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

Rhea-AI Summary

Templeton Emerging Markets Income Fund (TEI) has announced its November 2024 distribution of $0.0475 per share, with 100% coming from net investment income. For fiscal year 2024 to date, distributions totaled $0.4750 per share, comprising 94% from net investment income, 1% from short-term capital gains, and 5% return of capital. The Fund maintains a managed distribution plan with fixed monthly payments of $0.0475 per share. Performance metrics show a -1.00% average annual total return over five years, a 9.50% annualized distribution rate, and a 10.05% cumulative total return for the current fiscal period.

Positive

• 10.05% cumulative total return for current fiscal period
• 9.50% annualized distribution rate
• 94% of distributions sourced from net investment income

Negative

• -1.00% average annual total return over 5-year period
• 5% of distributions represent return of capital, indicating insufficient earnings to cover distributions

Insights

Financial Analyst

This dividend distribution notice reveals important details about TEI's financial performance and distribution strategy. The fund's $0.0475 monthly distribution comes entirely from net investment income, maintaining a high 9.50% annualized distribution rate. However, the -1.00% 5-year average annual return signals concerning long-term performance issues.

The fund's 94% distribution from net investment income year-to-date, with 5% return of capital, suggests sustainable income generation but also indicates potential pressure on capital preservation. The 10.05% cumulative total return for the current period shows some recovery, but investors should monitor the fund's ability to maintain these distributions without further capital erosion.

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 November 29, 2024, and for the fiscal year 2024 year-to-date are as follows:

Estimated Allocations for November Monthly Distribution as of October 31, 2024:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.0475	$0.0475 (100%)	$0.00 (0%)	$0.00 (0%)	$0.00 (0%)

Cumulative Estimated Allocations fiscal year-to-date as of October 31, 2024, for the fiscal year ending December 31, 2024:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.4750	$0.4471 (94%)	$0.0036 (1%)	$0.00 (0%)	$0.0243 (5%)

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 10/31/2024)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 10/31/2024)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 10/31/2024)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 10/31/2024)4
-1.00%	9.50%	10.05%	7.92%

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 October 31, 2024. 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 October 31, 2024.
3		Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2023 through October 31, 2024, 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, 2023 through October 31, 2024, as a percentage of the Fund’s NAV as of October 31, 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.

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 October 31, 2024. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241127118752/en/

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

Source: Franklin Templeton

FAQ

What is TEI's current monthly distribution amount?

TEI's current monthly distribution is $0.0475 per share.

What is TEI's 5-year average annual total return as of October 2024?

TEI's 5-year average annual total return is -1.00% as of October 31, 2024.

How much of TEI's fiscal year 2024 distributions are from net investment income?

94% of TEI's fiscal year 2024 distributions come from net investment income.

What is TEI's annualized distribution rate for the current fiscal period?

TEI's annualized distribution rate is 9.50% for the current fiscal period through October 31, 2024.