FORT LAUDERDALE, FL--(Marketwired - Jun 13, 2014) - Templeton Emerging Markets Income Fund (NYSE: TEI) today announced its quarterly dividend from net investment income of $0.20 per share, payable on July 14, 2014 to shareholders of record on June 27, 2014 (Ex-Dividend Date: June 25, 2014).
Beginning with the June dividend, the Fund's quarterly dividend will be adjusted from $0.25 to $0.20 per share. Dividends may vary based on the Fund's net investment income. Past dividends are not indicative of future trends. Over the past few years, interest rates around the globe have decreased in response to the slow growth economic environment. The Fund's dividend adjustment reflects the current environment of historically low interest rates and reduced yields available in government bonds.
The Fund's investment team continues to believe that the current period of accommodative monetary policy by central banks will eventually need to end, resulting in rising interest rates from current record low levels. This poses downside risk for bond prices, so the Fund has been positioned in very low duration and short maturity bonds to mitigate downside risk should interest rates rise. In general, shorter duration and maturity bonds have lower yields than longer duration/maturity bonds.
The Fund's investment team has continued to look for attractive yields in short-maturity government bonds around the world. If interest rates rise, these bonds will mature in short order and the investment team will seek to reinvest the Fund's portfolio into higher yielding bonds. The Fund is well positioned should interest rates shift to a rising rate cycle.
The Fund's investment manager, Franklin Advisers, Inc., is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Mutual Series, Bissett, Fiduciary Trust, Darby, Balanced Equity Management and K2 investment teams. The San Mateo, CA-based company has more than 65 years of investment experience and over $908 billion in assets under management as of May 31, 2014. For more information, please call 1-800/DIAL BEN® or visit franklintempleton.com.