Franklin Universal Trust Announces Results of 2019 Annual Shareholders’ Meeting
April 11 2019 - 4:46PM
Franklin Universal Trust [NYSE:FT], a closed-end investment company
managed by Franklin Advisers, Inc. announced today its Board of
Trustees was re-elected by shareholders and all proposals to amend
or eliminate the Fund’s fundamental investment restrictions as
described in the Fund’s proxy materials were approved by
shareholders at the Fund’s 2019 Annual Shareholders’ Meeting.
Effective immediately, the Fund may invest a small portion of
its total assets in loans originated through on-line marketplace
lending platforms (a “Platform”) that provide a marketplace for
lending through the purchase of loans (either individually or in
aggregations) (“Marketplace Loans”) and other types of marketplace
lending instruments. The Fund’s investments in Marketplace Loans
may include: (i) direct investments in Marketplace Loans to
consumers, small- and mid-sized companies, and other borrowers;
(ii) investments in notes or other pass-through obligations issued
by a Platform representing the right to receive the principal and
interest payments on a Marketplace Loan; (iii) investments in
asset-backed securities representing ownership in a pool of
Marketplace Loans; and (iv) investments in public or private
investment funds that purchase Marketplace Loans.
Franklin Advisers, Inc. (the “Investment Manager”) will rely
heavily on its own analysis of the credit quality and risks
associated with individual debt obligations in an attempt to
minimize credit risk and identify borrowers, issuers, industries or
sectors that are undervalued or that offer attractive yields
relative to the Investment Manager’s assessment of their credit
characteristics. The Fund’s success in achieving its
investment objectives may depend more heavily on the Investment
Manager’s credit analysis than if the Fund invested solely in
higher-quality and rated securities.
Marketplace Loans are subject to the risks associated with debt
investments generally, including but not limited to, default,
interest rate, credit, liquidity, high yield debt, enforcement,
market and income risks. Marketplace Loans generally are not
rated by rating agencies; are often unsecured; not guaranteed or
insured by a third party; not backed by any governmental authority;
and are highly risky and speculative investments similar to an
investment in lower rated securities or high yield debt securities
(also known as junk bonds). Investments in Marketplace Loans
may be adversely affected if the Platform or a third-party service
provider becomes unable or unwilling to fulfill its obligations in
servicing the loans, although the Fund will attempt to mitigate
this risk by having a backup servicer. The Fund may have
limited information about the Marketplace Loans, and the
information provided by the Platform regarding the loans and the
borrowers’ credit information may be incomplete, inaccurate,
outdated or fraudulent. Because Marketplace Loans are often
illiquid, it may be difficult for the Fund to sell an investment in
a Marketplace Loan before maturity at the price at which the Fund
believes the loan should be valued.
You may request a copy of the Fund’s current Report to
Shareholders by contacting Franklin Templeton’s Fund Information
Department at 1-800/DIAL BEN® (1-800-342-5236) or by visiting
franklintempleton.com. All investments involve risks,
including possible loss of principal. Bond prices generally
move in the opposite direction of interest rates. As the
prices of bonds in a fund adjust to a rise in interest rates, the
fund’s share price may decline. Investments in lower-rated
bonds include higher risk of default and loss of principal.
Stock prices fluctuate, sometimes rapidly and dramatically, due to
factors affecting individual companies, particular industries or
sectors, or general market conditions. In addition to other
factors, securities issued by utility companies have historically
been sensitive to interest rate changes. When interest rates
fall, utility securities prices, and thus a utilities fund’s share
price, tend to rise; when interest rates rise, their prices
generally fall. The Fund is actively managed but there is no
guarantee that the manager’s investment decisions will produce the
desired results. For portfolio management discussions,
including information regarding the Fund’s investment strategies,
please view the most recent Annual or Semi-Annual Report to
Shareholders which can be found at franklintempleton.com or
sec.gov.
Franklin Resources, Inc. [NYSE:BEN] is a global investment
management organization operating as Franklin Templeton. Franklin
Templeton’s goal is to deliver better outcomes by providing global
and domestic investment management to retail, institutional and
sovereign wealth clients in over 170 countries. Through specialized
teams, the Company has expertise across all asset classes,
including equity, fixed income, alternatives and custom multi-asset
solutions. The Company’s more than 600 investment professionals are
supported by its integrated, worldwide team of risk management
professionals and global trading desk network. With employees in
over 30 countries, the California-based company has more than 70
years of investment experience and over US$712 billion in assets
under management as of March 31, 2019. For more information, please
visit franklintempleton.com.
FROM: Franklin Templeton Investments Shareholders/Financial
Advisors: (800) 342-5236
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