FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2017

Oct 5, 2017

40-17F2 1 fut17f2-053116.htm FUT PE:05-31-16 fut17f2-053116.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 | | | August
24, 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, each of the funds listed in 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 May 31, 2016. 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 May 31, 2016, and with respect to agreement of security purchases and sales, for the period from March 31, 2016 (the date of our last examinations), through May 31, 2016 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 were in compliance with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of May 31, 2016 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 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

August 24, 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 May 31, , 2016, 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 May 31, 2016, 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 August 24, 2017

/s/ROBERT G. KUBILIS

Robert G. Kubilis

Chief Financial Officer and Chief Accounting Officer

Templeton, New Jersey/Alternative Strategies Funds Board

Date August 24, 2017

/s/MATTHEW T. HINKLE

Matthew T. Hinkle

Chief Executive Officer - Finance and Administration

Date August 24, 2017

*Attachment I*

Fund	Period
Franklin
Limited Duration Income Trust	April 1, 2016 -
May 31, 2016
Templeton
Global Investment Trust:
Templeton Emerging
Markets Balanced Fund	April 1, 2016 -
May 31, 2016
Templeton Emerging
Markets Small Cap Fund	April 1, 2016 -
May 31, 2016
Templeton Frontier
Markets Fund	April 1, 2016 -
May 31, 2016
Templeton Global
Balanced Fund	April 1, 2016 -
May 31, 2016
Franklin
Real Estate Securities Trust:
Franklin Real
Estate Securities Fund	April 1, 2016 -
May 31, 2016
Franklin Strategic Series:
Franklin
Biotechnology Discovery Fund	April 1, 2016 -
May 31, 2016
Franklin Flex Cap
Growth Fund	April 1, 2016 -
May 31, 2016
Franklin Flexible
Alpha Bond Fund	April 1, 2016 -
May 31, 2016
Franklin Focused Core Equity Fund	April 1, 2016 -
May 31, 2016
Franklin Global
Government Bond Fund	April 1, 2016 -
May 31, 2016
Franklin Growth Opportunities Fund	April 1, 2016 -
May 31, 2016
Franklin Natural
Resources Fund	April 1, 2016 -
May 31, 2016
Franklin Small Cap
Growth Fund	April 1, 2016 -
May 31, 2016
Franklin Small-Mid
Cap Growth Fund	April 1, 2016 -
May 31, 2016
Franklin Strategic Income Fund	April 1, 2016 -
May 31, 2016
Franklin High
Income Trust:
Franklin High
Income Fund	April 1, 2016 -
May 31, 2016
Franklin
U.S. Government Money Fund	April 1, 2016 -
May 31, 2016
Franklin
Templeton Money Fund Trust:
Franklin Templeton
U.S. Government Money Fund	April 1, 2016 -
May 31, 2016
Institutional
Fiduciary Trust:
Money Market
Portfolio	April 1, 2016 -
May 31, 2016
Franklin Global Trust:
Franklin Emerging
Market Debt Opportunities Fund	April 1, 2016 -
May 31, 2016
Franklin International Growth Fund	April 1, 2016 -
May 31, 2016
Franklin
Gold and Precious Metals Fund	April 1, 2016 -
May 31, 2016
Franklin
Universal Trust	April 1, 2016 -
May 31, 2016
Templeton China World Fund	April 1, 2016 -
May 31, 2016
Templeton
Emerging Markets Fund	April 1, 2016 -
May 31, 2016
Templeton
Emerging Markets Income Fund	April 1, 2016 -
May 31, 2016
Templeton
Funds:
Templeton Foreign
Fund	April 1, 2016 -
May 31, 2016
Templeton World
Fund	April 1, 2016 -
May 31, 2016
Templeton
Global Income Fund	April 1, 2016 -
May 31, 2016
Templeton
Global Smaller Companies Fund	April 1, 2016 -
May 31, 2016
Templeton
Growth Fund, Inc.	April 1, 2016 -
May 31, 2016
Templeton
Income Trust:
Templeton Emerging
Markets Bond Fund	April 1, 2016 -
May 31, 2016
Templeton Global
Bond Fund	April 1, 2016 -
May 31, 2016
Templeton Global
Total Return Fund	April 1, 2016 -
May 31, 2016
Templeton
International Bond Fund	April 1, 2016 -
May 31, 2016
Franklin
Custodian Funds:
Franklin DynaTech
Fund	April 1, 2016 -
May 31, 2016
Franklin Growth Fund	April 1, 2016 -
May 31, 2016
Franklin Income
Fund	April 1, 2016 -
May 31, 2016
Franklin U.S.
Government Securities Fund	April 1, 2016 -
May 31, 2016
Franklin Utilities Fund	April 1, 2016 -
May 31, 2016
Franklin Strategic Mortgage Portfolio	April 1, 2016 -
May 31, 2016
Franklin Investors Securities Trust:
Franklin Adjustable U.S. Government Securities Fund	April 1, 2016 -
May 31, 2016
Franklin Balanced Fund	April 1, 2016 -
May 31, 2016
Franklin
Convertible Securities Fund	April 1, 2016 -
May 31, 2016
Franklin Equity
Income Fund	April 1, 2016 -
May 31, 2016
Franklin Floating Rate Daily Access Fund	April 1, 2016 -
May 31, 2016
Franklin Low
Duration Total Return Fund	April 1, 2016 -
May 31, 2016
Franklin Real
Return Fund	April 1, 2016 -
May 31, 2016
Franklin Total
Return Fund	April 1, 2016 -
May 31, 2016
Franklin
Templeton Global Trust:
Templeton Hard
Currency Fund	April 1, 2016 -
May 31, 2016
Franklin
Templeton International Trust:
Franklin India
Growth Fund	April 1, 2016 -
May 31, 2016
Franklin
Value Investors Trust:
Franklin Balance Sheet Investment Fund	April 1, 2016 -
May 31, 2016
Franklin MicroCap Value Fund	April 1, 2016 -
May 31, 2016
Franklin MidCap Value Fund	April 1, 2016 -
May 31, 2016
Franklin Small Cap
Value Fund	April 1, 2016 -
May 31, 2016
Templeton Developing Markets Trust	April 1, 2016 -
May 31, 2016
Franklin
Fund Allocator Series:
Franklin
Conservative Allocation Fund	April 1, 2016 -
May 31, 2016
Franklin Corefolio
Allocation Fund	April 1, 2016 -
May 31, 2016
Franklin Founding
Funds Allocation Fund	April 1, 2016 -
May 31, 2016
Franklin Growth
Allocation Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
Retirement Income Fund (formerly,
Franklin LifeSmart 2015 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2020 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2025 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2030 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2035 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2040 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2045 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2050 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin LifeSmart
2055 Retirement Target Fund	April 1, 2016 -
May 31, 2016
Franklin Moderate
Allocation Fund	April 1, 2016 -
May 31, 2016
Franklin NextStep
Conservative Fund	April 1, 2016 -
May 31, 2016
Franklin NextStep
Moderate Fund	April 1, 2016 -
May 31, 2016
Franklin NextStep
Growth Fund	April 1, 2016 -
May 31, 2016
Franklin Payout
2017 Fund	April 1, 2016 -
May 31, 2016
Franklin Payout
2018 Fund	April 1, 2016 -
May 31, 2016
Franklin Payout
2019 Fund	April 1, 2016 -
May 31, 2016
Franklin Payout
2020 Fund	April 1, 2016 -
May 31, 2016
Franklin Payout
2021 Fund	April 1, 2016 -
May 31, 2016
Franklin
Templeton Variable Insurance Products Trust:
Franklin Flex Cap Growth
VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Founding
Funds Allocation VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Income
VIP Fund	April 1, 2016 –
May 31, 2016
Franklin Mutual
Global Discovery VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Mutual
Shares VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Rising
Dividends VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Small Cap
Value VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Small-Mid
Cap Growth VIP Fund	April 1, 2016 -
May 31, 2016
Franklin Strategic
Income VIP Fund	April 1, 2016 -
May 31, 2016
Franklin VolSmart
Allocation VIP Fund	April 1, 2016 -
May 31, 2016
Templeton
Developing Markets VIP Fund	April 1, 2016 -
May 31, 2016
Templeton Foreign
VIP Fund	April 1, 2016 -
May 31, 2016
Templeton Growth
VIP Fund	April 1, 2016 -
May 31, 2016
Templeton
Dragon Fund, Inc.	April 1, 2016 -
May 31, 2016
Templeton
Global Opportunities Trust	April 1, 2016 -
May 31, 2016
Templeton
Institutional Funds:
Emerging Markets
Series	April 1, 2016 -
May 31, 2016
Foreign Equity
Series	April 1, 2016 -
May 31, 2016
Foreign Smaller
Companies Series	April 1, 2016 -
May 31, 2016
Global Equity
Series	April 1, 2016 -
May 31, 2016
Franklin ETF Trust:
Franklin Short
Duration U.S. Government ETF	April 1, 2016 -
May 31, 2016
Franklin
Managed Trust:
Franklin Rising
Dividends Fund	April 1, 2016 -
May 31, 2016