LMP Capital and Income Fund Inc. (SCD or “the Fund”; CUSIP: 50208A102) Announces Notification of Sources of Distributions

Rhea-AI Summary

LMP Capital and Income Fund (NYSE: SCD) released an announcement regarding the sources of its distributions slated for July 1, 2024. The fund disclosed estimated allocations for the June monthly distribution, noting that a significant portion (78.42%) comprises net realized long-term capital gains, with the rest from net investment income (10.05%) and net realized short-term capital gains (11.52%). No return of capital was reported. For the fiscal year-to-date, the distribution per share is $0.6780, with similar allocation percentages. Notably, SCD has distributed more than its income and net realized capital gains, which could imply a return of capital. This distribution does not necessarily reflect fund performance. Performance metrics include a 5-year average annual total return of 12.35% and a cumulative total return of 14.45% for the fiscal period through May 31, 2024. The managed distribution policy allows for regular monthly payouts, potentially including returns of capital. Investors will receive Form 1099-DIV for tax purposes.

Positive

• The fund has a 5-year average annual total return of 12.35%.
• Cumulative total return for the fiscal period through May 31, 2024, is 14.45%.

Negative

• 78.42% of the June distribution is derived from net realized long-term capital gains.
• SCD has distributed more than its income and net realized capital gains, signaling a potential return of capital.

NEW YORK--(BUSINESS WIRE)-- LMP Capital and Income Fund Inc. [NYSE: SCD]

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 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
$0.1130	$0.0114	$0.0130	$0.0886	$0.0000
100.00%	10.05%	11.52%	78.42%	0.00%

Cumulative Estimated Allocations fiscal year-to-date as of May 31, 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
$0.6780	$0.0682	$0.0781	$0.5317	$0.0000
100.00%	10.05%	11.52%	78.42%	0.00%

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 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
12.35%	8.30%	14.45%	4.15%

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 May 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 May 31, 2024.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from November 30, 2023 through May 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 November 30, 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 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/20240701004452/en/

Investor Contact: 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 LMP Capital and Income Fund (SCD) for July 1, 2024?

The distribution per share for SCD for July 1, 2024, is $0.1130.

What are the sources of distributions for SCD as of May 31, 2024?

As of May 31, 2024, the sources of distributions for SCD are net investment income (10.05%), net realized short-term capital gains (11.52%), and net realized long-term capital gains (78.42%).

What is the cumulative distribution per share for SCD for the fiscal year-to-date as of May 31, 2024?

The cumulative distribution per share for SCD for the fiscal year-to-date as of May 31, 2024, is $0.6780.

What is the 5-year average annual total return for LMP Capital and Income Fund (SCD)?

The 5-year average annual total return for SCD is 12.35%.

How is the managed distribution policy of SCD structured?

SCD's managed distribution policy delivers regular monthly distributions potentially sourced from net investment income, realized capital gains, and returns of capital.