(a) The
Registrant has adopted a code of ethics that applies to its principal executive
officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant
to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code
of ethics that applies to its principal executive officers and principal
financial and accounting officer.
Item 3. Audit Committee
Financial Expert.
(a)(1) The
Registrant has an audit committee financial expert serving on its audit
committee.
(2) The
audit committee financial expert is Karen Caldwell and she is "independent"
as defined under the relevant Securities and Exchange Commission Rules and
Releases.
Principal Accountant Fees
and Services.
The aggregate fees paid to
the principal accountant for professional services rendered by the principal
accountant for the audit of the registrant’s annual financial statements or for
services that are normally provided by the principal accountant in connection
with statutory and regulatory filings or engagements were $55,935 for the
fiscal year ended October 31, 2023 and $55,508 for the fiscal year ended December
31, 2022.
There were no fees paid to
the principal accountant for assurance and related services rendered by the
principal accountant to the registrant that are reasonably related to the
performance of the audit of the registrant's financial statements and are not
reported under paragraph (a) of Item 4.
There were no fees paid to
the principal accountant for assurance and related services rendered by the
principal accountant to the registrant's investment adviser and any entity
controlling, controlled by or under common control with the investment adviser
that provides ongoing services to the registrant that are reasonably related to
the performance of the audit of their financial statements.
There were no fees paid to
the principal accountant for professional services rendered by the principal
accountant to the registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to
the principal accountant for professional services rendered by the principal
accountant to the registrant’s investment adviser and any entity controlling,
controlled by or under common control with the investment adviser that provides
ongoing services to the registrant for tax compliance, tax advice and tax
planning were $70,000 for the fiscal year ended October 31, 2023 and $70,000 for
the fiscal year ended December 31, 2022. The services for which these fees were
paid included global access to tax platform International Tax View.
There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4.
The aggregate fees paid to
the principal accountant for products and services rendered by the principal
accountant to the registrant’s investment adviser and any entity controlling,
controlled by or under common control with the investment adviser that provides
ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4
were $113,000 for the fiscal year ended October 31, 2023 and $276,195 for the
fiscal year ended December 31, 2022. The services for which these fees were
paid included professional fees in connection with determining the feasibility
of a U.S. direct lending structure, professional services relating to the
readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection
with a license for accounting and business knowledge platform Viewpoint, professional
fees relating to security count and fees in connection with a license for
employee development tool ProEdge.
(e) (1) The registrant’s
audit committee is directly responsible for approving the services to be provided
by the auditors, including:
(i) pre-approval of
all audit and audit related services;
(ii) pre-approval of
all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of
all non-audit related services to be provided to the registrant by the auditors
to the registrant’s investment adviser or to any entity that controls, is
controlled by or is under common control with the registrant’s investment adviser
and that provides ongoing services to the registrant where the non-audit services
relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by
the audit committee, if deemed necessary or appropriate, as an alternative to
committee pre-approval of services to be provided by the auditors, as required
by paragraphs (ii) and (iii) above, of policies and procedures to permit such
services to be pre-approved by other means, such as through establishment of
guidelines or by action of a designated member or members of the committee; provided
the policies and procedures are detailed as to the particular service and the
committee is informed of each service and such policies and procedures do not include
delegation of audit committee responsibilities, as contemplated under the
Securities Exchange Act of 1934, to management; subject, in the case of (ii) through
(iv), to any waivers, exceptions or exemptions that may be available under
applicable law or rules.
(e) (2) None of the services
provided to the registrant described in paragraphs (b)-(d) of Item 4 were
approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01
of regulation S-X.
(f) No disclosures are
required by this Item 4(f).
(g) The aggregate non-audit
fees paid to the principal accountant for services rendered by the principal
accountant to the registrant and the registrant’s investment adviser and any
entity controlling, controlled by or under common control with the investment
adviser that provides ongoing services to the registrant were $183,000 for the
fiscal year ended October 31, 2023 and $346,195 for the fiscal year ended December
31, 2022.
(h) The registrant’s audit committee
of the board has considered whether the provision of non-audit services that
were rendered to the registrant’s investment adviser (not including any
sub-adviser whose role is primarily portfolio management and is subcontracted
with or overseen by another investment adviser), and any entity controlling,
controlled by, or under common control with the investment adviser that
provides ongoing services to the registrant that were not pre-approved pursuant
to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with
maintaining the principal accountant’s independence.
Members of the Audit Committee are: Ketu Desai, Karen
Caldwell and Mark Hammitt.
Item
6. Schedule of Investments.
N/A
Item
7
. Disclosure of Proxy Voting
Policies and Procedures for Closed-End Management Investment Companies.
The board of trustees of the
Fund has delegated the authority to vote proxies related to the portfolio securities
held by the Fund to the Fund’s investment manager, Franklin Advisers, Inc., in
accordance with the Proxy Voting Policies and Procedures (Policies) adopted by
the investment manager.
RESPONSIBILITY OF THE
INVESTMENT MANAGERS TO VOTE PROXIES
Franklin Templeton Investment
Solutions, a separate investment group within Franklin Templeton, comprised of
investment personnel from the SEC-registered investment advisers listed on
Appendix A (hereinafter individually an “Investment Manager” and collectively
the "Investment Managers") have delegated the administrative duties
with respect to voting proxies for securities to the Franklin Templeton Proxy
Group. Proxy duties consist of disseminating proxy materials and analyses of
issuers whose stock is owned by any client (including both investment companies
and any separate accounts managed by the Investment Managers) that has either
delegated proxy voting administrative responsibility to the Investment Managers
or has asked for information and/or recommendations on the issues to be voted.
The Investment Managers will inform advisory clients that have not delegated
the voting responsibility but that have requested voting advice about the
Investment Managers’ views on such proxy votes. The Proxy Group also provides
these services to other advisory affiliates of the Investment Managers.
The Proxy Group will process
proxy votes on behalf of, and the Investment Managers vote proxies solely in
the best interests of, separate account clients, the Investment
Managers’-managed investment company shareholders, or shareholders of funds
that have appointed Franklin Templeton International Services S.à.r.l. (“FTIS
S.à.r.l.”) as the Management Company, provided such funds or clients have
properly delegated such responsibility in writing, or, where employee benefit
plan assets subject to the Employee Retirement Income Security Act of 1974, as
amended, are involved (“ERISA accounts”), in the best interests of the plan
participants and beneficiaries (collectively, "Advisory Clients"), unless
(i) the power to vote has been specifically retained by the named fiduciary in
the documents in which the named fiduciary appointed the Investment Managers or
(ii) the documents otherwise expressly prohibit the Investment Managers from
voting proxies. The Investment Managers recognize that the exercise of voting
rights on securities held by ERISA plans for which the Investment Managers have
voting responsibility is a fiduciary duty that must be exercised with care,
skill, prudence and diligence.
In certain circumstances,
Advisory Clients are permitted to direct their votes in a solicitation pursuant
to the Investment Management Agreement. An Advisory Client that wishes to
direct its vote shall give reasonable prior written notice to the Investment
Managers indicating such intention and provide written instructions directing
the Investment Managers or the Proxy Group to vote regarding the solicitation.
Where such prior written notice is received, the Proxy Group will vote proxies
in accordance with such written notification received from the Advisory Client.
The Investment Managers have
adopted and implemented Proxy Voting Policies and Procedures (“Proxy Policies”)
that they believe are reasonably designed to ensure that proxies are voted in
the best interest of Advisory Clients in accordance with their fiduciary duties
and rule 206(4)-6 under the Investment Advisers Act of 1940. To the extent that
the Investment Managers have a subadvisory agreement with an affiliated
investment manager (the “Affiliated Subadviser”) with respect to a particular
Advisory Client, the Investment Managers may delegate proxy voting responsibility
to the Affiliated Subadviser. The Investment Managers may also delegate proxy
voting responsibility to a subadviser that is not an Affiliated Subadviser in
certain limited situations as disclosed to fund shareholders (e.g., where an
Investment Manager to a pooled investment vehicle has engaged a subadviser that
is not an Affiliated Subadviser to manage all or a portion of the assets).
HOW THE INVESTMENT MANAGERS VOTE
PROXIES
All proxies received by the
Proxy Group will be voted based upon the Investment Managers’ instructions
and/or policies. To assist it in analyzing proxies of equity securities, the
Investment Managers subscribe to Institutional Shareholder Services Inc.
("ISS"), an unaffiliated third-party corporate governance research
service that provides in-depth analyses of shareholder meeting agendas and vote
recommendations. In addition, the Investment Managers subscribe to ISS’s Proxy
Voting Service and Vote Disclosure Service. These services include receipt of
proxy ballots, custodian bank relations, account maintenance, vote execution,
ballot reconciliation, vote record maintenance, comprehensive reporting capabilities,
and vote disclosure services. Also, the Investment Managers subscribe to Glass,
Lewis & Co., LLC ("Glass Lewis"), an unaffiliated third-party
analytical research firm, to receive analyses and vote recommendations on the
shareholder meetings of publicly held U.S. companies, as well as a limited
subscription to its international research.
* Rule 38a-1 under the
Investment Company Act of 1940 (“1940 Act”) and Rule 206(4)-7 under the
Investment Advisers Act of 1940 (“Advisers Act”) (together the Compliance
Rule”) require registered investment companies and registered investment
advisers to, among other things, adopt and implement written policies and
procedures reasonably designed to prevent violations of the federal securities
laws (“Compliance Rule Policies and Procedures”).
Although analyses provided by
ISS, Glass Lewis, and/or another independent third-party proxy service provider
(each a “Proxy Service”) are thoroughly reviewed and considered in making a
final voting decision, the Investment Managers do not consider recommendations
from a Proxy Service or any third-party to be determinative of the Investment
Managers’ ultimate decision. Rather, the Investment Managers exercise their
independent judgment in making voting decisions. As a matter of policy, the
officers, directors and employees of the Investment Managers and the Proxy
Group will not be influenced by outside sources whose interests conflict with
the interests of Advisory Clients.
For ease of reference, the Proxy
Policies often refer to all Advisory Clients. However, our processes and practices
seek to ensure that proxy voting decisions are suitable for individual Advisory
Clients. In some cases, the Investment Managers’ evaluation may result in an
individual Advisory Client or Investment Manager voting differently, depending
upon the nature and objective of the fund or account, the composition of its
portfolio, whether the Investment Manager has adopted a specialty or custom
voting policy, and other factors.
All conflicts of interest will
be resolved in the best interests of the Advisory Clients. The Investment
Managers are affiliates of a large, diverse financial services firm with many
affiliates and makes its best efforts to mitigate conflicts of interest.
However, as a general matter, the Investment Managers
take the position that relationships between certain affiliates that do not use
the “Franklin Templeton” name (“Independent Affiliates”) and an issuer (e.g.,
an investment management relationship between an issuer and an Independent
Affiliate) do not present a conflict of interest for an Investment Manager in
voting proxies with respect to such issuer because: (i) the Investment Managers
operate as an independent business unit from the Independent Affiliate business
units, and (ii) informational barriers exist between the Investment Managers
and the Independent Affiliate business units.
Material
conflicts of interest could arise in a variety of situations, including as a
result of the Investment Managers’ or an affiliate’s (other than an Independent
Affiliate as described above): (i) material business relationship with an
issuer or proponent, (ii) direct or indirect pecuniary interest in an issuer or
proponent; or (iii) significant personal or family relationship with an issuer
or proponent.
Material conflicts of interest are identified by
the Proxy Group based upon analyses of client, distributor, broker dealer, and
vendor lists, information periodically gathered from directors and officers,
and information derived from other sources, including public filings. The Proxy
Group gathers and analyzes this information on a best-efforts basis, as much of
this information is provided directly by individuals and groups other than the
Proxy Group, and the Proxy Group relies on the accuracy of the information it
receives from such parties.
Nonetheless, even though a
potential conflict of interest between the Investment
Managers or an affiliate (other than an Independent Affiliate as described
above) and an issuer may exist: (1) the Investment Managers may vote in
opposition to the recommendations of an issuer’s management even if contrary to
the recommendations of a third-party proxy voting research provider; (2) if
management has made no recommendations, the Proxy Group may defer to the voting
instructions of the Investment Managers; and (3) with respect to shares held by
Franklin Resources, Inc. or its affiliates for their own corporate accounts,
such shares may be voted without regard to these conflict procedures.
Otherwise,
in
situations
where a material conflict of interest is identified between the Investment
Managers or one of its affiliates (other than
Independent Affiliates) and an issuer, the Proxy Group may vote consistent
with the voting recommendation of a Proxy Service or send the proxy directly to
the relevant Advisory Clients with the Investment Managers’ recommendation
regarding the vote for approval. To address certain affiliate conflict
situations, the Investment Managers will employ pass-through voting or mirror
voting when required pursuant to a fund’s governing documents or applicable
law.
Where the Proxy Group refers a
matter to an Advisory Client, it may rely upon the instructions of a
representative of the Advisory Client, such as the board of directors or trustees,
a committee of the board, or an appointed delegate in the case of a U.S.
registered investment company, a conducting officer in the case of a fund that
has appointed FTIS S.à.r.l as its Management Company, the Independent Review
Committee for Canadian investment funds, or a plan administrator in the case of
an employee benefit plan. A quorum of the board of directors or trustees or of
a committee of the board can be reached by a majority of members, or a majority
of non-recused members. The Proxy Group may determine to vote all shares held
by Advisory Clients of the Investment Managers and affiliated Investment
Managers (other than Independent Affiliates) in
accordance with the instructions of one or more of the Advisory Clients.
The Investment Managers may also
decide whether to vote proxies for securities deemed to present conflicts of
interest that are sold following a record date, but before a shareholder
meeting date. The Investment Managers may consider various factors in deciding
whether to vote such proxies, including the Investment Managers’ long-term view
of the issuer’s securities for investment, or it may defer the decision to vote
to the applicable Advisory Client. The Investment Managers also may be unable
to vote, or choose not to vote, a proxy for securities deemed to present a conflict
of interest for any of the reasons outlined in the first paragraph of the
section of these policies entitled “Proxy Procedures.”
Weight Given Management
Recommendations
One of the primary factors the
Investment Managers consider when determining the desirability of investing in
a particular company is the quality and depth of that company's management.
Accordingly, the recommendation of management on any issue is a factor that the
Investment Managers consider in determining how proxies should be voted.
However, the Investment Managers do not consider recommendations from
management to be determinative of the Investment Managers’ ultimate decision.
Each issue is considered on its own merits, and the Investment Managers will not
support the position of a company's management in any situation where it determines
that the ratification of management's position would adversely affect the
investment merits of owning that company's shares.
The Investment Managers believe
that engagement with issuers is important to good corporate governance and to
assist in making proxy voting decisions. The Investment Managers may engage
with issuers to discuss specific ballot items to be voted on in advance of an
annual or special meeting to obtain further information or clarification on the
proposals. The Investment Managers may also engage with management on a range
of environmental, social or corporate governance issues throughout the year.
The Proxy Group is part of the
Franklin Templeton’s Global Sustainability Strategy Team’s Stewardship Team.
Full-time staff members and support staff are devoted to proxy voting
administration and oversight and providing support and assistance where needed.
On a daily basis, the Proxy Group will review each proxy upon receipt as well
as any agendas, materials and recommendations that they receive from a Proxy
Service or other sources. The Proxy Group maintains a record of all shareholder
meetings that are scheduled for companies whose securities are held by the
Investment Managers’ managed funds and accounts. For each shareholder meeting,
a member of the Proxy Group will consult with the research analyst that follows
the security and provide the analyst with the agenda, analyses of one or more
Proxy Services, recommendations and any other information provided to the Proxy
Group. Except in situations identified as presenting material conflicts of
interest, the Investment Managers’ research analyst and relevant portfolio
manager(s) are responsible for making the final voting decision based on their
review of the agenda, analyses of one or more Proxy Services, proxy statements,
their knowledge of the company and any other information publicly available.
In situations where the Investment
Managers have not responded with vote recommendations to the Proxy Group by the
deadline date, the Proxy Group may vote consistent with the vote
recommendations of a Proxy Service. Except in cases where the Proxy Group is
voting consistent with the voting recommendation of a Proxy Service, the Proxy
Group must obtain voting instructions from the Investment Managers’ research
analysts, relevant portfolio manager(s), legal counsel and/or the Advisory
Client prior to submitting the vote. In the event that an account holds a
security that an Investment Manager did not purchase on its behalf, and the
Investment Manager does not normally consider the security as a potential
investment for other accounts, the Proxy Group may vote consistent with the
voting recommendations of a Proxy Service or take no action on the meeting.
PROXY ADMINISTRATION PROCEDURES
Situations Where Proxies Are Not
Voted
The Proxy Group is fully
cognizant of its responsibility to process proxies and maintain proxy records
as may be required by relevant rules and regulations. In addition, the
Investment Managers understand their fiduciary duty to vote proxies and that
proxy voting decisions may affect the value of shareholdings. Therefore, the
Investment Managers will generally attempt to process every proxy they receive
for all domestic and foreign securities.
However, there may be situations
in which the Investment Managers may be unable to successfully vote a proxy, or
may choose not to vote a proxy, such as where: (i) a proxy ballot was not
received from the custodian bank; (ii) a meeting notice was received too late;
(iii) there are fees imposed upon the exercise of a vote and it is determined
that such fees outweigh the benefit of voting; (iv) there are legal encumbrances
to voting, including blocking restrictions in certain markets that preclude the
ability to dispose of a security if an Investment Manager votes a proxy or
where the Investment Manager is prohibited from voting by applicable law,
economic or other sanctions, or other regulatory or market requirements,
including but not limited to, effective Powers of Attorney; (v) additional
documentation or the disclosure of beneficial owner details is required; (vi)
the Investment Managers held shares on the record date but has sold them prior
to the meeting date; (vii) the Advisory Client held shares on the record date,
but the Advisory Client closed the account prior to the meeting date; (viii) a
proxy voting service is not offered by the custodian in the market; (ix) due to
either system error or human error, the Investment Managers’ intended vote is not
correctly submitted; (x) the Investment Managers believe it is not in the best
interest of the Advisory Client to vote the proxy for any other reason not
enumerated herein; or (xi) a security is subject to a securities lending or
similar program that has transferred legal title to the security to another
person.
Even if the Investment Managers
use reasonable efforts to vote a proxy on behalf of their Advisory Clients,
such vote or proxy may be rejected because of (a) operational or procedural
issues experienced by one or more third parties involved in voting proxies in
such jurisdictions; (b) changes in the process or agenda for the meeting by the
issuer for which the Investment Managers do not have sufficient notice; or (c)
the exercise by the issuer of its discretion to reject the vote of the
Investment Managers. In addition, despite the best efforts of the Proxy Group
and its agents, there may be situations where the Investment Managers’ votes
are not received, or properly tabulated, by an issuer or the issuer’s agent.
The Investment Managers or their
affiliates may, on behalf of one or more of the proprietary registered
investment companies advised by the Investment Managers or their affiliates,
make efforts to recall any security on loan where the Investment Manager or its
affiliates (a) learn of a vote on an event that may materially affect a
security on loan and (b) determine that it is in the best interests of such
proprietary registered investment companies to recall the security for voting
purposes. The ability to timely recall shares is not entirely within the
control of the Investment Managers. Under certain circumstances, the recall of
shares in time for such shares to be voted may not be possible due to applicable
proxy voting record dates or other administrative considerations.
There may be instances in certain
non-U.S. markets where split voting is not allowed. Split voting occurs when a
position held within an account is voted in accordance with two differing
instructions. Some markets and/or issuers only allow voting on an entire
position and do not accept split voting. In certain cases, when more than one Franklin
Templeton investment manager has accounts holding shares of an issuer that are
held in an omnibus structure, the Proxy Group will seek direction from an
appropriate representative of the Advisory Client with multiple Investment
Managers (such as a conducting officer of the Management Company in the case of
a SICAV), or the Proxy Group will submit the vote based on the voting
instructions provided by the Investment Manager with accounts holding the
greatest number of shares of the security within the omnibus structure.
If several issues are bundled
together in a single voting item, the Investment Managers will assess the total
benefit to shareholders and the extent that such issues should be subject to
separate voting proposals.
PROCEDURES FOR MEETINGS INVOLVING
FIXED INCOME SECURITIES & PRIVATELY HELD ISSUERS
From time to time, certain
custodians may process events for fixed income securities through their proxy
voting channels rather than corporate action channels for administrative convenience.
In such cases, the Proxy Group will receive ballots for such events on the ISS
voting platform. The Proxy Group will solicit voting instructions from the
Investment Managers for each account or fund involved. If the Proxy Group does
not receive voting instructions from the Investment Managers, the Proxy Group
will take no action on the event. The Investment Managers may be unable to vote
a proxy for a fixed income security, or may choose not to vote a proxy, for the
reasons described under the section entitled “Proxy Procedures.”
In the rare instance where there
is a vote for a privately held issuer, the decision will generally be made by
the relevant portfolio managers or research analysts.
The Proxy Group will monitor
such meetings involving fixed income securities or privately held issuers for
conflicts of interest in accordance with these procedures. If a fixed income or
privately held issuer is flagged as a potential conflict of interest, the
Investment Managers may nonetheless vote as it deems in the best interests of
its Advisory Clients. The Investment Managers will report such decisions on an
annual basis to Advisory Clients as may be required.
Appendix A
These Proxy Policies apply to
accounts managed by personnel within Franklin Templeton Investment Solutions,
which includes the following Investment Managers:
Franklin Advisers, Inc. (FAV)
Franklin Advisory Services, LLC
(FASL)
Franklin Mutual Advisers LLC
(FMA)
Franklin Templeton Investments
Corp. (FTIC)
Franklin Templeton Investment
Management Limited (FTIML)
Templeton Asset Management Ltd.
(TAML)
The following Proxy Policies
apply to FAV, FMA, FTIC, FTIML, and TAML only:
HOW THE INVESTMENT MANAGERS VOTE
PROXIES
Certain of the Investment
Managers’ separate accounts or funds (or a portion thereof) are included under
Franklin Templeton Investment Solutions (“FTIS”), a separate investment group
within Franklin Templeton, and employ a quantitative strategy.
For such accounts, FTIS’s
proprietary methodologies rely on a combination of quantitative, qualitative,
and behavioral analysis rather than fundamental security research and analyst
coverage that an actively managed portfolio would ordinarily employ.
Accordingly, absent client direction, in light of the high number of positions
held by such accounts and the considerable time and effort that would be required
to review proxy statements and ISS or Glass Lewis recommendations, the
Investment Manager may review ISS’s non-US Benchmark guidelines, ISS’s
specialty guidelines (in particular, ISS’s Sustainability guidelines), or Glass
Lewis’s US guidelines (the “the ISS and Glass Lewis Proxy Voting Guidelines”)
and determine, consistent with the best interest of its clients, to provide standing
instructions to the Proxy Group to vote proxies according to the recommendations
of ISS or Glass Lewis.
The Investment Manager, however,
retains the ability to vote a proxy differently than ISS or Glass Lewis
recommends if the Investment Manager determines that it would be in the best interests
of Advisory Clients.
The following Proxy Policies
apply to FASL only:
HOW THE INVESTMENT MANAGERS VOTE
PROXIES
The Franklin LibertyQ branded
smart beta exchange traded funds and other passively managed exchange traded
funds (collectively, “ETFs”), seek to track a particular securities index. As a
result, each ETF may hold the securities of hundreds of issuers. Because the
primary criteria for determining whether a security should be included (or
continued to be included) in an ETF’s investment portfolio is whether such
security is a representative component of the securities index that the ETF is
seeking to track, the ETFs do not require the fundamental security research and
analyst coverage that an actively managed portfolio would require. Accordingly,
in light of the high number of positions held by an ETF and the considerable
time and effort that would be required to review proxy statements and ISS or
Glass Lewis recommendations, the Investment Manager may review ISS’s non-US
Benchmark guidelines, ISS’s specialty guidelines (in particular, ISS’s
Sustainability guidelines), or Glass Lewis’s US guidelines (the “ISS and Glass
Lewis Proxy Voting Guidelines”) and determine, consistent with the best
interest of its clients, to provide standing instructions to the Proxy Group to
vote proxies according to the recommendations of ISS or Glass Lewis rather than
analyze each individual proxy vote. Permitting the Investment Manager of the
ETFs to defer its judgment for voting on a proxy to the recommendations of ISS
or Glass Lewis may result in a proxy related to the securities of a particular
issuer held by an ETF being voted differently from the same proxy that is voted
on by other funds managed by the Investment Managers.
The following Proxy Policies
apply to FTIC, FTIML, and TAML only:
HOW THE INVESTMENT MANAGERS VOTE
PROXIES
For accounts managed by the
Templeton Global Equity Group (“TGEG”), in making voting decisions, the
Investment Manager may consider Glass Lewis’s Proxy Voting Guidelines, ISS’s
Benchmark Policies, ISS’s Sustainability Policy, and TGEG’s custom sustainability
guidelines, which reflect what TGEG believes to be good environmental, social,
and governance practices.
The following Proxy Policies
apply to FTIC only:
RESPONSIBILITY OF THE INVESTMENT
MANAGERS TO VOTE PROXIES
To the extent that the Investment
Manager has a subadvisory agreement with an affiliated investment manager (the
“Affiliated Subadviser”) with respect to a particular Advisory Client or the
Investment Manager chooses securities for an Advisory Client’s portfolios that
are recommended by an Affiliated Subadviser, the Investment Manager may
delegate proxy voting responsibility to the Affiliated Subadviser or vote
proxies in accordance with the Affiliated Subadviser’s recommendations.
Item 8. Portfolio Managers
of Closed-End Management Investment Companies.
(a)(1) As of December 21, 2023,
the portfolio managers of the Fund are as follows:
MICHAEL HASENSTAB,
Ph.D., Executive Vice President of Franklin
Advisers, Inc.
Dr. Hasenstab has been a
portfolio manager of the Fund since 2002. He
has final authority over all aspects of the Fund's investment portfolio,
including but not limited to, purchases and sales of individual securities, portfolio
risk assessment, and the management of daily cash balances in accordance with
anticipated management requirements. The degree to which he may perform these
functions, and the nature of these functions, may change from time to time.
He first joined Franklin Templeton in 1995,
rejoining again in 2001 after a three-year leave to obtain his PH.D.
Calvin Ho, Ph.D.,
Senior Vice President of Franklin Advisers
Dr. Ho has been a portfolio
manager of the Fund since December 2018. He provides
research and advice on the purchases and sales of individual
securities and portfolio risk assessment. He joined Franklin Templeton in 2005.
(a)(2) This section reflects
information about the portfolio managers as of the fiscal year ended October 31,
2023.
The following table shows the
number of other accounts managed by each portfolio manager and the total assets
in the accounts managed within each category:
|
|
Number of Other
Registered Investment Companies Managed1 |
Assets of Other
Registered Investment Companies Managed |
Number of Other
Pooled Investment Vehicles Managed1 |
Assets of Other
Pooled Investment Vehicles Managed |
Number of Other
Accounts Managed1 |
Assets of Other
Accounts Managed |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The various pooled investment vehicles and accounts listed are
managed by a team of investment professionals. Accordingly, the individual
manager listed would not be solely responsible for managing such listed
amounts.
Dr. Hasenstab manages Pooled Investment Vehicles and Other Accounts
with $1,788 in total assets with a performance fee.
Portfolio managers that
provide investment services to the Fund may also provide services to a variety
of other investment products, including other funds, institutional accounts and
private accounts. The advisory fees for some of such other products and
accounts may be different than that charged to the Fund and may include
performance based compensation (as noted in the chart above, if any). This may
result in fees that are higher (or lower) than the advisory fees paid by the
Fund. As a matter of policy, each fund or account is managed solely for the
benefit of the beneficial owners thereof. As discussed below, the separation of
the trading execution function from the portfolio management function and the
application of objectively based trade allocation procedures help to mitigate potential
conflicts of interest that may arise as a result of the portfolio managers
managing accounts with different advisory fees.
Conflicts.
The management of multiple funds, including
the Fund, and accounts may also give rise to potential conflicts of interest if
the funds and other accounts have different objectives, benchmarks, time
horizons, and fees as the portfolio manager must allocate his or her time and
investment ideas across multiple funds and accounts. The investment manager
seeks to manage such competing interests for the time and attention of portfolio
managers by having portfolio managers focus on a particular investment
discipline. Most other accounts managed by a portfolio manager are managed
using the same investment strategies that are used in connection with the
management of the Fund. Accordingly, portfolio holdings, position sizes, and
industry and sector exposures tend to be similar across similar portfolios,
which may minimize the potential for conflicts of interest. As noted above, the
separate management of the trade execution and valuation functions from the
portfolio management process also helps to reduce potential conflicts of
interest. However, securities selected for funds or accounts other than the
Fund may outperform the securities selected for the Fund. Moreover, if a
portfolio manager identifies a limited investment opportunity that may be
suitable for more than one fund or other account, the Fund may not be able to
take full advantage of that opportunity due to an allocation of that
opportunity across all eligible funds and other accounts. The investment
manager seeks to manage such potential conflicts by using procedures intended
to provide a fair allocation of buy and sell opportunities among funds and
other accounts.
The structure of a
portfolio manager’s compensation may give rise to potential conflicts of
interest. A portfolio manager’s base pay and bonus tend to increase with
additional and more complex responsibilities that include increased assets
under management. As such, there may be an indirect relationship between a portfolio
manager’s marketing or sales efforts and his or her bonus.
Finally, the management
of personal accounts by a portfolio manager may give rise to potential
conflicts of interest. While the funds and the investment manager have adopted
a code of ethics which they believe contains provisions designed to prevent a
wide range of prohibited activities by portfolio managers and others with
respect to their personal trading activities, there can be no assurance that
the code of ethics addresses all individual conduct that could result in
conflicts of interest.
The investment manager
and the Fund have adopted certain compliance procedures that are designed to
address these, and other, types of conflicts. However, there is no guarantee
that such procedures will detect each and every situation where a conflict arises.
Compensation.
The investment manager seeks to maintain a
compensation program that is competitively positioned to attract, retain and
motivate top-quality investment professionals. Portfolio managers receive a
base salary, a cash incentive bonus opportunity, an equity compensation
opportunity, and a benefits package. Portfolio manager compensation is reviewed
annually, and the level of compensation is based on individual performance, the
salary range for a portfolio manager’s level of responsibility and Franklin
Templeton guidelines. Portfolio managers are provided no financial incentive to
favor one fund or account over another. Each portfolio manager’s compensation
consists of the following three elements:
Base salary
Each portfolio manager is paid a base
salary.
Annual bonus
Annual bonuses are structured to align the
interests of the portfolio manager with those of the Fund’s shareholders. Each
portfolio manager is eligible to receive an annual bonus. Bonuses generally are
split between cash (50% to 65%) and restricted shares of Resources stock (17.5%
to 25%) and mutual fund shares (17.5% to 25%). The deferred equity-based
compensation is intended to build a vested interest of the portfolio manager in
the financial performance of both Resources and mutual funds advised by the
investment manager. The bonus plan is intended to provide a competitive level
of annual bonus compensation that is tied to the portfolio manager achieving
consistently strong investment performance, which aligns the financial incentives
of the portfolio manager and Fund shareholders. The Chief Investment Officer of
the investment manager and/or other officers of the investment manager, with
responsibility for the Fund, have discretion in the granting of annual bonuses
to portfolio managers in accordance with Franklin Templeton guidelines. The
following factors are generally used in determining bonuses under the plan:
Investment performance.
Primary consideration is given to the
historic investment performance over the 1, 3 and 5 preceding years of all
accounts managed by the portfolio manager. The pre-tax performance of each fund
managed is measured relative to a relevant peer group and/or applicable
benchmark as appropriate.
Non-investment performance
. The more qualitative contributions of the
portfolio manager to the investment manager’s business and the investment
management team, including professional knowledge, productivity, responsiveness
to client needs and communication, are evaluated in determining the amount of any
bonus award.
Responsibilities.
The characteristics and complexity of funds
managed by the portfolio manager are factored in the investment manager’s
appraisal.
Additional
long-term equity-based compensation
Portfolio managers may also be awarded restricted shares or units of Resources
stock or restricted shares or units of one or more mutual funds. Awards of such
deferred equity-based compensation typically vest over time, so as to create
incentives to retain key talent.
Benefits
Portfolio managers also participate in
benefit plans and programs available generally to all employees of the
investment manager.
Ownership
of Fund shares.
The
investment manager has a policy of encouraging portfolio managers to invest in
the funds they manage. Exceptions arise when, for example, a fund is closed to
new investors or when tax considerations or jurisdictional constraints cause
such an investment to be inappropriate for the portfolio manager. The following
is the dollar range of Fund shares beneficially owned by the portfolio managers
(such amounts may change from time to time):
|
|
Dollar Range of Fund Shares Beneficially
Owned |
|
|
|
|
|
|
Item 9. Purchases of Equity
Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A
Item 10. Submission of
Matters to a Vote of Security Holders.
There have been no changes to the procedures by which
shareholders may recommend nominees to the Registrant's Board of Trustees that would
require disclosure herein.
Item 11. Controls and Procedures.
(a) Evaluation of
Disclosure Controls and Procedures.
The
Registrant maintains disclosure controls and procedures that are designed to provide
reasonable assurance that information required to be disclosed in the Registrant’s
filings under the Securities Exchange Act of 1934, as amended, and the
Investment Company Act of 1940 is recorded, processed, summarized and reported
within the periods specified in the rules and forms of the Securities and Exchange
Commission. Such information is accumulated and communicated to the Registrant’s
management, including its principal executive officer and principal financial
officer, as appropriate, to allow timely decisions regarding required disclosure.
The Registrant’s management, including the principal executive officer and the
principal financial officer, recognizes that any set of controls and procedures,
no matter how well designed and operated, can provide only reasonable assurance
of achieving the desired control objectives.
Within 90 days prior to the
filing date of this Shareholder Report on Form N-CSR, the Registrant
had carried out an evaluation, under the supervision and with the participation
of the Registrant’s management, including the Registrant’s principal executive
officer and the Registrant’s principal financial officer, of the effectiveness
of the design and operation of the Registrant’s disclosure controls and
procedures. Based on such evaluation, the Registrant’s principal executive officer
and principal financial officer concluded that the Registrant’s disclosure
controls and procedures are effective.
(b) Changes in
Internal Controls.
There have
been no changes in the Registrant’s internal control over financial reporting
that occurred during the period covered by this report that has materially
affected, or is reasonably likely to materially affect the internal control over
financial reporting.
Item 12. Disclosure of
Securities Lending Activities for Closed-End Management Investment Company.
Securities
lending agent
The board of trustees
has approved the Fund’s participation in a securities lending program. Under the
securities lending program, JP Morgan Chase Bank serves as the Fund’s
securities lending agent.
The securities lending agent
is responsible for the implementation and administration of the Funds’
securities lending program. Pursuant to the respective Securities Lending Agreements
with the Fund, the securities lending agent performs a variety of services,
including (but not limited to) the following:
o Trade finding, execution and
settlement
o Settlement monitoring and controls, reconciliations,
corporate actions and recall management
o Collateral management and valuation
information
o Invoice management and billing
from counterparties
For the fiscal year ended October
31, 2023, the income earned by the Fund as well as the fees and/or compensation
paid by the Fund in dollars pursuant to a securities lending agreement between
the Trust with respect to the Fund and the Securities Lending Agent were as
follows (figures may differ from those shown in shareholder reports due to time
of availability and use of estimates):
Gross
income earned by the Fund from securities lending activities |
|
Fees and/or compensation
paid by the Fund for securities lending activities and related services |
|
Fees paid to Securities
Lending Agent from revenue split |
|
Fees paid for any cash collateral
management service (including fees deducted from a pooled cash collateral
reinvestment vehicle) not included in a revenue split |
|
Administrative fees not included
in a revenue split |
|
Indemnification fees not
included in a revenue split |
|
Rebate (paid to borrower) |
|
Other fees not included
above |
|
Aggregate fees/compensation
paid by the Fund for securities lending activities |
|
Net income from securities
lending activities |
|
Item
13. Recovery of Erroneously Awarded Compensation.
(a)(2)
Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew
T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher
Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1)
There were no written solicitations to purchase securities under Rule 23c-1
under the Act sent or given during the period covered by the report by or on
behalf of the Registrant to 10 or more persons.
(a)(2)(2)
There was a change in the Registrant’s independent public accountant during the
period covered by the report.
(b)
Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of
Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and
Christopher Kings, Chief Financial Officer, Chief Accounting Officer and
Treasurer
(c) Pursuant to the
Securities and Exchange Commission’s Order granting relief from Section 19(b)
of the Investment Company Act of 1940, the 19(a) Notices to Beneficial Owners
are attached hereto as Exhibit
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
TEMPLETON GLOBAL INCOME
FUND
By SMATTHEW T. HINKLE______________________
Chief Executive Officer
- Finance and Administration
Pursuant to the requirements
of the Securities Exchange Act of 1934 and the Investment Company Act of 1940,
this report has been signed below by the following persons on behalf of the registrant
and in the capacities and on the dates indicated.
By SMATTHEW T. HINKLE______________________
Chief Executive Officer
- Finance and Administration
By SCHRISTOPHER KINGS______________________
Chief Financial
Officer, Chief Accounting Officer and Treasurer
TEMPLETON GLOBAL INCOME FUND
Fort
Lauderdale, FL 33301
For
more information, please contact Franklin Templeton at 1-800-342-5236.
TEMPLETON
GLOBAL INCOME FUND (“GIM” or the “Fund”)
ANNOUNCES
NOTIFICATION OF SOURCES OF DISTRIBUTIONS
Fort Lauderdale, Florida, July 28, 2023. Templeton Global Income Fund [NYSE: GIM]
The Fund’s
estimated sources of the distribution to be paid on July 31, 2023, and for the
fiscal year 2023 year-to-date are as follows:
Estimated Allocations for July Monthly
Distribution as of June 30, 2023:
Cumulative
Estimated Allocations fiscal year-to-date as of June 30, 2023, for the fiscal
year ending December 31, 2023:
Shareholders should not draw any conclusions about the Fund’s investment
performance from the amount of this distribution or from
the terms of the Plan. GIM estimates that it has distributed more than its
income and net realized capital gains; therefore, a portion of the GIM
distribution to shareholders may be a return of capital. A return of capital
may occur, for example, when some or all of the money that a shareholder
invested in a Fund is paid back to them. A return of capital distribution does
not necessarily reflect GIM’s investment performance and should not be confused
with ‘yield’ or ‘income’. The amounts and sources of distributions reported
herein 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 the Fund’s investment experience during the remainder
of its fiscal year and may be subject to changes based on tax regulations. 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.
Average
Annual Total Return (in relation to the change in net asset value (NAV) for
the 5-year period ended on 6/30/2023)1 |
Annualized
Distribution Rate (as a percentage of NAV for the current fiscal period
through 6/30/2023)2 |
Cumulative
Total Return (in relation to the change in NAV for the fiscal period through 6/30/2023)3 |
Cumulative
Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 6/30/2023)4 |
|
|
|
|
|
Fund Performance
and Distribution Rate Information:
Average Annual Total Return in relation to
NAV represents the compound average of the Annual NAV Total Returns of the Fund
for the five-year period ended through June 30, 2023. Annual NAV Total Return
is the percentage change in the Fund’s NAV over a year, assuming reinvestment
of distributions
paid.
The Annualized Distribution Rate is the
current fiscal period’s distribution rate annualized as a percentage of the
Fund’s NAV through June 30, 2023.
Cumulative Total Return is the percentage
change in the Fund’s NAV from December 31, 2022 through June 30, 2023, assuming
reinvestment of distributions
paid.
The Cumulative Fiscal Year-To-Date
Distribution Rate is the dollar value of distributions for the fiscal period December
31, 2022 through June 30, 2023, as a percentage of the Fund’s NAV as of June
30, 2023.
The Fund’s Board
of
Trustees (the “Board”)
has authorized a managed distribution plan pursuant to
which the Fund makes monthly distributions to shareholders at an annual minimum
fixed rate of 8%, based on the average monthly NAV of the Fund’s common shares
(the “Plan”). The Fund calculates the average NAV from the previous month based
on the number of business days in the month on which the NAV is calculated. The
Plan is intended to provide shareholders with a constant, but not guaranteed,
fixed minimum rate of distribution each month and is intended to narrow the
discount between the market price and the NAV of the Fund’s common shares, but
there can be no assurance that the Plan will be successful in doing so. The
Fund is managed with a goal of generating as much of the distribution as
possible from net ordinary income and short-term capital gains, that is
consistent with the Fund’s investment strategy and risk profile. To the extent
that sufficient distributable income is not available on a monthly basis, the
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 the Fund is paid
back to shareholders. A return of capital distribution does not necessarily
reflect the Fund’s investment performance and should not be confused with
“yield” or “income”. Even though the 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 may
amend the terms of the Plan or terminate the Plan at any time without prior
notice to the Fund’s shareholders. The amendment or termination of the Plan
could have an adverse effect on the market price of the Fund’s common shares.
The Plan will be subject to the periodic review by the Board, including a
yearly review of the annual minimum fixed rate to determine if an adjustment
should be made.
For
further information on Templeton Global Income Fund, please visit our web site
at:
www.franklintempleton.com
Franklin Resources, Inc. is a global investment management organization
with subsidiaries operating as Franklin Templeton and serving clients in over
150 countries. Franklin Templeton’s mission is to help clients achieve better
outcomes through investment management expertise, wealth management and
technology solutions. Through its specialist investment managers, the company
offers specialization on a global scale, bringing extensive capabilities in
fixed income, equity, alternatives and multi-asset solutions. With more than
1,300 investment professionals, and offices in major financial markets around
the world, the California-based company has over 75 years of investment
experience and over $1.4 trillion in assets under management as of June 30,
2023. For more information, please visit franklintempleton.com.
TEMPLETON
GLOBAL INCOME FUND
Fort
Lauderdale, FL 33301
For
more information, please contact Franklin Templeton at 1-800-342-5236.
TEMPLETON
GLOBAL INCOME FUND (“GIM” or the “Fund”)
ANNOUNCES
NOTIFICATION OF SOURCES OF DISTRIBUTIONS
Fort Lauderdale, Florida, August 30, 2023.
Templeton Global Income Fund [NYSE: GIM]
The Fund’s
estimated sources of the distribution to be paid on August 31, 2023, and for
the fiscal year 2023 year-to-date are as follows:
Estimated Allocations for August Monthly
Distribution as of July 31, 2023:
Cumulative Estimated Allocations fiscal
year-to-date as of July 31, 2023, for the fiscal year ending December 31, 2023:
Shareholders should not draw any conclusions about the Fund’s investment
performance from the amount of this distribution or from the terms of the
Plan. GIM estimates that it has distributed more than its income and net
realized capital gains; therefore, a portion of the GIM distribution to
shareholders may be a return of capital. A return of capital may occur, for
example, when some or all of the money that a shareholder invested in a Fund is
paid back to them. A return of capital distribution does not necessarily
reflect GIM’s investment performance and should not be confused with ‘yield’ or
‘income’. The amounts and sources of distributions reported herein 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
the Fund’s investment experience during the remainder of its fiscal year and
may be subject to changes based on tax regulations. 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.
Average
Annual Total Return (in relation to the change in net asset value (NAV) for
the 5-year period ended on 7/31/2023)1 |
Annualized
Distribution Rate (as a percentage of NAV for the current fiscal period
through 7/31/2023)2 |
Cumulative
Total Return (in relation to the change in NAV for the fiscal period through 7/31/2023)3 |
Cumulative
Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 7/31/2023)4 |
|
|
|
|
|
Fund Performance
and Distribution Rate Information:
Average Annual Total Return in relation to
NAV represents the compound average of the Annual NAV Total Returns of the Fund
for the five-year period ended through July 31, 2023. Annual NAV Total Return
is the percentage change in the Fund’s NAV over a year, assuming reinvestment
of distributions
paid.
The Annualized Distribution Rate is the
current fiscal period’s distribution rate annualized as a percentage of the
Fund’s NAV through July 31, 2023.
Cumulative Total Return is the percentage
change in the Fund’s NAV from December 31, 2022 through July 31, 2023, assuming
reinvestment of distributions
paid.
The Cumulative Fiscal Year-To-Date
Distribution Rate is the dollar value of distributions for the fiscal period December
31, 2022 through July 31, 2023, as a percentage of the Fund’s NAV as of July
31, 2023.
The Fund’s Board of Trustees (the “Board”)
has authorized a managed distribution plan pursuant to which the Fund makes
monthly distributions to shareholders at an annual minimum fixed rate of 8%,
based on the average monthly NAV of the Fund’s common shares (the “Plan”). The
Fund calculates the average NAV from the previous month based on the number of
business days in the month on which the NAV is calculated. The Plan is intended
to provide shareholders with a constant, but not guaranteed, fixed minimum rate
of distribution each month and is intended to narrow the discount between the
market price and the NAV of the Fund’s common shares, but there can be no
assurance that the Plan will be successful in doing so. The Fund is managed
with a goal of generating as much of the distribution as possible from net
ordinary income and short-term capital gains, that is consistent with the
Fund’s investment strategy and risk profile. To the extent that sufficient
distributable income is not available on a monthly basis, the 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 the Fund is paid
back to shareholders. A return of capital distribution does not necessarily
reflect the Fund’s investment performance and should not be confused with
“yield” or “income”. Even though the 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 may amend the terms of the Plan
or terminate the Plan at any time without prior notice to the Fund’s
shareholders. The amendment or termination of the Plan could have an adverse
effect on the market price of the Fund’s common shares. The Plan will be
subject to the periodic review by the Board, including a yearly review of the
annual minimum fixed rate to determine if an adjustment should be made.
For
further information on Templeton Global Income Fund, please visit our web site
at:
www.franklintempleton.com
Franklin Resources,
Inc. is a global investment management organization with subsidiaries operating
as Franklin Templeton and serving clients in over 150 countries. Franklin
Templeton’s mission is to help clients achieve better outcomes through
investment management expertise, wealth management and technology solutions.
Through its specialist investment managers, the company offers specialization
on a global scale, bringing extensive capabilities in fixed income, equity,
alternatives and multi-asset solutions. With more than 1,300 investment
professionals, and offices in major financial markets around the world, the
California-based company has over 75 years of investment experience and over
$1.4 trillion in assets under management as of July 31, 2023. For more
information, please visit franklintempleton.com.
TEMPLETON
GLOBAL INCOME FUND
Fort
Lauderdale, FL 33301
For
more information, please contact Franklin Templeton at 1-800-342-5236.
TEMPLETON
GLOBAL INCOME FUND (“GIM” or the “Fund”)
ANNOUNCES
NOTIFICATION OF SOURCES OF DISTRIBUTIONS
Fort Lauderdale, Florida, September 28,
2023. Templeton Global Income Fund [NYSE: GIM]
The Fund’s estimated sources of the
distribution to be paid on September 29, 2023, and for the fiscal year 2023
year-to-date are as follows:
Estimated Allocations for September
Monthly Distribution as of August 31, 2023:
Cumulative Estimated Allocations fiscal
year-to-date as of August 31, 2023, for the fiscal year ending December 31,
2023:
Shareholders should not draw any conclusions about the Fund’s investment
performance from the amount of this distribution or from the terms of the
Plan. GIM estimates that it has distributed more than its income and net
realized capital gains; therefore, a portion of the GIM distribution to
shareholders may be a return of capital. A return of capital may occur, for
example, when some or all of the money that a shareholder invested in a Fund is
paid back to them. A return of capital distribution does not necessarily
reflect GIM’s investment performance and should not be confused with ‘yield’ or
‘income’. The amounts and sources of distributions reported herein 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
the Fund’s investment experience during the remainder of its fiscal year and
may be subject to changes based on tax regulations. 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.
Average
Annual Total Return (in relation to the change in net asset value (NAV) for
the 5-year period ended on 8/31/2023)1 |
Annualized
Distribution Rate (as a percentage of NAV for the current fiscal period
through 8/31/2023)2 |
Cumulative
Total Return (in relation to the change in NAV for the fiscal period through 8/31/2023)3 |
Cumulative
Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 8/31/2023)4 |
|
|
|
|
|
Fund Performance
and Distribution Rate Information:
Average Annual Total Return in relation to
NAV represents the compound average of the Annual NAV Total Returns of the Fund
for the five-year period ended through August 31, 2023. Annual NAV Total Return
is the percentage change in the Fund’s NAV over a year, assuming reinvestment
of distributions
paid.
The Annualized Distribution Rate is the
current fiscal period’s distribution rate annualized as a percentage of the
Fund’s NAV through August 31, 2023.
Cumulative Total Return is the percentage
change in the Fund’s NAV from December 31, 2022 through August 31, 2023,
assuming reinvestment of distributions
paid.
The Cumulative Fiscal Year-To-Date
Distribution Rate is the dollar value of distributions for the fiscal period December
31, 2022 through August 31, 2023, as a percentage of the Fund’s NAV as of August
31, 2023.
The Fund’s Board of Trustees (the “Board”)
has authorized a managed distribution plan pursuant to which the Fund makes
monthly distributions to shareholders at an annual minimum fixed rate of 8%,
based on the average monthly NAV of the Fund’s common shares (the “Plan”). The
Fund calculates the average NAV from the previous month based on the number of
business days in the month on which the NAV is calculated. The Plan is intended
to provide shareholders with a constant, but not guaranteed, fixed minimum rate
of distribution each month and is intended to narrow the discount between the
market price and the NAV of the Fund’s common shares, but there can be no
assurance that the Plan will be successful in doing so. The Fund is managed
with a goal of generating as much of the distribution as possible from net
ordinary income and short-term capital gains, that is consistent with the
Fund’s investment strategy and risk profile. To the extent that sufficient
distributable income is not available on a monthly basis, the 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 the Fund is paid back
to shareholders. A return of capital distribution does not necessarily reflect
the Fund’s investment performance and should not be confused with “yield” or
“income”. Even though the 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 may amend the terms of the Plan
or terminate the Plan at any time without prior notice to the Fund’s
shareholders. The amendment or termination of the Plan could have an adverse
effect on the market price of the Fund’s common shares. The Plan will be
subject to the periodic review by the Board, including a yearly review of the
annual minimum fixed rate to determine if an adjustment should be made.
For
further information on Templeton Global Income Fund, please visit our web site
at:
www.franklintempleton.com
Franklin Resources,
Inc. is a global investment management organization with subsidiaries operating
as Franklin Templeton and serving clients in over 150 countries. Franklin
Templeton’s mission is to help clients achieve better outcomes through
investment management expertise, wealth management and technology solutions.
Through its specialist investment managers, the company offers specialization
on a global scale, bringing extensive capabilities in fixed income, equity,
alternatives and multi-asset solutions. With more than 1,300 investment
professionals, and offices in major financial markets around the world, the
California-based company has over 75 years of investment experience and over
$1.4 trillion in assets under management as of August 31, 2023. For more
information, please visit franklintempleton.com.
TEMPLETON
GLOBAL INCOME FUND
Fort
Lauderdale, FL 33301
For
more information, please contact Franklin Templeton at 1-800-342-5236.
TEMPLETON
GLOBAL INCOME FUND (“GIM” or the “Fund”)
ANNOUNCES
NOTIFICATION OF SOURCES OF DISTRIBUTIONS
Fort Lauderdale, Florida, October 30, 2023.
Templeton Global Income Fund [NYSE: GIM]
The Fund’s estimated sources of the
distribution to be paid on October 31, 2023, and for the fiscal year 2023
year-to-date are as follows:
Estimated Allocations for October Monthly
Distribution as of September 30, 2023:
Cumulative Estimated Allocations fiscal
year-to-date as of September 30, 2023, for the fiscal year ending December 31,
2023:
Shareholders should not draw any conclusions about the Fund’s investment
performance from the amount of this distribution or from the terms of the
Plan. GIM estimates that it has distributed more than its income and net
realized capital gains; therefore, a portion of the GIM distribution to
shareholders may be a return of capital. A return of capital may occur, for
example, when some or all of the money that a shareholder invested in a Fund is
paid back to them. A return of capital distribution does not necessarily
reflect GIM’s investment performance and should not be confused with ‘yield’ or
‘income’. The amounts and sources of distributions reported herein 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
the Fund’s investment experience during the remainder of its fiscal year and
may be subject to changes based on tax regulations. 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.
Average
Annual Total Return (in relation to the change in net asset value (NAV) for
the 5-year period ended on 9/30/2023)1 |
Annualized
Distribution Rate (as a percentage of NAV for the current fiscal period
through 9/30/2023)2 |
Cumulative
Total Return (in relation to the change in NAV for the fiscal period through 9/30/2023)3 |
Cumulative
Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 9/30/2023)4 |
|
|
|
|
|
Fund Performance
and Distribution Rate Information:
Average Annual Total Return in relation to
NAV represents the compound average of the Annual NAV Total Returns of the Fund
for the five-year period ended through September 30, 2023. Annual NAV Total
Return is the percentage change in the Fund’s NAV over a year, assuming
reinvestment of distributions
paid.
The Annualized Distribution Rate is the
current fiscal period’s distribution rate annualized as a percentage of the
Fund’s NAV through September 30, 2023.
Cumulative Total Return is the percentage
change in the Fund’s NAV from December 31, 2022 through September 30, 2023,
assuming reinvestment of distributions
paid.
The Cumulative Fiscal Year-To-Date
Distribution Rate is the dollar value of distributions for the fiscal period December
31, 2022 through September 30, 2023, as a percentage of the Fund’s NAV as of September
30, 2023.
The Fund’s Board of Trustees (the “Board”)
has authorized a managed distribution plan pursuant to which the Fund makes
monthly distributions to shareholders at an annual minimum fixed rate of 8%,
based on the average monthly NAV of the Fund’s common shares (the “Plan”). The
Fund calculates the average NAV from the previous month based on the number of
business days in the month on which the NAV is calculated. The Plan is intended
to provide shareholders with a constant, but not guaranteed, fixed minimum rate
of distribution each month and is intended to narrow the discount between the
market price and the NAV of the Fund’s common shares, but there can be no
assurance that the Plan will be successful in doing so. The Fund is managed
with a goal of generating as much of the distribution as possible from net
ordinary income and short-term capital gains, that is consistent with the
Fund’s investment strategy and risk profile. To the extent that sufficient
distributable income is not available on a monthly basis, the 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 the Fund is paid
back to shareholders. A return of capital distribution does not necessarily
reflect the Fund’s investment performance and should not be confused with
“yield” or “income”. Even though the 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 may amend the terms of the Plan
or terminate the Plan at any time without prior notice to the Fund’s
shareholders. The amendment or termination of the Plan could have an adverse
effect on the market price of the Fund’s common shares. The Plan will be
subject to the periodic review by the Board, including a yearly review of the
annual minimum fixed rate to determine if an adjustment should be made.
For
further information on Templeton Global Income Fund, please visit our web site
at:
www.franklintempleton.com
Franklin Resources,
Inc. is a global investment management organization with subsidiaries operating
as Franklin Templeton and serving clients in over 150 countries. Franklin
Templeton’s mission is to help clients achieve better outcomes through
investment management expertise, wealth management and technology solutions.
Through its specialist investment managers, the company offers specialization
on a global scale, bringing extensive capabilities in fixed income, equity,
alternatives and multi-asset solutions. With more than 1,300 investment
professionals, and offices in major financial markets around the world, the
California-based company has over 75 years of investment experience and
approximately $1.4 trillion in assets under management as of September 30,
2023. For more information, please visit franklintempleton.com.
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