoming put option date
• For schemes which have repaid the entire outstanding borrowings e. are cash positive (FIUBF, FIDA, FILDF and FICRF) – the percentages have been computed considering the total of all amounts receivable from the holdings as on October 15, 2020 plus the cash balance and investment in overnight call money market as on October 15, 2020, as the base
• For schemes which have outstanding borrowings (FISTIP and FIIOF) – the percentages have been computed considering the total of all amounts receivable from the holdings as on October 15, 2020 less the outstanding borrowings, as the base
• Part payment amounts receivable on pre-agreed dates as per terms of issuance are reflected in the respective buckets per receipt dates
• Net Asset Value per unit will continue to be computed and declared as per the same accounting and valuation principles as done prior to April 23, 2020 without any change
• For perpetual bonds, the immediately forthcoming call date is considered as the maturity date
• For Securities which are fair valued by the AMC, the fair valuation as on October 15, 2020 is considered as the maturity Note that, at maturity, the issuer is obligated to pay the face value and accrued coupons/ other accruals, if any as per the terms of the issuance
• The data excludes any recovery from segregated Receipt of interest and principal repayments from segregated portfolios will accordingly increase payout to investors of the segregated portfolio
• Interest income is not considered in the projections. Receipt of coupons will add to the cash flows and accordingly increase payout to investors
• On sale of securities in the secondary market, sale value will differ from the maturity value
• For securities with interest rate reset at periodical intervals which have a floor and cap rate as per the terms of the issuance, maturity date has been considered for the cash flow projections vis-à-vis the interest reset date which is normally considered in macaulay duration and valuation by the valuation agencies
• Securities sold in the secondary market prior to the maturity will accelerate the receipt thereby facilitating payout to investors before scheduled maturity
• Prepayments or accelerated payments made by the issuer will prepone the receipt thereby facilitating payout to investors before scheduled maturity

Scheme Codes and Scheme Names

FIUBF           Franklin India Ultra Short Bond Fund (No. of Segregated Portfolios – 1) – (under winding up) FILDF                   Franklin India Low Duration Fund (No. of Segregated Portfolios – 2)- (under winding up) FISTIP                   Franklin India Short Term Income Plan (No. of Segregated Portfolios – 3)- (under winding up) FIIOF            Franklin India Income Opportunities Fund (No. of Segregated Portfolios – 2) – (under winding up) FICRF           Franklin India Credit Risk Fund (No. of Segregated Portfolios – 3) – (under winding up)

FIDA             Franklin India Dynamic Accrual Fund (No. of Segregated Portfolios – 3) – (under winding up)

Maturity profile considering put and call option & put option dates – Cumulative – from October 16, 2020

 

Period	Upto	FIUBF^^	FILDF^^	FISTIP	FIIOF	FICRF^^	FIDA^^
Call/ Cash **	As on October 15, 2020	40%	19%	Please ref (b) and (c	er Notes ) above	4%	19%
October 16, 2020 to December 31, 2020	December 31, 2020	43%	20%	–	–	4%	19%
October 16, 2020 to April 30, 2021	April 30, 2021	52%	48%	–	–	14%	27%
October 16, 2020 to April 30, 2022	April 30, 2022	82%	72%	24%	3%	34%	49%
October 16, 2020 to April 30, 2023	April 30, 2023	86%	91%	50%	22%	56%	71%
October 16, 2020 to April 30, 2024	April 30, 2024	95%	94%	83%	31%	75%	85%

October 16, 2020 to April 30, 2025	April 30, 2025	100%	100%	95%	50%	84%	90%
Beyond April 30, 2025		–	–	100%	100%	100%	100%
AUM as on October 15, 2020 (INR crores)		10,031	2,474	5,264	1,620	3,456	2,461

 ** Call/ Cash is cash balance and amount invested in overnight call money market

^^ Cumulative percentage in each bucket includes call/ cash balance as on October 15, 2020

Each scheme will return monies to investor after paying all the obligations/ liabilities towards borrowings/ expenses/ provisions, if any

Summary of Cash inflows for the period October 1, 2020 to October 15, 2020

	FIUBF	FILDF	FISTIP	FIIOF	FICRF	FIDA
Cash inflows into the schemes for the period October 1, 2020 to October 15, 2020	0%	0%	0%	0%	0%	0%

Cash inflows represent inflows from maturities, part payments and coupons which have been utilised for payment of borrowings/ interest/ expenses and provisions, if any. The balance cash, if any, is invested in overnight call money market. 0% indicates cash inflows lesser than 0.50%

Summary of outstanding borrowing (Amount in INR Crores)

 

As on	FIUBF	FILDF	FISTIP	FIIOF	FICRF	FIDA
April 23, 2020	802	278	1,727	542	665	98
April 24, 2020	802	310	1,832	650	757	124
April 30, 2020	667	297	1,820	649	748	120
May 29, 2020	–	249	1,775	649	384	–
June 30, 2020	–	169	1,569	629	311	–
July 31, 2020	–	29	1,396	616	125	–
August 31, 2020	–	–	1,191	593	–	–
September 30, 2020	–	–	992	503	–	–
October 15, 2020	–	–	978	503	–	–
AUM as on October 15, 2020 (INR crores)	10,031	2,474	5,264	1,620	3,456	2,461
As a percentage of AUM as on October 15, 2020	–	–	19%	31%	–	–

Additional borrowing availed on April 24, 2020 for redemptions received on April 23, 2020 with payout on April 24, 2020 Outstanding borrowings have been fully repaid in FIUBF on May 26, 2020, FIDA on May 11, 2020, FILDF and FICRF on August 17, 2020

Note

The approximate expected coupon receipts for 1 year starting April 23, 2020 is summarised in the below table (same as disclosed in the cash flow projections as on April 23, 2020)

Interest income is not considered in the maturity profile/ cash flow projections above.

Receipt of coupons will add to the cash            flows             and             accordingly             increase             payout             to             investors   The Annual % is an approximate % expected for the period 0 to 1 year and is subject to change for subsequent years

 

	FIUBF	FILDF	FISTIP	FIIOF	FICRF	FIDA
Amount in INR crores	800	250	650	230	350	220
Annual %	8%	10%	11%	12%	10%	9%

 

These are projection of cashflows based on current portfolio holdings. Any sale of securities, payments of coupons, prepayment will have a postive impact whereas any credit issue, default or delay in payment will negatively impact the projections

The information contained in this communication is not a complete representation of every material fact and is for informational purposes only. Statements/opinions/recommendations in this communication which contain words or phrases such as “will”, “expect”, “could”, “believe” and similar expressions or variations of such expressions are “forward – looking statements”. While it will be the endeavour of the Trustees to achieve the best possible outcome for the investors.

Actual results may differ materially from those suggested by the forward-looking statements due to risk or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risk, general economic and political conditions in India and other countries globally, which have an impact on the service and / or investments. There may have been changes in matters which affect the security subsequent to the date of this communication

Product Labels:

Fund Name	This product is suitable for investors who are seeking*:
Franklin India Ultra Short Bond Fund (Number of Segregated Portfolios – 1) FIUBF	• Regular income for short term •  A fund that invests in short term debt and money market instruments
Franklin India Low Duration Fund (Number of Segregated Portfolios – 2) FILDF	• Regular income for short term • A fund that focuses on low duration securities.
Franklin India Short Term Income Plan (Number of Segregated Portfolios – 3) FISTIP	• Regular income for medium term •  A fund that invests in short term corporate bonds including PTCs.	Riskometer
Franklin India Income Opportunities Fund (Number of Segregated Portfolios – 2) FIIOF	•  Medium term capital appreciation with current income • A fund that focuses on high accrual securities
Franklin India Credit Risk Fund (Number of Segregated Portfolios – 3) FICRF	•  Medium to long term capital appreciation with current income •  A bond fund focusing on AA and below rated corporate bonds (excluding AA+ rated corporate bonds).	LOW                                      HIGH Investors understand that their principal will be at Moderate risk
Franklin India Dynamic Accrual Fund (Number of Segregated Portfolios – 3) FIDA	• Medium term capital appreciation with current income •  A fund that focuses on fixed income securities with high accrual and potential for capital gains.

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

All investments in debt funds are subject to various types of risks including credit risk, interest rate risk, liquidity risk etc. Some fixed income schemes may have a higher concentration to securities rated below AA and therefore may be exposed to relatively higher risk of downgrade or default and the associated volatility in prices which could impact NAV of the scheme. Credit rating issued by SEBI registered entities is an opinion of the rating agency and should not be considered as an assurance of repayment by issuer. There is no assurance or guarantee of principal or returns in any of the mutual fund scheme.