Franklin Universal Trust Shares Distribution Sources Details

Franklin Universal Trust Announces Distribution Insights

Franklin Universal Trust (NYSE: FT) has recently shared essential information regarding the sources of its distributions. This notification reflects the Fund's commitment to transparency and provides shareholders with crucial insights regarding their investments.

Understanding Distribution Sources

The notification outlines the estimated sources of the distribution to be paid in the upcoming period. As of the latest reporting, the Fund has declared an estimated distribution per share of $0.0425 for the month of November 2024. Shareholders need to be aware of how these distributions are sourced.

Detailed Allocation Breakdown

For the monthly distribution scheduled for November, the allocations are as follows:

• Net Investment Income: $0.0180 (42%)
• Return of Capital: $0.0245 (58%)

This data reveals that a significant portion of the distribution to shareholders may be classified as a return of capital, which is essential for investors to understand.

Cumulative Estimated Allocations

Additionally, the cumulative allocations for the fiscal year-to-date ending in 2025 are summarized. The estimated distribution per share stands at $0.0850, with the following intricacies:

Year-to-Date Breakdown

For the cumulative period, the allocations are organized as follows:

• Net Investment Income: $0.0440 (52%)
• Return of Capital: $0.0410 (48%)

These statistics further emphasize the significance of recognizing the components behind the reported distribution amounts.

Insights on Fund Performance

Shareholders are encouraged not to draw conclusions about investment performance solely based on these distributions. Franklin Universal Trust estimates that it has distributed more than its income and realized capital gains. Various factors influence the distribution rates, and past results do not guarantee future performance. Understanding that part of the distribution may represent a return of capital is crucial. It helps to differentiate between actual earnings and returned investments.

Tax Reporting Considerations

The precise details regarding tax implications will depend on the Fund's investment experience and evolving regulations. Shareholders will receive a Form 1099-DIV that describes how to report distributions for federal income tax purposes.

Recent Performance Metrics

Franklin Universal Trust's performance indicators illustrate the financial health of the Fund:

• Average Annual Total Return (through 10/31/2024): 5.46%
• Annualized Distribution Rate (as of 10/31/2024): 6.14%
• Cumulative Total Return: 2.25%
• Cumulative Distribution Rate (as of 10/31/2024): 1.02%

Investment Strategy Overview

The primary objective of Franklin Universal Trust is to deliver high current income, ensuring capital preservation. The secondary objective includes growth through income increases and capital appreciation. This dual focus reflects the Fund's strategic approach to investment management.

About Franklin Universal Trust

Franklin Resources, Inc., the parent company of Franklin Universal Trust, is a renowned investment management firm with a global footprint. The organization serves clients across more than 150 countries, focusing on enhancing their financial outcomes through adept investment management and technology solutions. With an experienced team of investment professionals and a comprehensive suite of investment capabilities, Franklin Templeton has established itself as a leader in asset management over the past few decades.

Frequently Asked Questions

What does Franklin Universal Trust focus on?

The Fund primarily aims to provide high current income while preserving capital, with a secondary focus on income growth and capital appreciation.

How is the distribution amount determined?

Distribution amounts are based on net investment income and realized capital gains, among other financial metrics.

What is a return of capital?

A return of capital occurs when some of the money a shareholder initially invested in the Fund is returned, which does not necessarily reflect the Fund's performance.

Are distributions taxable?

Yes, distributions from the Fund will be reported on Form 1099-DIV, and the actual tax implications may vary based on individual circumstances.

Where can I find more information about Franklin Universal Trust?

Interested parties can visit Franklin Templeton's official website for comprehensive information regarding their funds and investment strategies.

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