Templeton Emerging Markets Income Fund (“TEI” or the “Fund”) Announces Distribution and Increase to its Managed Distribution Plan

Rhea-AI Summary

Templeton Emerging Markets Income Fund (TEI) announced a monthly distribution of $0.0716 per share, payable on August 31, 2021, to shareholders of record on August 16, 2021. The Fund's Board authorized an increase in its managed distribution plan from an 8.5% to a 10% annual minimum fixed rate, based on the average monthly net asset value (NAV). While this plan aims to provide shareholders with stable monthly distributions, it may include long-term capital gains or return of capital if net ordinary income is insufficient. Investors should be cautious, as distributions may not reflect actual investment performance.

Positive

• Increase in managed distribution plan from 8.5% to 10% annually.
• Monthly distribution provides a consistent income stream for shareholders.

Negative

• Distributions may include return of capital, which does not reflect investment performance.
• No assurance that the increased distribution plan will narrow the discount between market price and NAV.

Templeton Emerging Markets Income Fund [NYSE: TEI] today announced a monthly distribution from net investment income of $0.0716 per share, payable on August 31, 2021, to shareholders of record on August 16, 2021 (Ex-Dividend Date: August 13, 2021).

The Fund’s Board recently authorized an increase to TEI’s managed distribution plan pursuant to which the Fund will make monthly distributions to shareholders at an annual minimum fixed rate of 10%, an increase from the previously authorized 8.5%, based on the average monthly net asset value (NAV) of the Fund’s common shares (the “Plan”). The Fund will calculate 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 Plan is subject to periodic review by the Board and may be amended or terminated at any time.

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. The amounts and sources of the Fund’s distributions to be reported will be estimates and will not be 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.

Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 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 brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and over $1.5 trillion in assets under management as of June 30, 2021. For more information, please visit franklintempleton.com.

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FAQ

What is the monthly distribution rate for Templeton Emerging Markets Income Fund (TEI) as of August 2021?

Templeton Emerging Markets Income Fund (TEI) announced a monthly distribution rate of $0.0716 per share as of August 2021.

When is the record date for the TEI distribution payment?

The record date for the TEI distribution payment is August 16, 2021.

What is the significance of the managed distribution plan increase for TEI?

The managed distribution plan increase from 8.5% to 10% aims to provide shareholders with a stable income and potentially narrow the discount between the market price and NAV.

What is the potential impact of return of capital on TEI distributions?

Return of capital in TEI distributions may indicate that some of the invested money is being returned to shareholders and does not necessarily reflect the Fund's investment performance.

How does Franklin Resources, Inc. (BEN) relate to TEI?

Franklin Resources, Inc. (BEN) is the investment management organization overseeing the Templeton Emerging Markets Income Fund (TEI).