Templeton Emerging Markets Fund Announces Quarterly Distribution Sources

Templeton Emerging Markets Fund has announced its estimated sources of distribution for June 2025 and the fiscal year 2025. The distribution per share is estimated to be $0.2200, with $0.1043 (48%) from net investment income, $0.0161 (7%) from net realized short-term capital gains, $0.00 (0%) from net realized long-term capital gains, and $0.0996 (45%) from return of capital. The fund has distributed more than its income and net realized capital gains, with a return of capital estimated at 42% for the fiscal year-to-date.

The Templeton Emerging Markets Fund [NYSE: EMF] has announced its estimated sources of distribution for June 2025 and the fiscal year 2025. The fund's estimated distribution per share for June 2025 is $0.2200, with $0.1043 (48%) from net investment income, $0.0161 (7%) from net realized short-term capital gains, $0.00 (0%) from net realized long-term capital gains, and $0.0996 (45%) from return of capital [1].

For the fiscal year-to-date as of March 31, 2025, the cumulative estimated allocations amount to $0.7314 per share. This includes $0.00 (0%) from net investment income, $0.4225 (58%) from net realized short-term capital gains, $0.00 (0%) from net realized long-term capital gains, and $0.3089 (42%) from return of capital [1].

The fund has distributed more than its income and net realized capital gains, with a return of capital estimated at 42% for the fiscal year-to-date. Shareholders should not draw any conclusions about the fund's investment performance from the amount of the current distribution or from the terms of the fund's Plan [1].

The fund's Board of Trustees has authorized a Managed Distribution Plan, under which the fund will make quarterly distributions to shareholders at a fixed rate of $0.22 per share. The plan aims to provide shareholders with consistent quarterly distributions derived from ordinary income and short-term capital gains generated by the fund's investment portfolio. Additionally, the plan seeks to narrow the discount between the market price and the net asset value ("NAV") of the fund's common shares, although success in this regard cannot be guaranteed [1].

The fund may distribute long-term capital gains and/or return of capital to maintain its managed distribution rate if sufficient distributable income is not available on a quarterly basis. A return of capital may occur when some or all of the invested capital is paid back to shareholders. It is important to note that a return of capital distribution does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income" [1].

The 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. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations [1].

References:
[1] https://www.marketscreener.com/quote/stock/TEMPLETON-EMERGING-MARKET-69652/news/Templeton-Emerging-Markets-Fund-EMF-Announces-Notification-of-Sources-of-Distributions-50356104/