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) has announced the sources of its distributions for the fiscal year 2024. The distribution to be paid on July 1, 2024, includes $0.0845 per share, comprising 67.21% net investment income and 32.79% return of capital. Cumulative distributions for the fiscal year-to-date total $0.4225 per share with similar allocations.
The fund has distributed more than its income and net realized capital gains, resulting in a return of capital, which should not be confused with yield or income. The actual amounts will be detailed in the Form 1099-DIV for tax purposes.
Performance metrics include a 0.72% average annual total return over five years, a 9.70% annualized distribution rate, a 2.95% cumulative total return, and a 4.04% cumulative fiscal year-to-date distribution rate. The Board may alter the distribution policy, potentially impacting the share price.
- The annualized distribution rate is 9.70%, reflecting a strong payout to investors.
- The cumulative fiscal year-to-date distribution rate stands at 4.04%, indicating consistent returns.
- A significant portion (32.79%) of the distribution is a return of capital, which could reduce the shareholders’ tax basis and may not reflect strong investment performance.
- The average annual total return over the last five years is relatively low at 0.72%, which may be concerning for investors seeking higher returns.
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 July 1, 2024, and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for the June Monthly Distribution as of May 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 May 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 5/31/2024)1 |
Annualized Distribution Rate (as a percentage of NAV as of 5/31/2024)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 5/31/2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 5/31/2024)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 May 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 May 31, 2024.
- Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2023 through May 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 December 31, 2023 through May 31, 2024, as a percentage of the Fund’s NAV as of May 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/20240701726607/en/
Investor: 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 July 2024?
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What portion of EMD's distribution is return of capital?
What is EMD's average annual total return over the last five years?
What is the annualized distribution rate for EMD as of May 31, 2024?
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