Franklin Limited Duration Income Trust Announces Sources of Monthly Dividend Distribution
November 14 2019 - 12:21PM
The Franklin Limited Duration Income Trust [NYSE:FTF] (CUSIP
35472T101) has declared a dividend of $0.0848 per common share
payable November 15, 2019, to shareholders of record as of October
31, 2019. It is currently estimated that $0.0463 per share
represents net investment income and $0.0385 per share represents
return of principal.
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.
In compliance with Rule 19a-1 of the Investment
Company Act of 1940, shareholders will receive a notice that
details the source of income for each dividend, such as net
investment income, gain from the sale of securities and return of
principal. Please note: Determination of the actual source of the
Fund’s dividend can only be made at year-end. The actual source
amounts of all Fund dividends will be included in the Fund’s annual
or semiannual reports.
In addition, the tax treatment may differ from
the accounting treatment used to calculate the source of the Fund’s
dividends as shown on your statement. Please refer to your
Form 1099-DIV for the character and amount of distributions for
income tax reporting purposes. Since each shareholder’s tax
situation is unique, please consult your tax advisor as to the
appropriate treatment of Fund distributions.
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$693 billion in assets under management as of October 31, 2019.
For more information, please visit
franklintempleton.com.
Copyright © 2019. Franklin Templeton. All rights
reserved.
From: |
Franklin TempletonShareholders/Financial Advisors: (800)
342-5236 |
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