Franklin Limited Duration Income Trust Updates Monthly Distribution
Monthly Distribution Announcement by Franklin Limited Duration Income Trust
Franklin Limited Duration Income Trust, commonly known as FTF, has made an important announcement regarding its monthly distribution from net investment income of $0.0615 per share. This distribution will be payable to shareholders on a specific date, which is noteworthy for those holding shares of the fund.
Managed Distribution Plan Overview
The Board of Trustees has put a managed distribution plan into action, aiming to ensure that shareholders receive consistent monthly distributions at the set rate of $0.0615 per share. This effort is designed to help maintain a closer alignment between the market price and the net asset value (NAV) of the Fund’s common shares. However, it is crucial to note that there is no guarantee that this plan will succeed in fully achieving that objective.
Distribution Composition
This steady distribution primarily stems from net ordinary income and gains realized from short-term capital investments, aligning with the Fund’s overarching investment strategy and risk parameters. In instances where enough distributable income isn't available, long-term capital gains or a portion of the return of capital may be utilized to uphold the managed distribution rate. Shareholders should be aware that a return of capital can happen when some of their initial investment is returned, but it shouldn't be misconstrued as indicative of the Fund’s performance.
Review and Adjustment of the Plan
The Board retains the right to amend or terminate this managed distribution plan at any time, without prior notification to shareholders. Such changes have the potential to impact the market valuation of the Fund’s shares. The plan undergoes repeated scrutiny by the Board, including an annual evaluation of the fixed rate to decide on possible adjustments.
Shareholder Considerations
It's important for shareholders to avoid drawing premature conclusions regarding the effectiveness or performance of the Fund based solely on the current distribution amount or the terms established in the Plan. The figures presented here serve merely as estimates and do not cater to tax reporting purposes. Actual distributions for tax considerations will depend on the Fund’s financial trajectory in the remaining fiscal period and may alter in accordance with new tax laws.
Tax Reporting and Form 1099-DIV
Shareholders will receive a Form 1099-DIV, detailing how to report these distributions for federal income tax purposes at the close of the calendar year.
About Franklin Limited Duration Income Trust
For individuals looking to understand more about Franklin Limited Duration Income Trust, more information can be found on their official website, which elucidates their strategies and the extensive experience the company possesses in the investment realm.
Overview of Franklin Resources, Inc.
Franklin Resources, Inc. operates globally with a mission to facilitate improved investment outcomes via extensive management expertise, wealth management solutions, and advanced technology applications. The company proudly serves clients across over 150 countries, with a diverse range of investment managers providing specialized services in fixed income, equities, alternative investments, and multi-asset solutions. With a talented team of over 1,500 investment professionals, Franklin Templeton demonstrates a foundation of over 75 years of experience and has managed assets exceeding $1.6 trillion as of a recent accounting date.
Frequently Asked Questions
What is the recent distribution amount for FTF?
Franklin Limited Duration Income Trust has announced a distribution of $0.0615 per share.
When will the distribution be payable?
The monthly distribution will be paid on a specified date as announced by the fund.
What is a managed distribution plan?
A managed distribution plan is designed to provide consistent monthly distributions to shareholders while managing the Fund’s assets effectively.
How does the Fund maintain its distribution rate?
The Fund may use a combination of net ordinary income, short-term capital gains, and long-term capital gains to meet its distribution goals.
Where can I find more information on Franklin Limited Duration Income Trust?
More information is available on the official Franklin Templeton website, which outlines their investment strategies and performance history.
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