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

Franklin Templeton has announced distributions for specific closed-end funds as part of their managed distribution policy for January, February, and March 2026. The funds will maintain a consistent distribution level derived from income and capital gains generated by their investment portfolios. The key dates for the upcoming distributions are as follows:

- **January**: Record Date - January 23, Ex-Dividend Date - January 23, Payable Date - January 30 - **February**: Record Date - February 20, Ex-Dividend Date - February 20, Payable Date - February 27 - **March**: Record Date - March 24, Ex-Dividend Date - March 24, Payable Date - March 31

The Templeton Emerging Markets Income Fund (Ticker: TEI) will distribute $0.0475 each month for January, February, and March 2026, with no change from previous distributions.

Franklin Templeton highlights that if a fund does not generate enough distributable income, it may distribute long-term capital gains or return of capital to sustain its managed distribution rate. A return of capital means that some of the money invested in a fund is returned to shareholders, which does not necessarily indicate the fund’s performance and should not be equated with “yield” or “income.”

Shareholders are advised to be cautious about interpreting the distribution amounts as they are estimates and not final for tax reporting purposes, with actual amounts subject to change based on the fund’s investment performance. Franklin Templeton also notes that the Board of Directors has the discretion to modify, suspend, or terminate the managed distribution policy, which could impact the funds' market prices. Investments in the funds are, like all investments, subject to risks, including possible loss. For more information, investors can contact Fund Investor Services or visit the Franklin Templeton website.

Franklin Templeton's announcement regarding distributions for select closed-end funds under its managed distribution policy signals an ongoing commitment to provide steady income to shareholders. For January to March 2026, the Templeton Emerging Markets Income Fund (TEI) will maintain a monthly distribution of $0.0475 per share. This consistency in disbursement is critical in building investor confidence, especially during uncertain market conditions.

Investors should note, however, that while a stable distribution can be seen as a sign of reliability, the structure of managed distribution policies can sometimes mask underlying performance issues. These funds might resort to returning capital or drawing upon capital gains to meet distribution expectations, which should not be confused with actual income generated from investments. As explicit in Franklin Templeton's disclosure, such returns of capital do not signify strong investment performance and can obscure a fund’s potential volatility and risk profile.

Before participating in these distributions, investors need to consider the corresponding risks. Closed-end funds (CEFs) often trade at discounts to their net asset value (NAV), meaning investors may not fully realize the value of their investments upon sale. Furthermore, any modification or suspension of the managed distribution policy could negatively impact market prices and the perceived stability of these investments.

In summary, while Franklin Templeton's distributions represent a consistent income stream, investors should remain vigilant about the potential risks associated with CEFs, including price volatility and the implications of capital returns. Conducting thorough due diligence and considering the overall economic environment will be essential for making informed investment decisions in the coming months. It is also advisable to diversify investments and not solely rely on distribution payments as indicators of a fund's health or success.