Franklin Limited Duration Income Trust Announces Continued Monthly Distribution and Affirms Managed Distribution Plan
Franklin Limited Duration Income Trust (NYSE American: FTF) has announced that it will issue its regular monthly distribution to shareholders for the month of November 2025. The distribution, which reflects income generated from the Fund’s investment portfolio, will be paid at a rate of $0.0615 per share. Shareholders of record as of November 17, 2025 will be eligible to receive the distribution, which is scheduled to be paid on November 28, 2025. The ex‐dividend date, which is the date on which shares begin trading without rights to the current distribution, is also November 17, 2025.
Managed Distribution Plan
FTF’s monthly payout is made in accordance with the Fund’s managed distribution plan (the “Plan”), which was previously authorized and approved by the Fund’s Board of Trustees (the “Board”). The Plan establishes a fixed monthly distribution rate of $0.0615 per share, which is designed to provide shareholders with a predictable and stable stream of cash flow each month. Many income-focused investors rely on closed-end funds like FTF not only for total return over time, but also for consistent monthly distributions that can be used for reinvestment, supplemental income, or long-term portfolio planning.
The Plan is also intended to help reduce the market price discount to net asset value (NAV) that can affect closed-end funds. Closed-end funds often trade at either a discount or premium relative to the underlying value of the securities they hold. By providing steady distributions, the Fund aims to enhance investor demand for shares and potentially support market trading levels closer to NAV. However, it is important to note that while this is an intended objective, there is no guarantee that the Plan will narrow the discount or prevent the Fund’s shares from trading below NAV in the future.
Balancing Income and Performance
The investment team overseeing FTF manages the portfolio with the objective of generating as much of the monthly distribution as possible from net ordinary income and short-term capital gains, in alignment with the Fund’s stated investment strategy and risk management approach. However, market conditions, interest-rate dynamics, and performance fluctuations may affect the level of income that can be reliably realized. When the income and realized short-term gains do not fully cover the monthly distribution amount, the Fund may supplement payouts using long-term capital gains and/or a return of capital.
A return of capital occurs when a portion of the distribution consists of investors’ original principal rather than income or realized gains. This does not necessarily imply poor investment results. Instead, it can reflect the Fund’s long-term tax management strategy, structural characteristics of the portfolio, or timing mismatches between income generation and distribution obligations. It is also possible for annual capital gains, when realized, to be offset by capital loss carryforwards from prior periods, which may reduce taxable income distributions even in years of positive performance.
Importantly, shareholders are cautioned not to interpret the distribution level as a direct indicator of Fund performance, yield, or long-term return potential. The Fund’s net asset value will decrease by the amount of the distribution paid, and distributions that include return of capital may reduce the Fund’s NAV over time if not matched by offsetting total return.
Fund Governance and Oversight
The Board of Trustees regularly reviews the Plan to determine whether the fixed monthly distribution amount remains appropriate given portfolio performance, interest rate conditions, and market dynamics. The Board retains the authority to modify or terminate the Plan at any time. Any such change could affect the Fund’s future distribution levels and may influence the market trading price of the Fund’s shares.
Additionally, the Fund will provide shareholders with a year-end Form 1099-DIV, which will detail the final tax classification of the distributions received throughout the year. Investors should rely on this official year-end tax documentation rather than month-to-month distribution notices when preparing tax filings.
About Franklin Limited Duration Income Trust
The Franklin Limited Duration Income Trust is a closed-end investment fund designed to provide investors with a diversified portfolio of income-generating fixed-income securities. The Fund seeks to maintain a portfolio with a relatively shorter duration profile, meaning it generally invests in bonds and income instruments that are less sensitive to interest rate fluctuations than longer-duration securities. This approach may help mitigate certain risks associated with rising interest rates, though the Fund remains subject to credit risk, liquidity risk, and other market-related factors.
About Franklin Templeton
The Fund is managed by Franklin Templeton, one of the world’s largest and most experienced investment management organizations. Through a network of specialized investment teams and global research resources, Franklin Templeton serves clients in over 150 countries, providing capabilities across equities, fixed income, alternatives, and multi-asset strategies. As of September 30, 2025, the firm managed approximately $1.66 trillion in assets and employed over 1,500 investment professionals worldwide.
Franklin Templeton’s mission centers on helping investors pursue better outcomes through disciplined investment expertise, robust risk management frameworks, and innovation in investment and wealth advisory technology. With more than 75 years of history, Franklin the firm continues to be recognized globally for its multi-asset and fixed-income management capabilities.
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