SEC Form 40-17F2 filed by Franklin Universal Trust
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: | Date Examination completed: | ||||||
811-05569 | November 27, 2023 | ||||||
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
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Report of Independent Registered Public Accounting Firm
To the Boards of Trustees and Management of:
Franklin
Custodian Funds
Franklin ETF Trust
Franklin Floating Rate Master Trust
Franklin
Fund Allocator Series
Franklin Global Trust
Franklin Gold and Precious
Metals Fund
Franklin High Income Trust
Franklin Investors Securities Trust
Franklin
Limited Duration Income Trust
Franklin Managed Trust
Franklin Real Estate
Securities Trust
Franklin Strategic Mortgage Portfolio
Franklin Strategic Series
Franklin
Templeton ETF Trust
Franklin Templeton Variable Insurance Products Trust
Franklin Universal Trust
Franklin
U.S. Government Money Fund
Institutional Fiduciary Trust
Templeton China World
Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Fund
Templeton
Emerging Markets Income Fund
Templeton Funds
Templeton Growth Fund, Inc.
Templeton
Global Income Fund
Templeton Global Investment Trust
Templeton Income Trust
Templeton
Institutional Funds
And the Boards of Directors and Management of:
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 the Funds listed in Attachment A (collectively, 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 November 30, 2022. The Funds’ management is responsible for its assertion and the Funds' compliance with those requirements.
PricewaterhouseCoopers LLP, 405 Howard Street, Suite 600, San Francisco, CA 94105 T: (415) 498 5000, www.pwc.com/us
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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 November 30, 2022, and with respect to agreement of security purchases and sales, for the period from September 1, 2022 (see Attachment A for details) through November 30, 2022:
- Confirmation of all securities held by Franklin Templeton Investors Services, Inc. (the “Transfer Agent”), as they pertain to the security positions owned by the Funds and held in book entry form
- Reconciliation of all such securities to the books and records of the Funds and the Transfer Agent
- Agreement of 196 security purchases and 248 security sales across the Funds 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 the specified requirements.
We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical requirements related to the engagement.
In our opinion, management's assertion that the Funds listed in Attachment A complied with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of November 30, 2022 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 Boards of Trustees or Boards of Directors of the Funds and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than the specified parties.
/s/PRICEWATERHOUSECOOPERS, LLP
November 27, 2023
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Attachment A
Templeton Global Investment Trust: | Examination Period |
Templeton Emerging Markets Small Cap Fund a | September 1, 2022 – November 30, 2022 |
Templeton Global Balanced Fund a | September 1, 2022 – November 30, 2022 |
Franklin Templeton SMACS: Series EM a | September 1, 2022 – November 30, 2022 |
Franklin Real Estate Securities Trust: | |
Franklin Real Estate Securities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Strategic Series: | |
Franklin Biotechnology Discovery Fund a | September 1, 2022 – November 30, 2022 |
Franklin Growth Opportunities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Natural Resources Fund a | September 1, 2022 – November 30, 2022 |
Franklin Small Cap Growth Fund a | September 1, 2022 – November 30, 2022 |
Franklin Small-Mid Cap Growth Fund a | September 1, 2022 – November 30, 2022 |
Franklin Strategic Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Templeton SMACS: Series E a | September 1, 2022 – November 30, 2022 |
Franklin Templeton SMACS: Series I a | September 1, 2022 – November 30, 2022 |
Franklin High Income Trust: | |
Franklin High Income Fund a | September 1, 2022 – November 30, 2022 |
Institutional Fiduciary Trust: | |
Money Market Portfolio a | September 1, 2022 – November 30, 2022 |
Franklin Global Trust: | |
Franklin Emerging Market Debt Opportunities Fund a | September 1, 2022 – November 30, 2022 |
Franklin International Growth Fund a | September 1, 2022 – November 30, 2022 |
Franklin U.S. Government Money Fund a | September 1, 2022 – November 30, 2022 |
Franklin Gold and Precious Metals Fund a | September 1, 2022 – November 30, 2022 |
Franklin Universal Trust a | September 1, 2022 – November 30, 2022 |
Templeton China World Fund a | September 1, 2022 – November 30, 2022 |
Templeton Emerging Markets Fund a | September 1, 2022 – November 30, 2022 |
Templeton Emerging Markets Income Fund a | September 1, 2022 – November 30, 2022 |
Templeton Funds: | |
Templeton International Climate Change Fund a | September 1, 2022 – November 30, 2022 |
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Templeton Global Income Fund a | September 1, 2022 – November 30, 2022 |
Templeton Growth Fund, Inc. a | September 1, 2022 – November 30, 2022 |
Templeton Income Trust: | |
Templeton Sustainable Emerging Markets Bond Fund a | September 1, 2022 – November 30, 2022 |
Templeton Global Bond Fund a | September 1, 2022 – November 30, 2022 |
Templeton Global Total Return Fund a | September 1, 2022 – November 30, 2022 |
Templeton International Bond Fund a | September 1, 2022 – November 30, 2022 |
Franklin Custodian Funds: | |
Franklin DynaTech Fund a | September 1, 2022 – November 30, 2022 |
Franklin Growth Fund a | September 1, 2022 – November 30, 2022 |
Franklin Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin U.S. Government Securities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Utilities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Focused Growth Fund a | September 1, 2022 – November 30, 2022 |
Franklin Strategic Mortgage Portfolio a | September 1, 2022 – November 30, 2022 |
Franklin Investors Securities Trust: | |
Franklin Adjustable U.S. Government Securities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Convertible Securities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Equity Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Floating Rate Daily Access Fund a | September 1, 2022 – November 30, 2022 |
Franklin Low Duration Total Return Fund a | September 1, 2022 – November 30, 2022 |
Franklin Managed Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Total Return Fund a | September 1, 2022 – November 30, 2022 |
Templeton Developing Markets Trust a | September 1, 2022 – November 30, 2022 |
Franklin Fund Allocator Series: | |
Franklin Conservative Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin Corefolio Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin Emerging Market Core Equity (IU) Fund a | September 1, 2022 – November 30, 2022 |
Franklin Global Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin Growth Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin International Core Equity (IU) Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart Retirement Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2020 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2025 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2030 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2035 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2040 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
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Franklin LifeSmart 2045 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2050 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2055 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2060 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin Moderate Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin U.S. Core Equity (IU) Fund a | September 1, 2022 – November 30, 2022 |
Franklin Templeton Variable Insurance Products Trust: | |
Franklin Allocation VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin DynaTech VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Income VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Rising Dividends VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Small Cap Value VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Small-Mid Cap Growth VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Strategic Income VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin VolSmart Allocation VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Developing Markets VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Foreign VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Global Bond VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Dragon Fund, Inc. a | September 1, 2022 – November 30, 2022 |
Templeton Institutional Funds: | |
International Equity Series a | September 1, 2022 – November 30, 2022 |
Franklin ETF Trust: | |
Franklin Liberty Short Duration U.S. Government ETF a | September 1, 2022 – November 30, 2022 |
Franklin Floating Rate Master Trust: | |
Franklin Floating Rate Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Floating Rate Master Series a | September 1, 2022 – November 30, 2022 |
Franklin Limited Duration Income Trust a | September 1, 2022 – November 30, 2022 |
Franklin Managed Trust: | |
Franklin Rising Dividends Fund a | September 1, 2022 – November 30, 2022 |
Franklin Templeton ETF Trust: | |
Franklin LibertyQ U.S. Small Cap Equity ETF a | September 1, 2022 – November 30, 2022 |
Franklin LibertyQ Global Equity ETF a | September 1, 2022 – November 30, 2022 |
Franklin LibertyQ Global Dividend ETF b | September 1, 2022 – November 30, 2022 |
Franklin Liberty Ultra Short Bond ETF a | September 1, 2022 – November 30, 2022 |
Franklin Liberty U.S. Treasury Bond ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE Europe Hedged ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE Japan ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE Japan Hedged ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE United Kingdom ETF a | September 1, 2022 – November 30, 2022 |
Franklin U.S. Core Bond ETF a | September 1, 2022 – November 30, 2022 |
Franklin Exponential Data ETF a | September 1, 2022 – November 30, 2022 |
Legend:
a: August 31, 2022 represents the date of our last examination.
b: Fund was not in scope for the August 31, 2022 examination.
Franklin Templeton Services, LLC
3355 Data 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 A (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 subsections (b) and (c) of Rule 17f-2 as of November 30, 2022, and for the periods indicated in Attachment A.
Based on this evaluation, we assert 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 November 30, 2022, and for the periods indicated in Attachment A, with respect to securities reflected in the investment accounts of the Funds.
By:
/s/MATTHEW T. HINKLE
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Franklin Templeton Group of Funds
Date November 27, 2023
/s/CHRISTOPHER KINGS
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Franklin Funds
Templeton Funds
Date November 27, 2023
/s/VIVEK PAI
Vivek Pai
Chief Financial Officer, Chief Accounting Officer and Treasurer
Franklin Templeton ETF Trust
Franklin ETF Trust
Date November 27, 2023
Attachment A
Templeton Global Investment Trust: | Examination Period | |||
Templeton Emerging Markets Small Cap Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Global Balanced Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Templeton SMACS: Series EM a | September 1, 2022 – November 30, 2022 | |||
Franklin Real Estate Securities Trust: | ||||
Franklin Real Estate Securities Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Strategic Series: | ||||
Franklin Biotechnology Discovery Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Growth Opportunities Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Natural Resources Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Small Cap Growth Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Small-Mid Cap Growth Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Strategic Income Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Templeton SMACS: Series E a | September 1, 2022 – November 30, 2022 | |||
Franklin Templeton SMACS: Series I a | September 1, 2022 – November 30, 2022 | |||
Franklin High Income Trust: | ||||
Franklin High Income Fund a | September 1, 2022 – November 30, 2022 | |||
Institutional Fiduciary Trust: | ||||
Money Market Portfolio a | September 1, 2022 – November 30, 2022 | |||
Franklin Global Trust: | ||||
Franklin Emerging Market Debt Opportunities Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin International Growth Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin U.S. Government Money Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Gold and Precious Metals Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Universal Trust a | September 1, 2022 – November 30, 2022 | |||
Templeton China World Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Emerging Markets Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Emerging Markets Income Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Funds: | ||||
Templeton International Climate Change Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Global Income Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Growth Fund, Inc. a | September 1, 2022 – November 30, 2022 | |||
Templeton Income Trust: | ||||
Templeton Sustainable Emerging Markets Bond Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Global Bond Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton Global Total Return Fund a | September 1, 2022 – November 30, 2022 | |||
Templeton International Bond Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Custodian Funds: | ||||
Franklin DynaTech Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Growth Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Income Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin U.S. Government Securities Fund a | September 1, 2022 – November 30, 2022 | |||
Franklin Utilities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Focused Growth Fund a | September 1, 2022 – November 30, 2022 |
Franklin Strategic Mortgage Portfolio a | September 1, 2022 – November 30, 2022 |
Franklin Investors Securities Trust: | |
Franklin Adjustable U.S. Government Securities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Convertible Securities Fund a | September 1, 2022 – November 30, 2022 |
Franklin Equity Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Floating Rate Daily Access Fund a | September 1, 2022 – November 30, 2022 |
Franklin Low Duration Total Return Fund a | September 1, 2022 – November 30, 2022 |
Franklin Managed Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Total Return Fund a | September 1, 2022 – November 30, 2022 |
Templeton Developing Markets Trust a | September 1, 2022 – November 30, 2022 |
Franklin Fund Allocator Series: | |
Franklin Conservative Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin Corefolio Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin Emerging Market Core Equity (IU) Fund a | September 1, 2022 – November 30, 2022 |
Franklin Global Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin Growth Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin International Core Equity (IU) Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart Retirement Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2020 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2025 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2030 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2035 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2040 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2045 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2050 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2055 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin LifeSmart 2060 Retirement Target Fund a | September 1, 2022 – November 30, 2022 |
Franklin Moderate Allocation Fund a | September 1, 2022 – November 30, 2022 |
Franklin U.S. Core Equity (IU) Fund a | September 1, 2022 – November 30, 2022 |
Franklin Templeton Variable Insurance Products Trust: | |
Franklin Allocation VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin DynaTech VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Income VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Rising Dividends VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Small Cap Value VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Small-Mid Cap Growth VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin Strategic Income VIP Fund a | September 1, 2022 – November 30, 2022 |
Franklin VolSmart Allocation VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Developing Markets VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Foreign VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Global Bond VIP Fund a | September 1, 2022 – November 30, 2022 |
Templeton Dragon Fund, Inc. a | September 1, 2022 – November 30, 2022 |
Templeton Institutional Funds: | |
International Equity Series a | September 1, 2022 – November 30, 2022 |
Franklin ETF Trust: | |
Franklin Liberty Short Duration U.S. Government ETF a | September 1, 2022 – November 30, 2022 |
Franklin Floating Rate Master Trust: | |
Franklin Floating Rate Income Fund a | September 1, 2022 – November 30, 2022 |
Franklin Floating Rate Master Series a | September 1, 2022 – November 30, 2022 |
Franklin Limited Duration Income Trust a | September 1, 2022 – November 30, 2022 |
Franklin Managed Trust: | |
Franklin Rising Dividends Fund a | September 1, 2022 – November 30, 2022 |
Franklin Templeton ETF Trust: | |
Franklin LibertyQ U.S. Small Cap Equity ETF a | September 1, 2022 – November 30, 2022 |
Franklin LibertyQ Global Equity ETF a | September 1, 2022 – November 30, 2022 |
Franklin LibertyQ Global Dividend ETF b | September 1, 2022 – November 30, 2022 |
Franklin Liberty Ultra Short Bond ETF a | September 1, 2022 – November 30, 2022 |
Franklin Liberty U.S. Treasury Bond ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE Europe Hedged ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE Japan ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE Japan Hedged ETF a | September 1, 2022 – November 30, 2022 |
Franklin FTSE United Kingdom ETF a | September 1, 2022 – November 30, 2022 |
Franklin U.S. Core Bond ETF a | September 1, 2022 – November 30, 2022 |
Franklin Exponential Data ETF a | September 1, 2022 – November 30, 2022 |
Legend:
a: August 31, 2022 represents the date of our last examination.
b: Fund was not in scope for the August 31, 2022 examination.