Franklin Limited Duration Income Trust Announces Monthly Distribution

Monthly Distribution Announcement by Franklin Limited Duration Income Trust

Franklin Limited Duration Income Trust (NYSE American: FTF) has recently made an exciting announcement regarding their monthly distribution. According to their latest update, the Fund will be distributing $0.0615 per share, a decision that highlights their commitment to providing regular returns to their shareholders.

Understanding the Distribution Plan

The Fund follows a managed distribution plan, a structured approach that provides monthly distributions at a consistent rate. The aim of this Plan is to ensure shareholders receive reliable monthly income, while also working to minimize the difference between the market price and the net asset value (NAV) of the Fund’s common shares. Although the Fund aims for consistent income, it's important to understand that there are no guarantees on achieving these results.

Financial Goals and Strategies

The chief objective of Franklin Limited Duration Income Trust is to generate as much income as possible through net ordinary income and short-term capital gains. This strategy aligns with the Fund's overall investment goals and risk management principles. However, in situations where net income falls short, the Fund has means to fulfill its distribution obligations by allocating long-term capital gains or returning capital. Such a return of capital occurs when the invested funds are paid back to shareholders. It is crucial to note that this return of capital does not necessarily reflect the Fund’s investment performance.

Ongoing Monitoring of the Distribution Plan

The Board of Trustees oversees the management and amendment of this distribution Plan. They have the authority to adjust or even terminate the Plan at their discretion, which could directly influence the market performance of the Fund’s shares. Regular reviews, including an annual assessment of the distribution rate, help ensure that the Plan remains effective and aligns with the Fund’s financial performance.

Clarifying Distribution Estimates

While shareholders may find the distribution amounts informative, they should avoid drawing any conclusions about the Fund's investment success based solely on these figures. The distributions reported are estimates and may evolve as the fiscal year progresses. As the Fund navigates through changing market dynamics, shareholders will receive a Form 1099-DIV detailing how to accurately report their distributions for tax purposes.

About Franklin Resources, Inc.

As an established global investment management organization, Franklin Resources, Inc. serves clients in over 150 countries through its subsidiary, Franklin Templeton. The mission of Franklin Templeton centers on helping clients secure better investment outcomes with the help of their extensive expertise in wealth management and technology. The company specializes in various areas of investment, including fixed income, equities, alternatives, and multi-asset solutions.

Boasting over 1,500 investment professionals and offices in key financial markets worldwide, Franklin Templeton has established a robust presence in the investment sector. With more than 75 years of experience and managing assets exceeding $1.6 trillion as of mid-2024, Franklin Templeton remains a significant player in the global investment landscape, dedicated to the success of its clients.

Frequently Asked Questions

1. What is the amount of the recent distribution for FTF?

The recent distribution amount announced by Franklin Limited Duration Income Trust is $0.0615 per share.

2. How often does the Fund distribute payments to its shareholders?

The Fund distributes payments monthly, following a consistent managed distribution plan.

3. What does the managed distribution plan entail?

The managed distribution plan aims to provide shareholders with regular income while balancing the market price and net asset value of the Fund's shares.

4. How does the Fund generate its income for distributions?

The Fund generates income primarily through net ordinary income and short-term capital gains, adjusting as necessary with long-term capital gains or return of capital.

5. How can shareholders receive tax information about their distributions?

The Fund will provide shareholders with a Form 1099-DIV for the calendar year, which offers details on reporting the distributions for federal income tax purposes.

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