Franklin Universal Trust (“FT” or the “Fund”) Announces Notification of Sources of Distributions
Franklin Universal Trust (NYSE: FT) has announced the sources of its June 28, 2024, distribution, noting that the distribution per share is $0.0425. This comprises 78% net investment income ($0.0332 per share) and 22% net realized short-term capital gains ($0.0093 per share). Year-to-date, as of May 31, 2024, the distribution per share totals $0.3825, with allocations of 58% net investment income, 20% net realized short-term capital gains, and 22% return of capital.
FT highlights that a portion of the distributions may be a return of capital, which should not be confused with yield or income. The actual tax amounts will be detailed in Form 1099-DIV. The Fund's 5-year average annual total return is 5.27%, the annualized distribution rate is 6.48%, and the cumulative total return is 6.15%. The primary investment objective is high current income with capital preservation, and the secondary objective is income growth through dividend increases and capital appreciation.
- The Fund's distribution per share for June 2024 is $0.0425.
- Year-to-date distribution per share is $0.3825 as of May 31, 2024.
- The Fund’s 5-year average annual total return is 5.27%.
- The annualized distribution rate is 6.48%.
- The cumulative total return is 6.15%.
- 22% of the year-to-date distribution is a return of capital, indicating that the Fund is distributing more than its income and net realized capital gains.
Notification of Sources of Distributions Pursuant to Section 19(a) of the Investment Company Act of 1940
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The Fund’s estimated sources of the distribution to be paid on June 28, 2024 and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for June Monthly Distribution as of May 31, 2024:
Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized
Long-Term Capital
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Return of
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Cumulative Estimated Allocations fiscal year-to-date as of May 31, 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
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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 5/31/2024)1 |
Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 5/31/2024)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 5/31/2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 5/31/2024)4 |
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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 May 31, 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 May 31, 2024.
- Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2023 through May 31, 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 May 31, 2024, as a percentage of the Fund’s NAV as of May 31, 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
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Franklin Templeton, 1-800-342-5236
Source: Franklin Templeton
FAQ
What is the distribution per share for FT in June 2024?
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How much has FT distributed per share year-to-date as of May 31, 2024?
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What is FT's 5-year average annual total return as of May 31, 2024?
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