Western Asset Diversified Income Fund Declares Initial Distribution
August 02 2021 - 8:30AM
Business Wire
The Western Asset Diversified Income Fund (NYSE: WDI) has
authorized the Fund’s initial monthly distribution, payable on
Sept. 1, 2021. The Fund’s common shares began trading on the New
York Stock Exchange on June 25, 2021.
Ex-Dividend Date
Aug. 23, 2021
Record Date
Aug. 24, 2021
Payable Date
Sept. 1, 2021
Ticker
Fund Name
Monthly Distribution Amount per Share
Distribution Rate on IPO Price*
WDI
Western Asset Diversified Income Fund
$0.11700
7.02%
*The distribution rate on the initial
public offering (IPO) price is determined by dividing the monthly
distribution amount by the $20.00 IPO price per share and
annualizing the rate.
The distribution may be treated as dividend income, return of
capital or a combination thereof for tax purposes. This press
release is not for tax reporting purposes. In early 2022, after
definitive information is available, the Fund will send
shareholders a Form 1099-DIV, if applicable, specifying how the
distributions paid by the Fund during the prior calendar year
should be characterized for purposes of reporting the distributions
on a shareholder’s tax return (e.g., dividend income or return of
capital).
The Fund is a diversified, closed-end fund seeking high current
income and, secondarily, capital appreciation.
Western Asset’s investment process utilizes cross-sector
correlations designed to seek optimized return potential and
diversification within the portfolio. As active managers of the
portfolio, Western Asset will employ its top-down macro view to
drive decisions on value, credit sectors, credit quality and
duration, and its deep research experience and bottom-up analysis
to make sector and security selections.
Under current market conditions, the Fund anticipates it will
initially focus on shorter-duration and floating-rate securities,
which have lower sensitivity to higher interest rates. Its duration
and mix of fixed- and floating-rate investments are subject to
change over time. As market conditions change, Western Asset will
seek to dynamically rotate investments into sectors and securities
that it believes to be undervalued from a fundamental perspective
with an attractive return profile and away from investments that it
believes to be overvalued.
The Fund may invest in both investment grade and below
investment grade corporate debt securities, senior loans, agency
and non-agency residential mortgage-backed securities and
commercial mortgage-backed securities, government (i.e., sovereign)
debt (including U.S. government obligations), floating-rate
securities, bank loans, collateralized loan obligations,
asset-backed securities, private debt and mortgage whole loans.
About Western Asset
Western Asset is one of the world’s leading fixed-income
managers. With a focus on long-term fundamental value investing
that employs a top-down and bottom-up approach, the firm has nine
offices around the globe and deep experience across the range of
fixed-income sectors. Founded in 1971, Western Asset has been
recognized for an approach emphasizing team management and
intensive proprietary research, supported by robust risk
management. To learn more about Western Asset, please visit
www.westernasset.com.
About Franklin Templeton
Franklin Resources, Inc. is a global investment management
organization with subsidiaries operating as Franklin Templeton and
serving clients in over 165 countries. Franklin Templeton’s mission
is to help clients achieve better outcomes through investment
management expertise, wealth management and technology solutions.
Through its specialist investment managers, the company brings
extensive capabilities in equity, fixed income, multi-asset
solutions and alternatives. With offices in more than 30 countries
and approximately 1,300 investment professionals, the
California-based company has over 70 years of investment experience
and approximately $1.5 trillion in assets under management as of
May 31, 2021. For more information, please visit
franklintempleton.com and follow us on LinkedIn, Twitter and
Facebook.
Risks
The Fund is newly organized, with a limited history of
operations. Fixed-income securities involve interest rate, credit,
inflation, and reinvestment risks, and possible loss of principal.
As interest rates rise, the value of fixed-income securities falls.
High yield bonds are subject to greater price volatility,
illiquidity, and possibility of default. Asset-backed,
mortgage-backed or mortgage-related securities are subject to
prepayment and extension risks. The Fund may invest in securities
backed by subprime mortgages which involve a higher degree of risk
and chance of loss. International investments are subject to
special risks, including currency fluctuations and social, economic
and political uncertainties, which could increase volatility. These
risks are magnified in emerging markets. Derivatives, such as
options and futures, can be illiquid, may disproportionately
increase losses, and have a potentially large impact on Fund
performance. Leverage may increase volatility and possibility of
loss. Shares of closed-end funds frequently trade at a discount to
their net asset value. The Fund is primarily a long-term investment
vehicle and should not be used for short-term trading.
Diversification does not guarantee a profit or protect against a
loss. Information regarding the distribution rate is included for
informational purposes only and is not necessarily indicative of
future results, the achievement of which cannot be assured. The
distribution rate should not be considered the yield or total
return on an investment in the Fund. Distributions are not
guaranteed and are subject to change.
For more information about the Fund, please call 1-888-777-0102
or consult the Fund’s web site at www.lmcef.com.
Data and commentary provided in this press release are for
informational purposes only. Franklin Resources and its affiliates
do not engage in selling shares of the Fund. This press release is
not intended to, and does not constitute, an offer to purchase or
sell shares of the Fund.
Category: Distribution Related
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
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version on businesswire.com: https://www.businesswire.com/news/home/20210802005317/en/
Lisa Tibbitts, +1 (917) 674-8060,
Lisa.Tibbitts@franklintempleton.com
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