Templeton Emerging Markets Income Fund (“TEI”) Announces Distribution

Rhea-AI Summary

Templeton Emerging Markets Income Fund (TEI) announced a monthly distribution of $0.0606 per share from net investment income, payable on July 30, 2021, to shareholders of record as of July 15, 2021. The Fund has implemented a managed distribution plan that guarantees a minimum annual distribution rate of 8.5%, based on average net asset value (NAV). While aimed at providing consistent distributions, there is no assurance the Plan will succeed in reducing the market price discount to NAV. Distributions may also include long-term capital gains or return of capital.

Positive

• None.

Negative

• Distributions may include return of capital, which does not reflect investment performance and can confuse yield expectations.
• The managed distribution plan does not guarantee success in narrowing the market price discount to NAV.

Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0606 per share, payable on July 30, 2021, to shareholders of record on July 15, 2021 (Ex-Dividend Date: July 14, 2021).

The Fund’s Board authorized a managed distribution plan pursuant to which the Fund will make monthly distributions to shareholders at an annual minimum fixed rate of 8.5%, based on the average monthly net asset value (NAV) of the Fund’s common shares (the “Plan”). The Fund will calculate the average NAV from the previous month based on the number of business days in the month on which the NAV is calculated. 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 can be no assurance that the Plan will be successful in doing so. The Fund is managed with a goal of generating as much of the distribution as possible from net ordinary income and short-term capital gains, that is consistent with the Fund’s investment strategy and risk profile. To the extent that sufficient distributable 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 rate. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s capital loss carryovers from prior years. The Plan is subject to periodic review by the Board and may be amended or terminated at any time.

You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s managed distribution policy. The amounts and sources of the Fund’s distributions to be reported will be estimates and will not be 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 the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Franklin Resources, Inc. [NYSE:BEN] 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.

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FAQ

What is the monthly distribution amount for Templeton Emerging Markets Income Fund (TEI)?

The monthly distribution amount is $0.0606 per share.

When will the distribution for TEI be paid?

The distribution will be paid on July 30, 2021, to shareholders of record on July 15, 2021.

What is the annual distribution rate for TEI?

The managed distribution plan provides a minimum annual distribution rate of 8.5%.

Can TEI's managed distribution plan guarantee success in reducing discount to NAV?

No, there is no assurance that the managed distribution plan will successfully reduce the discount between market price and NAV.

What does return of capital mean for TEI shareholders?

Return of capital may occur when some of the invested funds are returned to shareholders and does not indicate the Fund’s investment performance.