Templeton Emerging Markets Income Fund (“TEI” or the “Fund”) Announces Distribution
Templeton Emerging Markets Income Fund (TEI) has announced a monthly distribution of $0.0475 per share, payable on January 31, 2025, to shareholders of record on January 21, 2025. The Fund's Board has implemented a managed distribution plan aimed at providing consistent monthly distributions and narrowing the discount between market price and NAV of common shares.
The Fund aims to generate distributions primarily from net ordinary income and short-term capital gains, aligned with its investment strategy. If insufficient distributable income is available, the Fund will distribute long-term capital gains or return capital to maintain its rate. The Board may amend or terminate the Plan, which could affect the Fund's common shares market price. Current year capital gains may be offset by prior years' capital loss carryovers.
Il Templeton Emerging Markets Income Fund (TEI) ha annunciato una distribuzione mensile di $0.0475 per azione, che sarà pagata il 31 gennaio 2025, agli azionisti registrati il 21 gennaio 2025. Il Consiglio del Fondo ha implementato un piano di distribuzione gestita volto a fornire distribuzioni mensili costanti e a ridurre lo sconto tra il prezzo di mercato e il NAV delle azioni ordinarie.
Il Fondo mira a generare distribuzioni principalmente da reddito ordinario netto e guadagni di capitale a breve termine, in linea con la sua strategia di investimento. Se non è disponibile reddito distribuibile sufficiente, il Fondo distribuirà guadagni di capitale a lungo termine o restituirà capitale per mantenere il tasso. Il Consiglio può modificare o terminare il Piano, il che potrebbe influenzare il prezzo di mercato delle azioni ordinarie del Fondo. I guadagni di capitale dell'anno corrente possono essere compensati da perdite di capitale degli anni precedenti.
El Templeton Emerging Markets Income Fund (TEI) ha anunciado una distribución mensual de $0.0475 por acción, que se pagará el 31 de enero de 2025, a los accionistas registrados hasta el 21 de enero de 2025. La Junta del Fondo ha implementado un plan de distribución gestionada destinado a proporcionar distribuciones mensuales consistentes y reducir el descuento entre el precio de mercado y el NAV de las acciones ordinarias.
El Fondo tiene como objetivo generar distribuciones principalmente de ingresos ordinarios netos y ganancias de capital a corto plazo, alineándose con su estrategia de inversión. Si no hay ingresos distribuibles suficientes, el Fondo distribuirá ganancias de capital a largo plazo o devolverá capital para mantener su tasa. La Junta puede modificar o terminar el Plan, lo que podría afectar el precio de mercado de las acciones ordinarias del Fondo. Las ganancias de capital del año actual pueden ser compensadas por pérdidas de capital de años anteriores.
템플턴 신흥시장 수익 기금 (TEI)가 주당 $0.0475의 월 배당금을 발표했습니다. 이 배당금은 2025년 1월 31일에 지급되며, 2025년 1월 21일 기준의 주주에게 지급됩니다. 기금의 이사회는 일관된 월 배당금을 제공하고 보통주 가격과 순자산가치(NAV) 간의 할인폭을 줄이기 위해 관리 배당계획을 시행했습니다.
기금은 투자 전략에 맞춰 주로 순 일반 소득 및 단기 자본 이득에서 배당금을 생성하는 것을 목표로 하고 있습니다. 배당 가능한 소득이 부족할 경우, 기금은 자본 이득을 장기적으로 분배하거나 자본을 반환하여 배당금을 유지할 것입니다. 이사회는 계획을 수정하거나 종료할 수 있으며, 이는 기금의 보통주 시장 가격에 영향을 줄 수 있습니다. 현재 연도의 자본 이득은 이전 연도의 자본 손실에 의해 상쇄될 수 있습니다.
Le Templeton Emerging Markets Income Fund (TEI) a annoncé une distribution mensuelle de 0,0475 USD par action, payable le 31 janvier 2025, aux actionnaires inscrits au 21 janvier 2025. Le Conseil du Fonds a mis en œuvre un plan de distribution gérée visant à fournir des distributions mensuelles cohérentes et à réduire l'écart entre le prix de marché et la valeur nette d'inventaire (VNI) des actions ordinaires.
Le Fonds vise à générer des distributions principalement à partir de revenus ordinaires nets et de gains en capital à court terme, en accord avec sa stratégie d'investissement. Si le revenu distribuable disponible est insuffisant, le Fonds distribuera des gains en capital à long terme ou retournera des capitaux pour maintenir son taux. Le Conseil peut modifier ou mettre fin au Plan, ce qui pourrait affecter le prix de marché des actions ordinaires du Fonds. Les gains en capital de l'année en cours peuvent être compensés par des reports de pertes en capital des années précédentes.
Der Templeton Emerging Markets Income Fund (TEI) hat eine monatliche Ausschüttung von 0,0475 USD pro Aktie angekündigt, die am 31. Januar 2025 an die Aktionäre ausgezahlt wird, die am 21. Januar 2025 als Aktionäre registriert sind. Der Vorstand des Fonds hat einen verwalteten Ausschüttungsplan implementiert, der darauf abzielt, konsistente monatliche Ausschüttungen bereitzustellen und den Rabatt zwischen dem Marktpreis und dem NAV der Stammaktien zu verringern.
Der Fonds soll Ausschüttungen hauptsächlich aus Nettoeinkommen und kurzfristigen Kapitalgewinnen erzeugen, abgestimmt auf seine Anlagestrategie. Wenn nicht genügend ausschüttungsfähiges Einkommen verfügbar ist, wird der Fonds langfristige Kapitalgewinne ausschütten oder Kapital zurückgeben, um seine Rate aufrechtzuerhalten. Der Vorstand kann den Plan ändern oder beenden, was den Marktpreis der Stammaktien des Fonds beeinflussen könnte. Die aktuellen Kapitalgewinne können durch Verlustvorträge aus Vorjahren ausgeglichen werden.
- Fixed monthly distribution rate of $0.0475 per share established
- Strategic plan implemented to narrow market price to NAV discount
- Flexible distribution structure allowing for multiple income sources
- Potential return of capital if insufficient income available
- Risk of plan termination or amendment affecting share price
- Possible offset of current gains by prior years' losses
Insights
The monthly distribution announcement of
The fund's approach to maintaining fixed distributions through a combination of net ordinary income, short-term gains and potentially capital returns demonstrates sophisticated portfolio management. However, investors should note that return of capital distributions can erode the fund's asset base if not supported by underlying performance. The flexibility to tap into capital loss carryovers for tax efficiency is a notable advantage in the current market landscape.
For retail investors: Think of this distribution plan like a steady paycheck - it's designed to provide reliable monthly income, but the sources of that income can vary, similar to how a paycheck might include regular wages plus bonuses or overtime pay. The key is understanding that not all distributions may represent true investment returns.
The distribution structure warrants careful tax consideration. The fund's ability to utilize capital loss carryforwards creates potential tax efficiency, but investors should be alert to the tax implications of return of capital distributions. Unlike regular income distributions, return of capital reduces the cost basis of shares, potentially leading to larger capital gains upon eventual sale.
The delayed Form 1099-DIV reporting approach is standard but requires investors to avoid making premature tax planning decisions based on the estimated distribution sources. For the average investor: Imagine your cost basis like a savings account balance - return of capital distributions are like withdrawing from your initial investment rather than earning interest, which can affect your tax situation when you eventually sell.
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
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
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For more information, please contact Franklin Templeton at 1-800-342-5236
Source: Franklin Templeton
FAQ
What is TEI's monthly distribution amount for January 2025?
When is the ex-dividend date for TEI's January 2025 distribution?
What is the purpose of TEI's managed distribution plan?
How does TEI generate its monthly distributions?
Can TEI's managed distribution plan be changed or terminated?
