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

Rhea-AI Summary

Franklin Universal Trust (NYSE: FT) announced its estimated sources for distributions reaching $0.0425 per share on February 28, 2022. This total includes $0.0244 (57%) from net investment income and $0.0173 (41%) as a return of capital. Year-to-date, as of January 31, 2022, the cumulative distribution stands at $0.2517 per share, with 61% from net investment income. The fund's objectives focus on providing high current income while preserving capital, with an annualized distribution rate of 5.88% against NAV. Shareholders are reminded that part of the distribution may represent a return of capital.

Positive

• Monthly distribution of $0.0425 per share indicates ongoing cash flow.
• Cumulative year-to-date distribution of $0.2517 per share reflects income generation.
• Annualized distribution rate of 5.88% shows the fund's commitment to providing income.

Negative

• A significant portion of the distribution (41%) is categorized as a return of capital, which may indicate sustainability concerns regarding investment income.

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

Estimated Allocations for Monthly Distribution as of January 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	$0.0244 (57%)	$0.0008 (2%)	$0.00 (0%)	$0.0173 (41%)

Cumulative Estimated Allocations fiscal year-to-date through January 31, 2022, 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
$0.2517	$0.1537 (61%)	$0.0568 (23%)	$0.00 (0%)	$0.0412 (16%)

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 01/31/2022)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 01/31/2022)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 01/31/2022)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 01/31/2022)4
7.14%	5.88%	0.01%	2.90%

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, 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 January 31, 2022.
3		Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2021 through January 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, 2021 through January 31, 2022, as a percentage of the Fund’s NAV as of January 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. [NYSE:BEN] 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 over $1.5 trillion in assets under management as of January 31, 2022. For more information, please visit franklintempleton.com.

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Franklin Templeton

1-800-342-5236

Source: Franklin Templeton

FAQ

What is the estimated distribution per share for Franklin Universal Trust (FT) on February 28, 2022?

The estimated distribution per share for Franklin Universal Trust (FT) on February 28, 2022, is $0.0425.

How much of the Franklin Universal Trust (FT) distribution is a return of capital?

41% of the Franklin Universal Trust (FT) distribution is categorized as a return of capital.

What was the cumulative distribution for FT for the fiscal year-to-date period ending January 31, 2022?

The cumulative distribution for FT for the fiscal year-to-date period ending January 31, 2022, is $0.2517 per share.

What is the annualized distribution rate for Franklin Universal Trust (FT) as of January 31, 2022?

The annualized distribution rate for Franklin Universal Trust (FT) is 5.88% as of January 31, 2022.