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

Rhea-AI Summary

Templeton Emerging Markets Income Fund (TEI) has declared a monthly distribution of $0.0475 per share, payable on April 30, 2025, to shareholders of record on April 17, 2025. The distribution is part of a managed distribution plan approved by the Fund's Board of Trustees.

The Plan aims to provide consistent monthly distributions and reduce the discount between market price and NAV of the Fund's shares. Distributions may come from net ordinary income, short-term capital gains, long-term capital gains, or return of capital. The Fund's capital loss carryovers may offset current year gains.

Franklin Templeton, TEI's parent company, manages $1.57 trillion in assets as of February 28, 2025, operating globally with over 1,500 investment professionals.

Positive

• Fixed monthly distribution provides predictable income stream to shareholders
• Managed distribution plan aims to reduce NAV discount
• Parent company Franklin Templeton manages substantial AUM of $1.57 trillion

Negative

• Distributions may include return of capital, which represents return of investors' principal
• Current year capital gains may be offset by prior years' losses
• No guarantee the plan will succeed in narrowing the NAV discount

Insights

Financial Analyst

Templeton Emerging Markets Income Fund has announced the continuation of its $0.0475 monthly distribution, maintaining what calculates to an approximately 11.2% annualized yield based on the current $5.09 share price. This distribution is part of a managed distribution plan with two stated objectives: providing consistent monthly income and potentially narrowing the discount between market price and NAV.

What's particularly noteworthy is the fund's disclosure regarding distribution composition. The announcement explicitly states that when sufficient income isn't available monthly, distributions may include long-term capital gains or return of capital. This distinction matters significantly - return of capital represents investors receiving their own investment principal back rather than actual earnings, which could gradually erode the fund's asset base if continued long-term.

The mention of "capital loss carryovers from prior years" potentially offsetting current year gains provides additional context about the fund's historical performance challenges. These carryovers suggest accumulated losses that impact both distribution composition and tax treatment.

For income-oriented investors, this consistent distribution policy provides predictability, but prudent evaluation requires examining what percentage of previous distributions represented genuine investment income versus principal return. Without this composition data, it's impossible to fully assess distribution sustainability.

For emerging markets debt investors, this managed distribution approach represents a trade-off between current income certainty and potential long-term principal preservation, particularly in a market segment known for volatility.

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 April 30, 2025, to shareholders of record on April 17, 2025 (Ex-Dividend Date: April 17, 2025).

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 $1.57 trillion in assets under management as of February 28, 2025. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250407327683/en/

For more information, please contact Franklin Templeton at 1-800-342-5236.

Source: Franklin Templeton

FAQ

What is the monthly distribution amount for TEI stock announced for April 2025?

TEI announced a monthly distribution of $0.0475 per share, payable on April 30, 2025, to shareholders of record on April 17, 2025.

What are the sources of TEI's monthly distributions under the managed distribution plan?

Distributions come from net ordinary income, short-term capital gains, and when necessary, long-term capital gains or return of capital to maintain the fixed rate.

What is the ex-dividend date for TEI's April 2025 distribution?

The ex-dividend date for TEI's April 2025 distribution is April 17, 2025.

What are the main objectives of TEI's managed distribution plan?

The plan aims to provide consistent monthly distributions and narrow the discount between the market price and NAV of the Fund's shares.