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10/30/2025 – 12:06 PM
SAN MATEO, Calif. — Franklin Universal Trust (NYSE: FT) today announced the estimated sources of its distribution to be paid on October 31, 2025, and for the fiscal year 2026 year-to-date, pursuant to Section 19(a) of the Investment Company Act of 1940.
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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 October 31, 2025, and for the fiscal year 2026 year-to-date are as follows:
Estimated Allocations for October Monthly Distribution as of September 30, 2025:
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Distribution Per Share |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
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$0.0425 |
$0.0260 (61%) |
$0.0018 (4%) |
$0.00 (0%) |
$0.0147 (35%) |
Cumulative Estimated Allocations fiscal year-to-date as of September 30, 2025, for the fiscal year ending August 31, 2026:
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Distribution Per Share |
Net Investment Income |
Net Realized Short-Term Capital Gains |
Net Realized Long-Term Capital Gains |
Return of Capital |
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$0.0425 |
$0.0260 (61%) |
$0.0018 (4%) |
$0.00 (0%) |
$0.0147 (35%) |
Shareholders should carefully consider the implications of these distributions. While the fund aims to provide consistent income, the classification of a portion of the distribution as “Return of Capital” warrants further examination.
A return of capital doesn’t necessarily reflect the fund’s current investment performance and shouldn’t be mistaken for yield or income. Instead, it indicates that a portion of the initial investment is being returned to the shareholder. This can occur for various reasons, including the fund distributing more than its net investment income and realized capital gains.
It’s crucial for investors to understand that the estimated allocations presented are just that – estimates. The actual amounts and sources for tax reporting purposes will be determined by the Fund’s investment performance for the remainder of the fiscal year and may be subject to changes based on tax regulations. Investors will receive a Form 1099-DIV for the calendar year, detailing how to report the Fund’s distributions for federal income tax purposes.
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Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on 9/30/2025)1 |
Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 9/30/2025)2 |
Cumulative Total Return (in relation to the change in NAV for the fiscal period through 9/30/2025)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 9/30/2025)4 |
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8.06% |
5.92% |
2.39% |
0.49% |
Fund Performance and Distribution Rate Information:
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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 September 30, 2025. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid. |
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2 |
The Annualized Distribution Rate is the current fiscal period’s distribution rate annualized as a percentage of the Fund’s NAV through September 30, 2025. |
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3 |
Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2025 through September 30, 2025, assuming reinvestment of distributions paid. |
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4 |
The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the fiscal period August 31, 2025 through September 30, 2025, as a percentage of the Fund’s NAV as of September 30, 2025. |
Franklin Universal Trust’s primary investment objective is to generate high current income while preserving capital. A secondary objective involves income growth through dividend increases and capital appreciation. The fund managers will need to navigate a complex and potentially volatile market environment to achieve these objectives, especially given rising interest rates and inflation concerns.
Distributions may fluctuate based on the Fund’s net investment income. Investors should note that past distribution levels are not indicative of future performance and should not be the sole basis for investment decisions. While FT aims to deliver consistent income, portfolio management strategies and market conditions could influence future distribution patterns.
Franklin Resources, Inc., operating as Franklin Templeton, manages the Franklin Universal Trust. Franklin Templeton, a global investment management organization, serves clients in over 150 countries. As of September 30, 2025, the firm boasts over $1.66 trillion in assets under management, reflecting its substantial expertise in fixed income, equity, alternatives, and multi-asset solutions.
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