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FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2019
Dec 13, 2019
33698_rns_2019-12-13_210e8d46-e2dd-473b-879d-37f2bab71f29.zip
Audit Report / Information
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40-17F2 1 17f2.htm Licensed to: Stradley Document created using EDGARfilings PROfile 6.4.0.0 Copyright 1995 - 2019 Broadridge
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 30, 2018 | ||||
| 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 |
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, 2018. 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, 2018, and with respect to agreement of security purchases and sales, for the period from July 31, 2017 (the date of our last examinations), through January 31, 2018:
• 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, 2018 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
August 30, 2018
Franklin Templeton Services, LLC 3310 Quality Drive Rancho Cordova, CA 95670 tel (800) 632.2350 franklintempleton.com
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, 2018, 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, 2018, 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 30, 2018
/s/ROBERT G. KUBILIS
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
Templeton, New Jersey and Alternative Strategies Funds Board
Date August 30, 2018
/s/MATTHEW T. HINKLE
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date August 30, 2018
Attachment I
| Fund | |
|---|---|
| Franklin Limited Duration Income Trust | August 1, 2017 - January 31, 2018 |
| Templeton Global Investment Trust: | |
| Templeton Emerging Markets Balanced Fund | August 1, 2017 - January 31, 2018 |
| Templeton Emerging Markets Small Cap Fund | August 1, 2017 - January 31, 2018 |
| Templeton Frontier Markets Fund | August 1, 2017 - January 31, 2018 |
| Templeton Global Balanced Fund | August 1, 2017 - January 31, 2018 |
| Templeton Dynamic Equity Fund | August 1, 2017 - January 31, 2018 |
| Franklin Real Estate Securities Trust: | |
| Franklin Real Estate Securities Fund | August 1, 2017 - January 31, 2018 |
| Franklin Strategic Series: | |
| Franklin Biotechnology Discovery Fund | August 1, 2017 - January 31, 2018 |
| Franklin Flexible Alpha Bond Fund | August 1, 2017 - January 31, 2018 |
| Franklin Focused Core Equity Fund | August 1, 2017 - January 31, 2018 |
| Franklin Growth Opportunities Fund | August 1, 2017 - January 31, 2018 |
| Franklin Natural Resources Fund | August 1, 2017 - January 31, 2018 |
| Franklin Small Cap Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Small-Mid Cap Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Strategic Income Fund | August 1, 2017 - January 31, 2018 |
| Franklin High Income Trust: | |
| Franklin High Income Fund | August 1, 2017 - January 31, 2018 |
| Franklin U.S. Government Money Fund | August 1, 2017 - January 31, 2018 |
| Franklin Templeton Money Fund Trust: | |
| Franklin Templeton U.S. Government Money Fund | August 1, 2017 - January 31, 2018 |
| Institutional Fiduciary Trust: | |
| Money Market Portfolio | August 1, 2017 - January 31, 2018 |
| Franklin Global Trust: | |
| Franklin Emerging Market Debt Opportunities Fund | August 1, 2017 - January 31, 2018 |
| Franklin International Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Global Listed Infrastructure Fund | August 1, 2017 - January 31, 2018 |
| Franklin Gold and Precious Metals Fund | August 1, 2017 - January 31, 2018 |
| Franklin Universal Trust | August 1, 2017 - January 31, 2018 |
| Templeton China World Fund | August 1, 2017 - January 31, 2018 |
| Templeton Emerging Markets Fund | August 1, 2017 - January 31, 2018 |
| Templeton Emerging Markets Income Fund | August 1, 2017 - January 31, 2018 |
Attachment I
| Templeton Funds: | |
|---|---|
| Templeton Foreign Fund | August 1, 2017 - January 31, 2018 |
| Templeton World Fund | August 1, 2017 - January 31, 2018 |
| Templeton Global Income Fund | August 1, 2017 - January 31, 2018 |
| Templeton Global Smaller Companies Fund | August 1, 2017 - January 31, 2018 |
| Templeton Growth Fund, Inc. | August 1, 2017 - January 31, 2018 |
| Templeton Income Trust: | |
| Templeton Emerging Markets Bond Fund | August 1, 2017 - January 31, 2018 |
| Templeton Global Bond Fund | August 1, 2017 - January 31, 2018 |
| Templeton Global Total Return Fund | August 1, 2017 - January 31, 2018 |
| Templeton International Bond Fund | August 1, 2017 - January 31, 2018 |
| Franklin Custodian Funds: | |
| Franklin DynaTech Fund | August 1, 2017 - January 31, 2018 |
| Franklin Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Income Fund | August 1, 2017 - January 31, 2018 |
| Franklin U.S. Government Securities Fund | August 1, 2017 - January 31, 2018 |
| Franklin Utilities Fund | August 1, 2017 - January 31, 2018 |
| Franklin Focused Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Strategic Mortgage Portfolio | August 1, 2017 - January 31, 2018 |
| Franklin Investors Securities Trust: | |
| Franklin Adjustable U.S. Government Securities Fund | August 1, 2017 - January 31, 2018 |
| Franklin Balanced Fund | August 1, 2017 - January 31, 2018 |
| Franklin Convertible Securities Fund | August 1, 2017 - January 31, 2018 |
| Franklin Equity Income Fund | August 1, 2017 - January 31, 2018 |
| Franklin Floating Rate Daily Access Fund | August 1, 2017 - January 31, 2018 |
| Franklin Low Duration Total Return Fund | August 1, 2017 - January 31, 2018 |
| Franklin Real Return Fund | August 1, 2017 - January 31, 2018 |
| Franklin Total Return Fund | August 1, 2017 - January 31, 2018 |
| Franklin Templeton Global Trust: | |
| Templeton Global Currency Fund | August 1, 2017 - January 31, 2018 |
| Franklin Templeton International Trust: | |
| Franklin India Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Value Investors Trust: | |
| Franklin Balance Sheet Investment Fund | August 1, 2017 - January 31, 2018 |
| Franklin MicroCap Value Fund | August 1, 2017 - January 31, 2018 |
| Franklin Small Cap Value Fund | August 1, 2017 - January 31, 2018 |
| Templeton Developing Markets Trust | August 1, 2017 - January 31, 2018 |
| Franklin Fund Allocator Series: |
Attachment I
| August 1, 2017 - January 31, 2018 | |
|---|---|
| Franklin Corefolio Allocation Fund | August 1, 2017 - January 31, 2018 |
| Franklin Founding Funds Allocation Fund | August 1, 2017 - January 31, 2018 |
| Franklin Growth Allocation Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart Retirement Income Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2020 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2025 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2030 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2035 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2040 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2045 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2050 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin LifeSmart 2055 Retirement Target Fund | August 1, 2017 - January 31, 2018 |
| Franklin Moderate Allocation Fund | August 1, 2017 - January 31, 2018 |
| Franklin NextStep Conservative Fund | August 1, 2017 - January 31, 2018 |
| Franklin NextStep Moderate Fund | August 1, 2017 - January 31, 2018 |
| Franklin NextStep Growth Fund | August 1, 2017 - January 31, 2018 |
| Franklin Payout 2018 Fund | August 1, 2017 - January 31, 2018 |
| Franklin Payout 2019 Fund | August 1, 2017 - January 31, 2018 |
| Franklin Payout 2020 Fund | August 1, 2017 - January 31, 2018 |
| Franklin Payout 2021 Fund | August 1, 2017 - January 31, 2018 |
| Franklin Payout 2022 Fund | August 1, 2017 - January 31, 2018 |
| Franklin Templeton Variable Insurance Products Trust: | |
| Franklin Flex Cap Growth VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Founding Funds Allocation VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Income VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Mutual Global Discovery VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Mutual Shares VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Rising Dividends VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Small Cap Value VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Small-Mid Cap Growth VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin Strategic Income VIP Fund | August 1, 2017 - January 31, 2018 |
| Franklin VolSmart Allocation VIP Fund | August 1, 2017 - January 31, 2018 |
| Templeton Developing Markets VIP Fund | August 1, 2017 - January 31, 2018 |
| Templeton Foreign VIP Fund | August 1, 2017 - January 31, 2018 |
| Templeton Growth VIP Fund | August 1, 2017 - January 31, 2018 |
| Templeton Global Bond VIP Fund | August 1, 2017 - January 31, 2018 |
| Templeton Dragon Fund, Inc. | August 1, 2017 - January 31, 2018 |
| Templeton Global Opportunities Trust | August 1, 2017 - January 31, 2018 |
| Templeton Institutional Funds: | |
| Emerging Markets Series | August 1, 2017 - January 31, 2018 |
| Foreign Equity Series | August 1, 2017 - January 31, 2018 |
| Foreign Smaller Companies Series | August 1, 2017 - January 31, 2018 |
| Global Equity Series | August 1, 2017 - January 31, 2018 |
Attachment I
| Franklin ETF Trust: | |
|---|---|
| Franklin Liberty Short Duration U.S. Government ETF | August 1, 2017 - January 31, 2018 |
| Franklin Managed Trust: | |
| Franklin Rising Dividends Fund | August 1, 2017 - January 31, 2018 |