BrandywineGLOBAL - Global Income Opportunities Fund Inc. (BWG or “the Fund”; CUSIP: 10537L104) Announces Notification of Sources of Distributions
BrandywineGLOBAL - Global Income Opportunities Fund Inc. (NYSE: BWG) has announced its distribution sources for October 1, 2024, and the fiscal year 2024. The Fund's estimated allocation for the September monthly distribution of $0.0800 per share consists of 50.75% from net investment income and 49.25% from return of capital. The cumulative fiscal year-to-date distribution follows the same allocation pattern.
The Fund's performance metrics as of August 31, 2024, include an average annual total return of 0.56% over 5 years, an annualized distribution rate of 10.14%, and a cumulative total return of 23.11% for the fiscal period. BWG operates under a managed distribution policy, aiming to deliver long-term total return potential through regular monthly distributions.
BrandywineGLOBAL - Global Income Opportunities Fund Inc. (NYSE: BWG) ha annunciato le fonti di distribuzione per il 1 ottobre 2024 e per l'anno fiscale 2024. L'allocazione stimata del Fondo per la distribuzione mensile di settembre di $0.0800 per azione consiste nel 50,75% da redditi netti da investimenti e nel 49,25% da rimborso di capitale. La distribuzione cumulativa dall'inizio dell'anno fiscale segue lo stesso schema di allocazione.
I parametri di rendimento del Fondo al 31 agosto 2024 includono un rendimento totale medio annuale dell'0,56% su 5 anni, un tasso di distribuzione annualizzato del 10,14% e un rendimento totale cumulativo del 23,11% per il periodo fiscale. BWG opera secondo una politica di distribuzione gestita, mirando a fornire un potenziale rendimento totale a lungo termine attraverso distribuzioni mensili regolari.
BrandywineGLOBAL - Global Income Opportunities Fund Inc. (NYSE: BWG) ha anunciado sus fuentes de distribución para el 1 de octubre de 2024 y para el año fiscal 2024. La asignación estimada del Fondo para la distribución mensual de septiembre de $0.0800 por acción consiste en un 50.75% de ingresos netos de inversiones y un 49.25% de retorno de capital. La distribución acumulativa del año fiscal hasta la fecha sigue el mismo patrón de asignación.
Las métricas de rendimiento del Fondo al 31 de agosto de 2024 incluyen un rendimiento total anual promedio del 0.56% durante 5 años, una tasa de distribución anualizada del 10.14% y un rendimiento total acumulativo del 23.11% para el período fiscal. BWG opera bajo una política de distribución gestionada, con el objetivo de entregar un potencial de rendimiento total a largo plazo a través de distribuciones mensuales regulares.
브랜디와인글로벌 - 글로벌 인컴 오퍼튜니티 펀드 Inc. (NYSE: BWG)는 2024년 10월 1일 및 2024 회계연도에 대한 분배 출처를 발표했습니다. 9월 월간 분배에 대한 펀드의 추정 배분은 주당 $0.0800로, 50.75%는 순투자소득에서, 49.25%는 자본 반환에서 비롯됩니다. 회계연도 누적 분배는 같은 배분 패턴을 따릅니다.
2024년 8월 31일 기준 펀드의 성과 지표에는 5년 동안 평균 연간 총 수익률이 0.56%, 연간화된 분배율이 10.14%, 회계 기간 동안 총 누적 수익률이 23.11%가 포함됩니다. BWG는 관리 분배 정책을 따르며, 정기적인 월별 분배를 통해 장기 총 수익률 잠재력을 제공하는 것을 목표로 합니다.
BrandywineGLOBAL - Global Income Opportunities Fund Inc. (NYSE: BWG) a annoncé ses sources de distribution pour le 1er octobre 2024 et pour l'exercice fiscal 2024. L'allocation estimée du Fonds pour la distribution mensuelle de septembre de 0,0800 $ par action est composée de 50,75 % de revenus d'investissement nets et de 49,25 % de remboursement de capital. La distribution cumulée depuis le début de l'exercice suit le même schéma d'allocation.
Les indicateurs de performance du Fonds au 31 août 2024 incluent un rendement total annuel moyen de 0,56 % sur 5 ans, un taux de distribution annualisé de 10,14 %, et un rendement total cumulé de 23,11 % pour la période fiscale. BWG opère selon une politique de distribution gérée, visant à fournir un potentiel de rendement total à long terme par le biais de distributions mensuelles régulières.
BrandywineGLOBAL - Global Income Opportunities Fund Inc. (NYSE: BWG) hat seine Verteilungsmöglichkeiten für den 1. Oktober 2024 und das Geschäftsjahr 2024 bekannt gegeben. Die geschätzte Zuordnung des Fonds für die monatliche Verteilung im September von $0.0800 pro Aktie setzt sich aus 50,75% aus Nettoanlageerträgen und 49,25% aus Rückzahlungen von Kapital zusammen. Die kumulierte Verteilung seit Jahresbeginn folgt demselben Zuordnungsmuster.
Die Leistungskennzahlen des Fonds zum 31. August 2024 beinhalten eine durchschnittliche jährliche Gesamtrendite von 0,56% über 5 Jahre, eine annualisierte Ausschüttungsquote von 10,14% und eine kumulierte Gesamtrendite von 23,11% für den Geschäftsjahreszeitraum. BWG arbeitet unter einer verwalteten Ausschüttungspolitik, mit dem Ziel, das langfristige Gesamtrenditepotenzial durch regelmäßige monatliche Ausschüttungen bereitzustellen.
- Consistent monthly distribution of $0.0800 per share
- 50.75% of distribution sourced from net investment income
- Annualized distribution rate of 10.14% as of August 31, 2024
- Cumulative total return of 23.11% for the fiscal period through August 31, 2024
- 49.25% of distribution classified as return of capital, potentially reducing shareholders' tax basis
- Low average annual total return of 0.56% over the 5-year period ended August 31, 2024
- Fund has distributed more than its income and net realized capital gains
Insights
This distribution announcement for BWG provides key insights into the fund's performance and distribution strategy. The fund's 10.14% annualized distribution rate is notably high, potentially attractive for income-seeking investors. However, it's important to note that 49.25% of the distribution is classified as return of capital, which may indicate the fund is struggling to generate sufficient income from its investments.
The fund's 5-year average annual total return of 0.56% is concerningly low, suggesting underperformance relative to many fixed-income benchmarks. This, combined with the high return of capital component, raises questions about the sustainability of the current distribution level.
Investors should carefully consider the fund's ability to maintain its distribution rate given its lackluster long-term performance. The managed distribution policy, while providing regular income, may be masking underlying performance issues. The 23.11% cumulative total return for the fiscal period is a positive sign, but its sustainability remains uncertain given the longer-term track record.
The tax implications of BWG's distributions are significant for investors. With 49.25% of the distribution classified as return of capital, shareholders need to understand that this portion is not immediately taxable but instead reduces their cost basis in the fund. This can lead to higher capital gains taxes when shares are eventually sold.
The remaining 50.75% from net investment income will likely be taxed as ordinary income. Investors should be aware that the fund's use of a managed distribution policy may result in tax consequences that don't align with the fund's actual economic performance.
It's important for shareholders to retain their Form 1099-DIV and consult with a tax professional, as the tax treatment of these distributions can be complex. The high return of capital component may result in a tax-deferred income stream, but it also signals potential concerns about the fund's ability to generate sustainable income from its investments.
Notification of Sources of Distributions
Pursuant to Section 19(a) of the Investment Company Act of 1940
The Fund’s estimated sources of the distribution to be paid on October 1, 2024, and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for the September Monthly Distribution as of August 31, 2024:
Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
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Cumulative Estimated Allocations fiscal year-to-date as of August 31, 2024, for the fiscal year ending October 31, 2024:
Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
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Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of the current distribution or from the terms of the Plan. BWG estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the BWG distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect BWG’s investment performance and should not be confused with ‘yield’ or ‘income’. The amounts and sources of distributions reported herein 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 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.
Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on 8/31/2024)1 |
Annualized Distribution Rate (as a percentage of NAV as of 8/31/2024)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 8/31/2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 8/31/2024)4 |
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Fund Performance and Distribution Rate Information:
- Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended through August 31, 2024. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
- The Annualized Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV as of August 31, 2024.
- Cumulative Total Return is the percentage change in the Fund’s NAV from October 31, 2023 through August 31, 2024, assuming reinvestment of distributions paid.
- The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period October 31, 2023 through August 31, 2024, as a percentage of the Fund’s NAV as of August 31, 2024.
This Fund has a managed distribution policy that seeks to deliver the Fund’s long-term total return potential through regular monthly distributions declared at a fixed rate per common share. Distributions may be paid in part or in full from net investment income, realized capital gains and by returning capital, or a combination thereof. Shareholders should note, however, that if a Fund’s aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund’s assets and will constitute a return of the shareholder’s capital. A return of capital is not taxable; rather it reduces a shareholder’s tax basis in his or her shares of the Fund. The Board of Directors of the Fund may terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund’s shares.
For further information on BrandywineGLOBAL - Global Income Opportunities Fund Inc., please visit our web site at: www.franklintempleton.com/investments/options/closed-end-funds
Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Funds.
Category: Distribution Related
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
View source version on businesswire.com: https://www.businesswire.com/news/home/20241001540854/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
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