Franklin Templeton Announces Distributions for Certain Closed-End Funds Pursuant to Their Managed Distribution Policy for the Months of January, February and March 2026

Key Terms

managed distribution policy financial

A managed distribution policy is a company’s plan to pay regular cash to shareholders at a set rate by combining income, dividends and occasional return of capital. Think of it as a scheduled withdrawal from a household account: it can provide steady income for investors, but part of the payment may come from savings rather than ongoing earnings, so investors should watch how those payments are funded and whether they are sustainable over time.

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.

Form 1099- DIV regulatory

Form 1099-DIV reports dividends and certain distributions from investments to investors and the tax authority. It shows how much cash or stock was paid and separates taxable components such as ordinary dividends, qualified dividends, and capital gain distributions. Investors use it to file taxes and track income from holdings—like a paycheck stub for investments—so accurate forms affect tax bills and record-keeping.

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.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Templeton announced today that certain closed-end funds have declared distributions pursuant to their managed distribution policy for the next three months.

Month	Record Date	Ex-Dividend Date	Payable Date
January	1/23/2026	1/23/2026	1/30/2026
February	2/20/2026	2/20/2026	2/27/2026
March	3/24/2026	3/24/2026	3/31/2026

Ticker	Fund Name	Month	Amount		Change from Previous Distribution
FTF	Franklin Limited Duration Income Trust	January	$0.0615		-
		February	$0.0615
		March	$0.0615

Under the terms of each Fund’s managed distribution policy, each Fund seeks to maintain a consistent distribution level derived from the income and capital gains generated from the Fund’s investment portfolio. To the extent that sufficient distributable income is not available on a monthly basis, each 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 a Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect a Fund’s investment performance and should not be confused with “yield” or “income”. Even though a 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 Board of Directors may modify, terminate or suspend the managed distribution policy at any time. Any such modification, termination or suspension could have an adverse effect on the market price of a Fund’s shares.

Shareholders should not draw any conclusions about each Fund’s investment performance from the amount of these distributions or from the terms of each Fund’s managed distribution policy. The amounts of each Fund’s distributions to be reported will be estimates and will not be provided for tax reporting purposes. The actual amounts will depend upon each 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 a Form 1099- DIV to shareholders for the calendar year that will describe how to report the Fund’s distributions for federal income tax purposes.

For more information about the Funds, please call 1-888-777-0102 or consult the Funds’ website at www.franklintempleton.com/investments/options/closed-end-funds. Hard copies of the Funds’ complete audited financial statements are available free of charge upon request.

Data and commentary provided in this press release are for informational purposes only. Franklin Resources and its affiliates do not engage in selling shares of the Funds.

The Funds’ common shares are traded on the New York Stock Exchange. Similar to stocks, Fund share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value, and can increase an investor’s risk of loss. All investments are subject to risk, including the risk of loss.

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

Category: Distribution Related

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

Source: Franklin Templeton