Franklin Limited Time Income Trust declares monthly distribution
SAN MATEO, California, July 20, 2021– (BUSINESS WIRE) – Franklin Limited Duration Income Trust [NYSE American: FTF], a closed-end investment company managed by Franklin Advisers, Inc., today announced a distribution of $ 0.0780 per common share, payable on August 13, 2021, to shareholders of record on July 30, 2021 (ex-date of the dividend: July 29, 2021).
The Fund has adopted a managed distribution plan and will pay monthly distributions to common shareholders at a minimum annual fixed rate of 10%, based on the average monthly net asset value (NAV) of the common shares of the Fund. The Fund will calculate the average net asset value for the previous month based on the number of business days in that month on which the net asset value is calculated. The distribution will be calculated as 10 percent of the average net asset value for the previous month, divided by 12. Management will generally distribute the amounts necessary to satisfy the plan of the Fund and the requirements prescribed by the excise tax rules and the sub- Chapter M of the Internal Revenue Code. The plan aims to provide shareholders with a fixed, constant, but not guaranteed, minimum distribution rate each month and aims to reduce the discount between the market price and the net asset value of the common shares of the Fund, but there can be no assurance that the plan will succeed in doing so.
As part of the managed distribution plan, to the extent that sufficient investment 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 level. distribution managed. No conclusions should be drawn about the performance of the Fund’s investments from the amount of the Fund’s distributions or the terms of the Fund’s managed distribution plan.
The Board may change the terms of the Plan or terminate the Plan at any time without notice to shareholders of the Fund. The modification or termination of the plan could have an adverse effect on the price of the common shares of the Fund. The Plan will be subject to a periodic review by the Board, including an annual review of the minimum annual fixed rate to determine whether an adjustment should be made.
With each distribution that does not consist solely of net investment income, the Fund will issue a notice to shareholders and an accompanying press release which will provide detailed information regarding the amount and composition of the distribution and other related information. The amounts and sources of distributions shown in the Notice to Shareholders are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during its complete fiscal year and may be subject to change depending on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year which will tell them how to report these distributions for federal income tax purposes.
The Fund may sometimes distribute more than its net investment income and net realized capital gains; therefore, part of the distribution may give rise to a return of capital. A return of capital occurs when some or all of the money shareholders have invested in the Fund is returned to them. A return of capital does not necessarily reflect the investment performance of the Fund and should not be confused with “return” or “income”. Such returns of capital will reduce the total assets of the Fund and, therefore, may have the effect of increasing the expense ratio of the Fund. In addition, in order to achieve the level of distributions expected under its plan, the Fund may have to sell portfolio securities at a less than desirable time.
You can request a copy of the Fund’s current shareholder report by contacting Franklin Templeton’s fund information department at 1-800 / DIAL BEN® (1-800-342-5236) or by visiting franklintempleton.com. All investments involve risk, including possible loss of capital. Fluctuations in interest rates and early mortgage payments will affect the price and performance of the shares of the Fund. Bond prices generally move in the opposite direction of interest rates. When the prices of a fund’s bonds adjust to an increase in interest rates, the fund’s share price may fall. Investments in lower rated bonds carry a higher risk of default and loss of principal. The Fund is actively managed but there can be no assurance that the manager’s investment decisions will produce the desired results. For discussions on portfolio management, including information regarding the Fund’s investment strategies, please consult the most recent annual or semi-annual report to shareholders, available at franklintempleton.com or sec.gov.
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating under the Franklin Templeton name and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better results through their investment management expertise, wealth management and technology solutions. Through its specialized investment managers, the company brings extensive capabilities in the areas of equities, 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 more than 70 years of investment experience and approximately $ 1.6 trillion in assets under management as of June 30, 2021. For more information, please visit franklintempleton.com.
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Shareholders / Financial Advisors: (800) 342-5236