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

Key Terms

section 19(a) of the investment company act of 1940 regulatory

Section 19(a) of the Investment Company Act of 1940 is a legal rule that bars certain insiders—such as a fund’s affiliates and its principal underwriters—from buying or redeeming shares of the fund in ways that could create unfair advantages or manipulate prices. It matters to investors because it helps prevent self-dealing and preserves fair treatment and market integrity, similar to rules that stop referees from betting on games they officiate.

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

net realized short-term capital gains financial

Gains from selling investments held one year or less, after subtracting any short-term losses, so it represents the net profit from quick trades. Investors care because these gains are taxed at ordinary income rates rather than the lower long-term rates, which can significantly reduce after-tax returns; think of it like the higher sales tax you pay on a quick flip versus a discounted rate for holding something longer.

net realized long-term capital gains financial

Net realized long-term capital gains are the total profit an investor actually locks in from selling assets held more than one year, after subtracting any losses or adjustments. Think of it like the net cash you keep after selling a long-owned item and paying off related losses or costs; it matters because these gains determine taxable income and after-tax investment returns, influence dividend capacity and tax planning, and usually face lower tax rates than short-term gains.

return of capital financial

Return of capital is when an investor receives money from their investment that is not considered profit or earnings but rather a portion of the original amount they invested. It’s similar to getting back part of your initial savings rather than gains from it. This matters because it can affect how much money an investor still has in the investment and may have tax implications.

net asset value (nav) financial

Net asset value (NAV) is the per-share value of an investment fund calculated by totaling the fund’s assets, subtracting its liabilities, and dividing the remainder by the number of outstanding shares. Think of it like a price tag on each share of a collective piggy bank: investors use NAV to see what each share is worth, to compare funds, and, for many funds, it’s the price at which shares are bought or redeemed.

form 1099-div regulatory

Form 1099-DIV is a U.S. tax document brokers, mutual funds and other financial institutions send to investors showing dividends and other distributions paid during the year. Investors use it like an annual receipt to report taxable income — including regular dividends, dividends that may qualify for lower tax rates, and capital gains distributions — so it directly affects tax liability and helps reconcile brokerage records with a tax return.

assets under management financial

Assets under management (AUM) is the total value of all the investments that a financial company or fund is responsible for overseeing on behalf of its clients. It’s like a big bucket that shows how much money the firm is managing for people or organizations. A higher AUM often indicates a larger, more trusted company, and it can influence how much money they earn and the services they can offer.

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 December 31, 2025, and for the fiscal year 2026 year-to-date are as follows:

Estimated Allocations for December Monthly Distribution as of November 30, 2025:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.0425	$0.0358 (84%)	$0.0004 (1%)	$0.00 (0%)	$0.0061 (15%)

Cumulative Estimated Allocations fiscal year-to-date as of November 30, 2025, for the fiscal year ending August 31, 2026:

Distribution Per Share	Net Investment Income	Net Realized Short-Term Capital Gains	Net Realized Long-Term Capital Gains	Return of Capital
$0.1275	$0.0886 (70%)	$0.0031 (2%)	$0.00 (0%)	$0.0358 (28%)

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 11/30/2025)1	Annualized Distribution Rate (as a percentage of NAV for the current fiscal period through 11/30/2025)2	Cumulative Total Return (in relation to the change in NAV for the fiscal period through 11/30/2025)3	Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of 11/30/2025)4
7.31%	5.84%	4.84%	1.46%

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 November 30, 2025. 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 November 30, 2025.
3		Cumulative Total Return is the percentage change in the Fund’s NAV from August 31, 2025 through November 30, 2025, 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, 2025 through November 30, 2025, as a percentage of the Fund’s NAV as of November 30, 2025.

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. is a global investment management organization with subsidiaries operating as Franklin Templeton and serving clients in over 150 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 specialization on a global scale, bringing extensive capabilities in fixed income, equity, alternatives and multi-asset solutions. With more than 1,500 investment professionals, and offices in major financial markets around the world, the California-based company has over 75 years of investment experience and $1.67 trillion in assets under management as of November 30, 2025. For more information, please visit franklintempleton.com.

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For more information, please contact Franklin Templeton at 1-800-342-5236.

Source: Franklin Templeton