Franklin Limited Duration Income Trust (“FTF” or the “Fund”) Announces Notice of Distribution Sources


Franklin Limited Time Income Trust [NYSE American: FTF]:

Notification of distribution sources

In accordance with section 19 (a) of the Investment Companies Act 1940

The estimated sources of the Fund for the distribution to be paid on December 15, 2021 and for the fiscal year 2021 since the beginning of the fiscal year are as follows:

Estimated allowances for the monthly distribution as of November 30, 2021:

Distribution

Per share

Net investment

Income

Net achieved

Short term capital

Earnings

Net achieved

Long-term capital gains

Repayment of capital

$ 0.0763

$ 0.0428 (56%)

$ 0.0010 (1%)

$ 0.00 (0%)

$ 0.0325 (43%)

Cumulative estimated allocations from the start of the fiscal year to October 31, 2021, for the fiscal year ending December 31, 2021:

Distribution

Per share

Net investment

Income

Net achieved

Short term capital

Earnings

Net achieved

Long term capital

Earnings

Repayment of capital

$ 0.7808

$ 0.4107 (53%)

$ 0.0800 (10%)

$ 0.00 (0%)

$ 0.2901 (37%)

Shareholders should not draw any conclusions about the performance of the Fund’s investments from the amount of this distribution or the terms of the Plan. FTF considers that it has distributed more than its income and net realized capital gains; therefore, part of the FTF distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money a shareholder has invested in a Fund is returned to them. A return of capital distribution does not necessarily reflect FTF’s investment performance and should not be confused with “return” or “income”. The amounts and sources of distributions shown here are estimates only and are not provided for tax reporting purposes. The actual amounts and the sources of the amounts for tax reporting purposes will depend on the Fund’s investment experience during the remainder of its fiscal year and may be subject to change depending on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year which will describe how to report distributions from the Fund for federal income tax purposes.

Average annual total return (in relation to the change in the net asset value (NAV) for the 5-year period ended 10/31/2021)1

Annualized payout rate (as a percentage of the net asset value for the current year until 10/31/2021)2

Total cumulative return (in relation to the change in the net asset value for the year up to 10/31/2021)3

Cumulated distribution rate over the year (as a percentage of the net asset value at 10/31/2021)4

2.68%

10.09%

4.56%

8.61%

Information on fund performance and distribution rate:

  1. The average annual total return to net asset value represents the compound average of the total annual net asset value returns of the Fund for the five-year period ending until October 31, 2021. The total annual net asset value return is the change as a percentage of the net asset value of the Fund over a year, assuming reinvestment of distributions paid.
  2. The annualized payout rate is the annualized payout rate for the current year as a percentage of the net asset value of the Fund until October 31, 2021.
  3. The total cumulative return is the percentage change in the net asset value of the Fund from December 31, 2020 to October 31, 2021, assuming reinvestment of distributions paid.
  4. The cumulative distribution rate for the current year is the dollar value of distributions for the year from December 31, 2020 to October 31, 2021, as a percentage of the net asset value of the Fund as at October 31, 2021.

The Board of Trustees of the Fund (the “Board”) has authorized a managed distribution plan under which the Fund pays monthly distributions to shareholders at a minimum fixed annual rate of 10%, based on the average monthly net asset value of the shares. of the Fund (the “Plan”). The Fund calculates the average net asset value for the previous month based on the number of business days in the month in which the net asset value is calculated. The plan aims to provide shareholders with a fixed, constant, but not guaranteed minimum distribution rate each month and aims to reduce the discount between the market price and the net asset value of the common shares of the Fund, but there can be no assurance that the The plan will succeed in doing this. The Fund is managed with the aim of generating as much distribution as possible from ordinary net income and short term capital gains, which is consistent with the investment strategy and risk profile of the Fund. 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 was invested in the Fund is returned to shareholders. A return of capital distribution does not necessarily reflect the performance of the Fund’s investments and should not be confused with “return” or “income”. Although the Fund may realize capital gains in the current year, these gains may be offset, in whole or in part, by the capital loss carryforwards of the Fund from previous years.

The Board may change the terms of the Plan or terminate the Plan at any time without notice to shareholders of the Fund. The modification or termination of the plan could have an adverse effect on the price of the common shares of the Fund. The Plan will be subject to a periodic review by the Board, including an annual review of the minimum annual fixed rate to determine whether an adjustment should be made.

For more information on Franklin Limited Duration Income Trust, please visit our website at: www.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 results through their investment management expertise, wealth management and technology solutions. Through its specialized investment managers, the company brings extensive capabilities in equities, 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 more than 70 years of investment experience and more than $ 1.5 trillion in assets under management as of November 30, 2021. For more information, please visit franklintempleton.com.


Comments are closed.