Franklin Limited Duration Income Trust Declares Monthly Distribution
November 19 2019 - 01:11PM
Franklin Limited Duration Income Trust [NYSE American:FTF], a
closed-end investment company managed by Franklin Advisers, Inc.,
announced today a distribution of $0.0839 per common share, payable
December 13, 2019, to shareholders of record on November 29, 2019
(Ex-Dividend Date: November 27, 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$693 billion in assets under management as of October 31, 2019.
For more information, please visit
franklintempleton.com.
From: |
Franklin TempletonShareholders/Financial Advisors: (800)
342-5236 |
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