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. (NYSE: EMD) has announced estimated sources for its distribution set to occur on March 1, 2023. For the February monthly distribution, the total distribution per share is $0.0800, comprised of $0.0719 from net investment income and a return of capital of $0.0081. For the fiscal year-to-date as of January 31, 2023, the cumulative estimated allocations also show a distribution of $0.0800 per share, with 89.94% attributed to net investment income. The fund cautions that these distributions may involve a return of capital, which does not reflect investment performance. Shareholders should await Form 1099-DIV for tax reporting.
- Monthly distribution set at $0.0800 per share, indicating ongoing shareholder returns.
- 89.94% of the distribution sourced from net investment income, signaling healthy investment activity.
- Caution as a portion of the distribution may be a return of capital, not indicative of income or yield.
- Average Annual Total Return over the last 5 years is at -2.05%, which may concern investors about fund performance.
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
Estimated Allocations for the February Monthly Distribution as
Distribution Per Share |
Net Investment Income |
Net Realized
Gains |
Net Realized
Gains |
Return of Capital |
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Cumulative Estimated Allocations fiscal year-to-date as of
Distribution Per Share |
Net Investment Income |
Net Realized
Gains |
Net Realized
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 1/31/2023)1 |
Annualized Distribution Rate (as a percentage of NAV as of 1/31/2023)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 1/31/2023)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 1/31/2023)4 |
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Fund Performance and Distribution Rate Information:
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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 throughJanuary 31, 2023 . 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
January 31, 2023 . -
Cumulative Total Return is the percentage change in the Fund’s NAV from
December 31, 2022 throughJanuary 31, 2023 , 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, 2022 throughJanuary 31, 2023 , as a percentage of the Fund’s NAV as ofJanuary 31, 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
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/20230301005548/en/
Investor Contact:
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
What is the estimated source of distributions for EMD in March 2023?
How much of the EMD distribution is a return of capital?
What was EMD's average annual total return for the last five years?
What percentage of EMD's fiscal year-to-date distribution is from net investment income?
