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 | September 26, 2024 | ||||||
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 U.S. Government
Money Fund
Franklin Universal Trust
Institutional Fiduciary Trust
Templeton
China World Fund
Templeton Developing Markets Trust
Templeton Emerging Markets Fund
Templeton
Emerging Markets Income Fund
Templeton Funds
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 (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 February 29, 2024. The Funds’ management is responsible for its assertion and the Funds' 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
PricewaterhouseCoopers LLP, 405 Howard Street, Suite 600, San Francisco, CA 94105 T: (415) 498 5000, www.pwc.com/us
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procedures were the following tests performed as of February 29, 2024, and with respect to agreement of security purchases and sales, for the period from January 1, 2024 (the date of our last examination), through February 29, 2024:
- 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 304 security purchases and 386 security sales or maturities since our last report from the books and records of the Funds to the records of the Transfer Agent confirmations
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 February 29, 2024 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
September 26, 2024
2
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Attachment A
Franklin Custodian Funds: | Examination Period |
Franklin DynaTech Funda | January 1, 2024 – February 29, 2024 |
Franklin Growth Funda | January 1, 2024 – February 29, 2024 |
Franklin Income Funda | January 1, 2024 – February 29, 2024 |
Franklin U.S. Government Securities Funda | January 1, 2024 – February 29, 2024 |
Franklin Utilities Funda | January 1, 2024 – February 29, 2024 |
Franklin ETF Trust: | |
Franklin Short Duration U.S. Government ETF a | January 1, 2024 – February 29, 2024 |
Franklin Floating Rate Master Trust: | |
Franklin Floating Rate Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin Fund Allocator Series: | |
Franklin Conservative Allocation Fund a | January 1, 2024 – February 29, 2024 |
Franklin Corefolio Allocation Funda | January 1, 2024 – February 29, 2024 |
Franklin Emerging Market Core Equity (IU) Funda | January 1, 2024 – February 29, 2024 |
Franklin Global Allocation Funda | January 1, 2024 – February 29, 2024 |
Franklin Growth Allocation Funda | January 1, 2024 – February 29, 2024 |
Franklin International Core Equity (IU) Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart Retirement Income Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2020 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2025 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2030 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2035 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2040 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2045 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2050 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2055 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2060 Retirement Target Funda | January 1, 2024 – February 29, 2024 |
Franklin Moderate Allocation Funda | January 1, 2024 – February 29, 2024 |
Franklin U.S. Core Equity (IU) Funda | January 1, 2024 – February 29, 2024 |
Franklin Global Trust: | |
Franklin Emerging Market Debt Opportunities Funda | January 1, 2024 – February 29, 2024 |
Franklin International Growth Funda | January 1, 2024 – February 29, 2024 |
Franklin Gold and Precious Metals Funda | January 1, 2024 – February 29, 2024 |
Franklin High Income Trust: | |
Franklin High Income Funda | January 1, 2024 – February 29, 2024 |
Franklin Investors Securities Trust: | |
Franklin Convertible Securities Funda | January 1, 2024 – February 29, 2024 |
Franklin Equity Income Funda | January 1, 2024 – February 29, 2024 |
Franklin Floating Rate Daily Access Funda | January 1, 2024 – February 29, 2024 |
Franklin Long Duration Credit Funda | January 1, 2024 – February 29, 2024 |
Franklin Low Duration Total Return Funda | January 1, 2024 – February 29, 2024 |
Franklin Low Duration U.S. Government Securities Funda | January 1, 2024 – February 29, 2024 |
Franklin Managed Income Funda | January 1, 2024 – February 29, 2024 |
Franklin Total Return Funda | January 1, 2024 – February 29, 2024 |
Franklin Limited Duration Income Trusta | January 1, 2024 – February 29, 2024 |
Franklin Managed Trust: | |
Franklin Rising Dividends Funda | January 1, 2024 – February 29, 2024 |
Franklin Real Estate Securities Trust: | |
Franklin Real Estate Securities Funda | January 1, 2024 – February 29, 2024 |
Franklin Strategic Mortgage Portfolioa | January 1, 2024 – February 29, 2024 |
Franklin Strategic Series: | |
Franklin Biotechnology Discovery Funda | January 1, 2024 – February 29, 2024 |
Franklin Growth Opportunities Funda | January 1, 2024 – February 29, 2024 |
Franklin Natural Resources Funda | January 1, 2024 – February 29, 2024 |
Franklin Small Cap Growth Funda | January 1, 2024 – February 29, 2024 |
Franklin Small-Mid Cap Growth Funda | January 1, 2024 – February 29, 2024 |
Franklin Strategic Income Funda | January 1, 2024 – February 29, 2024 |
Franklin Templeton SMACS: Series Ea | January 1, 2024 – February 29, 2024 |
Franklin Templeton SMACS: Series Ia | January 1, 2024 – February 29, 2024 |
Franklin Templeton ETF Trust: | |
Franklin Exponential Data ETFa | January 1, 2024 – February 29, 2024 |
Franklin Focused Growth ETFa | January 1, 2024 – February 29, 2024 |
Franklin FTSE Eurozone ETFa | January 1, 2024 – February 29, 2024 |
Franklin FTSE Japan ETFa | January 1, 2024 – February 29, 2024 |
Franklin FTSE Japan Hedged ETFa | January 1, 2024 – February 29, 2024 |
Franklin U.S. Core Bond ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Core Dividend Tilt Index ETFa | January 1, 2024 – February 29, 2024 |
Franklin U.S. Equity Index ETFa | January 1, 2024 – February 29, 2024 |
Franklin U.S. Large Cap Multifactor Index ETFa | January 1, 2024 – February 29, 2024 |
Franklin U.S. Mid Cap Multifactor Index ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Small Cap Multifactor Index ETFa | January 1, 2024 – February 29, 2024 |
Franklin U.S. Treasury Bond ETFa | January 1, 2024 – February 29, 2024 |
Franklin Ultra Short Bond ETFa | January 1, 2024 – February 29, 2024 |
Franklin Templeton Variable Insurance Products Trust: | |
Franklin Allocation VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin DynaTech VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin Income VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin Rising Dividends VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin Small Cap Value VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin Small-Mid Cap Growth VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin Strategic Income VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin VolSmart Allocation VIP Funda | January 1, 2024 – February 29, 2024 |
Templeton Developing Markets VIP Funda | January 1, 2024 – February 29, 2024 |
Templeton Foreign VIP Funda | January 1, 2024 – February 29, 2024 |
Templeton Global Bond VIP Funda | January 1, 2024 – February 29, 2024 |
Franklin U.S. Government Money Funda | January 1, 2024 – February 29, 2024 |
Franklin Universal Trusta | January 1, 2024 – February 29, 2024 |
Institutional Fiduciary Trust: | |
Money Market Portfolioa | January 1, 2024 – February 29, 2024 |
Templeton China World Funda | January 1, 2024 – February 29, 2024 |
Templeton Developing Markets Trusta | January 1, 2024 – February 29, 2024 |
Templeton Emerging Markets Funda | January 1, 2024 – February 29, 2024 |
Templeton Emerging Markets Income Funda | January 1, 2024 – February 29, 2024 |
Templeton Funds: | |
Templeton International Climate Change Fund a | January 1, 2024 – February 29, 2024 |
Templeton Global Investment Trust: | |
Franklin Templeton SMACS: Series EMa | January 1, 2024 – February 29, 2024 |
Templeton Emerging Markets Small Cap Funda | January 1, 2024 – February 29, 2024 |
Templeton Global Balanced Funda | January 1, 2024 – February 29, 2024 |
Templeton Income Trust: | |
Templeton Global Bond Funda | January 1, 2024 – February 29, 2024 |
Templeton Global Total Return Funda | January 1, 2024 – February 29, 2024 |
Templeton International Bond Funda | January 1, 2024 – February 29, 2024 |
Templeton Sustainable Emerging Markets Bond Funda | January 1, 2024 – February 29, 2024 |
Templeton Institutional Funds: | |
International Equity Seriesa | January 1, 2024 – February 29, 2024 |
Templeton Dragon Fund, Inc.a | January 1, 2024 – February 29, 2024 |
Legend:
a: December 31, 2023 represents the date of our last 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 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 February 29, 2024, 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 February 29, 2024, and for the periods indicated in Attachment A, with respect to securities reflected in the investment account of the Funds.
By:
/s/CHRISTOPHER KINGS
Christopher
Kings
Chief Executive Officer - Finance and Administration
Franklin Templeton Group of Funds
Date September 26, 2024
/s/JEFFREY W. WHITE
Jeffrey
W. White
Chief Financial Officer, Chief Accounting Officer and Treasurer
Franklin & Templeton Funds Boards
Date September 26, 2024
/s/VIVEK PAI
Vivek
Pai
Chief Financial Officer, Chief Accounting Officer and Treasurer
Franklin Templeton ETF Trust
Franklin ETF Trust
Date September 26, 2024
Attachment A
Franklin Custodian Funds: | Examination Period |
Franklin DynaTech Fund a | January 1, 2024 – February 29, 2024 |
Franklin Growth Fund a | January 1, 2024 – February 29, 2024 |
Franklin Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Government Securities Fund a | January 1, 2024 – February 29, 2024 |
Franklin Utilities Fund a | January 1, 2024 – February 29, 2024 |
Franklin ETF Trust: | |
Franklin Short Duration U.S. Government ETF a | January 1, 2024 – February 29, 2024 |
Franklin Floating Rate Master Trust: | |
Franklin Floating Rate Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin Fund Allocator Series: | |
Franklin Conservative Allocation Fund a | January 1, 2024 – February 29, 2024 |
Franklin Corefolio Allocation Fund a | January 1, 2024 – February 29, 2024 |
Franklin Emerging Market Core Equity (IU) Fund a | January 1, 2024 – February 29, 2024 |
Franklin Global Allocation Fund a | January 1, 2024 – February 29, 2024 |
Franklin Growth Allocation Fund a | January 1, 2024 – February 29, 2024 |
Franklin International Core Equity (IU) Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart Retirement Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2020 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2025 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2030 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2035 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2040 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2045 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2050 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2055 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin LifeSmart 2060 Retirement Target Fund a | January 1, 2024 – February 29, 2024 |
Franklin Moderate Allocation Fund a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Core Equity (IU) Fund a | January 1, 2024 – February 29, 2024 |
Franklin Global Trust: | |
Franklin Emerging Market Debt Opportunities Fund a | January 1, 2024 – February 29, 2024 |
Franklin International Growth Fund a | January 1, 2024 – February 29, 2024 |
Franklin Gold and Precious Metals Fund a | January 1, 2024 – February 29, 2024 |
Franklin High Income Trust: | |
Franklin High Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin Investors Securities Trust: | |
Franklin Convertible Securities Fund a | January 1, 2024 – February 29, 2024 |
Franklin Equity Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin Floating Rate Daily Access Fund a | January 1, 2024 – February 29, 2024 |
Franklin Long Duration Credit Fund a | January 1, 2024 – February 29, 2024 |
Franklin Low Duration Total Return Fund a | January 1, 2024 – February 29, 2024 |
Franklin Low Duration U.S. Government Securities Funda | January 1, 2024 – February 29, 2024 |
Franklin Managed Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin Total Return Fund a | January 1, 2024 – February 29, 2024 |
Franklin Limited Duration Income Trust a | January 1, 2024 – February 29, 2024 |
Franklin Managed Trust: | |
Franklin Rising Dividends Fund a | January 1, 2024 – February 29, 2024 |
Franklin Real Estate Securities Trust: | |
Franklin Real Estate Securities Fund a | January 1, 2024 – February 29, 2024 |
Franklin Strategic Mortgage Portfolio a | January 1, 2024 – February 29, 2024 |
Franklin Strategic Series: | |
Franklin Biotechnology Discovery Fund a | January 1, 2024 – February 29, 2024 |
Franklin Growth Opportunities Fund a | January 1, 2024 – February 29, 2024 |
Franklin Natural Resources Fund a | January 1, 2024 – February 29, 2024 |
Franklin Small Cap Growth Fund a | January 1, 2024 – February 29, 2024 |
Franklin Small-Mid Cap Growth Fund a | January 1, 2024 – February 29, 2024 |
Franklin Strategic Income Fund a | January 1, 2024 – February 29, 2024 |
Franklin Templeton SMACS: Series E a | January 1, 2024 – February 29, 2024 |
Franklin Templeton SMACS: Series I a | January 1, 2024 – February 29, 2024 |
Franklin Templeton ETF Trust: | |
Franklin Exponential Data ETF a | January 1, 2024 – February 29, 2024 |
Franklin Focused Growth ETF a | January 1, 2024 – February 29, 2024 |
Franklin FTSE Eurozone ETF a | January 1, 2024 – February 29, 2024 |
Franklin FTSE Japan ETF a | January 1, 2024 – February 29, 2024 |
Franklin FTSE Japan Hedged ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Core Bond ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Core Dividend Tilt Index ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Equity Index ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Large Cap Multifactor Index ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Mid Cap Multifactor Index ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Small Cap Multifactor Index ETF a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Treasury Bond ETF a | January 1, 2024 – February 29, 2024 |
Franklin Ultra Short Bond ETF a | January 1, 2024 – February 29, 2024 |
Franklin Templeton Variable Insurance Products Trust: | |
Franklin Allocation VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin DynaTech VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin Income VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin Rising Dividends VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin Small Cap Value VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin Small-Mid Cap Growth VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin Strategic Income VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin VolSmart Allocation VIP Fund a | January 1, 2024 – February 29, 2024 |
Templeton Developing Markets VIP Fund a | January 1, 2024 – February 29, 2024 |
Templeton Foreign VIP Fund a | January 1, 2024 – February 29, 2024 |
Templeton Global Bond VIP Fund a | January 1, 2024 – February 29, 2024 |
Franklin U.S. Government Money Fund a | January 1, 2024 – February 29, 2024 |
Franklin Universal Trust a | January 1, 2024 – February 29, 2024 |
Institutional Fiduciary Trust: | |
Money Market Portfolio a | January 1, 2024 – February 29, 2024 |
Templeton China World Fund a | January 1, 2024 – February 29, 2024 |
Templeton Developing Markets Trust a | January 1, 2024 – February 29, 2024 |
Templeton Emerging Markets Fund a | January 1, 2024 – February 29, 2024 |
Templeton Emerging Markets Income Fund a | January 1, 2024 – February 29, 2024 |
Templeton Funds: | |
Templeton International Climate Change Fund a | January 1, 2024 – February 29, 2024 |
Templeton Global Investment Trust: | |
Franklin Templeton SMACS: Series EM a | January 1, 2024 – February 29, 2024 |
Templeton Emerging Markets Small Cap Fund a | January 1, 2024 – February 29, 2024 |
Templeton Global Balanced Fund a | January 1, 2024 – February 29, 2024 |
Templeton Income Trust: | |
Templeton Global Bond Fund a | January 1, 2024 – February 29, 2024 |
Templeton Global Total Return Fund a | January 1, 2024 – February 29, 2024 |
Templeton International Bond Fund a | January 1, 2024 – February 29, 2024 |
Templeton Sustainable Emerging Markets Bond Fund a | January 1, 2024 – February 29, 2024 |
Templeton Institutional Funds: | |
International Equity Series a | January 1, 2024 – February 29, 2024 |
Templeton Dragon Fund, Inc. a | January 1, 2024 – February 29, 2024 |
Legend:
a: December 31, 2023 represents the date of our last examination.