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

Rhea-AI Summary

Franklin Universal Trust (NYSE: FT) announced its distribution sources for the monthly payment scheduled on November 30, 2022. The estimated distribution per share is $0.0425, with allocations including $0.0025 (6%) from net investment income, $0.0067 (16%) from short-term capital gains, and $0.0333 (78%) from return of capital. For fiscal year-to-date, total distributions reached $0.0850, with a cumulative total return of -5.86% related to NAV as of October 31, 2022.

Positive

• Monthly distribution of $0.0425 per share announced.
• 6% of the distribution from net investment income, sustaining income stability.

Negative

• Cumulative total return is at -5.86%, indicating a decline in NAV.
• A significant portion (78%) of the distribution is a return of capital, which may signal underlying performance issues.

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

Estimated Allocations for November Monthly Distribution as of October 31, 2022:

Distribution Per Share		Net Investment Income		Net Realized Short-Term Capital Gains		Net Realized Long-Term Capital Gains		Return of Capital
$0.0425		$0.0025 (6%)		$0.0067 (16%)		$0.0000 (0%)		$0.0333 (78%)

Cumulative Estimated Allocations fiscal year-to-date as of October 31, 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
$0.0850		$0.0450 (53%)		$0.0067 (8%)		$0.0000 (0%)		$0.0333 (39%)

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 10/31/2022)1		Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 10/31/2022)2		Cumulative Total Return (in relation to the change in NAV for the fiscal period through 10/31/2022)3		Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 10/31/2022)4
3.27%		6.78%		-5.86%		1.13%

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 October 31, 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 October 31, 2022.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2022 through October 31, 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 October 31, 2022, as a percentage of the Fund’s NAV as of October 31, 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 boutique 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 75 years of investment experience and approximately $1.3 trillion in assets under management as of October 31, 2022. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221129005883/en/

Franklin Templeton, 1-800-342-5236.

Source: Franklin Templeton

FAQ

What is the distribution amount for Franklin Universal Trust (FT) in November 2022?

The distribution amount for November 2022 is $0.0425 per share.

What percentage of the November distribution for FT is from net investment income?

6% of the November distribution is from net investment income.

What was the cumulative total return for FT as of October 31, 2022?

The cumulative total return for FT as of October 31, 2022, is -5.86%.

What portion of FT's distribution is classified as a return of capital?

78% of FT's distribution is classified as a return of capital.

When is the next distribution date for Franklin Universal Trust (FT)?

The next distribution date for FT is November 30, 2022.