Western Asset Emerging Markets Debt Fund Distribution Insights
Understanding Distribution Sources for EMD
Western Asset Emerging Markets Debt Fund Inc. (NYSE: EMD) has announced vital information regarding its distribution sources, specifically focusing on the upcoming distribution scheduled for November 1, 2024. The provided insights, aligned with Section 19(a) of the Investment Company Act of 1940, shed light on the estimated allocations that shareholders can anticipate.
Distribution Sources Breakdown
As of September 30, 2024, the Fund's estimated sources for the upcoming distribution include net investment income, capital gains, and return of capital. Here’s a detailed look at the estimated monthly distribution for October:
October Monthly Distribution Breakdown
The estimated allocations reveal that the distribution per share is projected to be $0.0845. This amount comprises:
- Net Investment Income: $0.0570
- Net Realized Short-Term Capital Gains: $0.0000
- Net Realized Long-Term Capital Gains: $0.0000
- Return of Capital: $0.0275
The cumulative allocations for the fiscal year ending December 31, 2024, reflect a broader view and indicate that shareholders will need to consider the total impact of these distributions over time.
Annual Performance Overview
For the fiscal year-to-date as of September 30, 2024, here are key metrics regarding the Fund’s performance:
- Average Annual Total Return: 1.62% (5-year period)
- Annualized Distribution Rate: 9.34%
- Cumulative Total Return: 10.45%
- Cumulative Fiscal Year-to-Date Distribution Rate: 7.00%
The Importance of Understanding Returns of Capital
It’s essential for shareholders to understand that the distributions do not strictly equate to performance metrics. A return of capital can occur when distributions exceed the income generated by the Fund. This situation may affect how a shareholder views their investment's overall success. For example, if a shareholder receives a return of their invested capital, it doesn't truly reflect a yield or income generated from investments.
Managing Distribution Expectations
Shareholders should be aware that while the Fund aims to maintain a consistent distribution policy, the actual distribution levels may fluctuate based on investment returns, net income, and capital gains.
The Fund’s Board of Directors holds the authority to modify or suspend distribution policies at any time. This change could influence the market value of shares and should be factored into investment considerations.
Resources for Investors
Investors looking for more personalized insights regarding Western Asset Emerging Markets Debt Fund Inc. can visit their website. This platform provides an array of information regarding ongoing funds and distribution aspects in more depth.
Frequently Asked Questions
What is the purpose of the distribution notification?
The distribution notification informs shareholders of the expected sources of upcoming distributions and aims to provide transparency about their investment returns.
What is included in the estimated distribution?
The estimated distribution includes net investment income, realized short-term gains, long-term gains, and may also include return of capital.
How does a return of capital affect my investments?
A return of capital may reduce your tax basis in the Fund shares but does not represent taxable income. It’s important to understand this when evaluating overall performance.
How often does Western Asset Emerging Markets Debt Fund pay distributions?
The Fund aims to provide regular monthly distributions to shareholders, consistent with its managed distribution policy.
Where can I find more information about the Fund?
Investors can access additional details about the Fund through their official website, including insights about funds, performance metrics, and distribution updates.
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