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FRANKLIN UNIVERSAL TRUST — Net Asset Value 2019
Jul 29, 2019
33698_rns_2019-07-29_cab6617b-a0c9-45c1-8add-542a61a2c5c1.zip
Net Asset Value
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NPORT-EX 1 Franklin_Unvsl_Trust.htm Document created using ArcReporting Copyright 2019 DFIN
Franklin Universal Trust
Statement of Investments, May 31, 2019 (unaudited)
| Country | Shares/Warrants | Value | ||
|---|---|---|---|---|
| Common Stocks and Other Equity Interests 41.3% | ||||
| Energy 1.1% | ||||
| a | Birch Permian Holdings Inc. | United States | 32,490 | $ 373,635 |
| a | Chaparral Energy Inc., A | United States | 5,868 | 24,763 |
| a,b | Chaparral Energy Inc., A, 144A | United States | 214 | 903 |
| Enbridge Inc. | Canada | 39,360 | 1,451,203 | |
| a | Goodrich Petroleum Corp. | United States | 19,379 | 224,215 |
| a | Halcon Resources Corp. | United States | 52,355 | 11,194 |
| a | Halcon Resources Corp., wts., 9/09/20 | United States | 4,668 | 35 |
| a | Midstates Petroleum Co. Inc. | United States | 238 | 1,592 |
| a,c | Midstates Petroleum Co. Inc., wts., 4/21/20 | United States | 2,311 | 6 |
| a | Riviera Resources Inc. | United States | 5,272 | 71,172 |
| a | Roan Resources Inc. | United States | 5,272 | 11,019 |
| 2,169,737 | ||||
| Materials 1.0% | ||||
| BHP Group PLC, ADR | United Kingdom | 25,185 | 1,136,095 | |
| Freeport-McMoRan Inc. | United States | 80,380 | 780,490 | |
| South32 Ltd., ADR | Australia | 10,074 | 116,758 | |
| a | Verso Corp., A | United States | 3,330 | 57,343 |
| a | Verso Corp., wts., 7/25/23 | United States | 350 | 962 |
| 2,091,648 | ||||
| Utilities 39.2% | ||||
| Alliant Energy Corp. | United States | 80,000 | 3,796,800 | |
| American Electric Power Co. Inc. | United States | 65,000 | 5,597,800 | |
| CenterPoint Energy Inc. | United States | 122,800 | 3,492,432 | |
| CMS Energy Corp. | United States | 90,000 | 5,049,900 | |
| Consolidated Edison Inc. | United States | 40,000 | 3,452,000 | |
| Dominion Energy Inc. | United States | 67,200 | 5,052,096 | |
| DTE Energy Co. | United States | 30,000 | 3,764,100 | |
| Duke Energy Corp. | United States | 46,060 | 3,943,197 | |
| Edison International | United States | 36,000 | 2,137,320 | |
| Entergy Corp. | United States | 30,000 | 2,912,100 | |
| Evergy Inc. | United States | 80,000 | 4,651,200 | |
| Exelon Corp. | United States | 80,000 | 3,846,400 | |
| FirstEnergy Corp. | United States | 40,000 | 1,649,600 | |
| NextEra Energy Inc. | United States | 30,000 | 5,946,300 | |
| NiSource Inc. | United States | 60,000 | 1,671,000 | |
| Pinnacle West Capital Corp. | United States | 44,800 | 4,207,168 | |
| PPL Corp. | United States | 24,500 | 729,120 | |
| Public Service Enterprise Group Inc. | United States | 45,000 | 2,644,200 | |
| Sempra Energy | United States | 45,000 | 5,915,250 | |
| The Southern Co. | United States | 68,250 | 3,651,375 | |
| WEC Energy Group Inc. | United States | 40,000 | 3,222,000 | |
| Xcel Energy Inc. | United States | 60,000 | 3,440,400 | |
| 80,771,758 | ||||
| Total Common Stocks and Other Equity Interests (Cost $39,452,113) | 85,033,143 |
Quarterly Statement of Investments | See Notes to Statement of Investments. | 1
PAGE BREAK
Franklin Universal Trust Statement of Investments (unaudited)
| Country | Shares | Value | ||
|---|---|---|---|---|
| Preferred Stocks (Cost $1,087,500) 0.5% | ||||
| Utilities 0.5% | ||||
| SCE Trust II, 5.10%, pfd. | United States | 50,000 | $ 1,061,500 | |
| Principal Amount* | ||||
| Corporate Bonds 87.1% | ||||
| Automobiles & Components 1.2% | ||||
| b | Adient U.S. LLC, senior secured note, 144A, 7.00%, 5/15/26 | United States | $1,900,000 | 1,890,500 |
| b | Allison Transmission Inc., senior bond, 144A, 4.75%, 10/01/27 | United States | 600,000 | 578,250 |
| 2,468,750 | ||||
| Banks 1.3% | ||||
| CIT Group Inc., senior note, 5.25%, 3/07/25 | United States | 600,000 | 635,328 | |
| d | JPMorgan Chase & Co., | |||
| junior sub. bond, R, 6.00% to 8/01/23, FRN thereafter, Perpetual | United States | 900,000 | 940,176 | |
| junior sub. bond, V, 5.00% to 7/30/19, FRN thereafter, Perpetual | United States | 1,100,000 | 1,097,250 | |
| 2,672,754 | ||||
| Capital Goods 6.9% | ||||
| b | BBA U.S. Holdings Inc., senior note, 144A, 5.375%, 5/01/26 | United States | 500,000 | 507,500 |
| b | Beacon Roofing Supply Inc., senior note, 144A, 4.875%, 11/01/25 | United States | 600,000 | 569,442 |
| b | BWX Technologies Inc., senior note, 144A, 5.375%, 7/15/26 | United States | 600,000 | 615,000 |
| b | Cloud Crane LLC, secured note, second lien, 144A, 10.125%, 8/01/24 | United States | 300,000 | 319,500 |
| H&E Equipment Services Inc., senior note, 5.625%, 9/01/25 | United States | 1,300,000 | 1,294,475 | |
| b | HD Supply Inc., senior note, 144A, 5.375%, 10/15/26 | United States | 600,000 | 613,500 |
| b | Jeld-Wen Inc., | |||
| senior bond, 144A, 4.875%, 12/15/27 | United States | 300,000 | 282,750 | |
| senior note, 144A, 4.625%, 12/15/25 | United States | 300,000 | 288,000 | |
| b | The Manitowoc Co. Inc., secured note, second lien, 144A, 9.00%, 4/01/26 | United States | 1,000,000 | 975,000 |
| b | NCI Building Systems Inc., senior secured note, 144A, 8.00%, 4/15/26 | United States | 900,000 | 817,020 |
| b | Stevens Holding Co. Inc., senior note, 144A, 6.125%, 10/01/26 | United States | 1,200,000 | 1,254,000 |
| Tennant Co., senior note, 5.625%, 5/01/25 | United States | 1,600,000 | 1,628,000 | |
| b | Terex Corp., senior note, 144A, 5.625%, 2/01/25 | United States | 1,700,000 | 1,666,000 |
| b | TransDigm Inc., senior secured note, 144A, 6.25%, 3/15/26 | United States | 1,700,000 | 1,738,250 |
| b | Vertiv Group Corp., senior note, 144A, 9.25%, 10/15/24 | United States | 1,700,000 | 1,683,000 |
| 14,251,437 | ||||
| Commercial & Professional Services 2.0% | ||||
| b | Multi-Color Corp., senior note, 144A, 4.875%, 11/01/25 | United States | 1,100,000 | 1,146,750 |
| United Rentals North America Inc., | ||||
| senior bond, 5.875%, 9/15/26 | United States | 100,000 | 103,875 | |
| senior bond, 5.50%, 5/15/27 | United States | 500,000 | 505,625 | |
| senior bond, 5.25%, 1/15/30 | United States | 1,000,000 | 982,500 | |
| b | West Corp., senior note, 144A, 8.50%, 10/15/25 | United States | 1,800,000 | 1,440,000 |
| 4,178,750 | ||||
| Consumer Durables & Apparel 3.0% | ||||
| b | Ashton Woods USA LLC/Ashton Woods Finance Co., | |||
| senior note, 144A, 6.75%, 8/01/25 | United States | 1,500,000 | 1,411,875 | |
| senior note, 144A, 9.875%, 4/01/27 | United States | 400,000 | 412,000 |
| 2
PAGE BREAK
Franklin Universal Trust
Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Consumer Durables & Apparel (continued) | ||||
| b | Hanesbrands Inc., senior note, 144A, 4.625%, 5/15/24 | United States | $1,000,000 | $ 997,500 |
| b | Taylor Morrison Communities Inc./Taylor Morrison Holdings II Inc., | |||
| senior note, 144A, 5.25%, 4/15/21 | United States | 400,000 | 398,500 | |
| senior note, 144A, 5.625%, 3/01/24 | United States | 600,000 | 604,500 | |
| Toll Brothers Finance Corp., senior bond, 5.625%, 1/15/24 | United States | 700,000 | 739,375 | |
| Weekley Homes LLC/Weekley Finance Corp., senior note, 6.625%, 8/15/25 | United States | 1,700,000 | 1,678,750 | |
| 6,242,500 | ||||
| Consumer Services 7.2% | ||||
| b | 1011778 BC ULC/New Red Finance Inc., senior secured note, first lien, 144A, 4.25%, 5/15/24 | Canada | 900,000 | 888,358 |
| b | 24 Hour Holdings III LLC, senior note, 144A, 8.00%, 6/01/22 | United States | 1,800,000 | 1,750,500 |
| b | Ascend Learning LLC, senior note, 144A, 6.875%, 8/01/25 | United States | 1,200,000 | 1,212,000 |
| b | Boyne USA Inc., secured note, second lien, 144A, 7.25%, 5/01/25 | United States | 1,500,000 | 1,627,500 |
| b | Downstream Development Authority of the Quapaw Tribe of Oklahoma, secured note, 144A, 10.50%, 2/15/23 | United States | 1,500,000 | 1,578,750 |
| b | Golden Nugget Inc., | |||
| senior note, 144A, 6.75%, 10/15/24 | United States | 1,100,000 | 1,094,500 | |
| senior note, 144A, 8.75%, 10/01/25 | United States | 600,000 | 605,250 | |
| b | KFC Holding Co./Pizza Hut Holdings LLC/Taco Bell of America LLC, | |||
| senior note, 144A, 5.00%, 6/01/24 | United States | 600,000 | 610,500 | |
| senior note, 144A, 5.25%, 6/01/26 | United States | 600,000 | 609,000 | |
| b | MGM Growth Properties Operating Partnership LP/MGP Finance Co-Issuer Inc., senior note, 144A, 5.75%, 2/01/27 | United States | 500,000 | 515,625 |
| b | Stars Group Holdings BV/Stars Group U.S. Co-Borrower LLC, senior note, 144A, 7.00%, 7/15/26 | Canada | 1,600,000 | 1,650,000 |
| b | Studio City Finance Ltd., senior note, 144A, 7.25%, 2/11/24 | Macau | 1,300,000 | 1,343,875 |
| b | Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., senior bond, 144A, 5.50%, 3/01/25 | United States | 1,300,000 | 1,277,250 |
| 14,763,108 | ||||
| Diversified Financials 1.9% | ||||
| b | FirstCash Inc., senior note, 144A, 5.375%, 6/01/24 | United States | 1,100,000 | 1,116,500 |
| b | MSCI Inc., senior note, 144A, 5.375%, 5/15/27 | United States | 500,000 | 526,875 |
| Navient Corp., | ||||
| senior note, 6.625%, 7/26/21 | United States | 400,000 | 415,924 | |
| senior note, 6.50%, 6/15/22 | United States | 500,000 | 521,250 | |
| senior note, 7.25%, 9/25/23 | United States | 600,000 | 632,070 | |
| Springleaf Finance Corp., senior note, 6.625%, 1/15/28 | United States | 700,000 | 710,514 | |
| 3,923,133 | ||||
| Energy 10.6% | ||||
| b | Aker BP ASA, senior note, 144A, 5.875%, 3/31/25 | Norway | 500,000 | 525,172 |
| b | Archrock Partners LP / Archrock Partners Finance Corp., senior note, 144A, 6.875%, 4/01/27 | United States | 500,000 | 515,000 |
| California Resources Corp., | ||||
| b secured note, second lien, 144A, 8.00%, 12/15/22 | United States | 515,000 | 361,788 | |
| senior bond, 6.00%, 11/15/24 | United States | 15,000 | 9,150 | |
| senior note, 5.50%, 9/15/21 | United States | 10,000 | 7,200 |
| 3
PAGE BREAK
Franklin Universal Trust Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Energy (continued) | ||||
| Callon Petroleum Co., senior note, 6.375%, 7/01/26 | United States | $1,300,000 | $ 1,270,750 | |
| Calumet Specialty Products Partners LP/Calumet Finance Corp., senior note, 7.75%, 4/15/23 | United States | 800,000 | 740,000 | |
| Cheniere Corpus Christi Holdings LLC, | ||||
| senior secured note, first lien, 7.00%, 6/30/24 | United States | 600,000 | 670,320 | |
| senior secured note, first lien, 5.875%, 3/31/25 | United States | 1,000,000 | 1,075,830 | |
| Cheniere Energy Partners LP, | ||||
| b senior note, 144A, 5.625%, 10/01/26 | United States | 700,000 | 710,500 | |
| senior secured note, first lien, 5.25%, 10/01/25 | United States | 1,200,000 | 1,202,424 | |
| Chesapeake Energy Corp., senior note, 7.50%, 10/01/26 | United States | 1,500,000 | 1,323,750 | |
| Crestwood Midstream Partners LP/Crestwood Midstream Finance Corp., | ||||
| senior note, 6.25%, 4/01/23 | United States | 500,000 | 506,650 | |
| senior note, 5.75%, 4/01/25 | United States | 800,000 | 810,000 | |
| CSI Compressco LP/CSI Compressco Finance Inc., | ||||
| senior note, 7.25%, 8/15/22 | United States | 1,300,000 | 1,179,750 | |
| b senior secured note, first lien, 144A, 7.50%, 4/01/25 | United States | 100,000 | 98,250 | |
| b | Diamondback Energy Inc., senior note, 144A, 4.75%, 11/01/24 | United States | 900,000 | 919,125 |
| Energy Transfer Operating LP, | ||||
| senior note, 7.50%, 10/15/20 | United States | 1,200,000 | 1,273,060 | |
| senior note, 5.875%, 1/15/24 | United States | 200,000 | 218,666 | |
| b,e | EnQuest PLC, senior note, 144A, PIK, 7.00%, 4/15/22 | United Kingdom | 688,666 | 562,495 |
| HighPoint Operating Corp., senior note, 8.75%, 6/15/25 | United States | 1,700,000 | 1,640,500 | |
| Martin Midstream Partners LP/Martin Midstream Finance Corp., senior note, 7.25%, 2/15/21 | United States | 900,000 | 877,500 | |
| b,e | Murray Energy Corp., secured note, 1.5 lien, 144A, PIK, 12.00%, 4/15/24 | United States | 757,734 | 261,418 |
| Oceaneering International Inc., senior note, 6.00%, 2/01/28 | United States | 800,000 | 785,834 | |
| QEP Resources Inc., senior bond, 5.375%, 10/01/22 | United States | 1,600,000 | 1,542,000 | |
| Sanchez Energy Corp., | ||||
| senior note, 7.75%, 6/15/21 | United States | 800,000 | 92,000 | |
| senior note, 6.125%, 1/15/23 | United States | 100,000 | 11,500 | |
| Sunoco LP/Sunoco Finance Corp., | ||||
| senior note, 4.875%, 1/15/23 | United States | 700,000 | 707,154 | |
| b senior note, 144A, 6.00%, 4/15/27 | United States | 1,000,000 | 1,018,410 | |
| f | Weatherford International Ltd., | |||
| senior note, 5.125%, 9/15/20 | United States | 200,000 | 98,000 | |
| senior note, 7.75%, 6/15/21 | United States | 600,000 | 298,500 | |
| senior note, 4.50%, 4/15/22 | United States | 400,000 | 194,000 | |
| senior note, 8.25%, 6/15/23 | United States | 600,000 | 300,000 | |
| 21,806,696 | ||||
| Food & Staples Retailing 0.3% | ||||
| b | Aramark Services Inc., senior bond, 144A, 5.00%, 2/01/28 | United States | 600,000 | 595,125 |
| Food, Beverage & Tobacco 2.1% | ||||
| B&G Foods Inc., senior note, 5.25%, 4/01/25 | United States | 1,200,000 | 1,164,750 | |
| b | Cott Holdings Inc., senior note, 144A, 5.50%, 4/01/25 | Canada | 300,000 | 296,625 |
| b | Lamb Weston Holdings Inc., | |||
| senior note, 144A, 4.625%, 11/01/24 | United States | 700,000 | 700,000 | |
| senior note, 144A, 4.875%, 11/01/26 | United States | 1,000,000 | 1,007,500 |
| 4
PAGE BREAK
Franklin Universal Trust
Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Food, Beverage & Tobacco (continued) | ||||
| b | Post Holdings Inc., | |||
| senior bond, 144A, 5.00%, 8/15/26 | United States | $ 800,000 | $ 790,000 | |
| senior bond, 144A, 5.625%, 1/15/28 | United States | 300,000 | 298,500 | |
| 4,257,375 | ||||
| Health Care Equipment & Services 6.6% | ||||
| b | Catalent Pharma Solutions Inc., senior note, 144A, 4.875%, 1/15/26 | United States | 1,400,000 | 1,393,000 |
| b | Centene Corp., senior note, 144A, 5.375%, 6/01/26 | United States | 1,700,000 | 1,767,490 |
| CHS/Community Health Systems Inc., | ||||
| senior note, 6.875%, 2/01/22 | United States | 175,000 | 117,250 | |
| b senior note, 144A, 8.125%, 6/30/24 | United States | 718,000 | 538,500 | |
| senior secured note, first lien, 6.25%, 3/31/23 | United States | 600,000 | 573,570 | |
| HCA Inc., | ||||
| senior bond, 5.875%, 2/15/26 | United States | 1,400,000 | 1,487,514 | |
| senior bond, 5.875%, 2/01/29 | United States | 600,000 | 637,500 | |
| b | MEDNAX Inc., senior note, 144A, 6.25%, 1/15/27 | United States | 1,500,000 | 1,507,500 |
| b | MPH Acquisition Holdings LLC, senior note, 144A, 7.125%, 6/01/24 | United States | 1,300,000 | 1,296,750 |
| b,e | Polaris Intermediate Corp., senior note, 144A, PIK, 8.50%, 12/01/22 | United States | 400,000 | 394,500 |
| Tenet Healthcare Corp., | ||||
| senior note, 8.125%, 4/01/22 | United States | 1,000,000 | 1,045,960 | |
| b senior note, second lien, 144A, 6.25%, 2/01/27 | United States | 1,000,000 | 1,021,250 | |
| WellCare Health Plans Inc., | ||||
| senior note, 5.25%, 4/01/25 | United States | 1,200,000 | 1,220,640 | |
| b senior note, 144A, 5.375%, 8/15/26 | United States | 500,000 | 513,600 | |
| 13,515,024 | ||||
| Household & Personal Products 0.4% | ||||
| b | Prestige Brands Inc., senior note, 144A, 6.375%, 3/01/24 | United States | 900,000 | 929,250 |
| Insurance 0.5% | ||||
| g | CNO Financial Group Inc., senior note, 5.25%, 5/30/29 | United States | 1,000,000 | 1,010,120 |
| Materials 11.2% | ||||
| e | ARD Finance SA, secured note, PIK, 7.125%, 9/15/23 | Luxembourg | 400,000 | 393,000 |
| b | BWAY Holding Co., senior note, 144A, 7.25%, 4/15/25 | United States | 1,800,000 | 1,739,430 |
| The Chemours Co., | ||||
| senior note, 6.625%, 5/15/23 | United States | 469,000 | 469,000 | |
| senior note, 5.375%, 5/15/27 | United States | 200,000 | 182,000 | |
| Crown Americas LLC/Crown Americas Capital Corp. VI, senior note, 4.75%, 2/01/26 | United States | 700,000 | 705,600 | |
| b | Eldorado Gold Corp., | |||
| g secured note, second lien, 144A, 9.50%, 6/01/24 | Canada | 1,000,000 | 985,000 | |
| senior note, 144A, 6.125%, 12/15/20 | Canada | 500,000 | 500,400 | |
| b | Element Solutions Inc., senior note, 144A, 5.875%, 12/01/25 | United States | 1,000,000 | 1,018,750 |
| b | First Quantum Minerals Ltd., | |||
| senior note, 144A, 7.25%, 4/01/23 | Zambia | 600,000 | 549,750 | |
| senior note, 144A, 6.875%, 3/01/26 | Zambia | 800,000 | 684,000 | |
| b | FMG Resources (August 2006) Pty. Ltd., | |||
| senior note, 144A, 4.75%, 5/15/22 | Australia | 800,000 | 804,000 | |
| senior note, 144A, 5.125%, 3/15/23 | Australia | 400,000 | 405,000 |
| 5
PAGE BREAK
Franklin Universal Trust Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Materials (continued) | ||||
| b | Grinding Media Inc./MC Grinding Media Canada Inc., senior secured note, 144A, 7.375%, 12/15/23 | United States | $1,000,000 | $ 935,000 |
| b | Neon Holdings Inc., senior note, 144A, 10.125%, 4/01/26 | United States | 1,200,000 | 1,203,000 |
| b | New Enterprise Stone & Lime Co., senior note, 144A, 6.25%, 3/15/26 | United States | 900,000 | 897,750 |
| b | New Gold Inc., senior note, 144A, 6.375%, 5/15/25 | Canada | 700,000 | 524,125 |
| b | Northwest Acquisitions ULC/Dominion Finco Inc., secured note, second lien, 144A, 7.125%, 11/01/22 | Canada | 400,000 | 313,000 |
| b | Novelis Corp., | |||
| senior bond, 144A, 5.875%, 9/30/26 | United States | 500,000 | 488,440 | |
| senior note, 144A, 6.25%, 8/15/24 | United States | 700,000 | 717,500 | |
| b | OCI NV, senior note, 144A, 6.625%, 4/15/23 | Netherlands | 500,000 | 515,000 |
| b | Owens-Brockway Glass Container Inc., | |||
| senior note, 144A, 5.00%, 1/15/22 | United States | 1,000,000 | 1,018,750 | |
| senior note, 144A, 5.875%, 8/15/23 | United States | 500,000 | 524,415 | |
| b | Plastipak Holdings Inc., senior note, 144A, 6.25%, 10/15/25 | United States | 1,700,000 | 1,534,250 |
| b | Rain CII Carbon LLC / CII Carbon Corp., senior note, 144A, 7.25%, 4/01/25 | United States | 900,000 | 828,000 |
| Reynolds Group Issuer Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Luxembourg SA, | ||||
| b senior note, 144A, 7.00%, 7/15/24 | United States | 200,000 | 202,500 | |
| senior secured note, first lien, 5.75%, 10/15/20 | United States | 484,554 | 485,911 | |
| b senior secured note, first lien, 144A, 5.125%, 7/15/23 | United States | 1,000,000 | 1,001,450 | |
| b | Sealed Air Corp., | |||
| senior bond, 144A, 5.50%, 9/15/25 | United States | 200,000 | 208,000 | |
| senior note, 144A, 6.50%, 12/01/20 | United States | 400,000 | 414,000 | |
| Steel Dynamics Inc., | ||||
| senior bond, 5.50%, 10/01/24 | United States | 900,000 | 918,891 | |
| senior bond, 5.00%, 12/15/26 | United States | 700,000 | 717,500 | |
| b | SunCoke Energy Partners LP/SunCoke Energy Partners Finance Corp., senior note, 144A, 7.50%, 6/15/25 | United States | 1,300,000 | 1,285,375 |
| 23,168,787 | ||||
| Media & Entertainment 9.8% | ||||
| b | Altice Luxembourg SA, | |||
| senior note, 144A, 10.50%, 5/15/27 | Luxembourg | 1,700,000 | 1,706,800 | |
| senior secured note, 144A, 7.75%, 5/15/22 | Luxembourg | 1,700,000 | 1,738,250 | |
| AMC Networks Inc., senior note, 5.00%, 4/01/24 | United States | 700,000 | 698,999 | |
| CCO Holdings LLC/CCO Holdings Capital Corp., | ||||
| b senior bond, 144A, 5.375%, 6/01/29 | United States | 1,000,000 | 1,002,500 | |
| senior bond, 5.25%, 9/30/22 | United States | 1,700,000 | 1,724,777 | |
| b senior bond, 144A, 5.75%, 2/15/26 | United States | 700,000 | 728,000 | |
| Clear Channel Worldwide Holdings Inc., | ||||
| senior note, 6.50%, 11/15/22 | United States | 1,000,000 | 1,025,000 | |
| b senior sub. note, 144A, 9.25%, 2/15/24 | United States | 600,000 | 643,320 | |
| CSC Holdings LLC, | ||||
| b senior bond, 144A, 5.50%, 4/15/27 | United States | 500,000 | 509,775 | |
| senior note, 6.75%, 11/15/21 | United States | 700,000 | 748,125 | |
| senior note, 5.25%, 6/01/24 | United States | 700,000 | 707,210 | |
| b senior note, 144A, 7.50%, 4/01/28 | United States | 300,000 | 321,000 | |
| b senior secured note, first lien, 144A, 5.50%, 5/15/26 | United States | 1,200,000 | 1,220,640 |
| 6
PAGE BREAK
Franklin Universal Trust
Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Media & Entertainment (continued) | ||||
| DISH DBS Corp., | ||||
| senior bond, 5.875%, 7/15/22 | United States | $ 700,000 | $ 690,585 | |
| senior note, 7.75%, 7/01/26 | United States | 1,100,000 | 1,009,250 | |
| b | Gray Escrow Inc., senior note, 144A, 7.00%, 5/15/27 | United States | 500,000 | 530,870 |
| Netflix Inc., | ||||
| senior bond, 5.875%, 2/15/25 | United States | 1,100,000 | 1,169,729 | |
| b senior bond, 144A, 5.375%, 11/15/29 | United States | 300,000 | 305,250 | |
| b | Nexstar Broadcasting Inc., senior note, 144A, 5.625%, 8/01/24 | United States | 900,000 | 909,000 |
| b | Sirius XM Radio Inc., | |||
| senior bond, 144A, 6.00%, 7/15/24 | United States | 800,000 | 825,160 | |
| senior bond, 144A, 5.375%, 4/15/25 | United States | 700,000 | 707,539 | |
| Tegna Inc., senior note, 5.125%, 7/15/20 | United States | 800,000 | 801,000 | |
| b | Univision Communications Inc., senior secured bond, first lien, 144A, 6.75%, 9/15/22 | United States | 116,000 | 117,740 |
| b | Virgin Media Secured Finance PLC, senior secured bond, first lien, 144A, 5.50%, 8/15/26 | United Kingdom | 200,000 | 201,750 |
| b | WMG Acquisition Corp., secured note, first lien, 144A, 5.00%, 8/01/23 | United States | 200,000 | 202,750 |
| 20,245,019 | ||||
| Pharmaceuticals, Biotechnology & Life Sciences 2.7% | ||||
| b | Avantor Inc., senior secured note, first lien, 144A, 6.00%, 10/01/24 | United States | 700,000 | 728,700 |
| b | Bausch Health Americas Inc., senior note, 144A, 9.25%, 4/01/26 | United States | 1,500,000 | 1,625,625 |
| b | Bausch Health Cos. Inc., | |||
| senior bond, 144A, 6.125%, 4/15/25 | United States | 400,000 | 392,200 | |
| senior note, 144A, 5.75%, 8/15/27 | United States | 100,000 | 101,375 | |
| senior note, first lien, 144A, 7.00%, 3/15/24 | United States | 200,000 | 209,375 | |
| b | Endo DAC/Endo Finance LLC/Endo Finco Inc., | |||
| senior bond, 144A, 6.00%, 2/01/25 | United States | 800,000 | 536,000 | |
| senior note, 144A, 6.00%, 7/15/23 | United States | 819,000 | 592,571 | |
| Horizon Pharma USA Inc., senior note, 6.625%, 5/01/23 | United States | 710,000 | 727,306 | |
| b | Jaguar Holding Co. II/Pharmaceutical Product Development LLC, senior note, 144A, 6.375%, 8/01/23 | United States | 700,000 | 712,390 |
| 5,625,542 | ||||
| Real Estate 2.3% | ||||
| CyrusOne LP/CyrusOne Finance Corp., senior note, 5.00%, 3/15/24 | United States | 1,400,000 | 1,413,580 | |
| Equinix Inc., senior bond, 5.375%, 4/01/23 | United States | 1,300,000 | 1,322,360 | |
| b | Five Point Operating Co. LP/Five Point Capital Corp., senior note, 144A, 7.875%, 11/15/25 | United States | 1,000,000 | 997,500 |
| MPT Operating Partnership LP/MPT Finance Corp., | ||||
| senior bond, 5.25%, 8/01/26 | United States | 300,000 | 303,555 | |
| senior note, 6.375%, 3/01/24 | United States | 600,000 | 626,250 | |
| 4,663,245 |
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Franklin Universal Trust Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Retailing 1.5% | ||||
| b | Party City Holdings Inc., senior note, 144A, 6.625%, 8/01/26 | United States | $1,700,000 | $ 1,695,750 |
| b | PetSmart Inc., | |||
| senior note, 144A, 7.125%, 3/15/23 | United States | 300,000 | 270,000 | |
| senior note, 144A, 8.875%, 6/01/25 | United States | 300,000 | 276,000 | |
| senior secured note, first lien, 144A, 5.875%, 6/01/25 | United States | 900,000 | 849,375 | |
| 3,091,125 | ||||
| Semiconductors & Semiconductor Equipment 1.2% | ||||
| b | Amkor Technology Inc., senior note, 144A, 6.625%, 9/15/27 | United States | 1,000,000 | 960,000 |
| b | Qorvo Inc., senior note, 144A, 5.50%, 7/15/26 | United States | 1,400,000 | 1,428,000 |
| 2,388,000 | ||||
| Software & Services 1.6% | ||||
| b | First Data Corp., secured note, second lien, 144A, 5.75%, 1/15/24 | United States | 1,100,000 | 1,129,700 |
| Infor (U.S.) Inc., senior note, 6.50%, 5/15/22 | United States | 1,700,000 | 1,723,698 | |
| b | Symantec Corp., senior note, 144A, 5.00%, 4/15/25 | United States | 500,000 | 500,337 |
| 3,353,735 | ||||
| Technology Hardware & Equipment 2.9% | ||||
| b | Blackboard Inc., secured note, second lien, 144A, 9.75%, 10/15/21 | United States | 1,542,000 | 1,472,610 |
| CDW LLC/CDW Finance Corp., senior note, 5.00%, 9/01/25 | United States | 700,000 | 710,500 | |
| b | CommScope Technologies LLC, senior bond, 144A, 6.00%, 6/15/25 | United States | 1,700,000 | 1,559,750 |
| b | Dell International LLC/EMC Corp., | |||
| senior note, 144A, 5.875%, 6/15/21 | United States | 200,000 | 202,985 | |
| senior note, 144A, 7.125%, 6/15/24 | United States | 200,000 | 210,714 | |
| senior secured bond, first lien, 144A, 6.02%, 6/15/26 | United States | 200,000 | 215,533 | |
| b | Tempo Acquisition LLC/Tempo Acquisition Finance Corp., senior note, 144A, 6.75%, 6/01/25 | United States | 1,600,000 | 1,620,000 |
| 5,992,092 | ||||
| Telecommunication Services 4.5% | ||||
| b | Block Communications Inc., senior note, 144A, 6.875%, 2/15/25 | United States | 300,000 | 309,750 |
| b | Digicel Group One Ltd., senior secured note, first lien, 144A, 8.25%, 12/30/22 | Jamaica | 463,000 | 295,153 |
| b | Digicel Group Two Ltd., senior note, 144A, 8.25%, 9/30/22 | Bermuda | 437,000 | 167,017 |
| b | Digicel Ltd., | |||
| senior note, 144A, 6.00%, 4/15/21 | Bermuda | 500,000 | 421,658 | |
| senior note, 144A, 6.75%, 3/01/23 | Bermuda | 300,000 | 197,669 | |
| b | DKT Finance ApS, senior secured note, first lien, 144A, 9.375%, 6/17/23 | Denmark | 1,500,000 | 1,611,592 |
| Hughes Satellite Systems Corp., senior bond, 6.625%, 8/01/26 | United States | 1,700,000 | 1,700,000 | |
| Sprint Corp., | ||||
| senior bond, 7.875%, 9/15/23 | United States | 500,000 | 538,335 | |
| senior bond, 7.125%, 6/15/24 | United States | 500,000 | 521,250 | |
| senior note, 7.625%, 3/01/26 | United States | 600,000 | 637,125 | |
| b | Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC, senior secured bond, first lien, 144A, 4.738%, 9/20/29 | United States | 1,300,000 | 1,331,460 |
| T-Mobile USA Inc., | ||||
| senior bond, 6.50%, 1/15/24 | United States | 200,000 | 207,000 | |
| senior bond, 6.375%, 3/01/25 | United States | 500,000 | 518,635 | |
| senior bond, 4.75%, 2/01/28 | United States | 600,000 | 596,814 |
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Franklin Universal Trust
Statement of Investments (unaudited)
| Country | Principal Amount* | Value | ||
|---|---|---|---|---|
| Corporate Bonds (continued) | ||||
| Telecommunication Services (continued) | ||||
| T-Mobile USA Inc., (continued) | ||||
| senior note, 6.00%, 4/15/24 | United States | $ 200,000 | $ 208,000 | |
| 9,261,458 | ||||
| Transportation 1.1% | ||||
| b | Avolon Holdings Funding Ltd., senior note, 144A, 5.25%, 5/15/24 | Ireland | 500,000 | 520,650 |
| b | DAE Funding LLC, | |||
| senior note, 144A, 4.50%, 8/01/22 | United Arab Emirates | 700,000 | 700,875 | |
| senior note, 144A, 5.00%, 8/01/24 | United Arab Emirates | 700,000 | 701,750 | |
| b | Park Aerospace Holdings Ltd., senior note, 144A, 5.50%, 2/15/24 | Ireland | 300,000 | 313,950 |
| 2,237,225 | ||||
| Utilities 4.3% | ||||
| Calpine Corp., senior bond, 5.75%, 1/15/25 | United States | 1,800,000 | 1,746,396 | |
| Clearway Energy Operating LLC, | ||||
| senior bond, 5.375%, 8/15/24 | United States | 900,000 | 897,750 | |
| senior bond, 5.00%, 9/15/26 | United States | 900,000 | 873,000 | |
| b senior note, 144A, 5.75%, 10/15/25 | United States | 400,000 | 400,500 | |
| Ferrellgas LP/Ferrellgas Finance Corp., senior note, 6.75%, 6/15/23 | United States | 700,000 | 607,250 | |
| Ferrellgas Partners LP/Ferrellgas Partners Finance Corp., senior note, 8.625%, 6/15/20 | United States | 800,000 | 592,000 | |
| b | InterGen NV, secured bond, 144A, 7.00%, 6/30/23 | Netherlands | 400,000 | 362,000 |
| Talen Energy Supply LLC, senior note, 6.50%, 6/01/25 | United States | 2,100,000 | 1,795,500 | |
| b | Vistra Operations Co. LLC, senior note, 144A, 5.625%, 2/15/27 | United States | 1,500,000 | 1,548,300 |
| 8,822,696 | ||||
| Total Corporate Bonds (Cost $182,631,685) | 179,462,946 | |||
| Marketplace Loans (Cost $40,000) 0.0% † | ||||
| Diversified Financials 0.0% † | ||||
| c | Lending Club, 17.19%, 5/20/24 | United States | 40,000 | 39,916 |
| Asset-Backed Securities (Cost $324,445) 0.2% | ||||
| Diversified Financials 0.2% | ||||
| b,h | Consumer Loan Underlying Bond CLUB Certificate Issuer Trust I, 2019-S3, PT, 144A, FRN, 17.727%, 6/15/44 | United States | 344,734 | 324,844 |
| Shares | ||||
| Escrows and Litigation Trusts 0.0% † | ||||
| a,c | Midstates Petroleum Co. Inc./Midstates Petroleum Co. LLC, Escrow Account | United States | 700,000 | — |
| a,c | NewPage Corp., Litigation Trust | United States | 1,200,000 | — |
| a,c | T-Mobile USA Inc., Escrow Account | United States | 1,500,000 | — |
| a | Vistra Energy Corp., Escrow Account | United States | 700,000 | 1,750 |
| Total Escrows and Litigation Trusts (Cost $18,562) | 1,750 | |||
| Total Investments before Short Term Investments (Cost $223,554,305) | 265,924,099 |
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Franklin Universal Trust Statement of Investments (unaudited)
| Country | Shares | Value | ||
|---|---|---|---|---|
| Short Term Investments (Cost $4,661,461) 2.3% | ||||
| Money Market Funds 2.3% | ||||
| i,j | Institutional Fiduciary Trust Money Market Portfolio, 2.08% | United States | 4,661,461 | $ 4,661,461 |
| Total Investments (Cost $228,215,766) 131.4% | 270,585,560 | |||
| Notes Payable (31.5)% | (64,901,164) | |||
| Other Assets, less Liabilities 0.1% | 291,771 | |||
| Net Assets 100.0% | $205,976,167 |
See Abbreviations on page 13.
| † Rounds to less than 0.1% of net assets. |
| --- |
| *The principal amount is stated in U.S. dollars unless otherwise indicated. |
| a Non-income producing. |
| b Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be sold in transactions exempt from
registration only to qualified institutional buyers or in a public offering registered under the Securities Act of 1933. These securities have been deemed liquid under guidelines approved by the Fund’s Board of
Trustees. At May 31, 2019, the aggregate value of these securities was $113,098,858, representing 54.9% of net assets. |
| c Fair valued using significant unobservable inputs. See Note 4 regarding fair value measurements. |
| d Perpetual security with no stated maturity date. |
| e Income may be received in additional securities and/or cash. |
| f Defaulted security or security for which income has been deemed uncollectible. |
| g Security purchased on a when-issued basis. |
| h The coupon rate shown represents the rate at period end. |
| i See Note 3 regarding investments in affiliated management investment companies. |
| j The rate shown is the annualized seven-day effective yield at period end. |
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Franklin Universal Trust
Notes to Statement of Investments (unaudited)
- ORGANIZATION
Franklin Universal Trust (Fund) is registered under the Investment Company Act of 1940 (1940 Act) as a closed-end management investment company and applies the specialized accounting and reporting guidance in U.S. Generally Accepted Accounting Principles (U.S. GAAP).
- FINANCIAL INSTRUMENT VALUATION
The Fund’s investments in financial instruments are carried at fair value daily. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Fund calculates the net asset value (NAV) per share each business day as of 4 p.m. Eastern time or the regularly scheduled close of the New York Stock Exchange (NYSE), whichever is earlier. Senior fixed rate notes issued by the Fund are carried at cost. Under compliance policies and procedures approved by the Fund’s Board of Trustees (the Board), the Fund’s administrator has responsibility for oversight of valuation, including leading the cross-functional Valuation Committee (VC). The Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value.
Equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sale price or the official closing price of the day, respectively. Foreign equity securities are valued as of the close of trading on the foreign stock exchange on which the security is primarily traded or as of 4 p.m. Eastern time. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at 4 p.m. Eastern time on the day that the value of the security is determined. Over-the-counter (OTC) securities are valued within the range of the most recent quoted bid and ask prices. Securities that trade in multiple markets or on multiple exchanges are valued according to the broadest and most representative market. Certain equity securities are valued based upon fundamental characteristics or relationships to similar securities.
Debt securities generally trade in the OTC market rather than on a securities exchange. The Fund’s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, credit spreads, estimated default rates, anticipated market interest rate volatility, coupon rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.
Investments in open-end mutual funds are valued at the closing NAV.
The Fund has procedures to determine the fair value of financial instruments for which market prices are not reliable or readily available. Under these procedures, the Fund primarily employs a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the investment to determine the fair value of the investment. An income-based valuation approach may also be used in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Due to the inherent uncertainty of valuations of such investments, the fair values may differ significantly from the values that would have been used had an active market existed.
Trading in securities on foreign securities stock exchanges and OTC markets may be completed before 4 p.m. Eastern time. In addition, trading in certain foreign markets may not take place on every Fund’s business day. Occasionally, events occur between the time at which trading in a foreign security is completed and 4 p.m. Eastern time that might call into question the reliability of the value of a portfolio security held by the Fund. As a result, differences may arise between the value of the Fund’s portfolio securities as determined at the foreign market close and the latest indications of value at 4 p.m. Eastern time. In order to minimize the potential for these differences, the VC monitors price movements following the close of trading in
| 11
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Franklin Universal Trust Notes to Statement of Investments (unaudited)
- FINANCIAL INSTRUMENT VALUATION (continued)
foreign stock markets through a series of country specific market proxies (such as baskets of American Depositary Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger thresholds for each specific market proxy to assist in determining if an event has occurred that may call into question the reliability of the values of the foreign securities held by the Fund. If such an event occurs, the securities may be valued using fair value procedures, which may include the use of independent pricing services.
When the last day of the reporting period is a non-business day, certain foreign markets may be open on those days that the Fund’s NAV is not calculated, which could result in differences between the value of the Fund’s portfolio securities on the last business day and the last calendar day of the reporting period. Any significant security valuation changes due to an open foreign market are adjusted and reflected by the Fund for financial reporting purposes.
- INVESTMENTS IN AFFILIATED MANAGEMENT INVESTMENT COMPANIES
The Fund invests in one or more affiliated management investment companies for purposes other than exercising a controlling influence over the management or policies. During the period ended May 31, 2019, the Fund held investments in affiliated management investment companies as follows:
| Number of Shares Held at Beginning of Period | Gross Additions | Gross Reductions | Number of Shares Held at End of Period | Value at End of Period | Dividend Income | Realized Gain (Loss) | Net Change in Unrealized Appreciation (Depreciation) | |
|---|---|---|---|---|---|---|---|---|
| Non-Controlled Affiliates | ||||||||
| Institutional Fiduciary Trust Money Market Portfolio, 2.08% | 10,068,808 | 28,920,471 | (34,327,818) | 4,661,461 | $4,661,461 | $89,160 | $ — | $ — |
- FAIR VALUE MEASUREMENTS
The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund’s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund’s financial instruments and are summarized in the following fair value hierarchy:
| • | Level 1 – quoted prices in active markets for identical financial instruments |
|---|---|
| • | Level 2 – other significant observable inputs (including quoted prices for similar financial instruments, interest rates, prepayment speed, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of financial instruments) |
The input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level.
| 12
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Franklin Universal Trust
Notes to Statement of Investments (unaudited)
A summary of inputs used as of May 31, 2019, in valuing the Fund’s assets carried at fair value, is as follows:
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Assets: | ||||
| Investments in Securities: a | ||||
| Equity Investments: b | ||||
| Energy | $ 1,796,096 | $ 373,635 | $ 6 | $ 2,169,737 |
| All Other Equity Investments | 83,924,906 | — | — | 83,924,906 |
| Corporate Bonds | — | 179,462,946 | — | 179,462,946 |
| Marketplace Loans | — | — | 39,916 | 39,916 |
| Asset-Backed Securities | — | 324,844 | — | 324,844 |
| Escrows and Litigation Trusts | — | 1,750 | — c | 1,750 |
| Short Term Investments | 4,661,461 | — | — | 4,661,461 |
| Total Investments in Securities | $ 90,382,463 | $ 180,163,175 | $ 39,922 | $ 270,585,560 |
| a For detailed categories, see the accompanying Statement of Investments. |
|---|
| b Includes common and preferred stocks as well as other equity interests. |
| c Includes securities determined to have no value at May 31, 2019. |
A reconciliation of assets in which Level 3 inputs are used in determining fair value is presented when there are significant Level 3 financial instruments at the beginning and/or end of the period.
- SUBSEQUENT EVENTS
The Fund has evaluated subsequent events through the issuance of the Statement of Investments and determined that no events have occurred that require disclosure.
ABBREVIATIONS
| Selected Portfolio | |
|---|---|
| ADR | American Depositary Receipt |
| FRN | Floating Rate Note |
| PIK | Payment-In-Kind |
For additional information on the Fund’s significant accounting policies, please refer to the Fund’s most recent semiannual or annual shareholder report.
| 13