Franklin Templeton Reveals Monthly Distribution Details
Franklin Templeton Releases Important Distribution Notices
BOSTON--Franklin Templeton has unveiled the latest 19(a) monthly distribution notices for its municipal funds: Putnam Managed Municipal Income Trust (NYSE: PMM) and Putnam Municipal Opportunities Trust (NYSE: PMO). These notices offer valuable insights into the funding sources for the monthly distributions.
Understanding the Distribution Sources
Each 19(a) notice provides an estimation of the sources for the current month’s distributions and details of cumulative distributions paid year-to-date. These figures are expressed per share of common stock, as well as a percentage of the total distribution amount.
Summary of Distribution Estimates
The table below summarizes the estimated sources and the respective percentages of distributions for each fund:
Estimated sources & percentages of distributions
For PMM (FYE 10/31)
- Current month distribution: $0.0238
- Fiscal Year-to-Date: $0.0714
- Net Investment Income: 88.7% of distributions
- Short-term Capital Gains: 0.0%
- Long-term Capital Gains: 0.0%
- Return of Capital: 11.3%
For PMO (FYE 4/30)
- Current month distribution: $0.0350
- Fiscal Year-to-Date: $0.3150
- Net Investment Income: 90.0% of distributions
- Short-term Capital Gains: 0.0%
- Long-term Capital Gains: 0.0%
- Return of Capital: 10.0%
Performance Metrics of the Funds
In addition to distribution estimates, this report also delivers critical performance metrics for both PMM and PMO:
- PMM Annualized Return at NAV: 1.10%
- PMM Fiscal YTD Distribution Rate: 4.22%
- PMO Annualized Return at NAV: 1.21%
- PMO Fiscal YTD Distribution Rate: 3.69%
Distribution Policy and Return of Capital
It’s essential to note that the reported amounts in this 19(a) Notice are estimates and are not intended for tax reporting. The actual amounts will depend on the funds' investment performance throughout the remainder of their fiscal year.
Furthermore, Franklin Templeton has indicated that a portion of the distributions may constitute a return of capital, meaning that some of the money invested in the fund may be returned to shareholders. This return of capital does not necessarily reflect the fund’s investment performance.
Keep Updated with Franklin Templeton
For ongoing updates and detailed information related to the funds, investors can access their respective websites. Information on full holdings updates will be provided monthly, along with top 10 holdings and additional portfolio statistics following each month's end.
Frequently Asked Questions
What is a 19(a) notice?
A 19(a) notice provides information about the sources and estimated amounts of a fund's distributions to shareholders.
How are distributions calculated?
Distributions are calculated based on the fund's earnings, including net investment income and realized capital gains.
What does return of capital mean?
Return of capital occurs when the fund pays back some of the initial investment to shareholders, which may not necessarily indicate investment performance.
How often are distribution notices released?
Distribution notices are released monthly, providing shareholders with updated information about distributions.
Where can I find more information about the funds?
Investors can visit the Franklin Templeton website for detailed updates and fund-related information.
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