Franklin Templeton Fund Adviser, LLC Announces Distributions for the Months of March, April and May 2024
- None.
- None.
Insights
The announcement of distribution schedules and amounts by Franklin Templeton Fund Adviser, LLC for its closed-end funds provides investors with clarity on the expected cash flows from their investments. The slight increase in the distribution amount for the Western Asset Investment Grade Income Fund Inc. in March suggests a potential uptick in income generation, possibly due to improved performance of the underlying assets or a strategic decision to distribute more income. It's important to note that consistent distributions can be a sign of stability, but investors should also consider the sustainability of these payouts.
From a financial perspective, the distributions are a transfer of value from the fund to the investors and can impact the net asset value (NAV) of the fund. Investors looking for regular income might find this appealing, but it's crucial to assess the total return, including both distribution yield and NAV performance. Additionally, the tax characterization of the distributions will be important for shareholders to understand, as it affects the after-tax return on their investment.
The press release's mention of the tax characterization of the distributions is a significant point for shareholders. Distributions can be classified as ordinary income, long-term capital gains, or return of capital, each with different tax implications. For instance, long-term capital gains are generally taxed at a lower rate than ordinary income, while return of capital is not taxed immediately but reduces the investor's cost basis in the fund.
Understanding the tax implications is essential for shareholders to accurately project their after-tax investment performance and plan for tax liabilities. The announcement that Form 1099-DIV will be sent in early 2025 indicates that investors will need to wait for definitive tax information, which can affect their tax planning strategies.
The declared distributions can be indicative of the closed-end funds' market positioning and competitiveness. For income-focused investors, the yield offered by these funds can be a critical factor in their investment decisions. The funds' ability to maintain or increase distributions can make them more attractive compared to alternatives in the market, potentially influencing investor demand and the funds' market prices.
Moreover, changes in distribution amounts can reflect broader market trends and the economic environment. For example, an increase in distribution might correlate with falling interest rates, which can enhance the appeal of fixed-income funds. Conversely, if distributions are reduced or remain stagnant in a rising interest rate environment, this could signal challenges in generating income or capital gains, which investors should monitor closely.
The following dates apply to the distribution schedule below:
Month |
Record Date |
Ex-Dividend Date |
Payable Date |
March |
3/21/2024 |
3/20/2024 |
4/1/2024 |
April |
4/23/2024 |
4/22/2024 |
5/1/2024 |
May |
5/23/2024 |
5/22/2024 |
6/3/2024 |
Ticker |
Fund Name |
Month |
Amount |
TYPE |
Change from Previous Distribution |
PAI |
Western Asset Investment Grade Income Fund Inc. |
March |
|
Income |
|
|
|
April |
|
Income |
|
|
|
May |
|
Income |
|
WEA |
Western Asset Premier Bond Fund |
March |
|
Income |
- |
|
|
April |
|
Income |
|
|
|
May |
|
Income |
|
This press release is not for tax reporting purposes but is being provided to announce the amount of each Fund’s distributions that have been declared by the Board of Trustees. In early 2025, after definitive information is available, each Fund will send shareholders a Form 1099-DIV, if applicable, specifying how the distributions paid by each Fund during the prior calendar year should be characterized for purposes of reporting the distributions on a shareholder’s tax return (e.g., ordinary income, long-term capital gain or return of capital).
Franklin Templeton Fund Adviser, LLC (formerly known as Legg Mason Partners Fund Advisor, LLC) is an indirect, wholly-owned subsidiary of Franklin Resources, Inc. (“Franklin Resources”).
For more information about the Funds, please call 1-888-777-0102 or consult the Funds’ website at www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of the Funds’ complete audited financial statements are available free of charge upon request.
Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Funds.
The Funds’ common shares are traded on the New York Stock Exchange. Similar to stocks, Fund share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value, and can increase an investor’s risk of loss. All investments are subject to risk, including the risk of loss.
INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE
Category: Distribution Related
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
View source version on businesswire.com: https://www.businesswire.com/news/home/20240220518825/en/
Investor Contact: Fund Investor Services 1-888-777-0102
Source: Franklin Resources, Inc. and Legg Mason Closed End Funds
FAQ
What are the distribution dates for PAI's Western Asset Investment Grade Income Fund in March, April, and May 2024?
What is the amount of income distribution for PAI's Western Asset Investment Grade Income Fund in March, April, and May 2024?
What is the change in distribution amount for PAI's Western Asset Investment Grade Income Fund from the previous distribution?
What is the type of distribution for PAI's Western Asset Investment Grade Income Fund in March, April, and May 2024?
What is the distribution amount for WEA's Western Asset Premier Bond Fund in March, April, and May 2024?
What is the type of distribution for WEA's Western Asset Premier Bond Fund in March, April, and May 2024?
