1. WIA's August 2025 distribution is set at $0.0520 per share. 2. 49.98% of the distribution comes from net investment income. 3. Half of the distribution may represent a return of capital. 4. WIA's average annual total return over 5 years is 0.76%. 5. The fund's managed distribution policy could impact share prices.
The potential return of capital distribution indicates income sustainability issues, historically lowering share prices when seen in other funds. A prior instance was the Aberdeen Global High Income Fund, where similar returns negatively impacted its stock value.
The article highlights critical distribution practices affecting shareholder returns, directly informing investor decisions about holding or selling WIA shares.
The immediate distribution announcement will likely influence investor sentiment and stock price quickly, similar to past scenarios where distribution revisions led to swift market reactions.
Western Asset Inflation-Linked Income Fund (NYSE:WIA):
Notification of Sources of Distributions
Pursuant to Section 19(a) of the Investment Company Act of 1940
The Fund's estimated sources of the distribution to be paid on August 29, 2025, and for the fiscal year 2025 year-to-date are as follows:
Estimated Allocations for the August Monthly Distribution as of July 31, 2025: |
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Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
$0.0520 |
$0.0260 |
$0.0000 |
$0.0000 |
$0.0260 |
100.00% |
49.98% |
0.00% |
0.00% |
50.02% |
Cumulative Estimated Allocations fiscal year-to-date as of July 31, 2025, for the fiscal year ending November 30, 2025: |
||||
Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
$0.4100 |
$0.2299 |
$0.0000 |
$0.0000 |
$0.1801 |
100.00% |
56.07% |
0.00% |
0.00% |
43.93% |
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 Plan. WIA estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the WIA 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 WIA'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 7/31/2025)1 |
Annualized Distribution Rate (as a percentage of NAV as of 7/31/2025)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 7/31/2025)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 7/31/2025)4 |
0.76% |
6.83% |
4.27% |
4.49% |
Fund Performance and Distribution Rate Information: |
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|
|
1 |
The Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of July 31, 2025. |
2 |
The Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of July 31, 2025. |
3 |
Cumulative Total Return is the percentage change in the Fund's NAV from November 30, 2024 through July 31, 2025, assuming reinvestment of distributions paid. |
4 |
The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period November 30, 2024 through July 31, 2025, as a percentage of the Fund's NAV as of July 31, 2025. |
This Fund has a managed distribution policy that seeks to deliver the Fund's long-term total return potential through regular monthly distributions declared at a fixed rate per common share. Distributions may be paid in part or in full from net investment income, realized capital gains and by returning capital, or a combination thereof. Shareholders should note, however, that if a Fund's aggregate net investment income and net realized capital gains are less than the amount of the distribution level, the difference will be distributed from the Fund's assets and will constitute a return of the shareholder's capital. A return of capital is not taxable; rather it reduces a shareholder's tax basis in his or her shares of the Fund. The Board of Directors of the Fund may terminate or suspend the managed distribution policy at any time, which could have an adverse effect on the market price of the Fund's shares.
For further information on Western Asset Inflation-Linked Income Fund,
please visit our web site at:
www.franklintempleton.com/investments/options/closed-end-funds.
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.
Category: Distribution Related
Source: Franklin Resources, Inc.
Source: Legg Mason Closed End Funds
View source version on businesswire.com: https://www.businesswire.com/news/home/20250829008527/en/
Investor Contact: Fund Investor Services 1-888-777-0102