Franklin Limited Duration Income Trust Distribution Notices Released
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Businesswire
- Distribution Source Overview: The 19(a) distribution notices for Franklin Limited Duration Income Trust (FTF) indicate a current per-share distribution of $0.0615, with 69.9% derived from net investment income, 4.6% from short-term capital gains, and 25.5% as return of capital, reflecting a diversified income structure for the fund.
- Annual Distribution Status: As of December 31, the fiscal year-to-date cumulative distribution per share for FTF stands at $0.7380, with 69.1% sourced from net investment income, demonstrating the fund's ability to maintain stable distributions and the effectiveness of its investment strategy.
- Investment Return Performance: FTF reports a five-year average annual total return of 3.29% and a current distribution rate of 11.15%, indicating the fund's stability and attractiveness in long-term investments, potentially drawing more investor interest.
- Capital Return Warning: The fund cautions investors that a portion of the distribution may be a return of capital, meaning that some of the funds received could be a repayment of the initial investment rather than income, urging investors to interpret distribution information carefully to avoid misunderstandings.
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Analyst Views on FTF
About FTF
Franklin Limited Duration Income Trust (the Fund) is a closed-end management investment company. The Fund's primary objective is to provide high, current income, with a secondary objective of capital appreciation. The Fund invests in a diversified mix of fixed income securities, primarily high yield corporate bonds, floating-rate corporate loans and mortgage-and other asset-backed securities. It invests in various sectors, which include aerospace and defense, airlines, auto components, automobiles, banks, beverage, biotechnology, building products, capital markets, chemicals, commercial services and supplies, construction and engineering, containers and packaging, distributors, electric utilities, entertainment, insurance, media, metals and mining, Internet and direct marketing retail, information technology services, oil, gas and consumable fuels, paper and forest products, and wireless telecommunication services. The Fund's investment manager is Franklin Advisers, Inc.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Franklin Limited Duration Income Trust Distribution Notices Released
- Distribution Source Overview: The 19(a) distribution notices for Franklin Limited Duration Income Trust (FTF) indicate a current per-share distribution of $0.0615, with 69.9% derived from net investment income, 4.6% from short-term capital gains, and 25.5% as return of capital, reflecting a diversified income structure for the fund.
- Annual Distribution Status: As of December 31, the fiscal year-to-date cumulative distribution per share for FTF stands at $0.7380, with 69.1% sourced from net investment income, demonstrating the fund's ability to maintain stable distributions and the effectiveness of its investment strategy.
- Investment Return Performance: FTF reports a five-year average annual total return of 3.29% and a current distribution rate of 11.15%, indicating the fund's stability and attractiveness in long-term investments, potentially drawing more investor interest.
- Capital Return Warning: The fund cautions investors that a portion of the distribution may be a return of capital, meaning that some of the funds received could be a repayment of the initial investment rather than income, urging investors to interpret distribution information carefully to avoid misunderstandings.
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Franklin Limited Duration Income Trust Announces 2025 Distribution Plan
- Distribution Amount Set: Franklin Limited Duration Income Trust plans to pay a monthly distribution of $0.0615 per share on December 31, 2025, with 68% sourced from net investment income and 32% from return of capital, reflecting the company's commitment to maintaining stable distributions.
- Annual Return Rate Analysis: As of November 30, 2025, the fund's annualized distribution rate stands at 11.05%, while the cumulative total return is 6.29%, indicating a relatively stable performance in managing net asset value (NAV).
- Purpose of Distribution Plan: The managed distribution plan aims to narrow the discount between market price and NAV through consistent monthly distributions, although success is not guaranteed, highlighting the company's focus on shareholder returns.
- Investment Strategy Transparency: Franklin emphasizes that distributions may include long-term capital gains and return of capital, urging investors to interpret the relationship between distributions and investment performance cautiously to avoid misconceptions about yield.
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