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 Inc. (NYSE: EMD) has announced its distribution details for October 1, 2024, and fiscal year 2024. The Fund's estimated sources of distribution include:

- September monthly distribution: $0.0845 per share
- 66.73% from net investment income
- 33.27% return of capital

For the fiscal year-to-date:

- Total distribution: $0.6760 per share
- 66.61% from net investment income
- 33.39% return of capital

The Fund's performance metrics as of August 31, 2024, include:

- 5-year average annual total return: 1.14%
- Annualized distribution rate: 9.49%
- Cumulative total return (fiscal period): 7.78%
- Cumulative fiscal year-to-date distribution rate: 6.33%

EMD has a managed distribution policy aiming to deliver long-term total return potential through regular monthly distributions.

Positive

• Consistent monthly distribution of $0.0845 per share
• Majority of distribution (66.73%) comes from net investment income
• High annualized distribution rate of 9.49% relative to NAV
• Positive cumulative total return of 7.78% for the fiscal period

Negative

• Significant portion of distribution (33.27%) is return of capital, potentially reducing shareholder's tax basis
• Low 5-year average annual total return of 1.14%
• Fund has distributed more than its income and net realized capital gains

Insights

Financial Analyst

This distribution announcement for Western Asset Emerging Markets Debt Fund Inc. (EMD) provides key insights for investors:

• The Fund is maintaining its monthly distribution of $0.0845 per share, with 66.73% coming from net investment income and 33.27% from return of capital.
• Year-to-date, the Fund has distributed $0.6760 per share, following a similar allocation pattern.
• The Fund's annualized distribution rate is 9.49% based on NAV, which is relatively high for the sector.
• However, the Fund's 5-year average annual total return is only 1.14%, indicating potential sustainability concerns for the current distribution level.
• The cumulative total return for the fiscal period is 7.78%, showing some recent improvement in performance.

While the high distribution rate may be attractive to income-focused investors, the significant return of capital component and low long-term total return suggest caution. The Fund's managed distribution policy aims to deliver long-term total return potential, but investors should monitor the Fund's performance and capital erosion risks carefully.

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 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
$0.0845	$0.0564	$0.0000	$0.0000	$0.0281
100.00%	66.73%	0.00%	0.00%	33.27%

Cumulative Estimated Allocations fiscal year-to-date as of August 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
$0.6760	$0.4503	$0.0000	$0.0000	$0.2257
100.00%	66.61%	0.00%	0.00%	33.39%

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 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
1.14%	9.49%	7.78%	6.33%

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 August 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 August 31, 2024.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2023 through August 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 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 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/20241001650691/en/

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

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

FAQ

What is the monthly distribution amount for Western Asset Emerging Markets Debt Fund (EMD) in September 2024?

The monthly distribution amount for Western Asset Emerging Markets Debt Fund (EMD) in September 2024 is $0.0845 per share.

What percentage of EMD's September 2024 distribution comes from net investment income?

66.73% of EMD's September 2024 distribution comes from net investment income.

What is the annualized distribution rate for EMD as of August 31, 2024?

The annualized distribution rate for EMD as of August 31, 2024, is 9.49% of NAV.

What is EMD's 5-year average annual total return as of August 31, 2024?

EMD's 5-year average annual total return as of August 31, 2024, is 1.14%.