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 November 29, 2024, to shareholders of record on November 18, 2024. The Fund's Board has implemented a managed distribution plan to maintain consistent monthly payments and potentially narrow the discount between market price and NAV. While the Fund aims to generate distributions primarily from net ordinary income and short-term capital gains, it may include long-term capital gains or return of capital when necessary. The distribution plan may be amended or terminated by the Board at any time.

Positive

• Fixed monthly distribution provides steady income stream to shareholders
• Plan aims to reduce discount between market price and NAV
• Fund is part of Franklin Templeton with $1.6 trillion in assets under management

Negative

• Distributions may include return of capital, which represents a return of investors' principal rather than earnings
• Capital gains might be offset by prior years' losses
• No guarantee the plan will succeed in narrowing the price-NAV discount

Insights

Financial Analyst

The announcement of a $0.0475 monthly distribution represents a significant development for TEI shareholders. The managed distribution plan aims to maintain consistent monthly payouts while potentially narrowing the fund's market price to NAV discount. This fixed distribution strategy, while providing predictable income, may include return of capital if investment income is insufficient, which could impact the fund's long-term sustainability. With $1.6 trillion in assets under management, Franklin Templeton's scale provides stability, but investors should note that distributions may not solely reflect investment performance. The plan's flexibility to adjust or terminate could affect share price stability.

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 November 29, 2024, to shareholders of record on November 18, 2024 (Ex-Dividend Date: November 18, 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.

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 over $1.6 trillion in assets under management as of September 30, 2024. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241107375006/en/

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

Source: Franklin Templeton

FAQ

What is the monthly distribution amount for Templeton Emerging Markets Income Fund (TEI)?

TEI announced a monthly distribution of $0.0475 per share.

When is the ex-dividend date for TEI's November 2024 distribution?

The ex-dividend date is November 18, 2024.

What is the payment date for TEI's November 2024 distribution?

The distribution is payable on November 29, 2024.

Can TEI's managed distribution plan be changed or terminated?

Yes, the Board may amend or terminate the Plan at any time without prior notice to shareholders.