Short answer:
When a fund pays a distribution, the cash (or inâkind assets) that is being handed out is taken out of the fundâs pool of assets. Consequently, the net asset value (NAV) per share falls by the amount of the distribution on the exâdistribution date. The share price (the price at which the fundâs shares trade on the exchange) will normally adjust at the same time, moving down by roughly the same amount, because the market prices the share based on the postâdistribution NAV. The total return to an investor, however, is the sum of the reduced NAV plus the cash distribution received.
Below is a stepâbyâstep explanation of what the Septemberâ, Octoberâ, and Novemberâ2025 distributions announced by Franklin Templeton Fund Adviser, LLC (tickerâŻBEN) are expected to do to the fundâs NAV and share price.
1. What the news tells us
| Item | Details from the release |
|---|---|
| Fund | Franklin Templeton Fund Adviser, LLC (BEN) |
| Distributions announced | For the months of September, October and NovemberâŻ2025 |
| Category | âDistribution Relatedâ â indicates cash dividends, capitalâgain distributions, or possibly a combination of both. |
| Source | Business Wire, 2025â08â06 |
The release does not specify the exact dollar amount per share for each month, but the mechanics are the same regardless of the size.
2. Mechanics of a distribution
| Step | What happens | Effect on NAV | Effect on share price |
|---|---|---|---|
| a. Declaration | The fundâs board declares a distribution (e.g., $0.15 per share). | No immediate change â the NAV stays the same until the exâdate. | No change yet. |
| b. Exâdistribution date | The date on which new buyers of the fund will not receive the upcoming distribution. | NAV drops by the perâshare distribution amount because that cash is no longer part of the fundâs assets. Example: Preâex NAV = $10.00 â ExâNAV = $9.85 after a $0.15 distribution. | The market price normally mirrors the NAV movement, so the share price will also fall by roughly the distribution amount. |
| c. Record date | Investors who owned the fund on the record date are entitled to receive the distribution. | No further NAV impact â the reduction already occurred on the exâdate. | No further price impact. |
| d. Payment date | Cash is actually paid out to shareholders (or reinvested if the investor opted for a reinvestment plan). | The NAV remains at the reduced level; the cash is now in the shareholderâs account, not in the fund. | The share price stays at the postâdistribution level; the investorâs total wealth is the sum of the lower NAV + the cash received. |
3. How the three consecutive monthly distributions will play out
3.1 Cumulative NAV reduction
If the fund distributes, say, $0.15 per share each month, the NAV will be reduced by $0.45 per share over the threeâmonth period (assuming the NAV is not otherwise changed by market movements, inflows/outflows, or internal portfolio activity).
| Month | Distribution per share | NAV before exâdate | NAV after exâdate |
|---|---|---|---|
| Sep 2025 | $0.15 | $10.00 (example) | $9.85 |
| Oct 2025 | $0.15 | $9.85 | $9.70 |
| Nov 2025 | $0.15 | $9.70 | $9.55 |
The numbers are illustrative; the actual NAV will also be affected by market price changes of the underlying securities, net inflows/outflows, and any realized/unrealized gains or losses.
3.2 Shareâprice movement
Because the share price is anchored to NAV, the market will typically price the shares at the new NAV (plus any premium/discount that historically exists for BEN). Thus, on each exâdistribution date the share price will drop by roughly the same amount as the NAV.
| Example (continuing the $10.00 preâdistribution price) |
|---|
| Preâex price (Sep): $10.00 |
| Exâprice (Sep): $9.85 |
| Preâex price (Oct): $9.85 |
| Exâprice (Oct): $9.70 |
| Preâex price (Nov): $9.70 |
| Exâprice (Nov): $9.55 |
If the fund is heavily traded, the price may adjust a few seconds before the exâdate as market participants anticipate the drop.
3.3 Total return to shareholders
Even though the NAV falls, shareholders receive cash (or reinvested shares) that compensates for the loss in NAV. Using the $0.15âperâshare example:
- Cash received over three months: $0.45 per share.
- Ending NAV: $9.55 per share.
- Total value (cash + NAV): $9.55 + $0.45 = $10.00, i.e., the same as the starting value (ignoring market price fluctuations, taxes, and transaction costs).
Thus, the total return (price appreciation + distribution) can be unchanged, positive, or negative depending on:
- Underlying portfolio performance (if the securities rise, the NAV may still increase despite the distributions).
- Size of the distribution relative to the NAV (a large distribution can cause a noticeable NAV dip).
- Tax considerations (distributions are generally taxable, which can affect net afterâtax return).
4. Practical implications for different types of investors
| Investor type | What they should watch for | How the distribution impacts them |
|---|---|---|
| Longâterm buyâandâhold | Focus on total return (NAV growth + cash). The NAV dip is a normal, expected part of owning a distributing fund. | They will see a lower NAV after each exâdate but will have received cash that can be reinvested or used for other purposes. |
| Shortâterm traders | Pay attention to the exâdistribution date because the price will typically drop by the distribution amount. | May try to capture the price dip and buy at the lower level, or may sell before the exâdate to avoid the drop. |
| Taxâsensitive investors | Note that distributions are generally taxable as ordinary income or qualified dividends (depending on the fundâs composition). | The cash they receive will increase their taxable income for the year; they may prefer a reinvestment option to defer the cash receipt, though the tax liability still arises. |
| Institutional investors / large inflows/outflows | Large redemptions around the exâdate can amplify the NAV movement. | The NAV may move more than the distribution amount if net outflows are significant; the fundâs manager may need to sell assets to meet redemptions, affecting NAV further. |
5. Bottomâline summary
| Effect | Description |
|---|---|
| NAV | Decreases on each exâdistribution date by the exact amount of the perâshare distribution. Over three months, the cumulative NAV reduction equals the sum of the three distributions (e.g., $0.45 per share if $0.15 each month). |
| Share price | Moves down in tandem with the NAV because the market prices the share based on the postâdistribution NAV. The price drop is typically the same dollar amount as the distribution, though market dynamics can cause a slight premium/discount. |
| Investor wealth | Total return = reduced NAV + cash distribution. If the underlying portfolio does not change, the cash received exactly offsets the NAV decline, leaving the investorâs total value unchanged (ignoring taxes and transaction costs). |
| Tax impact | Distributions are taxable in the year they are paid (unless placed in a taxâadvantaged account). The tax liability is independent of the NAV change. |
| Future NAV trajectory | After the distribution, the NAV will continue to reflect the performance of the fundâs holdings. If the holdings appreciate, the NAV can rise again, even though it started the month at a lower level. |
Takeâaway for Franklin Templeton Fund Adviser, LLC (BEN)
- Three consecutive monthly distributions will lower the NAV each month by the amount declared for that month.
- The share price will mirror those NAV reductions, typically falling by the same dollar amount on the exâdistribution dates.
- Investors who stay invested will receive cash (or reinvested shares) that, when added to the lower NAV, generally leaves their overall economic position unchanged, assuming the underlying portfolio value stays flat.
- Performanceâfocused investors should monitor the underlying holdings; any price appreciation will offset the NAV drag from the distributions and generate a net positive total return.
- Taxâaware investors should plan for the cash distributions to be reported as income for the 2025 tax year (or the year in which the cash is actually received).
In short, the announced September, October, and November 2025 distributions will temporarily depress BENâs NAV and share price, but the cash paid out to shareholders compensates for that decline, preserving the fundâs total return when the underlying portfolio performance is held constant.