Templeton Emerging Markets Income Fund (“TEI” or the “Fund”) Announces Notification of Sources of Distributions

Rhea-AI Summary

The Templeton Emerging Markets Income Fund (NYSE: TEI) has announced its estimated sources of distribution for February 2023, detailing a monthly distribution per share of $0.0497. This amount comprises $0.0361 from net investment income (73%), $0.0084 from net short-term capital gains (17%), and $0.0052 as a return of capital (10%). Cumulatively, for fiscal year 2023 to date, the fund has a distribution per share of $0.0470, with $0.0405 from net investment income (86%). Shareholders should note that the fund has experienced a cumulative loss in net realized and unrealized capital gains totaling $3.9247 per share.

Positive

• Monthly distribution of $0.0497 per share for February 2023.
• Distribution comprises 73% net investment income, indicating ongoing income generation.

Negative

• Cumulative loss of $3.9247 per share in net realized and unrealized capital gains.
• Portion of distribution may be a return of capital, which does not reflect investment performance.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- Templeton Emerging Markets Income Fund [NYSE: TEI]

Notification of Sources of Distributions Pursuant to Section 19(a) of the Investment Company Act of 1940

The Fund’s estimated sources of the distribution to be paid on February 28, 2023, and for the fiscal year 2023 year-to-date are as follows:

Estimated Allocations for February Monthly Distribution as of January 31, 2023:

Distribution Per Share		Net Investment Income		Net Realized Short-Term Capital Gains		Net Realized Long-Term Capital Gains		Return of Capital
$0.0497		$0.0361 (73%)		$0.0084 (17%)		$0.00 (0%)		$0.0052 (10%)

Cumulative Estimated Allocations fiscal year-to-date as of January 31, 2023, for the fiscal year ending December 31, 2023:

Distribution Per Share		Net Investment Income		Net Realized Short-Term Capital Gains		Net Realized Long-Term Capital Gains		Return of Capital
$0.0470		$0.0405 (86%)		$0.0000 (0%)		$0.00 (0%)		$0.0065 (14%)

The Fund has experienced a cumulative loss in undistributed net realized and unrealized capital gains and losses totaling $3.9247 per share. Of that amount, $1.9026 per share represents unrealized depreciation of portfolio securities.

Shareholders should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Plan. TEI estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the TEI distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect TEI’s investment performance and should not be confused with ‘yield’ or ‘income’. 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.

Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on 1/31/2023)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 1/31/2023)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 1/31/2023)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 1/31/2023)4
-6.91%	9.94%	5.72%	0.78%

Fund Performance and Distribution Rate Information:

1. Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended through January 31, 2023. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
2. The Annualized Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV through January 31, 2023.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2022 through January 31, 2023, assuming reinvestment of distributions paid.
4. The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period December 31, 2022 through January 31, 2023, as a percentage of the Fund’s NAV as of January 31, 2023.

The Fund’s Board of Trustees (the “Board”) has authorized a managed distribution plan pursuant to which the Fund makes monthly distributions to shareholders at an annual minimum fixed rate of 10%, based on the average monthly NAV of the Fund’s common shares (the “Plan”). The Fund calculates the average NAV from the previous month based on the number of business days in the month on which the NAV is calculated. The Plan 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 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 annual minimum fixed rate to determine if an adjustment should be made.

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 155 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 offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of January 31, 2023. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230227005659/en/

Franklin Templeton, 1-800-342-5236

Source: Franklin Templeton

FAQ

What is the February 2023 distribution amount for TEI?

The Templeton Emerging Markets Income Fund has announced a distribution of $0.0497 per share for February 2023.

What percentage of the TEI distribution comes from net investment income?

73% of the TEI distribution for February 2023 comes from net investment income.

Is the distribution from TEI a return of capital?

Yes, a portion of the distribution may be a return of capital, which does not indicate the fund's investment performance.

What are the cumulative losses reported by TEI?

The fund reported cumulative losses of $3.9247 per share in net realized and unrealized capital gains.

What is the cumulative distribution per share for TEI in 2023?

The cumulative distribution per share for TEI as of January 31, 2023, is $0.0470.