Franklin Limited Duration Income Trust Announces Sources of Monthly Dividend Distribution and Portfolio Management Change
04 December 2018 - 2:07AM
The Franklin Limited Duration Income Trust [NYSE:FTF] (CUSIP
35472T101) has declared a dividend of $0.0910 per common share
payable December 14, 2018, to shareholders of record as of November
30, 2018. It is currently estimated that $0.0373 per share
represents net investment income and $0.0537 per share represents
return of principal.
The Fund also announced that, effective December 31, 2018, Sonal
Desai, Ph.D., will join Roger Bayston, CFA®, Glenn Voyles, CFA®,
Madeline Lam and Justin Ma, CFA®, as members of the Fund’s
portfolio management team, and Chris Molumphy, CFA®, will depart
from the Fund’s portfolio management team following his retirement
from Franklin Templeton Investments.
The Fund adopted a managed distribution plan and will make
monthly distributions to common shareholders at an annual minimum
fixed rate of 10%, based on the average monthly net asset value
(NAV) of the Fund’s common shares. The Fund will calculate the
average NAV from the previous month based on the number of business
days in that month on which the NAV is calculated. The
distribution will be calculated as 10% of the previous month’s
average NAV, divided by 12. Management will generally distribute
amounts necessary to satisfy the Fund’s plan and the requirements
prescribed by excise tax rules and Subchapter M of the Internal
Revenue Code. 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 is
no assurance that the plan will be successful in doing so.
Under 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 managed distribution level. No
conclusions should be drawn about the Fund’s investment performance
from the amount of the Fund’s distributions or from the terms of
the Fund’s managed distribution plan.
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.
In compliance with Rule 19a-1 of the Investment Company Act of
1940, shareholders will receive a notice that details the source of
income for each dividend such as net investment income, gain from
the sale of securities and return of principal. Please
note: Determination of the actual source of the fund’s
dividend can only be made at year-end. The actual source
amounts of all fund dividends will be included in the fund’s annual
or semiannual reports.
In addition, the tax treatment may differ from the accounting
treatment used to calculate the source of the fund’s dividends as
shown on your statement. Please refer to your Form 1099-DIV
for the character and amount of distributions for income tax
reporting purposes. Since each shareholder’s tax situation is
unique, please consult your tax advisor as to the appropriate
treatment of fund distributions.
You may request a copy of the Fund's current Report to
Shareholders 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 risks,
including possible loss of principal. Interest rate movements
and mortgage prepayments will affect the Fund's share price and
yield. Bond prices generally move in the opposite direction
of interest rates. As the prices of bonds in a fund adjust to
a rise in interest rates, the fund’s share price may decline.
Investments in lower-rated bonds include higher risk of default and
loss of principal. The Fund is actively managed but
there is no guarantee that the manager's investment decisions will
produce the desired results. For portfolio management
discussions, including information regarding the Fund’s investment
strategies, please view the most recent Annual or Semi-Annual
Report to Shareholders which can be found at franklintempleton.com
or sec.gov.
Franklin Resources, Inc. [NYSE:BEN] is a global investment
management organization operating as Franklin Templeton
Investments. Franklin Templeton Investments provides global and
domestic investment management to retail, institutional and
sovereign wealth clients in over 170 countries. Through specialized
teams, the company has expertise across all asset classes—including
equity, fixed income, alternative and custom solutions. The
company’s more than 650 investment professionals are supported by
its integrated, worldwide team of risk management professionals and
global trading desk network. With offices in over 30
countries, the California–based company has more than 70 years of
investment experience and over $682 billion in assets under
management as of October 31, 2018. For more information,
please visit franklintempleton.com.
FROM: Franklin Templeton Investments Shareholders/Financial
Advisors: (800) 342-5236
Franklin Limited Duratio... (AMEX:FTF)
Historical Stock Chart
From Apr 2024 to May 2024
Franklin Limited Duratio... (AMEX:FTF)
Historical Stock Chart
From May 2023 to May 2024