Franklin Templeton Announces Availability of 19(a) Notices for Certain Closed-End Funds

Key Terms

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

return of capital financial

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

net asset value financial

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

form 1099-div regulatory

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

distribution policy financial

A distribution policy is a company’s formal approach to returning cash or other value to shareholders—typically through dividends, share buybacks, or occasional special payments. Like a household deciding how much of its income to save versus spend, this policy tells investors how much income to expect, how predictable those payments are, and how the company balances rewarding owners with keeping money for growth, which affects yield, share price stability, and investor confidence.

SAN MATEO, Calif.--(BUSINESS WIRE)-- The 19(a) monthly distribution notices for Franklin Limited Duration Income Trust (NYSE: FTF) are now available. These informational notices provide further details on the sources of the funds’ monthly distributions and follow the most recent distribution announcement. The table below provides an estimate of the sources of the Fund’s current distribution and its cumulative distributions paid this fiscal year-to-date. Amounts are expressed on a per share of common stock basis, and as a percentage of the distribution amount.

			Estimated sources & percentages of distributions
Ticker	Time period	Per share distribution January 2026	Net Investment Income	Net realized short-term capital gains	Net realized long-term capital gains	Return of Capital
FTF	Current month	$0.0615	$0.0430	$0.0028	-	$0.0157
			69.9%	4.6%	-	25.5%
	12/31 Fiscal YTD	$0.7380	$0.5102	$0.0167	-	$0.2111
			69.1%	2.3%	-	28.6%

The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each 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.

The table below provides information regarding distributions and total return performance for various periods. Performance includes the deduction of management fees and administrative expenses, assumes reinvestment of distributions, and does not account for taxes.

	Annualized			Cumulative
Ticker	5-year average annual total return at NAV*	Current distribution rate at NAV**		Fiscal YTD return at NAV***	Fiscal YTD distribution rate at NAV***
FTF (FYE 12/31)	3.29%	11.15%		6.31%	11.15%

* Ending on the last day of the month prior to the most recent distribution record date.

** As of the last day of the month prior to the most recent distribution record date.

*** Calculated from the last completed fiscal year to the last day of the month prior to the most recent distribution record date.

You should not draw any conclusions about a Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Distribution Policy.

Each fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. 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’.

The Funds periodically provide fund-related information on their websites. The following information will be available for each Fund at www.franklintempleton.com at the frequencies indicated: (1) Full holdings will be available monthly; (2) Top 10 holdings and additional portfolio statistics will be available monthly.

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

Category: Distribution Related

View source version on businesswire.com: https://www.businesswire.com/news/home/20260129894145/en/

Investor Contact: Fund Investor Services 1-888-777-0102

Source: Franklin Templeton