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 | April 16, 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 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 (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 July 31, 2023. 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 July 31, 2023, and with respect to agreement of security purchases and sales, for the period from February 1, 2023 (see Attachment A for details), through July 31, 2023:
- 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 340 security purchases and 522 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 July 31, 2023 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
April 16, 2024
2
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Attachment A
Franklin Custodian Funds: | Examination Period |
Franklin DynaTech Funda | February 1, 2023 – July 31, 2023 |
Franklin Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Income Funda | February 1, 2023 – July 31, 2023 |
Franklin U.S. Government Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Utilities Funda | February 1, 2023 – July 31, 2023 |
Franklin Focused Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin ETF Trust: | |
Franklin Short Duration U.S. Government ETF a | February 1, 2023 – July 31, 2023 |
Franklin Floating Rate Master Trust: | |
Franklin Floating Rate Income Fund a | February 1, 2023 – July 31, 2023 |
Franklin Fund Allocator Series: | |
Franklin Conservative Allocation Fund a | February 1, 2023 – July 31, 2023 |
Franklin Corefolio Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin Emerging Market Core Equity (IU) Funda | February 1, 2023 – July 31, 2023 |
Franklin Global Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin Growth Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin International Core Equity (IU) Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart Retirement Income Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2020 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2025 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2030 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2035 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2040 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2045 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2050 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2055 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2060 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin Moderate Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin U.S. Core Equity (IU) Funda | February 1, 2023 – July 31, 2023 |
Franklin Global Trust: | |
Franklin Emerging Market Debt Opportunities Funda | February 1, 2023 – July 31, 2023 |
Franklin International Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Gold and Precious Metals Funda | February 1, 2023 – July 31, 2023 |
Franklin High Income Trust: | |
Franklin High Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Investors Securities Trust: | |
Franklin Convertible Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Equity Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Floating Rate Daily Access Funda | February 1, 2023 – July 31, 2023 |
Franklin Low Duration Total Return Funda | February 1, 2023 – July 31, 2023 |
Franklin Low Duration U.S. Government Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Managed Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Total Return Funda | February 1, 2023 – July 31, 2023 |
Franklin Limited Duration Income Trusta | February 1, 2023 – July 31, 2023 |
Franklin Managed Trust: | |
Franklin Rising Dividends Funda | February 1, 2023 – July 31, 2023 |
Franklin Real Estate Securities Trust: | |
Franklin Real Estate Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Strategic Mortgage Portfolioa | February 1, 2023 – July 31, 2023 |
Franklin Strategic Series: | |
Franklin Biotechnology Discovery Funda | February 1, 2023 – July 31, 2023 |
Franklin Growth Opportunities Funda | February 1, 2023 – July 31, 2023 |
Franklin Natural Resources Funda | February 1, 2023 – July 31, 2023 |
Franklin Small Cap Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Small-Mid Cap Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Strategic Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Templeton SMACS: Series Ea | February 1, 2023 – July 31, 2023 |
Franklin Templeton SMACS: Series Ia | February 1, 2023 – July 31, 2023 |
Franklin Templeton ETF Trust: | |
Franklin Exponential Data ETFa | February 1, 2023 – July 31, 2023 |
Franklin FTSE Europe Hedged ETFa | February 1, 2023 – July 31, 2023 |
Franklin FTSE Japan ETFa | February 1, 2023 – July 31, 2023 |
Franklin FTSE Japan Hedged ETFa | February 1, 2023 – July 31, 2023 |
Franklin U.S. Core Bond ETF a | February 1, 2023 – July 31, 2023 |
Franklin U.S. Equity Index ETFa | February 1, 2023 – July 31, 2023 |
Franklin U.S. Treasury Bond ETFa | February 1, 2023 – July 31, 2023 |
Franklin Ultra Short Bond ETFa | February 1, 2023 – July 31, 2023 |
Franklin Templeton Variable Insurance Products Trust: | |
Franklin Allocation VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin DynaTech VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Income VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Rising Dividends VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Small Cap Value VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Small-Mid Cap Growth VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Strategic Income VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin VolSmart Allocation VIP Funda | February 1, 2023 – July 31, 2023 |
Templeton Developing Markets VIP Funda | February 1, 2023 – July 31, 2023 |
Templeton Foreign VIP Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Bond VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin U.S. Government Money Funda | February 1, 2023 – July 31, 2023 |
Franklin Universal Trusta | February 1, 2023 – July 31, 2023 |
Institutional Fiduciary Trust: | |
Money Market Portfolioa | February 1, 2023 – July 31, 2023 |
Templeton China World Funda | February 1, 2023 – July 31, 2023 |
Templeton Developing Markets Trusta | February 1, 2023 – July 31, 2023 |
Templeton Emerging Markets Funda | February 1, 2023 – July 31, 2023 |
Templeton Emerging Markets Income Funda | February 1, 2023 – July 31, 2023 |
Templeton Funds: | |
Templeton International Climate Change Fund a | February 1, 2023 – July 31, 2023 |
Templeton Global Investment Trust: | |
Franklin Templeton SMACS: Series EMa | February 1, 2023 – July 31, 2023 |
Templeton Emerging Markets Small Cap Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Balanced Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Income Funda | February 1, 2023 – July 31, 2023 |
Templeton Income Trust: | |
Templeton Global Bond Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Total Return Funda | February 1, 2023 – July 31, 2023 |
Templeton International Bond Funda | February 1, 2023 – July 31, 2023 |
Templeton Sustainable Emerging Markets Bond Funda | February 1, 2023 – July 31, 2023 |
Templeton Institutional Funds: | February 1, 2023 – July 31, 2023 |
International Equity Seriesa | February 1, 2023 – July 31, 2023 |
Templeton Dragon Fund, Inc.a | February 1, 2023 – July 31, 2023 |
Legend:
a: January 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
Attachment A
Franklin Custodian Funds: | Examination Period |
Franklin DynaTech Funda | February 1, 2023 – July 31, 2023 |
Franklin Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Income Funda | February 1, 2023 – July 31, 2023 |
Franklin U.S. Government Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Utilities Funda | February 1, 2023 – July 31, 2023 |
Franklin Focused Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin ETF Trust: | |
Franklin Short Duration U.S. Government ETF a | February 1, 2023 – July 31, 2023 |
Franklin Floating Rate Master Trust: | |
Franklin Floating Rate Income Fund a | February 1, 2023 – July 31, 2023 |
Franklin Fund Allocator Series: | |
Franklin Conservative Allocation Fund a | February 1, 2023 – July 31, 2023 |
Franklin Corefolio Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin Emerging Market Core Equity (IU) Funda | February 1, 2023 – July 31, 2023 |
Franklin Global Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin Growth Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin International Core Equity (IU) Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart Retirement Income Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2020 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2025 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2030 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2035 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2040 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2045 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2050 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2055 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin LifeSmart 2060 Retirement Target Funda | February 1, 2023 – July 31, 2023 |
Franklin Moderate Allocation Funda | February 1, 2023 – July 31, 2023 |
Franklin U.S. Core Equity (IU) Funda | February 1, 2023 – July 31, 2023 |
Franklin Global Trust: | |
Franklin Emerging Market Debt Opportunities Funda | February 1, 2023 – July 31, 2023 |
Franklin International Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Gold and Precious Metals Funda | February 1, 2023 – July 31, 2023 |
Franklin High Income Trust: | |
Franklin High Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Investors Securities Trust: | |
Franklin Convertible Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Equity Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Floating Rate Daily Access Funda | February 1, 2023 – July 31, 2023 |
Franklin Low Duration Total Return Funda | February 1, 2023 – July 31, 2023 |
Franklin Low Duration U.S. Government Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Managed Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Total Return Funda | February 1, 2023 – July 31, 2023 |
Franklin Limited Duration Income Trusta | February 1, 2023 – July 31, 2023 |
Franklin Managed Trust: | |
Franklin Rising Dividends Funda | February 1, 2023 – July 31, 2023 |
Franklin Real Estate Securities Trust: | |
Franklin Real Estate Securities Funda | February 1, 2023 – July 31, 2023 |
Franklin Strategic Mortgage Portfolioa | February 1, 2023 – July 31, 2023 |
Franklin Strategic Series: | |
Franklin Biotechnology Discovery Funda | February 1, 2023 – July 31, 2023 |
Franklin Growth Opportunities Funda | February 1, 2023 – July 31, 2023 |
Franklin Natural Resources Funda | February 1, 2023 – July 31, 2023 |
Franklin Small Cap Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Small-Mid Cap Growth Funda | February 1, 2023 – July 31, 2023 |
Franklin Strategic Income Funda | February 1, 2023 – July 31, 2023 |
Franklin Templeton SMACS: Series Ea | February 1, 2023 – July 31, 2023 |
Franklin Templeton SMACS: Series Ia | February 1, 2023 – July 31, 2023 |
Franklin Templeton ETF Trust: | |
Franklin Exponential Data ETFa | February 1, 2023 – July 31, 2023 |
Franklin FTSE Europe Hedged ETFa | February 1, 2023 – July 31, 2023 |
Franklin FTSE Japan ETFa | February 1, 2023 – July 31, 2023 |
Franklin FTSE Japan Hedged ETFa | February 1, 2023 – July 31, 2023 |
Franklin U.S. Core Bond ETF a | February 1, 2023 – July 31, 2023 |
Franklin U.S. Equity Index ETFa | February 1, 2023 – July 31, 2023 |
Franklin U.S. Treasury Bond ETFa | February 1, 2023 – July 31, 2023 |
Franklin Ultra Short Bond ETFa | February 1, 2023 – July 31, 2023 |
Franklin Templeton Variable Insurance Products Trust: | |
Franklin Allocation VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin DynaTech VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Income VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Rising Dividends VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Small Cap Value VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Small-Mid Cap Growth VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin Strategic Income VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin VolSmart Allocation VIP Funda | February 1, 2023 – July 31, 2023 |
Templeton Developing Markets VIP Funda | February 1, 2023 – July 31, 2023 |
Templeton Foreign VIP Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Bond VIP Funda | February 1, 2023 – July 31, 2023 |
Franklin U.S. Government Money Funda | February 1, 2023 – July 31, 2023 |
Franklin Universal Trusta | February 1, 2023 – July 31, 2023 |
Institutional Fiduciary Trust: | |
Money Market Portfolioa | February 1, 2023 – July 31, 2023 |
Templeton China World Funda | February 1, 2023 – July 31, 2023 |
Templeton Developing Markets Trusta | February 1, 2023 – July 31, 2023 |
Templeton Emerging Markets Funda | February 1, 2023 – July 31, 2023 |
Templeton Emerging Markets Income Funda | February 1, 2023 – July 31, 2023 |
Templeton Funds: | |
Templeton International Climate Change Fund a | February 1, 2023 – July 31, 2023 |
Templeton Global Investment Trust: | |
Franklin Templeton SMACS: Series EMa | February 1, 2023 – July 31, 2023 |
Templeton Emerging Markets Small Cap Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Balanced Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Income Funda | February 1, 2023 – July 31, 2023 |
Templeton Income Trust: | |
Templeton Global Bond Funda | February 1, 2023 – July 31, 2023 |
Templeton Global Total Return Funda | February 1, 2023 – July 31, 2023 |
Templeton International Bond Funda | February 1, 2023 – July 31, 2023 |
Templeton Sustainable Emerging Markets Bond Funda | February 1, 2023 – July 31, 2023 |
Templeton Institutional Funds: | February 1, 2023 – July 31, 2023 |
International Equity Seriesa | February 1, 2023 – July 31, 2023 |
Templeton Dragon Fund, Inc.a | February 1, 2023 – July 31, 2023 |
Legend:
a: January 31, 2023 represents the date of our last examination.