Templeton Emerging Markets Income Fund (“TEI”) Announces Its First Monthly Distribution Pursuant to Previously Announced Managed Distribution Plan

Rhea-AI Summary

Templeton Emerging Markets Income Fund (NYSE: TEI) announced a monthly distribution of $0.0597 per share, payable on June 30, 2021, to shareholders of record by June 15, 2021. The Fund's Board has authorized a managed distribution plan, ensuring a fixed minimum annual distribution rate of 8.5% based on average monthly net asset value. This plan aims to narrow the market price discount to NAV, though success is not guaranteed. Distributions may include long-term capital gains or return of capital if net ordinary income is not sufficient.

Positive

• Monthly distribution of $0.0597 per share
• Implemented a managed distribution plan with a minimum annual rate of 8.5%

Negative

• The distribution plan's success is not guaranteed
• Distributions may include return of capital, not reflecting investment performance

Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0597 per share, payable on June 30, 2021, to shareholders of record on June 15, 2021 (Ex-Dividend Date: June 14, 2021).

As recently announced, the Fund’s Board authorized the implementation of a managed distribution plan pursuant to which the Fund will make monthly distributions to shareholders at an annual minimum fixed rate of 8.5%, based on the average monthly net asset value (NAV) of the Fund’s common shares (the “Plan”). The Plan, which commences with the Fund’s June distribution, is intended to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month and is intended to narrow the discount between the market price and the 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 you invested in the Fund is paid back to you. 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 Plan is subject to periodic review by the Board and may be amended or terminated at any time.

You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s managed distribution policy. The amounts and sources of the Fund’s distributions to be reported will be estimates and will not be 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 you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 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 brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately $1.5 trillion in assets under management as of April 30, 2021. For more information, please visit franklintempleton.com.

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FAQ

What is the monthly distribution amount for Templeton Emerging Markets Income Fund (TEI)?

The monthly distribution amount for Templeton Emerging Markets Income Fund (TEI) is $0.0597 per share.

When will the dividend for TEI be paid?

The dividend for TEI will be paid on June 30, 2021.

What is the minimum distribution rate under the managed distribution plan for TEI?

The minimum distribution rate under the managed distribution plan for TEI is 8.5% per year.

What impact does the managed distribution plan have on TEI's market price and NAV?

The managed distribution plan aims to narrow the discount between TEI's market price and its net asset value (NAV), but success is not guaranteed.

What does a return of capital mean for TEI shareholders?

A return of capital for TEI shareholders means that part of their investment may be paid back, which does not necessarily reflect the fund's investment performance.