AI assistant
FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2017
Nov 6, 2017
33698_rns_2017-11-06_4b20fb55-7d88-42d0-8089-dc491a85a8d3.zip
Audit Report / Information
Open in viewerOpens in your device viewer
40-17F2 1 fut17f2-013117.htm FUT 17F-2 PE:01-31-17 fut17f2-013117.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
31, 2017 | | |
| 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 Accountants
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 U.S
Government 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 |
| Franklin Managed
Trust |
and the Board of Directors of
| 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 each of the Funds listed in 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 January 31, 2017. The Funds’ management is responsible for its assertion and the Company’s compliance with those requirements. Our responsibility is to express an opinion on management's assertion about the Funds' compliance with the specified requirements based on our examination.
Our examination was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion about compliance with the specified requirements is fairly stated, in all material respects, 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 January 31, 2017, and with respect to agreement of security purchases and sales, for the period from August 31, 2016 (the date of our last examinations), through January 31, 2017 for each of the Funds:
- 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, and that the evidence we obtained is sufficient and appropriate to provide, 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 complied with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of January 31, 2017 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 and the Board of Directors and Trustees of the Funds 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 31, 2017
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 January 31, 2017, 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 January 31, 2017, 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 31, 2017
/s/ROBERT G. KUBILIS
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
Templeton, New Jersey and Alternative Strategies Funds Board
Date October 31, 2017
/s/MATTHEW T. HINKLE
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date October 31, 2017
*Attachment I*
| Fund | |
|---|---|
| Franklin | |
| Limited Duration Income Trust | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Global Investment Trust: | |
| Templeton Emerging | |
| Markets Balanced Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Emerging | |
| Markets Small Cap Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Frontier | |
| Markets Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Global | |
| Balanced Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Real Estate Securities Trust: | |
| Franklin Real | |
| Estate Securities Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Strategic Series: | |
| Franklin | |
| Biotechnology Discovery Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Flex Cap Growth | |
| Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Flexible | |
| Alpha Bond Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Focused Core Equity Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Global | |
| Government Bond Fund | September 1, 2016 - |
| January 31, 2017 | |
| Franklin Growth Opportunities Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Natural | |
| Resources Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Small Cap | |
| Growth Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Small-Mid | |
| Cap Growth Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Strategic Income Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| High Income Trust: | |
| Franklin High | |
| Income Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| U.S. Government Money Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Templeton Money Fund Trust: | |
| Franklin Templeton | |
| U.S. Government Money Fund | September 1, 2016 |
| - January 31, 2017 | |
| Institutional | |
| Fiduciary Trust: | |
| Money Market | |
| Portfolio | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Global Trust: | |
| Franklin Emerging | |
| Market Debt Opportunities Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin International Growth Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Gold and Precious Metals Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Universal Trust | September 1, 2016 |
| - January 31, 2017 | |
| Templeton China World Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Emerging Markets Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Emerging Markets Income Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Funds: | |
| Templeton Foreign | |
| Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton World | |
| Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Global Income Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Global Smaller Companies Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Growth Fund, Inc. | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Income Trust: | |
| Templeton Emerging | |
| Markets Bond Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Global | |
| Bond Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Global | |
| Total Return Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| International Bond Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Custodian Funds: | |
| Franklin DynaTech | |
| Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Growth Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Income | |
| Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin U.S. | |
| Government Securities Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Utilities Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Strategic Mortgage Portfolio | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Investors Securities Trust: | |
| Franklin Adjustable U.S. Government Securities Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Balanced Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Convertible Securities Fund | September 1, 2016 - |
| January 31, 2017 | |
| Franklin Equity | |
| Income Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Floating Rate Daily Access Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Low | |
| Duration Total Return Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Real | |
| Return Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Total | |
| Return Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Templeton Global Trust: | |
| Templeton Global | |
| Currency Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Templeton International Trust: | |
| Franklin India | |
| Growth Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Value Investors Trust: | |
| Franklin Balance Sheet Investment Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin MicroCap Value Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin MidCap Value Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Small Cap | |
| Value Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Developing Markets Trust | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Fund Allocator Series: | |
| Franklin | |
| Conservative Allocation Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Corefolio | |
| Allocation Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Founding | |
| Funds Allocation Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Growth | |
| Allocation Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| Retirement Income Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2020 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2025 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2030 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2035 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2040 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2045 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2050 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin LifeSmart | |
| 2055 Retirement Target Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Moderate | |
| Allocation Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin NextStep | |
| Conservative Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin NextStep | |
| Moderate Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin NextStep | |
| Growth Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Payout | |
| 2017 Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Payout | |
| 2018 Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Payout | |
| 2019 Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Payout | |
| 2020 Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Payout | |
| 2021 Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Templeton | |
| Variable Insurance Products Trust: | |
| Franklin Flex Cap | |
| Growth VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Founding | |
| Funds Allocation VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Income | |
| VIP Fund | September 1, 2016 |
| – January 31, 2017 | |
| Franklin Mutual | |
| Global Discovery VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Mutual | |
| Shares VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Rising | |
| Dividends VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Small Cap | |
| Value VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Small-Mid | |
| Cap Growth VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin Strategic | |
| Income VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Franklin VolSmart | |
| Allocation VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Developing Markets VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Foreign | |
| VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton Growth | |
| VIP Fund | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Dragon Fund, Inc. | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Global Opportunities Trust | September 1, 2016 |
| - January 31, 2017 | |
| Templeton | |
| Institutional Funds: | |
| Emerging Markets | |
| Series | September 1, 2016 |
| - January 31, 2017 | |
| Foreign Equity | |
| Series | September 1, 2016 |
| - January 31, 2017 | |
| Foreign Smaller | |
| Companies Series | September 1, 2016 |
| - January 31, 2017 | |
| Global Equity | |
| Series | September 1, 2016 |
| - January 31, 2017 | |
| Franklin ETF | |
| Trust: | |
| Franklin Liberty | |
| Short Duration U.S. Government ETF | September 1, 2016 |
| - January 31, 2017 | |
| Franklin | |
| Managed Trust: | |
| Franklin Rising | |
| Dividends Fund | September 1, 2016 |
| - January 31, 2017 |