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

Rhea-AI Summary

Franklin Universal Trust (NYSE: FT) announced estimated sources of distributions for the fiscal year ending August 31, 2022. The distribution of $0.0425 per share on December 15, 2021, comprises 94% net investment income and 6% net short-term capital gains. Year-to-date cumulative distributions amount to $0.0850 per share, with 97% attributed to net investment income. The Fund emphasizes that past distribution amounts do not predict future performance, urging caution among shareholders. Financial highlights include a 7.52% average annual total return over five years and a distribution rate of 5.83% as of October 31, 2021.

Positive

• Estimated distribution of $0.0425 per share indicates consistent income generation.
• 94% of the distribution comes from net investment income, reflecting strong income support.
• 7.52% average annual total return over the last five years demonstrates solid investment performance.
• 5.83% annualized distribution rate as a percentage of NAV reflects a healthy yield.

Negative

• None.

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 15, 2021 and for the fiscal year 2022 year-to-date are as follows:

Estimated Allocations for Monthly Distribution as of November 30, 2021:

Distribution Per Share		Net Investment Income		Net Realized Short-Term Capital Gains		Net Realized Long-Term Capital Gains		Return of Capital
$0.0425		$0.0399 (94%)		$0.0026 (6%)		$0.00 (0%)		$0.0000 (0%)

Cumulative Estimated Allocations fiscal year-to-date through October 31, 2021, for the fiscal year ending August 31, 2022:

Distribution Per Share		Net Investment Income		Net Realized Short-Term Capital Gains		Net Realized Long-Term Capital Gains		Return of Capital
$0.0850		$0.0827 (97%)		$0.0023 (3%)		$0.00 (0%)		$0.0000 (0%)

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. 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 10/31/2021)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 10/31/2021)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 10/31/2021)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 10/31/2021)4
7.52%	5.83%	-0.95%	0.97%

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, 2021. 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, 2021.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2021 through October 31, 2021, 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, 2021 through October 31, 2021, as a percentage of the Fund’s NAV as of October 31, 2021.

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. [NYSE:BEN] is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 165 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 brings 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 70 years of investment experience and over $1.5 trillion in assets under management as of November 30, 2021. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211214006019/en/

Franklin Templeton, 1-800-342-5236

 

Source: Franklin Universal Trust

FAQ

What is the scheduled distribution payment date for Franklin Universal Trust (FT)?

The scheduled distribution payment date is December 15, 2021.

What percentage of the distribution for FY 2022 is attributed to net investment income for FT?

94% of the distribution is attributed to net investment income.

What was the average annual total return for FT over the last five years?

The average annual total return for FT over the last five years is 7.52%.

What is the annualized distribution rate for Franklin Universal Trust (FT)?

The annualized distribution rate for FT is 5.83% as a percentage of NAV for the current fiscal period.

What is the cumulative total return for FT as of October 31, 2021?

The cumulative total return for FT as of October 31, 2021, is -0.95%.