Western Asset Emerging Markets Debt Fund Inc. (EMD or “the Fund”; CUSIP: 95766A101) Announces Notification of Sources of Distributions

Rhea-AI Summary

Western Asset Emerging Markets Debt Fund (EMD) announced the estimated sources of its upcoming distribution set for April 3, 2023. The monthly distribution per share is estimated at $0.0800, with a breakdown indicating $0.0551 from net investment income, and $0.0249 classified as a return of capital. For the fiscal year-to-date, the cumulative distribution per share is $0.1600, with $0.1102 from net investment income and $0.0498 as return of capital. The Fund cautioned that these distributions may not reflect its investment performance, as they include a return of capital.

Positive

• Monthly distribution of $0.0800 per share set for April 3, 2023.
• Fiscal year-to-date distribution totals $0.1600 per share.
• 68.88% of current distributions derived from net investment income.

Negative

• Significant portion of distributions may be categorized as return of capital, indicating funds paid back to investors from their original investment.
• Average annual total return over the last five years is -2.11%, suggesting potential underperformance.

NEW YORK--(BUSINESS WIRE)-- Western Asset Emerging Markets Debt Fund Inc. [NYSE: EMD]

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 April 3, 2023, and for the fiscal year 2023 year-to-date are as follows:

Estimated Allocations for the March Monthly Distribution as February 28, 2023:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.0800	$0.0551	$0.0000	$0.0000	$0.0249
100.00%	68.88%	0.00%	0.00%	31.12%

Cumulative Estimated Allocations fiscal year-to-date as of February 28, 2023, for the fiscal year ending December 31, 2023:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.1600	$0.1102	$0.0000	$0.0000	$0.0498
100.00%	68.88%	0.00%	0.00%	31.12%

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. EMD estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the EMD 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 EMD’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 2/28/2023)1	Annualized Distribution Rate (as a percentage of NAV as of 2/28/2023)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 2/28/2023)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 2/28/2023)4
-2.11%	8.27%	0.75%	1.57%

Fund Performance and Distribution Rate Information:

1. 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 February 28, 2023. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
2. The Annualized Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV as of February 28, 2023.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2022 through February 28, 2023, assuming reinvestment of distributions paid.
4. The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period December 31, 2022 through February 28, 2023, as a percentage of the Fund’s NAV as of February 28, 2023.

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 Western Asset Emerging Markets Debt 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/20230403005461/en/

Investor Contact: Fund Investor Services 1-888-777-0102

Source: Franklin Resources, Inc. and Legg Mason Closed End Funds

FAQ

What is the upcoming distribution for EMD in April 2023?

The upcoming distribution for Western Asset Emerging Markets Debt Fund (EMD) is estimated at $0.0800 per share, payable on April 3, 2023.

How much has EMD distributed so far in the fiscal year 2023?

For the fiscal year-to-date, EMD has distributed a total of $0.1600 per share.

What percentage of EMD's distribution comes from net investment income?

As of February 28, 2023, 68.88% of EMD's current distributions are derived from net investment income.

What does it mean that part of EMD's distribution is a return of capital?

A return of capital in EMD's distribution indicates that some of the money distributed to shareholders may be a return of their original investment, rather than income generated by the fund.

What is the average annual total return for EMD over the last five years?

The average annual total return for EMD over the five years ended February 28, 2023, is -2.11%.