Templeton Global Income Fund (“GIM” or the “Fund”) Announces Distribution and Management Fee Waiver Extension

Rhea-AI Summary

Templeton Global Income Fund (NYSE: GIM) announced a monthly distribution of $0.0318 per share from net investment income, payable on September 30, 2022, to shareholders of record on September 19, 2022. The Fund's fee waiver has been extended until December 31, 2022. Post this date, management fees will increase to 0.700% for assets up to $200 million. The Fund operates a managed distribution plan aiming for an annual minimum fixed rate of 8% based on average monthly net asset value, but performance is not guaranteed.

Positive

• Monthly distribution of $0.0318 per share reflects consistent income generation.
• Fee waiver extended until December 31, 2022, reducing costs for shareholders.

Negative

• The managed distribution plan's effectiveness in reducing market price discount is uncertain.
• Potential fee increase in January 2023 could affect net returns for shareholders.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Templeton Global Income Fund [NYSE: GIM] today announced a monthly distribution from net investment income of $0.0318 per share, payable on September 30, 2022, to shareholders of record on September 19, 2022 (Ex-Dividend Date: September 16, 2022).

Additionally, management has extended the Fund’s previously announced fee waiver until December 31, 2022 and will continue to pay the investment manager a monthly fee in dollars, at the annual rate of the Fund’s daily net assets, as listed below, payable at the end of each calendar month:

• 0.600% up to and including $200 million; and
• 0.535% over $200 million, up to and including $700 million.

Effective January 1, 2023, the Fund will resume paying the investment manager a monthly fee in dollars, at the annual rate of the Fund’s daily net assets, as listed below, payable at the end of each calendar month:

• 0.700% up to and including $200 million; and
• 0.635% over $200 million, up to and including $700 million.

The Fund’s Board of Trustees (the “Board”) has authorized a managed distribution plan pursuant to which the Fund makes monthly distributions to shareholders at an annual minimum fixed rate of 8%, based on the average monthly net asset value (NAV) of the Fund’s common shares (the “Plan”). The Fund calculates 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 was invested in the Fund is paid back to shareholders. 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 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.

Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Plan. 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 a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund’s distributions for federal income tax purposes.

For further information on Templeton Global Income Fund, please visit our web site at: www.franklintempleton.com

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 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 offers boutique specialization on a global scale, bringing 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 75 years of investment experience and approximately $1.4 trillion in assets under management as of July 31, 2022. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220908005881/en/

Franklin Templeton at 1-800-342-5236

Source: Franklin Resources, Inc.

FAQ

What is the monthly distribution amount for Templeton Global Income Fund (GIM)?

The monthly distribution amount for Templeton Global Income Fund (GIM) is $0.0318 per share.

When will the distribution for GIM be paid?

The distribution for GIM will be paid on September 30, 2022.

What is the annual minimum fixed rate of distribution for GIM?

The annual minimum fixed rate of distribution for GIM is 8% based on the average monthly net asset value.

How long is the fee waiver for GIM extended?

The fee waiver for GIM has been extended until December 31, 2022.

When will the fee increase for GIM take effect?

The fee increase for GIM will take effect on January 1, 2023.