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

Rhea-AI Summary

Franklin Universal Trust (NYSE: FT) announced the estimated sources of distributions for the month ending August 31, 2022. The August monthly distribution is $0.0425 per share, with net investment income contributing $0.0310 (73%) and a return of capital of $0.0115 (27%). For the fiscal year-to-date, the cumulative distribution is $0.5067 per share, primarily from net investment income (74%). Shareholders are advised that a portion of the distribution may consist of a return of capital, which does not reflect the fund’s investment performance.

Positive

• August monthly distribution of $0.0425 per share indicates ongoing income generation.
• Cumulative fiscal year-to-date distribution of $0.5067 per share reflects consistent payouts.

Negative

• Distribution includes a return of capital, which can mislead about actual investment performance.

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 August 31, 2022 and for the fiscal year 2022 year-to-date are as follows:

Estimated Allocations for August Monthly Distribution as of July 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	$0.0310 (73%)	$0.0000 (0%)	$0.0000 (0%)	$0.0115 (27%)

Cumulative Estimated Allocations fiscal year-to-date as of July 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
$0.5067	$0.3749 (74%)	$0.0576 (11%)	$0.0000 (0%)	$0.0742 (15%)

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 07/31/2022)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 07/31/2022)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 07/31/2022)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 07/31/2022)4
5.30%	6.20%	-2.25%	6.16%

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 July 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 July 31, 2022.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2021 through July 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 July 31, 2022, as a percentage of the Fund’s NAV as of July 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 approximately $1.4 trillion in assets under management as of July 31, 2022. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220830005826/en/

Franklin Templeton, 1-800-342-5236

Source: Franklin Templeton

FAQ

What are the estimated sources of distributions for Franklin Universal Trust (FT) in August 2022?

The estimated sources include $0.0310 (73%) from net investment income and $0.0115 (27%) from a return of capital.

What was the cumulative distribution per share for FT as of July 31, 2022?

The cumulative distribution per share was $0.5067 as of July 31, 2022.

How much of the August 2022 distribution for FT is considered a return of capital?

27% of the August 2022 distribution, amounting to $0.0115 per share, is considered a return of capital.

What is the annualized distribution rate for FT as of July 31, 2022?

The annualized distribution rate for FT is 6.20% as of July 31, 2022.

Why should shareholders be cautious about the distribution amounts for FT?

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