LMP Capital and Income Fund Inc. (SCD or “the Fund”; CUSIP: 50208A102) Announces Notification of Sources of Distributions
LMP Capital and Income Fund (NYSE: SCD) has announced the estimated sources of its distribution set for June 3, 2024. As of April 30, 2024, the fund's distribution per share is $0.1130, with allocations of 9.05% from net investment income, 11.69% from net realized short-term capital gains, and 79.26% from net realized long-term capital gains.
Year-to-date cumulative distribution per share stands at $0.5650 with the same percentage allocations. The fund noted that it has distributed more than its income and net realized capital gains, indicating a portion of the distribution may be a return of capital.
Performance metrics include an average annual total return of 9.87% over five years, an annualized distribution rate of 8.65%, and a cumulative total return of 9.08% for the fiscal period up to April 30, 2024.
The distributions are made under a managed distribution policy and may include income, realized gains, or a return of capital. The policy aims to provide regular monthly distributions, but changes could affect the fund's market price.
- Distribution per share for June 3, 2024, is $0.1130.
- 79.26% of the fund's distribution comes from net realized long-term capital gains.
- Average annual total return over the past five years is 9.87%.
- Annualized distribution rate as of April 30, 2024, is 8.65%.
- Cumulative total return for the fiscal period through April 30, 2024, is 9.08%.
- A significant portion (79.26%) of the distribution is a return of capital.
- The fund has distributed more than its income and net realized capital gains.
- Managed distribution policy could lead to capital erosion if continued long-term.
- Potential adverse effect on market price if the distribution policy is terminated or suspended.
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 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 November 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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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. SCD estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the SCD 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 SCD’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 November 30, 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 November 30, 2023 through April 30, 2024, as a percentage of the Fund’s NAV as of 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 LMP Capital and Income 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/20240603661206/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
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