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 (EMD) announced the estimated sources of its distributions for June 3, 2024, and the fiscal year-to-date. The distribution per share for May 2024 is $0.0845, with 61.67% from net investment income and 38.33% from the return of capital. For the fiscal year-to-date, the distribution per share is $0.3380, with the same allocation percentages. The Fund cautions investors not to draw conclusions about its performance based on these distributions. The average annual total return over five years is 0.33%, with an annualized distribution rate of 9.82%. The cumulative total return for the fiscal year is 0.96%, and the cumulative fiscal year-to-date distribution rate is 3.27%. A portion of the distributions may be a return of capital, which reduces the shareholder's tax basis in the shares.
- Distribution per share for the fiscal year-to-date is $0.3380.
- 61.67% of distributions come from net investment income.
- The annualized distribution rate is 9.82%.
- Managed distribution policy targets long-term total return potential.
- 38.33% of distributions are a return of capital, which may reduce shareholders' tax basis.
- No realized short-term or long-term capital gains were included in the distributions.
- The average annual total return over the past five years is only 0.33%.
- Cumulative total return for the fiscal year is a low 0.96%.
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 June 3, 2024, and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for the May Monthly Distribution as of April 30, 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 April 30, 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 4/30/2024)1 |
Annualized Distribution Rate (as a percentage of NAV as of 4/30/2024)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 4/30/2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 4/30/2024)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 April 30, 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 April 30, 2024.
- Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2023 through April 30, 2024, assuming reinvestment of distributions paid.
- The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period December 31, 2023 through April 30, 2024, as a percentage of the Fund’s NAV as April 30, 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/20240603114849/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
What is the distribution per share for EMD in May 2024?
How much of EMD's May 2024 distribution comes from net investment income?
What percentage of EMD's May 2024 distribution is a return of capital?
What is the average annual total return of EMD over the past five years?
What is the annualized distribution rate of EMD as of April 30, 2024?
What is the cumulative total return of EMD for the fiscal year through April 30, 2024?
What is the cumulative fiscal year-to-date distribution rate of EMD?
How does a return of capital affect shareholders of EMD?
