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 fiscal year 2022, specifically for the distribution payable on July 29, 2022. The estimated allocation per share includes a distribution of $0.0425, which is entirely from net investment income. Year-to-date, cumulative distributions per share total $0.4642, with significant contributions from net investment income and a return of capital. Shareholders are cautioned not to interpret these distributions as indicators of the Fund's investment performance.

Positive

• Estimated distribution of $0.0425 per share is entirely from net investment income.
• Cumulative year-to-date distribution of $0.4642 per share indicates consistent payout performance.

Negative

• Distribution may partly represent a return of capital, which does not necessarily reflect investment performance.
• Cumulative total return of -7.96% shows a decline in net asset value over the fiscal period.

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 July 29, 2022 and for the fiscal year 2022 year-to-date are as follows:

Estimated Allocations for July Monthly Distribution as of June 30, 2022:

	Distribution Per Share				Net Investment Income				Net Realized Short-Term Capital Gains				Net Realized Long-Term Capital Gains				Return of Capital
	$0.0425				$0.0425 (100%)				$0.0000 (0%)				$0.0000 (0%)				$0.0000 (0%)

Cumulative Estimated Allocations fiscal year-to-date as of June 30, 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
	$0.4642			$0.3324 (72%)				$0.0576 (12%)				$0.0000 (0%)				$0.0742 (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 06/30/2022)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 06/30/2022)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 06/30/2022)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 06/30/2022)4
4.46%	6.56%	-7.96%	5.97%

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 June 30, 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 June 30, 2022.
3. Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2021 through June 30, 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 June 30, 2022, as a percentage of the Fund’s NAV as of June 30, 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 June 30, 2022. For more information, please visit franklintempleton.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005899/en/

Franklin Templeton, 1-800-342-5236

Source: Franklin Templeton

FAQ

What is the estimated distribution for Franklin Universal Trust (FT) in July 2022?

The estimated distribution for July 2022 is $0.0425 per share.

What portion of the distribution for FT is from net investment income?

100% of the estimated distribution of $0.0425 is from net investment income.

What was the cumulative fiscal year-to-date distribution rate for FT as of June 30, 2022?

The cumulative fiscal year-to-date distribution rate for FT was $0.4642 per share.

What are the implications of return of capital for FT shareholders?

A return of capital indicates that part of the distributions may consist of the money originally invested by shareholders, which does not correlate with investment performance.

How did FT perform in terms of total return as of June 30, 2022?

FT reported a cumulative total return of -7.96% for the fiscal period ending June 30, 2022.