Franklin Universal Trust (“FT” or the “Fund”) Announces Notification of Sources of Distributions
Franklin Universal Trust (FT) has announced the estimated sources of its distributions for May and the fiscal year-to-date 2024. As of April 30, 2024, the monthly distribution per share is $0.0425, with 49% from net investment income and 51% from net realized short-term capital gains. Cumulative year-to-date, the distribution per share is $0.3400, comprised of 55% net investment income, 20% net realized short-term capital gains, and 25% return of capital. FT emphasizes the distribution may include a return of capital, which doesn't necessarily reflect investment performance. Performance metrics as of April 30, 2024, include a 4.02% five-year average annual total return, a 6.72% annualized distribution rate, a 7.99% cumulative total return, and a 4.48% cumulative fiscal year-to-date distribution rate. The fund's primary goal is high, current income with capital preservation, and its secondary goal is income growth through dividends and capital appreciation. Franklin Templeton, the managing organization, oversees over $1.6 trillion in assets globally as of April 30, 2024.
- Monthly distribution of $0.0425 per share indicates consistent payouts.
- Cumulative distribution for fiscal year-to-date is $0.3400 per share.
- High percentage of distributions from net investment income (55%) and short-term capital gains (20%).
- Five-year average annual total return of 4.02% reflects stable performance.
- Annualized distribution rate of 6.72% suggests robust yield.
- Cumulative total return of 7.99% showcases strong NAV growth.
- Franklin Templeton manages over $1.6 trillion in assets, indicating strong institutional backing.
- 25% of the fiscal year-to-date distribution is a return of capital, which can signal a return of the original investment rather than earned profits.
- No realized long-term capital gains were reported, implying potential lack of longer-term investment success.
- The return of capital does not reflect investment performance and might confuse investors about the fund's actual yield.
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 May 31, 2024 and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for May Monthly Distribution as of April 30, 2024:
Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
||||
|
|
|
|
|
Cumulative Estimated Allocations fiscal year-to-date as of April 30, 2024, for the fiscal year ending August 31, 2024:
Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
||||
|
|
|
|
|
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 4/30/2024)1 |
Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 4/30/2024)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 4/30/2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 4/30/2024)4 |
|
|
|
|
Fund Performance and Distribution Rate Information:
- 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 April 30, 2024. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
- The Annualized Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV through April 30, 2024.
- Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2023 through April 30, 2024, assuming reinvestment of distributions paid.
- The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period August 31, 2023 through April 30, 2024, as a percentage of the Fund’s NAV as of April 30, 2024.
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 150 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 fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240530857132/en/
For more information, please contact Franklin Templeton at 1-800-342-5236.
Source: Franklin Templeton
FAQ
What is the monthly distribution per share for Franklin Universal Trust (FT) in May 2024?
How much of Franklin Universal Trust's 2024 fiscal year-to-date distribution is from net investment income?
What percentage of Franklin Universal Trust's May 2024 distribution is from net realized short-term capital gains?
Does Franklin Universal Trust's distribution include a return of capital?
What is Franklin Universal Trust's five-year average annual total return as of April 30, 2024?
What is the annualized distribution rate of Franklin Universal Trust as of April 30, 2024?
How much does Franklin Templeton manage in assets as of April 30, 2024?
