Franklin Limited Duration Income Trust (“FTF” or the “Fund”) Announces Distribution

Rhea-AI Summary

Franklin Duration Income Trust (NYSE American: FTF) has announced a monthly distribution of $0.0615 per share, payable on August 30, 2024, to shareholders of record on August 19, 2024. The Fund's Board has authorized a managed distribution plan to provide consistent monthly distributions and potentially narrow the discount between market price and NAV of common shares.

The Fund aims to generate distributions from net ordinary income and short-term capital gains, but may also distribute long-term capital gains or return capital to maintain its rate. The Board may amend or terminate the Plan, which could affect the Fund's market price. Shareholders are advised not to draw conclusions about investment performance from distribution amounts or Plan terms.

SAN MATEO, Calif.--(BUSINESS WIRE)-- FRANKLIN LIMITED DURATION INCOME TRUST [NYSE American: FTF] today announced a monthly distribution from net investment income of $0.0615 per share, payable on August 30, 2024, to shareholders of record on August 19, 2024 (Ex-Dividend Date: August 19, 2024).

The Fund’s Board of Trustees (the “Board”) has authorized a managed distribution plan (the “Plan”) pursuant to which the Fund makes monthly distributions to shareholders at the fixed rate of $0.0615 per share. The Plan is intended to provide shareholders with consistent distributions each month and is intended to narrow the discount between the market price and the net asset value (“NAV”) of the Fund’s common shares, but there can be no assurance that the Plan will be successful in doing so. The Fund is managed with a goal of generating as much of the distribution as possible from net ordinary income and short-term capital gains, that is consistent with the Fund’s investment strategy and risk profile. To the extent that sufficient distributable income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of capital in order to maintain its managed distribution rate. A return of capital may occur, for example, when some or all of the money that was invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s capital loss carryovers from prior years.

The Board may amend the terms of the Plan or terminate the Plan at any time without prior notice to the Fund’s shareholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund’s common shares. The Plan will be subject to the periodic review by the Board, including a yearly review of the fixed rate to determine if an adjustment should be made.

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. 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.

For further information on Franklin Limited Duration Income Trust, please visit our web site at: www.franklintempleton.com

Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and over $1.6 trillion in assets under management as of June 30, 2024. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807873673/en/

For more information, please contact Franklin Templeton at 1-800-342-5236

Source: Franklin Templeton

FAQ

What is the monthly distribution amount for Franklin Duration Income Trust (FTF)?

Franklin Duration Income Trust (FTF) has announced a monthly distribution of $0.0615 per share.

When is the ex-dividend date for FTF's August 2024 distribution?

The ex-dividend date for FTF's August 2024 distribution is August 19, 2024.

What is the purpose of FTF's managed distribution plan?

FTF's managed distribution plan aims to provide consistent monthly distributions and potentially narrow the discount between the market price and net asset value of the Fund's common shares.

Can FTF's distribution include a return of capital?

Yes, FTF may distribute long-term capital gains and/or return capital to maintain its managed distribution rate if sufficient distributable income is not available.

How often does FTF's Board review the managed distribution plan?

FTF's Board conducts a periodic review of the managed distribution plan, including a yearly review of the fixed rate to determine if an adjustment should be made.