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 April 29, 2022. The distribution per share is $0.0635, comprising 61% net investment income, 39% return of capital, and no short-term or long-term capital gains. For the fiscal year 2022 to date, the cumulative distribution is $0.1913 per share, with 63% from net investment income and 37% from return of capital. Shareholders are cautioned that returns of capital do not reflect performance and final distribution figures may vary for tax purposes.

Positive

• Monthly distribution set at $0.0635 per share, providing a consistent income stream for investors.
• Cumulative fiscal year-to-date distribution of $0.1913 per share indicates ongoing shareholder returns.

Negative

• 39% of April's distribution is a return of capital, which may indicate insufficient investment earnings.
• Average annual total return of -3.88% over five years indicates potential underperformance.

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 April 29, 2022, and for the fiscal year 2022 year-to-date are as follows:

Estimated Allocations for April Monthly Distribution as of March 31, 2022:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.0635	$0.0385 (61%)	$0.0000 (0%)	$0.00 (0%)	$0.0250 (39%)

Cumulative Estimated Allocations fiscal year-to-date as of March 31, 2022, for the fiscal year ending December 31, 2022:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.1913	$0.1197 (63%)	$0.0000 (0%)	$0.00 (0%)	$0.0716 (37%)

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 03/31/2022)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 03/31/2022)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 03/31/2022)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 03/31/2022)4
-3.88%	10.45%	-1.59%	2.62%

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 March 31, 2022. 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 March 31, 2022.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from December 31, 2021 through March 31, 2022, 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, 2021 through March 31, 2022, as a percentage of the Fund’s NAV as of March 31, 2022.

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. [NYSE:BEN] 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 boutique specialization on a global scale, bringing 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 75 years of investment experience and approximately $1.5 trillion in assets under management as of March 31, 2022. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220428006081/en/

Franklin Templeton, 1-800-342-5236

 

Source: Franklin Templeton

FAQ

What is the estimated distribution for Templeton Emerging Markets Income Fund (TEI) in April 2022?

The estimated distribution for April 2022 is $0.0635 per share.

What percentage of the April 2022 distribution for TEI is a return of capital?

39% of the April 2022 distribution is classified as a return of capital.

How does TEI's cumulative distribution compare for the fiscal year 2022 to date?

The cumulative distribution for fiscal year 2022 to date is $0.1913 per share.

What are the potential implications of TEI's return of capital for investors?

Return of capital may indicate insufficient income generated from investments and does not reflect the fund's performance.

What is the average annual total return for Templeton Emerging Markets Income Fund (TEI) as of March 31, 2022?

The average annual total return for TEI as of March 31, 2022, is -3.88% over the past five years.