Franklin Limited Duration Income Trust Declares Monthly Distribution
August 20 2019 - 1:58PM
Franklin Limited Duration Income Trust [NYSE American:FTF], a
closed-end investment company managed by Franklin Advisers, Inc.,
announced today a distribution of $0.0858 per common share, payable
September 13, 2019, to shareholders of record on August 30, 2019
(Ex-Dividend Date: August 29, 2019).
The Fund adopted a managed distribution plan and will make
monthly distributions to common shareholders at an annual minimum
fixed rate of 10 percent, based on the average monthly net asset
value (NAV) of the Fund’s common shares. The Fund will calculate
the average NAV from the previous month based on the number of
business days in that month on which the NAV is calculated.
The distribution will be calculated as 10 percent of the previous
month’s average NAV, divided by 12. Management will generally
distribute amounts necessary to satisfy the Fund’s plan and the
requirements prescribed by excise tax rules and Subchapter M of the
Internal Revenue Code. The plan is intended to provide shareholders
with a constant, but not guaranteed, fixed minimum rate of
distribution each month and is intended to narrow the discount
between the market price and the NAV of the Fund’s common shares,
but there is no assurance that the plan will be successful in doing
so.
Under the managed distribution plan, to the extent that
sufficient investment income is not available on a monthly basis,
the Fund will distribute long-term capital gains and/or return of
capital in order to maintain its managed distribution level. No
conclusions should be drawn about the Fund’s investment performance
from the amount of the Fund’s distributions or from the terms of
the Fund’s managed distribution plan.
The Board may amend the terms of the plan or terminate the plan
at any time without prior notice to the Fund’s shareholders. The
amendment or termination of the plan could have an adverse effect
on the market price of the Fund’s common shares. The plan will be
subject to the periodic review by the Board, including a yearly
review of the annual minimum fixed rate to determine if an
adjustment should be made.
With each distribution that does not consist solely of net
investment income, the Fund will issue a notice to shareholders and
an accompanying press release that will provide detailed
information regarding the amount and composition of the
distribution and other related information. The amounts and sources
of distributions reported in the notice to shareholders are only
estimates and are not being provided for tax reporting purposes.
The actual amounts and sources of the amounts for tax reporting
purposes will depend upon the Fund’s investment experience during
its full fiscal year and may be subject to changes based on tax
regulations. The Fund will send shareholders a Form 1099-DIV for
the calendar year that will tell them how to report these
distributions for federal income tax purposes.
The Fund may at times distribute more than its net investment
income and net realized capital gains; therefore, a portion of the
distribution may result in a return of capital. A return of capital
occurs when some or all of the money that shareholders invested in
the Fund is paid back to them. A return of capital does not
necessarily reflect the Fund’s investment performance and should
not be confused with ‘yield’ or ‘income’. Any such returns of
capital will decrease the Fund’s total assets and, therefore, could
have the effect of increasing the Fund’s expense ratio. In
addition, in order to make the level of distributions called for
under its plan, the Fund may have to sell portfolio securities at a
less than opportune time.
You may request a copy of the Fund's current Report to
Shareholders by contacting Franklin Templeton’s Fund Information
Department at 1-800/DIAL BEN® (1-800-342-5236) or by visiting
franklintempleton.com. All investments involve risks,
including possible loss of principal. Interest rate movements
and mortgage prepayments will affect the Fund's share price and
yield. Bond prices generally move in the opposite direction
of interest rates. As the prices of bonds in a fund adjust to
a rise in interest rates, the fund’s share price may decline.
Investments in lower-rated bonds include higher risk of default and
loss of principal. The Fund is actively managed but there is
no guarantee that the manager's investment decisions will produce
the desired results. For portfolio management discussions,
including information regarding the Fund’s investment strategies,
please view the most recent Annual or Semi-Annual Report to
Shareholders which can be found at franklintempleton.com or
sec.gov.
Franklin Resources, Inc. [NYSE:BEN] is a global investment
management organization operating as Franklin Templeton. Franklin
Templeton’s goal is to deliver better outcomes by providing global
and domestic investment management to retail, institutional and
sovereign wealth clients in over 170 countries. Through specialized
teams, the Company has expertise across all asset classes,
including equity, fixed income, alternatives and custom multi-asset
solutions. The Company’s more than 600 investment professionals are
supported by its integrated, worldwide team of risk management
professionals and global trading desk network. With employees in
over 30 countries, the California-based company has more than 70
years of investment experience and over US$709 billion in assets
under management as of July 31, 2019. For more information, please
visit franklintempleton.com.
From: Franklin Templeton Shareholders/Financial
Advisors: (800) 342-5236
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