FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2013

Jul 11, 2013

40-17F2 1 fut17f2-33113.htm fut17f2-33113.htm - Generated by SEC Publisher for SEC Filing

UNITED STATES

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 | | | June
18, 2013 | | |
| 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, PricewaterhouseCoopers Center, 300 Madison Avenue, New York, NY 10017 T: (646) 471 3000, F: (813) 286 6000, 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 March 31, 2013. 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 March 31, 2013 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 March 31, 2013 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

June 18, 2013

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 March 31, 2013, 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 March 31, 2013, 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 6/18/13

/s/MARK H. OTANI

Mark H. Otani

Chief Financial Officer and Chief Accounting Officer

Templeton Funds Board

Date 6/18/13

/s/ROBERT G. KUBILIS

Robert G. Kubilis

Chief Financial Officer and Chief Accounting Officer

Franklin New Jersey Funds Board

Date 6/18/13

/s/LAURA F. FERGERSON

Laura F. Fergerson

Chief Executive Officer - Finance and Administration

Date 6/18/13

Fund	Period
Franklin Templeton Limited Duration Income Trust	January 1, 2013 - March 31, 2013
Templeton Global Investment Trust:
Templeton BRIC Fund	January 1, 2013 - March 31, 2013
Templeton Emerging Markets Balanced Fund	January 1, 2013 - March 31, 2013
Templeton Emerging Markets Small Cap Fund	January 1, 2013 - March 31, 2013
Templeton Frontier Markets Fund	January 1, 2013 - March 31, 2013
Templeton Global Balanced Fund	January 1, 2013 - March 31, 2013
Templeton Russia and East European Fund, Inc.	January 1, 2013 - March 31, 2013
Franklin Real Estate Securities Trust:
Franklin Real Estate Securities Fund	January 1, 2013 - March 31, 2013
Franklin Strategic Series:
Franklin Biotechnology Discovery Fund	January 1, 2013 - March 31, 2013
Franklin Flex Cap Growth Fund	January 1, 2013 - March 31, 2013
Franklin Focused Core Equity Fund	January 1, 2013 - March 31, 2013
Franklin Growth Opportunities Fund	January 1, 2013 - March 31, 2013
Franklin Natural Resources Fund	January 1, 2013 - March 31, 2013
Franklin Small Cap Growth Fund	January 1, 2013 - March 31, 2013
Franklin Small-Mid Cap Growth Fund	January 1, 2013 - March 31, 2013
Franklin Strategic Income Fund	January 1, 2013 - March 31, 2013
Franklin High Income Trust:
Franklin High Income Fund	January 1, 2013 - March 31, 2013
Franklin Money Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Money Fund Trust:
Franklin Templeton Money Fund	January 1, 2013 - March 31, 2013
Institutional Fiduciary Trust:
Money Market Portfolio	January 1, 2013 - March 31, 2013
Franklin Global Trust:
Franklin International Growth Fund	January 1, 2013 - March 31, 2013
Franklin Large Cap Equity Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Emerging Market Debt Opportunities Fund	January 1, 2013 - March 31, 2013
Franklin Gold and Precious Metals Fund	January 1, 2013 - March 31, 2013
Franklin Universal Trust	January 1, 2013 - March 31, 2013
Templeton China World Fund	January 1, 2013 - March 31, 2013
Templeton Emerging Markets Fund	January 1, 2013 - March 31, 2013
Templeton Emerging Markets Income Fund	January 1, 2013 - March 31, 2013
Templeton Global Income Fund	January 1, 2013 - March 31, 2013
Templeton Income Trust:
Templeton Global Bond Fund	January 1, 2013 - March 31, 2013
Templeton Global Total Return Fund	January 1, 2013 - March 31, 2013
Templeton International Bond Fund	January 1, 2013 - March 31, 2013
Franklin Custodian Funds:
Franklin DynaTech Fund	January 1, 2013 - March 31, 2013
Franklin Growth Fund	January 1, 2013 - March 31, 2013
Franklin Income Fund	January 1, 2013 - March 31, 2013
Franklin U.S. Government Securities Fund	January 1, 2013 - March 31, 2013
Franklin Utilities Fund	January 1, 2013 - March 31, 2013
Franklin Strategic Mortgage Portfolio	January 1, 2013 - March 31, 2013
Franklin Investors Securities Trust:
Franklin Adjustable U.S. Government Securities Fund	January 1, 2013 - March 31, 2013
Franklin Balanced Fund	January 1, 2013 - March 31, 2013
Franklin Convertible Securities Fund	January 1, 2013 - March 31, 2013
Franklin Equity Income Fund	January 1, 2013 - March 31, 2013
Franklin Floating Rate Daily Access Fund	January 1, 2013 - March 31, 2013
Franklin Limited Maturity U.S. Government Securities Fund	January 1, 2013 - March 31, 2013
Franklin Low Duration Total Return Fund	January 1, 2013 - March 31, 2013
Franklin Total Return Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Global Trust:
Franklin Templeton Hard Currency	January 1, 2013 - March 31, 2013
Franklin Templeton International Trust:
Franklin India Growth Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Global Allocation Fund	January 1, 2013 - March 31, 2013
Franklin World Perspectives Fund	January 1, 2013 - March 31, 2013
Franklin Value Investors Trust:
Franklin All Cap Value Fund	January 1, 2013 - March 31, 2013
Franklin Balance Sheet Investment Fund	January 1, 2013 - March 31, 2013
Franklin Large Cap Value Fund	January 1, 2013 - March 31, 2013
Franklin MicroCap Value Fund	January 1, 2013 - March 31, 2013
Franklin MidCap Value Fund	January 1, 2013 - March 31, 2013
Franklin Small Cap Value Fund	January 1, 2013 - March 31, 2013
Templeton Developing Markets Trust	January 1, 2013 - March 31, 2013
Franklin Templeton Fund Allocator Series:
Franklin LifeSmart 2015 Retirement Target Fund (formerly known as “Franklin Templeton 2015 Retirement Target Fund”)	January 1, 2013 - March 31, 2013
Franklin LifeSmart 2025 Retirement Target Fund (formerly known as “Franklin Templeton 2025 Retirement Target Fund”)	January 1, 2013 - March 31, 2013
Franklin LifeSmart 2035 Retirement Target Fund (formerly known as “Franklin Templeton 2035 Retirement Target Fund”)	January 1, 2013 - March 31, 2013
Franklin LifeSmart 2045 Retirement Target Fund (formerly known as “Franklin Templeton 2045 Retirement Target Fund”)	January 1, 2013 - March 31, 2013
Franklin Templeton Conservative Allocation Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Corefolio Allocation Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Founding Funds Allocation Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Growth Allocation Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Moderate Allocation Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Multi-Asset Real Return Fund	January 1, 2013 - March 31, 2013
Franklin Templeton Variable Insurance Products Trust:
Franklin Flex Cap Growth Securities Fund	January 1, 2013 - March 31, 2013
Franklin Large Cap Value Securities Fund	January 1, 2013 - March 31, 2013
Franklin Rising Dividends Securities Fund	January 1, 2013 - March 31, 2013
Franklin Small Cap Value Securities Fund	January 1, 2013 - March 31, 2013
Franklin Small-Mid Cap Growth Securities Fund	January 1, 2013 - March 31, 2013
Franklin Strategic Income Securities Fund	January 1, 2013 - March 31, 2013
Franklin Templeton VIP Founding Funds Allocation Fund	January 1, 2013 - March 31, 2013
Templeton Developing Markets Securities Fund	January 1, 2013 - March 31, 2013
Templeton Foreign Securities Fund	January 1, 2013 - March 31, 2013
Templeton Dragon Fund, Inc.	January 1, 2013 - March 31, 2013
Templeton Institutional Funds:
Foreign Equity Series	January 1, 2013 - March 31, 2013
Emerging Markets Series	January 1, 2013 - March 31, 2013