Templeton Dragon Fund, Inc. Announces Board Initiatives Intended to Reduce Fund Discount
Management fee reduction: The Board approved a five-basis point reduction in the investment management fee that shareholders pay to the investment manager, Templeton Asset Management Ltd. The management fee reduction will be effective March 1, 2025. The prior and new investment management fees, calculated weekly and paid monthly, to Templeton Asset Management Ltd. based on the average weekly net assets of the Fund are as follows:
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Managed distribution plan: The Board authorized a managed distribution plan (the “Plan”) pursuant to which the Fund will make quarterly distributions to shareholders at the fixed rate of
Share repurchase program: The Board approved an open-market share repurchase program (the “Share Repurchase Program”) to authorize the Fund to purchase, from time to time, up to
Additional information about the Plan: To the extent that sufficient distributable income is not available on a quarterly 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 periodic review by the Board, including a yearly review of the distribution 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 distribution or from the terms of the Plan. The amounts and sources of distributions for tax reporting purposes will depend upon the Fund’s investment experience during 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.
Additional information about the Share Repurchase Program: Subject to the
If and when the Fund’s
For further information on Templeton Dragon Fund, Inc. please visit our web site at www.franklintempleton.com.
About Franklin Templeton
Franklin Resources, Inc. [NYSE:BEN] 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
Category: Fund Announcement
Source: Franklin Templeton Closed End Funds
Source: Franklin Resources, Inc.
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Investor Contact: Fund Investor Services: 1-800-342-5236
Media Contact: Lisa Tibbitts: 1-904-942-4451 or Lisa.Tibbitts@franklintempleton.com
Source: Franklin Templeton