In plain terms — Franklin Ltd Duration Income Trust
Shares currently cost about 12.2% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 8.6% discount, so today's level is unusually wide for this fund (Z-score -2.7). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 13.7% a year of the share price (12.0% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.14 of assets — a ReinvestCapture™ rate of 15.6%, more than the payout rate itself. That is buying power, not a return.
The assets themselves grew 2.2% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -9.89% | 1.74% | -1.61 | 64 |
| 6 months | -9.38% | 1.40% | -2.38 | 126 |
| 1 year | -8.64% | 1.51% | -2.69 | 249 |
| 3 years | -8.25% | — | — | — |
| 5 years | -8.71% | — | — | — |
Current contemporaneous premium/discount -12.70% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -13.29% to -5.75%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -5.84% | -8.59% | -13.50% | -15.96% | -3.44% | -10.18% |
| Market price total return | -4.77% | -5.57% | -4.93% | -4.81% | +8.26% | +0.82% |
| NAV return | -2.23% | -3.91% | -7.25% | -8.77% | -3.91% | -7.67% |
| NAV total return | -1.26% | -1.06% | +1.10% | +2.23% | +6.74% | +2.59% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
Franklin Limited Duration Income Trust is a closed-ended fixed income mutual fund launched by Franklin Resources, Inc. The fund is managed by Franklin Advisers, Inc. It invests in the fixed income markets of the United States. The fund primarily invests in mortgage-backed securities, asset-backed securities, floating rate bank loans, and high yield corporate bonds. It employs fundamental analysis with a combination of top-down and bottom-up security selection process to create its portfolio. The fund was formerly known as Franklin Templeton Limited Duration Income Trust. Franklin Limited Duration Income Trust was formed on August 27, 2003 and is domiciled in the United States.
CEF Explorer research page for Franklin Ltd Duration Income Trust. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.