PMM (FYE 10/31)
| Period | Per Share Distribution | Net Investment Income | Short-Term Capital Gains | Long-Term Capital Gains | Return of Capital | % Net Investment Income | % Return of Capital |
|---|---|---|---|---|---|---|---|
| Current Month | $0.0265 | $0.0249 | $0.00 | $0.00 | $0.0016 | 94.0% | 6.0% |
| Fiscal YTD | $0.0265 | $0.0249 | $0.00 | $0.00 | $0.0016 | 94.0% | 6.0% |
Insight: Most of PMM’s distribution is net investment income (94%), with a small portion (6%) classified as return of capital (ROC). ROC indicates part of your original investment is being returned.
PMO (FYE 4/30)
| Period | Per Share Distribution | Net Investment Income | Short-Term Capital Gains | Long-Term Capital Gains | Return of Capital | % Net Investment Income | % Return of Capital |
|---|---|---|---|---|---|---|---|
| Current Month | $0.0393 | $0.0339 | $0.00 | $0.00 | $0.0054 | 86.3% | 13.7% |
| Fiscal YTD | $0.2751 | $0.2411 | $0.0093 | $0.00 | $0.0247 | 87.6% | 9.0% |
Insight: PMO’s distribution is also largely from net investment income, though the return of capital portion is slightly higher than PMM, especially for the current month (13.7%).
2. Distribution and Total Return Performance
| Fund | 5-Year Return at NAV | Current Distribution Rate at NAV | Fiscal YTD Return at NAV | Fiscal YTD Distribution Rate at NAV |
|---|---|---|---|---|
| PMM | 1.51% | 4.74% | 3.16% | 4.50% |
| PMO | 1.30% | 4.14% | 6.67% | 4.14% |
Key Points:
- PMM’s current annualized distribution rate is 4.74%, slightly above PMO’s 4.14%.
- PMO shows a higher fiscal YTD return at NAV (6.67%) compared with PMM (3.16%), indicating stronger performance over the fiscal year.
3. Important Notes
- Return of Capital (ROC):
- A portion of distributions may come from ROC, meaning part of your original investment is returned.
- ROC does not indicate performance weakness but may affect tax basis and future capital gains calculation.
- Tax Reporting:
- The 19(a) Notice is informational only; final amounts for tax purposes will be reported on Form 1099-DIV.
- Fund Information Access:
- Full holdings: Available monthly on the 8th business day after month-end.
- Top 10 holdings & portfolio stats: Available monthly, about 15 days after month-end.
- Website: Franklin Templeton Funds
✅ Summary:
- PMM and PMO are paying modest monthly distributions primarily from net investment income, with a small portion as return of capital.
- Investors should not equate distributions with fund performance, and tax implications will be clarified in the annual Form 1099-DIV.