Templeton Emerging Markets Income Fund (“TEI” or the “Fund”) Announces Distribution

Rhea-AI Summary

Templeton Emerging Markets Income Fund (NYSE: TEI) has announced a monthly distribution of $0.0475 per share, payable on August 30, 2024, to shareholders of record on August 19, 2024. This distribution is part of a managed distribution plan authorized by the Fund's Board of Trustees, aiming to provide consistent monthly distributions and narrow the discount between the market price and net asset value of the Fund's shares.

The Fund aims to generate the distribution primarily from net ordinary income and short-term capital gains, consistent with its investment strategy. If insufficient income is available, the Fund may distribute long-term capital gains or return capital. The Board may amend or terminate the plan, which could affect the Fund's market price. Shareholders are advised not to draw conclusions about the Fund's performance from the distribution amount.

Positive

• Consistent monthly distribution of $0.0475 per share
• Managed distribution plan aims to narrow discount between market price and NAV
• Fund managed by Franklin Templeton, a global investment firm with $1.6 trillion AUM

Negative

• Distributions may include return of capital if insufficient income is available
• Plan amendments or termination could adversely affect the Fund's market price
• Current year capital gains may be offset by capital loss carryovers from prior years

Financial Analyst

The announcement of a $0.0475 monthly distribution by Templeton Emerging Markets Income Fund (TEI) is a routine event for this type of investment vehicle. The fixed distribution rate under the managed distribution plan is designed to provide consistent income to shareholders, which is typical for income-focused funds. However, investors should note that:

• The distribution may include return of capital, potentially impacting the fund's NAV.
• The plan aims to narrow the discount between market price and NAV, but success isn't guaranteed.
• The fund's ability to maintain this distribution rate depends on its investment performance and market conditions.

While the distribution provides regular income, it's important for investors to monitor the fund's performance and the composition of distributions for a complete picture of their investment's health.

Investment Fund Specialist

TEI's managed distribution plan is a double-edged sword for investors. On one hand, it offers predictable monthly income, which can be attractive in volatile emerging markets. On the other, it may lead to return of capital distributions if the fund's performance doesn't support the fixed rate. Key points to consider:

• The fixed $0.0475 per share distribution represents a significant yield, potentially above 10% based on current share prices.
• The fund's use of capital loss carryovers could impact the tax efficiency of distributions.
• The Board's ability to amend or terminate the plan introduces uncertainty for income-dependent investors.

Investors should closely examine the fund's NAV trends and distribution sources to assess the sustainability of the current distribution policy.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0475 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 $0.0475 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 Templeton Emerging Markets Income Fund, 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.

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Franklin Templeton

1-800-342-5236

Source: Franklin Templeton

FAQ

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

Templeton Emerging Markets Income Fund (TEI) has announced a monthly distribution of $0.0475 per share.

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

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

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

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

Can TEI's distribution include a return of capital?

Yes, TEI may distribute long-term capital gains and/or return of capital if sufficient distributable income is not available on a monthly basis to maintain its managed distribution rate.