Templeton Global Income Fund [NYSE: GIM] today announced a monthly distribution from net investment income of $0.0377 per share, payable on April 30, 2021, to shareholders of record on April 15, 2021 (Ex-Dividend Date: April 14, 2021).
As recently announced, the Fund’s Board authorized the implementation of a managed distribution plan pursuant to which the Fund will make monthly distributions to shareholders at an annual minimum fixed rate of 7.5%, based on the average monthly net asset value (NAV) of the Fund’s common shares (the “Plan”). The Plan, which commences with the Fund’s April distribution, 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 can be no assurance that the Plan will be successful in doing so. The Fund is managed with a goal of generating as much of the distribution as possible from net ordinary income and short-term capital gains, that is consistent with the Fund’s investment strategy and risk profile. To the extent that sufficient distributable 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 rate. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income”. Even though the Fund may realize current year capital gains, such gains may be offset, in whole or in part, by the Fund’s capital loss carryovers from prior years. The Plan is subject to periodic review by the Board and may be amended or terminated at any time.
You should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s managed distribution policy. The amounts and sources of the Fund’s distributions to be reported will be estimates and will not be provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Additionally, in efforts to increase the Fund’s distributable income, and consistent with its primary investment objective of high, current income, the Fund may enter into reverse repurchase agreements and fixed-income total return swaps.
These investment strategies can potentially increase the Fund’s distributable income, but, at the same time, create special risks, including leveraging risk. Their use may increase volatility in the Fund’s NAV, which may be reflected in its market price. The cost of leverage rises and falls with changes in short-term interest rates. The costs of using leverage may be greater than the proceeds of the leverage. There is no guarantee that the use of these leveraging strategies will increase the Fund’s distributable income or otherwise be successful.
For a more complete discussion of the Fund’s primary risks, please see the Fund’s latest Annual Report to Shareholders, which may be requested by contacting Franklin Templeton’s Fund Information Department at 1-800/DIALBEN® (1-800-342-5236) or by visiting franklintempleton.com.
Franklin Resources, Inc. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company brings extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 70 years of investment experience and approximately $1.5 trillion in assets under management as of February 28, 2021. For more information, please visit franklintempleton.com.