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

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Templeton Emerging Markets Income Fund (TEI) has announced its distribution details for December 2024 and fiscal year-to-date. The Fund will distribute $0.0475 per share on December 31, 2024, with 100% coming from net investment income. For the fiscal year-to-date, the total distribution is $0.5225 per share, comprising 95% from net investment income, 1% from short-term capital gains, and 4% return of capital.

The Fund's performance metrics show a -1.04% average annual total return over the past 5 years, with a 9.66% annualized distribution rate and 9.09% cumulative total return for the current fiscal period. The Fund maintains a managed distribution plan at a fixed rate of $0.0475 per share monthly, aiming to narrow the discount between market price and NAV.

Templeton Emerging Markets Income Fund (TEI) ha annunciato i dettagli delle distribuzioni per dicembre 2024 e per l'anno fiscale fino ad oggi. Il Fondo distribuirà $0.0475 per azione il 31 dicembre 2024, con il 100% proveniente da reddito da investimenti netti. Per l'anno fiscale fino ad oggi, la distribuzione totale è di $0.5225 per azione, composta per il 95% da reddito da investimenti netti, l'1% da guadagni in conto capitale a breve termine e il 4% da restituzione di capitale.

I metriche di performance del Fondo mostrano un ritorno totale medio annuale del -1.04% negli ultimi 5 anni, con un tasso di distribuzione annualizzato del 9.66% e un ritorno cumulativo totale del 9.09% per il periodo fiscale corrente. Il Fondo mantiene un piano di distribuzione gestito a un tasso fisso di $0.0475 per azione mensilmente, mirando a ridurre il disallineamento tra il prezzo di mercato e il NAV.

Templeton Emerging Markets Income Fund (TEI) ha anunciado los detalles de su distribución para diciembre de 2024 y el año fiscal hasta la fecha. El Fondo distribuirá $0.0475 por acción el 31 de diciembre de 2024, con el 100% proveniente de ingresos netos por inversiones. Para el año fiscal hasta la fecha, la distribución total es de $0.5225 por acción, compuesta por un 95% de ingresos netos por inversiones, un 1% de ganancias de capital a corto plazo y un 4% de retorno de capital.

Las métricas de rendimiento del Fondo muestran un retorno total promedio anual de -1.04% en los últimos 5 años, con una tasa de distribución anualizada del 9.66% y un retorno total acumulado del 9.09% para el período fiscal actual. El Fondo mantiene un plan de distribución gestionado a una tasa fija de $0.0475 por acción mensualmente, con el objetivo de reducir la discrepancia entre el precio de mercado y el NAV.

템플턴 신흥 시장 수익 기금 (TEI)가 2024년 12월 및 회계 연도까지의 분배 세부 사항을 발표했습니다. 기금은 2024년 12월 31일에 주당 $0.0475를 분배할 예정이며, 100%가 순 투자 소득에서 발생합니다. 회계 연도까지의 총 분배액은 주당 $0.5225로, 95%가 순 투자 소득, 1%가 단기 자본 이익, 4%가 자본 환급으로 구성되어 있습니다.

기금의 실적 지표는 지난 5년 동안 평균 연간 총 수익률이 -1.04%이며, 연간 배당률은 9.66%이고 이번 회계 기간의 누적 총 수익률은 9.09%입니다. 기금은 주당 $0.0475의 고정 금리로 월별 관리 분배 계획을 유지하여 시장 가격과 NAV 간의 할인 갭을 좁히는 것을 목표로 합니다.

Templeton Emerging Markets Income Fund (TEI) a annoncé les détails de sa distribution pour décembre 2024 et pour l'exercice fiscal à ce jour. Le Fonds distribuera $0.0475 par action le 31 décembre 2024, avec 100% provenant des revenus nets d'investissement. Pour l'exercice fiscal à ce jour, la distribution totale s'élève à $0.5225 par action, comprenant 95% issus des revenus nets d'investissement, 1% des gains en capital à court terme et 4% de retour de capital.

Les indicateurs de performance du Fonds montrent un rendement total annuel moyen de -1.04% au cours des 5 dernières années, avec un taux de distribution annualisé de 9.66% et un rendement total cumulé de 9.09% pour la période fiscale actuelle. Le Fonds maintient un plan de distribution géré avec un taux fixe de $0.0475 par action chaque mois, visant à réduire l'écart entre le prix du marché et la valeur nette d'inventaire (NAV).

Templeton Emerging Markets Income Fund (TEI) hat die Verteilungdetails für Dezember 2024 und das laufende Geschäftsjahr bekannt gegeben. Der Fonds wird am 31. Dezember 2024 $0.0475 pro Aktie ausschütten, wobei 100% aus Nettomieteinkünften stammen. Für das laufende Geschäftsjahr beträgt die Gesamtausschüttung $0.5225 pro Aktie, die zu 95% aus Nettomieteinkünften, 1% aus kurzfristigen Kapitalgewinnen und 4% aus Kapitalrückzahlungen besteht.

Die Performance-Kennzahlen des Fonds zeigen in den letzten 5 Jahren eine durchschnittliche jährliche Gesamtrendite von -1.04% mit einer annualisierten Ausschüttungsrate von 9.66% und einer kumulierten Gesamtrendite von 9.09% für den aktuellen Geschäftsjahreszeitraum. Der Fonds hat einen verwalteten Ausschüttungsplan mit einem festen Satz von $0.0475 pro Aktie monatlich, um die Diskrepanz zwischen Marktpreis und NAV zu verringern.

Positive
  • Monthly fixed distribution of $0.0475 per share
  • 95% of fiscal year-to-date distributions from net investment income
  • 9.66% annualized distribution rate
  • 9.09% cumulative total return for current fiscal period
Negative
  • -1.04% average annual total return over 5-year period
  • 4% of distributions represent return of capital, indicating insufficient earnings to cover distributions

Insights

This distribution announcement from Templeton Emerging Markets Income Fund reveals several critical insights. The fund's $0.0475 monthly distribution is being funded entirely (100%) from net investment income for December, while the year-to-date distributions show a mix of 95% from investment income, 1% from short-term gains and notably 4% from return of capital.

The fund's performance metrics are concerning, with a negative -1.04% 5-year average annual total return, though it maintains a high distribution rate of 9.66%. This combination suggests the fund may be prioritizing income distribution over capital preservation. The 9.09% cumulative total return for the current period indicates some recent improvement, but the long-term trend remains challenging.

For investors, the high distribution rate may appear attractive, but it's important to note that some distributions include return of capital, which essentially means returning investors' own money rather than generating new returns. This, combined with the negative long-term performance, raises questions about the sustainability of the current distribution policy.

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 December 31, 2024, and for the fiscal year 2024 year-to-date are as follows:

Estimated Allocations for December Monthly Distribution as of November 30, 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 November 30, 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

$0.5225

$0.4946 (95%)

$0.0036 (1%)

$0.00 (0%)

$0.0243 (4%)

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 11/30/2024)1

Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 11/30/2024)2

Cumulative Total Return (in relation to the change in NAV for the fiscal period through 11/30/2024)3

Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 11/30/2024)4

-1.04%

9.66%

9.09%

8.86%

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 November 30, 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 November 30, 2024.
  3. Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2023 through November 30, 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 November 30, 2024, as a percentage of the Fund’s NAV as of November 30, 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 November 30, 2024. For more information, please visit franklintempleton.com.

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

Source: Franklin Templeton

FAQ

What is TEI's current monthly distribution amount per share?

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

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

TEI's 5-year average annual total return is -1.04% as of November 30, 2024.

How much of TEI's fiscal year-to-date distribution is from net investment income?

95% of TEI's fiscal year-to-date distribution comes from net investment income.

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

TEI's annualized distribution rate is 9.66% for the current fiscal period through November 30, 2024.

What percentage of TEI's distributions represents return of capital?

4% of TEI's fiscal year-to-date distributions represent return of capital.

Templeton Emerging Markets Income Fund

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