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

Rhea-AI Summary

Franklin Universal Trust (NYSE: FT) announced the estimated allocation of its distribution to be paid on February 28, 2023. The distribution per share is expected to be $0.0425, comprised of various components including $0.0151 from net investment income (36%) and $0.0274 from return of capital (64%). Cumulatively for the fiscal year 2023, the total distribution per share reaches $0.2737 with $0.1172 from net investment income (43%). Shareholders are advised that a portion of the distribution may be a return of capital, which does not necessarily reflect the fund's investment performance.

Positive

• Distribution of $0.0425 per share scheduled for February 28, 2023.
• Cumulative fiscal year distribution of $0.2737 per share.
• Estimated allocation includes a substantial return of capital at 64%.

Negative

• A significant portion of the distribution may be a return of capital, indicating potential unsustainable income.
• No net realized short-term or long-term capital gains reported for February distribution.

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 February 28, 2023 and for the fiscal year 2023 year-to-date are as follows:

Estimated Allocations for February Monthly Distribution as of January 31, 2023:

	Distribution Per Share		Net Investment Income		Net Realized Short-Term Capital Gains		Net Realized Long-Term Capital Gains		Return of Capital
	$0.0425		$0.0151 (36%)		$0.00 (0%)		$0.00 (0%)		$0.0274 (64%)

Cumulative Estimated Allocations fiscal year-to-date as of January 31, 2023, 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
	$0.2737		$0.1172 (43%)		$0.0445 (16%)		$0.00 (0%)		$0.1120 (41%)

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 1/31/2023)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 1/31/2023)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 1/31/2023)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 1/31/2023)4
4.90%	6.52%	0.29%	3.50%

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 January 31, 2023. 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 January 31, 2023.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2022 through January 31, 2023, 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 January 31, 2023, as a percentage of the Fund’s NAV as of January 31, 2023.

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 fixed income, equity, alternatives and multi-asset solutions. 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 January 31, 2023. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230227005654/en/

Franklin Templeton, 1-800-342-5236

Source: Franklin Templeton

FAQ

What is the distribution amount for Franklin Universal Trust (FT) on February 28, 2023?

The distribution amount is estimated to be $0.0425 per share.

What are the sources of the distribution for FT for February 2023?

The sources include $0.0151 from net investment income and $0.0274 from return of capital.

What is the cumulative distribution for FT for fiscal year 2023?

The cumulative distribution per share for fiscal year 2023 is $0.2737.

What percentage of FT's February distribution is from net investment income?

36% of the distribution is from net investment income.

What should shareholders know about the return of capital for FT?

A portion of the distribution may be a return of capital, which does not reflect the fund's investment performance.