Western Asset Inflation-Linked Income Fund (WIA; CUSIP: 95766Q106) Announces Update on Distribution Sources
Western Asset Inflation-Linked Income Fund (WIA) Distribution Notification
Distribution Details: The Fund has announced an estimated distribution of $0.0520 per share for August 29, 2025. This includes $0.0260 from net investment income and $0.0260 classified as a return of capital, with no short-term or long-term capital gains reported.
Cumulative Allocations: For the fiscal year-to-date ending July 31, 2025, the cumulative distribution per share is $0.4100, comprising $0.2299 from net investment income and $0.1801 as a return of capital, again with no capital gains reported.
Fund Performance Insights
Investment Performance Caution: Shareholders are advised not to interpret the distribution amounts as indicators of the Fund's investment performance. The Fund has distributed more than its income and realized capital gains, indicating that part of the distribution may be a return of capital.
Return of Capital Explanation: A return of capital occurs when a portion of the initial investment is returned to shareholders. This type of distribution is not taxable but reduces the tax basis of the shares held.
Financial Metrics
Average Annual Total Return: The Fund's average annual total return over the five years ending July 31, 2025, is reported at 0.76%.
Annualized Distribution Rate: The annualized distribution rate as of July 31, 2025, stands at 6.83%, while the cumulative total return for the fiscal period through the same date is 4.27%. The cumulative fiscal year-to-date distribution rate is 4.49%.
Managed Distribution Policy
Policy Overview: The Fund operates under a managed distribution policy aimed at providing regular monthly distributions at a fixed rate per share. Distributions may derive from net investment income, realized capital gains, or a return of capital.
Potential Risks: If the Fund's net investment income and realized capital gains fall short of the distribution level, the shortfall will be covered by the Fund's assets, leading to a return of capital. The Board of Directors retains the right to modify or suspend this policy, which could negatively impact the market price of the Fund's shares.
Additional Information
- Contact and Resources: For more details, investors can visit the Fund's website or contact Fund Investor Services at 1-888-777-0102. The information provided is for informational purposes only and does not constitute an offer to sell shares of the Fund.
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