In plain terms — Franklin Universal Trust
Shares currently cost about 14.4% less than the value of the assets behind them (a discount).
Over the past year it has averaged a 8.8% discount, so today's level is unusually wide for this fund (Z-score -2.8). That describes the past; it does not predict where the discount goes next.
It pays regular distributions worth about 7.2% a year of the share price (6.2% of the assets). That is a payout rate, not a return: part of it may be capital being handed back.
Because the shares trade below the value of their assets, each dollar of reinvested distributions buys about $1.17 of assets — a ReinvestCapture™ rate of 8.4%, more than the payout rate itself. That is buying power, not a return.
The assets themselves grew 0.7% over the past year including distributions (NAV total return).
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Price and NAV, past year
Snapshot
Valuation vs. history
| Window | Average prem/disc | Std. dev. | Z-score | Observations |
|---|---|---|---|---|
| 3 months | -10.77% | 1.85% | -1.61 | 55 |
| 6 months | -9.85% | 1.68% | -2.33 | 107 |
| 1 year | -8.82% | 1.75% | -2.82 | 204 |
| 3 years | -9.80% | — | — | — |
| 5 years | -9.05% | — | — | — |
Current contemporaneous premium/discount -13.75% (close Oct 14, 2026 vs NAV Oct 13, 2026). 1-year range -14.09% to -5.81%. A negative Z-score means a wider discount than the window average — not that the fund is undervalued.
Performance
| Series | 1M | 3M | YTD | 1Y | 3Y (ann.) | 5Y (ann.) |
|---|---|---|---|---|---|---|
| Market price return | -5.09% | -12.59% | -11.50% | -12.05% | +4.02% | -2.89% |
| Market price total return | -4.53% | -11.12% | -7.12% | -6.22% | +11.21% | +4.38% |
| NAV return | -1.78% | -6.64% | -3.15% | -5.04% | +5.80% | -1.10% |
| NAV total return | -1.27% | -5.24% | +1.17% | +0.68% | +12.38% | +5.62% |
Through Oct 14, 2026. Total return reinvests distributions at the series value on the ex-date. Cumulative ≤ 1 year, annualised beyond.
About the fund
Established on September 23, 1988, Franklin Universal Trust operates as a U.S.-domiciled, closed-end balanced mutual fund. It was initiated by Franklin Resources, Inc. and is actively managed by Franklin Advisers, Inc. The fund directs its capital towards the public equity and fixed income markets throughout the United States, specifically focusing its equity investments on the utility sector. Employing fundamental analysis, it constructs a diverse portfolio comprising corporate debt instruments and dividend-yielding utility stocks. For performance evaluation, the trust measures its equity holdings against the S&P 500 Electric Utilities Index, while its fixed income components are benchmarked against the Credit Suisse High Yield.
CEF Explorer research page for Franklin Universal Trust. Figures carry their own dates and sources; a discount to NAV does not guarantee convergence or any return. This is not investment advice.