FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2012

Mar 21, 2012

40-17F2 1 fut17f2123111.htm FUT 17F2 PE 12/31/11 fut17f2123111.htm - Generated by SEC Publisher for SEC Filing

U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-17F-2

CERTIFICATE OF ACCOUNTING OF SECURITIES AND SIMILAR INVESTMENTS IN THE

CUSTODY OF MANAGEMENT INVESTMENT COMPANIES

PURSUANT TO RULE N-17F-2

| 1. Investment
Company Act File Number: | | | | | |
| --- | --- | --- | --- | --- | --- |
| 811
-05569 | | | March
15, 2012 | | |
| 2. State
Identification Number: | | | | | |
| AL | AK | AZ | AR | CA | CO |
| CT | DE | DC | FL | GA | HI |
| ID | IL | IN | IA | KS | KY |
| LA | ME | MD | MA | MI | MN |
| MS | MO | MT | NE | NV | NH |
| NJ | NM | NY | NC | ND | OH |
| OK | OR | PA | RI | SC | SD |
| TN | TX | UT | VT | VA | WA |
| WV | WI | WY | PUERTO RICO | | |
| 3. Exact name of
investment company as specified in registration statement: | | | | | |
| Franklin Universal
Trust | | | | | |
| 4. Address of
principal executive office: (number, street, city, state, zip code) | | | | | |
| One Franklin Parkway, San Mateo, CA 94403 | | | | | |

[PWC LOGO]

Report of Independent Registered Public Accounting Firm

To the Board of Trustees of

| Franklin Templeton
Limited Duration Income Trust |
| --- |
| Templeton Global
Investment Trust |
| Franklin Real
Estate Securities Trust |
| Franklin Strategic Series |
| Franklin High
Income Trust |
| Franklin Money
Fund |
| Franklin Templeton
Money Fund Trust |
| Institutional
Fiduciary Trust |
| Franklin Global Trust |
| Franklin Gold and
Precious Metals Fund |
| Franklin Universal
Trust |
| Templeton China World Fund |
| Templeton Emerging
Markets Fund |
| Templeton Emerging
Markets Income Fund |
| Templeton Global
Income Fund |
| Templeton Income
Trust |
| Franklin Custodian
Funds |
| Franklin Strategic Mortgage Portfolio |
| Franklin Investors Securities Trust |
| Franklin Templeton
Global Trust |
| Franklin Templeton
International Trust |
| Franklin Value
Investors Trust |
| Templeton
Developing Markets Trust |
| Franklin Templeton
Fund Allocator Series |
| Franklin Templeton
Variable Insurance Products Trust |
| Templeton
Institutional Funds |

and the Board of Directors of

Templeton Russia and East European Fund, Inc.
Templeton Dragon
Fund, Inc.

PricewaterhouseCoopers LLP, 300 Madison Avenue, New York, NY 10017

T: (646) 471 3000, F: (646) 471 8320, www.pwc.com/us

We have examined management's assertion, included in the accompanying Management Statement Regarding Compliance with Certain Provisions of the Investment Company Act of 1940, that the funds (see Attachment I), (hereafter referred to as the “Funds”) complied with the requirements of subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 (“the Act”) as of December 31, 2011. Management is responsible for the Funds' compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the Funds' compliance based on our examination.

Our examination was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and, accordingly, included examining, on a test basis, evidence about the Funds' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. Included among our procedures were the following tests performed as of December 31, 2011 and with respect to agreement of security purchases and sales, for the periods indicated in Attachment I:

• Without prior notice to management, confirmation of all securities held by Franklin Templeton Investors Services, Inc., transfer agent, as they pertain to the security positions owned by the Funds and held in book entry form.
• Reconciliation of such security positions to the books and records of the Funds.
• Agreement of 100 security purchases and 100 security sales, since our last report, from the books and records of the Funds to the records of the transfer agent.

We believe that our examination provides a reasonable basis for our opinion. Our examination does not provide a legal determination on the Funds' compliance with specified requirements.

In our opinion, management's assertion that the Funds were in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of December 31, 2011 with respect to securities reflected in the investment accounts of the Funds is fairly stated, in all material respects.

This report is intended solely for the information and use of, management, the Board of Trustees and Board of Directors and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.

/s/PRICEWATERHOUSECOOPERS, LLP

PricewaterhouseCoopers, LLP

March 15, 2012

Management Statement Regarding Compliance With Certain

Provisions of the Investment Company Act of 1940

We, as members of management of the Franklin Templeton Funds indicated in Attachment I (the “Funds”), are responsible for complying with the requirements of subsections (b) and (c) of Rule 17f-2, “Custody of Investments by Registered Management Investment Companies,” of the Investment Company Act of 1940. We are also responsible for establishing and maintaining effective internal controls over compliance with those requirements. We have performed an evaluation of the Funds’ compliance with the requirements of subsection (b) of Rule 17f-2, as interpreted in Franklin Investors Securities Trust SEC No-Action Letter (publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of 1940, as of December 31, 2011, and for the periods indicated in Attachment I.

Based on this evaluation, we assert that the Funds were in compliance with the requirements of subsection (b) of Rule 17f-2, as interpreted in Franklin Investors Securities Trust SEC No-Action Letter (publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of 1940, as of December 31, 2011, and for the periods indicated in Attachment I, with respect to securities reflected in the investment accounts of the Funds.

By:

/s/GASTON GARDEY

Gaston Gardey

Chief Financial Officer and Chief Accounting Officer

Franklin Funds Board

Date March 15, 2012

/s/MARK H. OTANI

Mark H. Otani

Chief Financial Officer and Chief Accounting Officer

Templeton Funds Board

Date March 15, 2012

/s/MATTHEW T. HINKLE

Matthew T. Hinkle

Chief Financial Officer and Chief Accounting Officer

Franklin New Jersey Funds Board

Date March 15, 2012

/s/LAURA F. FERGERSON

Laura F. Fergerson

Chief Executive Officer - Finance and Administration

Date March 15, 2012

*Attachment I*

Fund	Period
Franklin
Templeton Limited Duration Income Trust	September 1, 2011
- December 31, 2011
Templeton
Global Investment Trust:
Templeton BRIC
Fund	September 1, 2011
- December 31, 2011
Templeton Emerging
Markets Balanced Fund	October 3, 2011 -
December 31, 2011
Templeton Emerging
Markets Small Cap Fund	September 1, 2011
- December 31, 2011
Templeton Frontier
Markets Fund	September 1, 2011
- December 31, 2011
Templeton Global
Balanced Fund	September 1, 2011
- December 31, 2011
Templeton Russia and East European Fund, Inc.	September 1, 2011
- December 31, 2011
Franklin
Real Estate Securities Trust:
Franklin Real
Estate Securities Fund	September 1, 2011
- December 31, 2011
Franklin Strategic Series:
Franklin Biotechnology
Discovery Fund	September 1, 2011
- December 31, 2011
Franklin Flex Cap
Growth Fund	September 1, 2011
- December 31, 2011
Franklin Focused Core Equity Fund	September 1, 2011
- December 31, 2011
Franklin Growth Opportunities Fund	September 1, 2011
- December 31, 2011
Franklin Natural
Resources Fund	September 1, 2011
- December 31, 2011
Franklin Small Cap
Growth Fund	September 1, 2011
- December 31, 2011
Franklin Small-Mid
Cap Growth Fund	September 1, 2011
- December 31, 2011
Franklin Strategic Income Fund	September 1, 2011
- December 31, 2011
Franklin
High Income Trust:
Franklin High
Income Fund	September 1, 2011
- December 31, 2011
Franklin
Money Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Money Fund Trust:
Franklin Templeton
Money Fund	September 1, 2011
- December 31, 2011
Institutional
Fiduciary Trust:
Money Market
Portfolio	September 1, 2011
- December 31, 2011
Franklin Global Trust:
Franklin International Growth Fund	September 1, 2011
- December 31, 2011
Franklin Large Cap Equity Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Emerging Market Debt Opportunities Fund	September 1, 2011
- December 31, 2011
Franklin
Gold and Precious Metals Fund	September 1, 2011
- December 31, 2011
Franklin
Universal Trust	September 1, 2011
- December 31, 2011
Templeton China World Fund	September 1, 2011
- December 31, 2011
Templeton Emerging Markets Fund	September 1, 2011
- December 31, 2011
Templeton
Emerging Markets Income Fund	September 1, 2011
- December 31, 2011
Templeton
Global Income Fund	September 1, 2011
- December 31, 2011
Templeton
Income Trust:
Templeton Global
Bond Fund	September 1, 2011
- December 31, 2011
Templeton Global
Total Return Fund	September 1, 2011
- December 31, 2011
Templeton
International Bond Fund	September 1, 2011
- December 31, 2011
Franklin
Custodian Funds:
Franklin DynaTech
Fund	September 1, 2011
- December 31, 2011
Franklin Growth Fund	September 1, 2011
- December 31, 2011
Franklin Income
Fund	September 1, 2011
- December 31, 2011
Franklin U.S.
Government Securities Fund	September 1, 2011
- December 31, 2011
Franklin Utilities Fund	September 1, 2011
- December 31, 2011
Franklin Strategic Mortgage Portfolio	September 1, 2011
- December 31, 2011
Franklin Investors Securities Trust:
Franklin Adjustable U.S. Government Securities Fund	September 1, 2011
- December 31, 2011
Franklin Balanced Fund	September 1, 2011
- December 31, 2011
Franklin
Convertible Securities Fund	September 1, 2011
- December 31, 2011
Franklin Equity
Income Fund	September 1, 2011
- December 31, 2011
Franklin Floating Rate Daily Access Fund	September 1, 2011
- December 31, 2011
Franklin Limited
Maturity U.S. Government Securities Fund	September 1, 2011
- December 31, 2011
Franklin Low
Duration Total Return Fund	September 1, 2011
- December 31, 2011
Franklin Total
Return Fund	September 1, 2011
- December 31, 2011
Franklin
Templeton Global Trust:
Franklin Templeton
Hard Currency	September 1, 2011
- December 31, 2011
Franklin
Templeton International Trust:
Franklin India
Growth Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Global Allocation Fund	September 1, 2011
- December 31, 2011
Franklin
Value Investors Trust:
Franklin All Cap
Value Fund	September 1, 2011
- December 31, 2011
Franklin Balance Sheet Investment Fund	September 1, 2011
- December 31, 2011
Franklin Large Cap Value Fund	September 1, 2011
- December 31, 2011
Franklin MicroCap Value Fund	September 1, 2011
- December 31, 2011
Franklin MidCap Value Fund	September 1, 2011
- December 31, 2011
Franklin Small Cap
Value Fund	September 1, 2011
- December 31, 2011
Templeton
Developing Markets Trust	September 1, 2011
- December 31, 2011
Franklin
Templeton Fund Allocator Series:
Franklin Templeton
2015 Retirement Target Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
2025 Retirement Target Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
2035 Retirement Target Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
2045 Retirement Target Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Conservative Allocation Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Corefolio Allocation Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Founding Funds Allocation Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Growth Allocation Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Moderate Allocation Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
Multi-Asset Real Return Fund	December 19, 2011
- December 31, 2011
Franklin
Templeton Variable Insurance Products Trust:
Franklin Flex Cap
Growth Securities Fund	September 1, 2011
- December 31, 2011
Franklin Large Cap Value Securities Fund	September 1, 2011
- December 31, 2011
Franklin Rising Dividends Securities Fund	September 1, 2011
- December 31, 2011
Franklin Small Cap
Value Securities Fund	September 1, 2011
- December 31, 2011
Franklin Small-Mid
Cap Growth Securities Fund	September 1, 2011
- December 31, 2011
Franklin Strategic Income Securities Fund	September 1, 2011
- December 31, 2011
Franklin Templeton
VIP Founding Funds Allocation Fund	September 1, 2011
- December 31, 2011
Templeton
Developing Markets Securities Fund	September 1, 2011
- December 31, 2011
Templeton Foreign
Securities Fund	September 1, 2011
- December 31, 2011
Templeton
Dragon Fund, Inc.	September 1, 2011
- December 31, 2011
Templeton
Institutional Funds:
Foreign Equity
Series	September 1, 2011
- December 31, 2011
Emerging Markets
Series	September 1, 2011
- December 31, 2011