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FRANKLIN UNIVERSAL TRUST — Audit Report / Information 2020
May 28, 2020
33698_rns_2020-05-28_08cf8074-ef86-464a-9501-3ad491661d91.zip
Audit Report / Information
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40-17F2 1 fut_17f2-053119.htm fut_17f2-053119.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 | | | May
20, 2020 | | |
| 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
| Templeton Global
Investment Trust |
| --- |
| Franklin Real
Estate Securities Trust |
| Franklin Strategic Series |
| Franklin High
Income 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 |
| Templeton
Developing Markets Trust |
| Franklin Fund
Allocator Series |
| Franklin Templeton
Variable Insurance Products Trust |
| Templeton
Institutional Funds |
| Franklin ETF Trust |
| Franklin Managed
Trust |
| Franklin Limited
Duration Income Trust |
| Franklin Templeton
ETF Trust |
and the Board of Directors of
| Templeton Growth
Fund, Inc. |
| --- |
| Templeton Dragon
Fund, Inc. |
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 (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, 2019. 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, 2019, and with respect to agreement of security purchases and sales, for the period from February 28, 2019 (the date of our last examinations), through May 31, 2019:
- 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 May 31, 2019 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
May 20, 2020
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 of May 31, 2019, 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 of May 31, 2019, 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 May 20, 2020
/s/ROBERT G. KUBILIS
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
Templeton, New Jersey and Alternative Strategies Funds Board
Date May 20, 2020
/s/MATTHEW T. HINKLE
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date May 20, 2020
*Attachment I*
| Fund | |
|---|---|
| Templeton | |
| Global Investment Trust: | |
| Templeton Emerging | |
| Markets Balanced Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Emerging | |
| Markets Small Cap Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Frontier | |
| Markets Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Global | |
| Balanced Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Dynamic | |
| Equity Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Real Estate Securities Trust: | |
| Franklin Real | |
| Estate Securities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Strategic Series: | |
| Franklin | |
| Biotechnology Discovery Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Flexible | |
| Alpha Bond Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Select | |
| U.S. Equity Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Growth Opportunities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Natural Resources | |
| Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Small Cap | |
| Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Small-Mid | |
| Cap Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Strategic Income Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| High Income Trust: | |
| Franklin High | |
| Income Fund | February 28, 2019 |
| – May 31, 2019 | |
| Institutional | |
| Fiduciary Trust: | |
| Money Market | |
| Portfolio | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Global Trust: | |
| Franklin Emerging | |
| Market Debt Opportunities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin International Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Global | |
| Listed Infrastructure Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Gold and Precious Metals Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Universal Trust | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| China World Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Emerging Markets Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Emerging Markets Income Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Funds: | |
| Templeton Foreign | |
| Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton World | |
| Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton International | |
| Climate Change Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Global Income Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Global Smaller Companies Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Growth Fund, Inc. | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Income Trust: | |
| Templeton Emerging | |
| Markets Bond Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Global | |
| Bond Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Global | |
| Total Return Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| International Bond Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Custodian Funds: | |
| Franklin DynaTech | |
| Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Income | |
| Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin U.S. | |
| Government Securities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Utilities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Focused | |
| Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Strategic Mortgage Portfolio | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Investors Securities Trust: | |
| Franklin Adjustable U.S. Government Securities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Balanced Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Convertible Securities Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Equity | |
| Income Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Floating Rate Daily Access Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Low | |
| Duration Total Return Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Real | |
| Return Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Total | |
| Return Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Templeton Global Trust: | |
| Templeton Global | |
| Currency Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Templeton International Trust: | |
| Franklin India | |
| Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Developing Markets Trust | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Fund Allocator Series: | |
| Franklin | |
| Conservative Allocation Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Corefolio | |
| Allocation Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Founding | |
| Funds Allocation Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Growth | |
| Allocation Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| Retirement Income Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2020 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2025 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2030 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2035 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2040 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2045 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LifeSmart | |
| 2050 Retirement Target Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| LifeSmart 2055 Retirement Target Fund | February |
| 28, 2019 – May 31, 2019 | |
| Franklin Moderate | |
| Allocation Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin NextStep Conservative | |
| Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin NextStep | |
| Moderate Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin NextStep | |
| Growth Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Payout | |
| 2019 Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Payout | |
| 2020 Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Payout | |
| 2021 Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Payout | |
| 2022 Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Templeton Variable Insurance Products Trust: | |
| Franklin Flex Cap | |
| Growth VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Founding | |
| Funds Allocation VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Income | |
| VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Mutual Global | |
| Discovery VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Mutual | |
| Shares VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Rising | |
| Dividends VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Small Cap | |
| Value VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Small-Mid | |
| Cap Growth VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Strategic | |
| Income VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin VolSmart | |
| Allocation VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Developing Markets VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Foreign | |
| VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Growth | |
| VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton Global | |
| Bond VIP Fund | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Dragon Fund, Inc. | February 28, 2019 |
| – May 31, 2019 | |
| Templeton | |
| Institutional Funds: | |
| International | |
| Equity Series | February 28, 2019 |
| – May 31, 2019 | |
| Global Equity | |
| Series | February 28, 2019 |
| – May 31, 2019 | |
| Franklin ETF | |
| Trust: | |
| Franklin Liberty | |
| Short Duration U.S. Government ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Managed Trust: | |
| Franklin Rising | |
| Dividends Fund | February 28, 2019 |
| – May 31, 2019 | |
| Franklin Limited | |
| Duration Income Trust | February 28, 2019 |
| – May 31, 2019 | |
| Franklin | |
| Templeton ETF Trust: | |
| Franklin LibertyQ | |
| Emerging Markets ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LibertyQ | |
| Small Cap Equity ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LibertyQ | |
| Mid Cap Equity ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin LibertyQ | |
| U.S. Equity ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin FTSE Asia | |
| ex Japan ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin FTSE | |
| South Korea ETF | February 28, 2019 |
| – May 31, 2019 | |
| Franklin FTSE | |
| Russia ETF | February 28, 2019 |
| – May 31, 2019 |