FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2016

Jan 22, 2016

40-17F2 1 fut17f2-63015.htm FUT PE: 04-01-15 TO 06-30-15 fut17f2-63015.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 [17 CFR 270.17F-2]

| 1. Investment
Company Act File Number: | | | | | |
| --- | --- | --- | --- | --- | --- |
| 811
-05569 | | | October
23, 2015 | | |
| 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 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 Funds |
| Templeton Global
Income Fund |
| Templeton Global
Smaller Companies 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 Fund
Allocator Series |
| Franklin Templeton
Variable Insurance Products Trust |
| Templeton
Institutional Funds |
| Franklin ETF Trust |

and the Board of Directors of

Templeton Russia and East European Fund, Inc.
Templeton Growth
Fund, Inc.
Templeton Dragon
Fund, Inc.
Templeton Global Opportunities
Trust

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 June 30, 2015. 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 June 30, 2015 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 55 security purchases and 55 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 June 30, 2015 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

October 23, 2015

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 June 30, 2015, 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 June 30, 2015, 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 October 23, 2015

/s/MARK H. OTANI

Mark H. Otani

Chief Financial Officer and Chief Accounting Officer

Templeton Funds Board

Date October 23, 2015

/s/ROBERT G. KUBILIS

Robert G. Kubilis

Chief Financial Officer and Chief Accounting Officer

New Jersey/Alternative Strategies Funds Board

Date October 23, 2015

/s/LAURA F. FERGERSON

Laura F. Fergerson

Chief Executive Officer - Finance and Administration

Date October 23, 2015

*Attachment I*

Fund	Period
Franklin
Limited Duration Income Trust	April 1, 2015 -
June 30, 2015
Templeton
Global Investment Trust:
Templeton BRIC
Fund	April 1, 2015 -
June 30, 2015
Templeton Emerging
Markets Balanced Fund	April 1, 2015 -
June 30, 2015
Templeton Emerging
Markets Small Cap Fund	April 1, 2015 -
June 30, 2015
Templeton Frontier
Markets Fund	April 1, 2015 -
June 30, 2015
Templeton Global
Balanced Fund	April 1, 2015 -
June 30, 2015
Templeton Russia and East European Fund, Inc.	April 1, 2015 -
June 30, 2015
Franklin
Real Estate Securities Trust:
Franklin Real
Estate Securities Fund	April 1, 2015 -
June 30, 2015
Franklin Strategic Series:
Franklin
Biotechnology Discovery Fund	April 1, 2015 -
June 30, 2015
Franklin Flex Cap
Growth Fund	April 1, 2015 -
June 30, 2015
Franklin Focused Core Equity Fund	April 1, 2015 -
June 30, 2015
Franklin Global
Government Bond Fund	April 1, 2015 -
June 30, 2015
Franklin Growth Opportunities Fund	April 1, 2015 -
June 30, 2015
Franklin Natural
Resources Fund	April 1, 2015 -
June 30, 2015
Franklin Small Cap
Growth Fund	April 1, 2015 -
June 30, 2015
Franklin Small-Mid
Cap Growth Fund	April 1, 2015 -
June 30, 2015
Franklin Strategic Income Fund	April 1, 2015 -
June 30, 2015
Franklin
High Income Trust:
Franklin High Income
Fund	April 1, 2015 -
June 30, 2015
Franklin
Money Fund	April 1, 2015 -
June 30, 2015
Franklin
Templeton Money Fund Trust:
Franklin Templeton
Money Fund	April 1, 2015 -
June 30, 2015
Institutional
Fiduciary Trust:
Money Market
Portfolio	April 1, 2015 -
June 30, 2015
Franklin Global Trust:
Franklin Emerging
Market Debt Opportunities Fund	April 1, 2015 -
June 30, 2015
Franklin International Growth Fund	April 1, 2015 -
June 30, 2015
Franklin Large Cap Equity Fund	April 1, 2015 -
June 30, 2015
Franklin
Gold and Precious Metals Fund	April 1, 2015 -
June 30, 2015
Franklin
Universal Trust	April 1, 2015 -
June 30, 2015
Templeton China World Fund	April 1, 2015 -
June 30, 2015
Templeton Emerging Markets Fund	April 1, 2015 -
June 30, 2015
Templeton
Emerging Markets Income Fund	April 1, 2015 -
June 30, 2015
Templeton
Funds:
Templeton Foreign
Fund	April 1, 2015 -
June 30, 2015
Templeton World
Fund	April 1, 2015 -
June 30, 2015
Templeton
Global Income Fund	April 1, 2015 -
June 30, 2015
Templeton
Global Smaller Companies Fund	April 1, 2015 -
June 30, 2015
Templeton
Growth Fund, Inc.	April 1, 2015 -
June 30, 2015
Templeton Income
Trust:
Templeton
Constrained Bond Fund	April 1, 2015 -
June 30, 2015
Templeton Emerging
Markets Bond Fund	April 1, 2015 -
June 30, 2015
Templeton Global
Bond Fund	April 1, 2015 -
June 30, 2015
Templeton Global
Total Return Fund	April 1, 2015 -
June 30, 2015
Templeton
International Bond Fund	April 1, 2015 -
June 30, 2015
Franklin
Custodian Funds:
Franklin DynaTech
Fund	April 1, 2015 -
June 30, 2015
Franklin Growth Fund	April 1, 2015 -
June 30, 2015
Franklin Income Fund	April 1, 2015 -
June 30, 2015
Franklin U.S.
Government Securities Fund	April 1, 2015 -
June 30, 2015
Franklin Utilities Fund	April 1, 2015 -
June 30, 2015
Franklin Strategic Mortgage Portfolio	April 1, 2015 -
June 30, 2015
Franklin Investors Securities Trust:
Franklin Adjustable U.S. Government Securities Fund	April 1, 2015 -
June 30, 2015
Franklin Balanced Fund	April 1, 2015 -
June 30, 2015
Franklin
Convertible Securities Fund	April 1, 2015 -
June 30, 2015
Franklin Equity
Income Fund	April 1, 2015 -
June 30, 2015
Franklin Floating Rate Daily Access Fund	April 1, 2015 -
June 30, 2015
Franklin Low
Duration Total Return Fund	April 1, 2015 -
June 30, 2015
Franklin Total
Return Fund	April 1, 2015 -
June 30, 2015
Franklin
Templeton Global Trust:
Templeton Hard
Currency Fund	April 1, 2015 -
June 30, 2015
Franklin
Templeton International Trust:
Franklin Global
Allocation Fund	April 1, 2015 -
June 30, 2015
Franklin India
Growth Fund	April 1, 2015 -
June 30, 2015
Franklin World
Perspectives Fund	April 1, 2015 -
June 30, 2015
Franklin
Value Investors Trust:
Franklin All Cap
Value Fund	April 1, 2015 -
June 30, 2015
Franklin Balance Sheet Investment Fund	April 1, 2015 -
June 30, 2015
Franklin Large Cap Value Fund	April 1, 2015 -
June 30, 2015
Franklin MicroCap Value Fund	April 1, 2015 -
June 30, 2015
Franklin MidCap Value Fund	April 1, 2015 -
June 30, 2015
Franklin Small Cap
Value Fund	April 1, 2015 -
June 30, 2015
Templeton
Developing Markets Trust	April 1, 2015 -
June 30, 2015
Franklin
Fund Allocator Series:
Franklin
Conservative Allocation Fund	April 1, 2015 -
June 30, 2015
Franklin Corefolio
Allocation Fund	April 1, 2015 -
June 30, 2015
Franklin Founding
Funds Allocation Fund	April 1, 2015 -
June 30, 2015
Franklin Growth
Allocation Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2015 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2020 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2025 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2030 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2035 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2040 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2045 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2050 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin LifeSmart
2055 Retirement Target Fund	April 1, 2015 -
June 30, 2015
Franklin Moderate
Allocation Fund	April 1, 2015 -
June 30, 2015
Franklin
Multi-Asset Real Return Fund	April 1, 2015 -
June 30, 2015
Franklin Payout
2017 Fund	April 1, 2015 -
June 30, 2015
Franklin Payout
2018 Fund	April 1, 2015 -
June 30, 2015
Franklin Payout
2019 Fund	April 1, 2015 -
June 30, 2015
Franklin Payout
2020 Fund	April 1, 2015 -
June 30, 2015
Franklin Payout
2021 Fund	April 1, 2015 -
June 30, 2015
Franklin
Templeton Variable Insurance Products Trust:
Franklin Flex Cap
Growth VIP Fund	April 1, 2015 -
June 30, 2015
Franklin Founding
Funds Allocation VIP Fund	April 1, 2015 - June
30, 2015
Franklin Income
VIP Fund	April 1, 2015 –
June 30, 2015
Franklin Mutual
Global Discovery VIP Fund	April 1, 2015 -
June 30, 2015
Franklin Mutual
Shares VIP Fund	April 1, 2015 -
June 30, 2015
Franklin Rising
Dividends VIP Fund	April 1, 2015 -
June 30, 2015
Franklin Small Cap
Value VIP Fund	April 1, 2015 -
June 30, 2015
Franklin Small-Mid
Cap Growth VIP Fund	April 1, 2015 -
June 30, 2015
Franklin Strategic
Income VIP Fund	April 1, 2015 -
June 30, 2015
Franklin VolSmart
Allocation VIP Fund	April 1, 2015 -
June 30, 2015
(formerly
known as “Franklin Managed Volatility Global Allocation VIP Fund”)
Templeton
Developing Markets VIP Fund	April 1, 2015 -
June 30, 2015
Templeton Foreign
VIP Fund	April 1, 2015 -
June 30, 2015
Templeton Growth
VIP Fund	April 1, 2015 -
June 30, 2015
Templeton
Dragon Fund, Inc.	April 1, 2015 -
June 30, 2015
Templeton
Global Opportunities Trust	April 1, 2015 -
June 30, 2015
Templeton
Institutional Funds:
Emerging Markets
Series	April 1, 2015 -
June 30, 2015
Foreign Equity
Series	April 1, 2015 -
June 30, 2015
Foreign Smaller
Companies Series	April 1, 2015 -
June 30, 2015
Global Equity
Series	April 1, 2015 -
June 30, 2015
Franklin ETF
Trust:
Franklin Short
Duration U.S. Government ETF	April 1, 2015 -
June 30, 2015