Franklin Universal Trust (“FT” or the “Fund”) Announces Notification of Sources of Distributions

Rhea-AI Summary

Franklin Universal Trust (NYSE: FT) announced the estimated sources of its upcoming distribution scheduled for December 30, 2022. The distribution per share is estimated at $0.1037, with allocations including $0.0319 from net investment income, $0.0378 from realized short-term capital gains, and $0.0340 categorized as a return of capital. The cumulative distribution year-to-date is $0.1275. Shareholders are cautioned that distributions may include a return of capital and do not necessarily reflect investment performance.

Positive

• Estimated distribution per share of $0.1037 enhances cash return to shareholders.
• Cumulative fiscal year-to-date distribution rate at $0.1275 reflects consistent distribution policy.

Negative

• Return of capital identified in the distribution may indicate past performance constraints.
• Cumulative total return reflects a negative change of -1.20% since August 31, 2022.

SAN MATEO, Calif.--(BUSINESS WIRE)-- Franklin Universal Trust [NYSE: FT]:

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 December 30, 2022 and for the fiscal year 2023 year-to-date are as follows:

Estimated Allocations for December Monthly Distribution as of November 30, 2022:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.1037	$0.0319 (31%)	$0.0378 (37%)	$0.00 (0%)	$0.0340 (32%)

Cumulative Estimated Allocations fiscal year-to-date as of November 30, 2022, for the fiscal year ending August 31, 2023:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.1275	$0.0769 (60%)	$0.0067 (5%)	$0.00 (0%)	$0.0439 (35%)

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 Fund’s Distribution Policy. FT estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the FT 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 FT’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 11/30/2022)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 11/30/2022)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 11/30/2022)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 11/30/2022)4
4.02%	15.85%	-1.20%	1.62%

Fund Performance and Distribution Rate Information:

1. Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended through November 30, 2022. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
2. The Annualized Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV through November 30, 2022.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2022 through November 30, 2022, assuming reinvestment of distributions paid.
4. The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period August 31, 2022 through November 30, 2022, as a percentage of the Fund’s NAV as of November 30, 2022.

The Fund’s primary investment objective is to provide high, current income consistent with preservation of capital. Its secondary objective is growth of income through dividend increases and capital appreciation. Distributions may vary based on the Fund’s net investment income. Past distributions are not indicative of future trends.

For further information on Franklin Universal Trust, please visit our web site at: www.franklintempleton.com

Franklin Resources, Inc. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 155 countries. Franklin Templeton’s mission is to help clients achieve better outcomes through investment management expertise, wealth management and technology solutions. Through its specialist investment managers, the company offers specialization on a global scale, bringing extensive capabilities in equity, fixed income, multi-asset solutions and alternatives. With offices in more than 30 countries and approximately 1,300 investment professionals, the California-based company has over 75 years of investment experience and approximately $1.4 trillion in assets under management as of November 30, 2022. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221229005242/en/

Franklin Templeton, 1-800-342-5236

Source: Franklin Templeton

FAQ

What is the upcoming distribution amount for Franklin Universal Trust (NYSE: FT) on December 30, 2022?

The upcoming distribution for Franklin Universal Trust is estimated at $0.1037 per share.

How much of the December distribution for FT is a return of capital?

The estimated return of capital portion in the December distribution is $0.0340 per share.

What are the estimated sources of the December 2022 distribution for FT?

The estimated sources include $0.0319 from net investment income, $0.0378 from short-term capital gains, and $0.0340 as a return of capital.

What is the cumulative total return for Franklin Universal Trust as of November 30, 2022?

The cumulative total return for Franklin Universal Trust is -1.20% as of November 30, 2022.

How does Franklin Universal Trust's current distribution reflect its investment performance?

Shareholders are advised that the current distribution may include a return of capital and does not necessarily represent the fund's investment performance.