Western Asset Emerging Markets Debt Fund Inc. (EMD or “the Fund”; CUSIP: 95766A101) Announces Notification of Sources of Distributions
Western Asset Emerging Markets Debt Fund Inc. (EMD) has announced its distribution details for February 3, 2025. The monthly distribution of $0.0845 per share consists of 83.15% from net investment income and 16.85% from return of capital. For the fiscal year-to-date, the Fund has distributed $1.0140 per share, with 72.44% from net investment income and 27.56% from return of capital.
The Fund's performance metrics show an average annual total return of 0.83% over the five-year period, an annualized distribution rate of 9.91%, and a cumulative total return of 10.43% for the fiscal period. The Fund maintains a managed distribution policy aimed at delivering long-term total returns through regular monthly distributions, though a portion of distributions may represent a return of capital.
Western Asset Emerging Markets Debt Fund Inc. (EMD) ha annunciato i dettagli della distribuzione per il 3 febbraio 2025. La distribuzione mensile di $0.0845 per azione è costituita dall'83.15% di reddito netto da investimenti e dal 16.85% di restituzione di capitale. Fino ad oggi, il Fondo ha distribuito $1.0140 per azione, con il 72.44% proveniente da reddito netto da investimenti e il 27.56% da restituzione di capitale.
I parametri di performance del Fondo mostrano un ritorno totale annuo medio dello 0.83% nel periodo di cinque anni, un tasso di distribuzione annualizzato del 9.91% e un ritorno totale cumulativo del 10.43% per il periodo fiscale. Il Fondo mantiene una politica di distribuzione gestita volta a fornire ritorni totali a lungo termine attraverso distribuzioni mensili regolari, anche se una parte delle distribuzioni potrebbe rappresentare una restituzione di capitale.
Western Asset Emerging Markets Debt Fund Inc. (EMD) ha anunciado los detalles de su distribución para el 3 de febrero de 2025. La distribución mensual de $0.0845 por acción consiste en un 83.15% de ingresos netos por inversiones y un 16.85% de devolución de capital. Hasta la fecha, el Fondo ha distribuido $1.0140 por acción, con un 72.44% proveniente de ingresos netos por inversiones y un 27.56% de devolución de capital.
Los indicadores de rendimiento del Fondo muestran un retorno total anual promedio del 0.83% durante el período de cinco años, una tasa de distribución anualizada del 9.91% y un retorno total acumulado del 10.43% para el período fiscal. El Fondo mantiene una política de distribución gestionada destinada a proporcionar rendimientos totales a largo plazo a través de distribuciones mensuales regulares, aunque una parte de las distribuciones puede representar una devolución de capital.
Western Asset Emerging Markets Debt Fund Inc. (EMD)는 2025년 2월 3일에 대한 배당 세부 정보를 발표했습니다. 주당 $0.0845의 월별 배당은 순투자소득으로부터 83.15%와 자본환불로부터 16.85%로 구성되어 있습니다. 회계연도 현재까지, 펀드는 주당 $1.0140을 배포하였으며, 이 중 72.44%는 순투자소득에서, 27.56%는 자본환불에서 나왔습니다.
펀드의 성과 지표는 5년 동안의 연평균 총 수익률이 0.83%이고, 연환산 분배율이 9.91%, 누적 총 수익률이 10.43%임을 보여줍니다. 펀드는 규칙적인 월별 배당을 통해 장기 총 수익을 제공하기 위한 관리된 분배 정책을 유지하고 있지만, 일부 배당금이 자본 환불로 간주될 수 있습니다.
Western Asset Emerging Markets Debt Fund Inc. (EMD) a annoncé les détails de sa distribution pour le 3 février 2025. La distribution mensuelle de $0.0845 par action se compose de 83.15% de revenus nets d'investissement et de 16.85% de remboursement de capital. Depuis le début de l'exercice, le Fonds a distribué $1.0140 par action, avec 72.44% provenant des revenus nets d'investissement et 27.56% du remboursement de capital.
Les indicateurs de performance du Fonds montrent un rendement total annuel moyen de 0.83% sur une période de cinq ans, un taux de distribution annualisé de 9.91% et un rendement total cumulatif de 10.43% pour la période fiscale. Le Fonds maintient une politique de distribution gérée visant à fournir des rendements totaux à long terme grâce à des distributions mensuelles régulières, bien qu'une partie des distributions puisse représenter un remboursement de capital.
Western Asset Emerging Markets Debt Fund Inc. (EMD) hat die Einzelheiten seiner Ausschüttung für den 3. Februar 2025 bekannt gegeben. Die monatliche Ausschüttung von $0.0845 pro Aktie besteht zu 83.15% aus Nettoerträgen und zu 16.85% aus Rückzahlung von Kapital. Im laufenden Geschäftsjahr hat der Fonds bis heute $1.0140 pro Aktie ausgeschüttet, wobei 72.44% aus Nettoerträgen und 27.56% aus Rückzahlung von Kapital stammen.
Die Leistungskennzahlen des Fonds zeigen eine durchschnittliche jährliche Gesamtrendite von 0.83% über einen Zeitraum von fünf Jahren, eine annualisierte Ausschüttungsrate von 9.91% und eine kumulierter Gesamtrendite von 10.43% für den Finanzzeitraum. Der Fonds verfolgt eine verwaltete Ausschüttungspolitik, die darauf abzielt, langfristige Gesamtrenditen durch regelmäßige monatliche Ausschüttungen zu erzielen, wobei ein Teil der Ausschüttungen eine Rückzahlung von Kapital darstellen könnte.
- High annualized distribution rate of 9.91%
- Positive cumulative total return of 10.43% for the fiscal period
- Majority of distributions (83.15%) come from net investment income
- Low five-year average annual total return of 0.83%
- Significant portion of distributions (27.56% YTD) represents return of capital, not actual earnings
- Fund is distributing more than its income and realized capital gains
Insights
The latest distribution announcement from Western Asset Emerging Markets Debt Fund presents a complex picture that requires careful analysis. The Fund's 9.91% annualized distribution rate might appear attractive at first glance, but the underlying composition reveals important considerations for investors.
The most critical aspect is the significant return of capital component, comprising 16.85% of the current monthly distribution and 27.56% of fiscal year-to-date distributions. This means investors are partially receiving their own investment back rather than purely investment returns. While this practice helps maintain a stable distribution policy, it effectively reduces shareholders' cost basis and could indicate the fund is struggling to generate sufficient income to cover its distributions naturally.
The Fund's performance metrics raise some concerns:
- The 0.83% five-year average annual total return is notably low, especially considering the higher-yield potential of emerging market debt
- The 10.43% cumulative total return for the fiscal period, while positive, should be viewed in context of the broader emerging markets debt recovery
- The managed distribution policy, while providing regular income, may not be sustainable if the fund continues to rely heavily on return of capital
Current emerging market debt conditions, characterized by higher global interest rates and varying country-specific risks, make it challenging for funds like EMD to generate consistent high yields solely from investment income. The fund's substantial use of return of capital suggests it's prioritizing distribution stability over organic income generation, which could impact long-term capital preservation.
Investors should closely monitor the fund's ability to maintain its distribution policy without further increasing the return of capital component, as this could signal deteriorating fund fundamentals. The high distribution rate might be masking underlying performance challenges and the sustainability of current distribution levels deserves scrutiny.
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 February 3, 2025, and for the fiscal year 2025 year-to-date are as follows:
Estimated Allocations for the January Monthly Distribution as of December 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 December 31, 2024, for the fiscal year ending December 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. 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 12/31/2024)1 |
Annualized Distribution Rate (as a percentage of NAV as of 12/31/2024)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 12/31/2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 12/31/2024)4 |
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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 December 31, 2024. 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 December 31, 2024. |
3 |
Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2023 through December 31, 2024, 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, 2023 through December 31, 2024, as a percentage of the Fund’s NAV as of December 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 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/20250203212615/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
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