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<SEC-DOCUMENT>0000833040-10-000011.txt : 20100728
<SEC-HEADER>0000833040-10-000011.hdr.sgml : 20100728
<ACCEPTANCE-DATETIME>20100728082723
ACCESSION NUMBER:		0000833040-10-000011
CONFORMED SUBMISSION TYPE:	N-Q
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20100531
FILED AS OF DATE:		20100728
DATE AS OF CHANGE:		20100728
EFFECTIVENESS DATE:		20100728

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRANKLIN UNIVERSAL TRUST
		CENTRAL INDEX KEY:			0000833040
		IRS NUMBER:				943077602
		STATE OF INCORPORATION:			MA
		FISCAL YEAR END:			0831

	FILING VALUES:
		FORM TYPE:		N-Q
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-05569
		FILM NUMBER:		10972966

	BUSINESS ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906
		BUSINESS PHONE:		650-312-2000

	MAIL ADDRESS:	
		STREET 1:		ONE FRANKLIN PARKWAY
		CITY:			SAN MATEO
		STATE:			CA
		ZIP:			94403-1906
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-Q
<SEQUENCE>1
<FILENAME>n-qfutpe053110.htm
<DESCRIPTION>FUT QUARTERLY RPT PE 5/31/10
<TEXT>

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   <TITLE>n-qfutpe053110.htm - Generated by SEC Publisher for SEC Filing</TITLE>
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<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">FORM N-Q</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">REGISTERED MANAGEMENT INVESTMENT COMPANY</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT></B>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Investment Company Act file number </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>&nbsp;811-05569</FONT></U></P>
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<H1 style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"><U><FONT style="FONT-WEIGHT: normal; FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Franklin Universal Trust</FONT></U></H1>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>(Exact name of registrant as specified in charter)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<H1 style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"><U><FONT style="FONT-WEIGHT: normal; FONT-SIZE: 10pt" face="'Courier New'" color=#454545>One Franklin Parkway, San Mateo, CA&nbsp; 94403-1906</FONT></U></H1>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>(Address of principal executive offices) (Zip code)</FONT></P>
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<H1 style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center"><U><FONT style="FONT-WEIGHT: normal; FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Craig S. Tyle, One Franklin Parkway, San Mateo, CA&nbsp; 94403-1906</FONT></U></H1>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>(Name and address of agent for service)</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Registrant's telephone number, including area code: (</FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>650) 312-2000</FONT></U></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Date of fiscal year end: </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>&nbsp;&nbsp;8/31&nbsp;&nbsp;&nbsp;&nbsp; </FONT></U></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Date of reporting period: </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>&nbsp;05/31/10</FONT></U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545> </FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Item 1. Schedule of Investments.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt">&nbsp;</P>
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<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited)</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="7%" colSpan=3><B>Country</B></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Shares</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Value</B></TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="100%" colSpan=13>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Common Stocks 34.6%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Automobiles &amp; Components 0.0%<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">b,c</SUP>Harvard Industries Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">109,618</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">1,096</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Commercial &amp; Professional Services 0.0%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">b,d</SUP>VS Holdings Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">181,875</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">&#151;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Energy 1.2%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Spectra Energy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">92,350</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,847,924</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Media 0.5%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">b</SUP>Charter Communications Inc., A</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">4,260</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">153,360</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">b</SUP>Dex One Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">32,496</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">665,518</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">818,878</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Utilities 32.9%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Alliant Energy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">85,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,731,900</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">American Electric Power Co. Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">75,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,397,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Atmos Energy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">45,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,220,400</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">CenterPoint Energy Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">276,600</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">3,767,292</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Consolidated Edison Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">42,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,788,780</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Dominion Resources Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">3,896,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Duke Energy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">160,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,553,600</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Edison International</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">75,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,427,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Entergy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">50,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">3,753,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Exelon Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">70,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,702,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">FirstEnergy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">50,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,760,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">FPL Group Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">50,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,496,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Great Plains Energy Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">32,600</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">572,130</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">NV Energy Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">80,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">943,200</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">PG&amp;E Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">50,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,075,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Pinnacle West Capital Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">70,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,457,700</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">PPL Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">60,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,548,600</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Progress Energy Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">45,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,736,550</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Public Service Enterprise Group Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">60,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,837,800</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Sempra Energy</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">48,500</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,231,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">The Southern Co.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">120,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">3,924,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Westar Energy Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">27,300</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,600</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Wisconsin Energy Corp.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">20,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">980,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Xcel Energy Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">60,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,229,400</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">51,630,452</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Total Common Stocks (Cost $48,434,490)</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">54,298,350</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Preferred Stocks (Cost $214,420) 0.3%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Diversified Financials 0.3%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>GMAC Inc., 7.00%, pfd., 144A</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">604</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">454,359</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Principal</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Amount<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">f</SUP></B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 0px solid" align=left width="100%" colSpan=13>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">g</SUP><B>Senior Floating Rate Interests 1.1%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Materials 0.6%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Novelis Corp., U.S. Term Loan, 2.30% - 2.54%, 7/07/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">992,376</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">937,381</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Utilities 0.5%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">h</SUP>Texas Competitive Electric Holdings Co. LLC, Term Loan, 5.75%, 10/10/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">765,893</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Total Senior Floating Rate Interests (Cost $1,784,876)</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,703,274</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=right>Quarterly Statement of Investments &nbsp;&nbsp; See Notes to Statements of Investments. </DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited) (continued)</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Principal</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Amount<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">f</SUP></B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 0px solid" align=left width="100%" colSpan=13>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Corporate Bonds 89.0%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Automobiles &amp; Components 3.8%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Cooper-Standard Automotive Inc., senior note, 144A, 8.50%, 5/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">396,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Ford Motor Credit Co. LLC,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">7.80%, 6/01/12</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,040,730</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 7.00%, 4/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">990,774</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 8.125%, 1/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">501,299</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>TRW Automotive Inc., senior note, 144A, 7.25%, 3/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,950,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">5,878,803</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Capital Goods 6.4%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Allison Transmission Inc., senior note, 144A, 11.00%, 11/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,100,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Arvinmeritor Inc., senior note, 10.625%, 3/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">411,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Case New Holland Inc., senior note,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">7.125%, 3/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,005,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>144A, 7.75%, 9/01/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">511,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Greenbrier Cos. Inc., senior note, 8.375%, 5/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">470,625</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Libbey Glass Inc., senior secured note, 144A, 10.00%, 2/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">625,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Manitowoc Co. Inc., senior note, 9.50%, 2/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">592,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Oshkosh Corp., senior note,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.25%, 3/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">207,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.50%, 3/01/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">208,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>RBS Global &amp; Rexnord Corp., senior note, 144A, 8.50%, 5/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,244,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">RSC Equipment Rental Inc./RSC Holdings III LLC, senior note, 9.50%, 12/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,623,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Thermon Industries Inc., senior secured note, 144A, 9.50%, 5/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">992,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">9,991,625</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Commercial &amp; Professional Services 0.7%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e,j</SUP>JohnsonDiversey Holdings Inc., senior note, 144A, PIK, 10.50%, 5/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,049,875</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,133,865</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Consumer Durables &amp; Apparel 3.5%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Jarden Corp., senior sub. note, 7.50%, 5/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,970,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Jostens IH Corp., senior sub. note, 7.625%, 10/01/12</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">401,950</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">KB Home, senior note,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">6.25%, 6/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">645,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">7.25%, 6/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">740,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Phillips-Van Heusen Corp., senior note, 7.375%, 5/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">201,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Standard Pacific Corp., senior note, 8.375%, 5/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">385,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Visant Holding Corp., senior note, 8.75%, 12/01/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,113,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">5,457,450</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Consumer Services 5.6%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e,J</SUP>Fontainebleau Las Vegas, 144A, 10.25%, 6/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">26,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Harrah&#146;s Operating Co. Inc., senior secured note, 11.25%, 6/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,582,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">MGM MIRAGE,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 6.875%, 4/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">924,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 7.50%, 6/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">966,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>senior secured note, 144A, 9.00%, 3/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">403,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Norwegian Cruise Line Ltd., senior secured note, 144A, 11.75%, 11/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,612,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Pinnacle Entertainment Inc.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>senior note, 144A, 8.625%, 8/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">507,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 8.25%, 3/15/12</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">323,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">323,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 7.50%, 6/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">654,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Shingle Springs Tribal Gaming, senior note, 144A, 9.375%, 6/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">549,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">j</SUP>Station Casinos Inc.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 7.75%, 8/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">75,625</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 6.50%, 2/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,375</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 6.875%, 3/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">16,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Universal City Development,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 144A, 8.875%, 11/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">796,000</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited) (continued)</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Principal</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Amount<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">f</SUP></B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 0px solid" align=left width="100%" colSpan=13>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 144A, 10.875%, 11/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">406,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">8,844,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Diversified Financials 2.4%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">CIT Group Inc., senior secured sub. bond, 7.00%, 5/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,361,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">GMAC Inc.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 6.875%, 8/28/12</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,985,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">sub. note, 8.00%, 12/31/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">475,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">3,821,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Energy 14.1%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Antero Resources Finance, senior note, 144A, 9.375%, 12/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">985,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Berry Petroleum Co., senior note, 10.25%, 6/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">856,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Chesapeake Energy Corp., senior note, 6.25%, 1/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,995,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Compagnie Generale de Geophysique-Veritas, senior note,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">7.50%, 5/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>France</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">390,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">7.75%, 5/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>France</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">573,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Consol Energy Inc., senior note, 144A,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.00%, 4/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">306,375</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.25%, 4/01/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">307,875</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Copano Energy LLC, senior note, 8.125%, 3/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">970,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Crosstex Energy LP/Crosstex Energy Finance Corp., senior note, 144A, 8.875%, 2/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">297,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Denbury Resources Inc., senior sub. note, 8.25%, 2/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">518,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">El Paso Corp., senior note, 12.00%, 12/12/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,392,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">enterprise Products Operating LLC, junior sub. note, FRN, 7.034%, 1/15/68</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,102,571</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Expro Finance Luxembourg, senior secured note, 144A, 8.50%, 12/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United Kingdom</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,072,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>General Maritime Corp., senior note, 144A, 12.00%, 11/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">714,875</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Holly Corp., senior note, 144A, 9.875%, 6/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">406,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Linn Energy Corp., senior note, 144A, 8.625%, 4/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">995,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Mariner Energy Inc., senior note, 7.50%, 4/15/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">612,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">MarkWest Energy Partners LP, senior note, 6.875%, 11/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,440,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Martin Midstream Partners LP, senior note, 144A, 8.875%, 4/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">388,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>OPTI Canada Inc., senior secured note, 144A, 9.00%, 12/15/12</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Canada</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">404,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Penn Virginia Resource, senior note, 8.25%, 4/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">197,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Plains Exploration &amp; Production Co., senior note, 7.625%, 6/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,900,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,781,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Quicksilver Resources Inc., senior note, 8.25%, 8/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,470,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>SandRidge Energy Inc., senior note, 144A, 8.00%, 6/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,900,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,710,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Tesoro Corp., senior note, 6.50%, 6/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,342,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">22,226,696</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Food &amp; Staples Retailing 0.9%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Rite Aid Corp., senior secured note, 9.75%, 6/12/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,066,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">SUPERVALU Inc., senior note, 8.00%, 5/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">396,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,462,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Food, Beverage &amp; Tobacco 2.8%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>CEDC Finance Corp. International Inc., senior secured note, 144A, 9.125%, 12/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">691,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Cott Beverages Inc., senior note, 144A, 8.375%, 11/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">708,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Dole Food Co. Inc., senior secured note, 13.875%, 3/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">676,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">784,160</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>JBS USA LLC, senior note, 144A, 11.625%, 5/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,324,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Pinnacle Foods Finance LLC, senior note, 144A, 9.25%, 4/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">802,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">4,310,660</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Health Care Equipment &amp; Services 7.4%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">FMC Finance III SA, senior note, 6.875%, 7/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Germany</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,545,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Fresenius US Finance II, senior note, 144A, 9.00%, 7/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Germany</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">766,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">HCAInc,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 6.50%, 2/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,293,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">i</SUP>senior secured note, PIK, 9.625%, 11/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,051,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,108,805</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Tenet Healthcare Corp., senior note, 7.375%, 2/01/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,708,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 26px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">i</SUP>United Surgical Partners International Inc., senior sub. note, PIK, 9.25%, 5/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,995,000</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited) (continued)</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Principal</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Amount<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">f</SUP></B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 0px solid" align=left width="100%" colSpan=13>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">g,J</SUP>US Oncology Holdings Inc., senior note, PIK, FRN, 7.178%, 3/15/12</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">2,397,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">2,178,226</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">11,595,781</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Materials 9.8%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Building Materials Corp. of America, senior note, 144A, 7.50%, 3/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">491,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">CF Industries Holdings Inc., senior note, 6.875%, 5/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Freeport-McMoRan Copper &amp; Gold Inc., senior note, 8.375%, 4/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,633,386</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Huntsman International LLC, senior sub. note, 7.875%, 11/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,920,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>lneos Group Holdings PLC, senior secured note, 144A, 8.50%, 2/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United Kingdom</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,143,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>LBI Escrow Corp., senior secured note, 144A, 8.00%, 11/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">408,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,813,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Nalco Co., senior sub. note, 8.875%, 11/15/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,533,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">NewPage Corp., senior secured note, 11.375%, 12/31/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,410,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Novelis Inc., senior note,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">7.25%, 2/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Canada</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">282,690</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">11.50%, 2/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Canada</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">250,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">272,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Owens-Brockway Glass Container Inc., senior note, 6.75%, 12/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,511,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Solo Cup Co.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior secured note, 10.50%, 11/01/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">306,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 8.50%, 2/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">927,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Teck Resources Ltd., senior secured note, 10.75%, 5/15/19</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Canada</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">900,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,086,134</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">15,340,460</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Media 10.4%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Cablevision Systems Corp., senior note, 144A, 8.625%, 9/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">505,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>CCH II LLC/CCH II Capital Corp., senior note, 144A, 13.50%, 11/30/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,700,134</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,940,278</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>CCO Holdings LLC, senior note, 144A, 8.125%, 4/30/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">398,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Clear Channel Worldwide Holdings Inc., senior note,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">A, 144A, 9.25%, 12/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">203,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">B, 144A, 9.25%, 12/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">613,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">EchoStar DBS Corp., senior note, 7.125%, 2/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,477,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Lamar Media Corp., senior sub. note, B, 6.625%, 8/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,890,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">LIN Television Corp., senior sub. note, 6.50%, 5/15/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,460,625</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Live Nation Entertainment Inc., senior note, 144A, 8.125%, 5/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">995,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Media General Inc., senior secured note, 144A, 11.75%, 2/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">776,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">k</SUP>Radio One Inc., senior sub. note, 6.375%, 2/15/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,445,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Sinclair Television Group Inc., senior secured note, 144A, 9.25%, 11/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,194,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e,i</SUP>Univision Communications Inc., senior note, 144A, PIK, 10.50%, 3/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,107,756</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">925,238</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>UPC Germany GmbH, senior secured bond, 144A, 8.125%, 12/01/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Germany</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,193,989</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>UPC Holding BV, senior note, 144A, 9.875%, 4/15/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Netherlands</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">304,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">WMG Acquisition Corp., senior secured note, 9.50%, 6/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">900,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">936,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">16,258,130</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Pharmaceuticals, Biotechnology &amp; Life Sciences 1.1%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Mylan Inc., senior note, 144A, 7.875%, 7/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,006,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Talecris Biotherapeutics Holdings Corp., senior note, 144A, 7.75%, 11/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">784,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,790,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Real Estate 0.9%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">FelCor Lodging LP, senior secured note, 10.00%, 10/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">603,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Forest City Enterprises Inc., senior note, 7.625%, 6/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">900,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">828,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,431,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Retailing 1.4%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Michaels Stores Inc., senior note, 10.00%, 11/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,546,875</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited) (continued)</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Principal</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Amount<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">f</SUP></B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 0px solid" align=left width="100%" colSpan=13>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>QVC Inc., senior secured note, 144A, 7.50%, 10/01/19</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">679,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,225,875</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Semiconductors &amp; Semiconductor Equipment 1.1%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Advanced Micro Devices Inc., senior note, 144A, 8.125%, 12/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">295,875</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Freescale Semiconductor Inc., senior note, 8.875%, 12/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,357,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,653,375</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Software &amp; Services 2.3%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">First Data Corp., senior note, 9.875%, 9/24/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,059,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Sitel LLC, senior note, 144A, 11.50%, 4/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">652,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">SunGard Data Systems Inc.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 9.125%, 8/15/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">406,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 10.25%, 8/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,422,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">3,541,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Technology Hardware &amp; Equipment 1.4%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Jabil Circuit Inc., senior note, 7.75%, 7/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">513,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Sanmina-SCI Corp.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 33px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e,g</SUP>senior note, 144A, FRN, 3.007%, 6/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">658,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 6.75%, 3/01/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">582,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior sub. note, 8.125%, 3/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">400,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">383,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,136,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Telecommunication Services 8.2%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Crown Castle International Corp.,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior bond, 7.125%, 11/01/19</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">97,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">senior note, 9.00%, 1/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">845,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Digicel Group Ltd., senior note, 144A, 8.875%, 1/15/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Jamaica</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,945,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>lntegra Telecom Inc., senior secured note, 144A, 10.75%, 4/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">679,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Intelsat Bermuda Ltd., senior note, 11.25%, 6/15/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Bermuda</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">530,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Intelsat Subsidiary Holding Co. Ltd., senior note, 8.50%, 1/15/13</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Bermuda</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,518,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">MetroPCS Wireless Inc., senior note, 9.25%, 11/01/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,070,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>New Communications Holdings, senior note, 144A,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.25%, 4/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">199,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.50%, 4/15/20</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">300,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">297,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">8.75%, 4/15/22</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">493,750</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Qwest Communications International Inc., senior note, 7.50%, 2/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">2,000,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,980,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>SBA Telecommunications Inc., senior note, 144A, 8.25%, 8/15/19</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">600,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">628,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Wind Acquisition Finance SA, senior note, 144A, 12.00%, 12/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=center width="7%" colSpan=3>Italy</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,552,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">12,836,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Transportation 1.1%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Ceva Group PLC, senior secured note, 144A, 11.50%, 4/01/18</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United Kingdom</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,100,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,138,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Delta Air Lines Inc., senior secured note, 144A, 9.50%, 9/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">520,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,658,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Utilities 3.7%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Ameren Corp., senior note, 8.875%, 5/15/14</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">916,280</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">CMS Energy Corp., senior note, 8.75%, 6/15/19</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">700,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">767,394</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 23px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP>Dynegy Holdings Inc., senior note, 144A, 7.50%, 6/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,230,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">NRG Energy Inc., senior note, 7.375%,</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">2/01/16</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,800,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,746,000</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">1/15/17</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">200,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">190,500</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">Texas Competitive Electric Holdings Co. LLC, senior note, A, 10.25%, 11/01/15</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,500,000</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,016,250</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">5,866,424</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Total Corporate Bonds (Cost $140,513,780)</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">139,460,144</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Total Investments before Short Term Investments (Cost $190,947,566)</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">195,916,127</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited) (continued)</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="64%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="6%" colSpan=2><B>Shares</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Short Term Investments (Cost $1,149,906) 0.7%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Money Market Funds 0.7%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 26px; TEXT-INDENT: -15px"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">l</SUP>institutional Fiduciary Trust Money Market Portfolio, 0.00%</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3>United States</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,149,906</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">1,149,906</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Total Investments (Cost $192,097,472) 125.7%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">197,066,033</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Notes Payable (26.8)%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=left width="1%">&nbsp;</TD>
     <TD align=right width="5%">(42,000,000</TD>
     <TD noWrap width="1%">)</TD></TR>
<TR vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Other Assets, less Liabilities 1.1%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">1,689,568</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px"><B>Net Assets 100.0%</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">156,755,601</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="64%">
<DIV style="MARGIN-LEFT: 28px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 3px double" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<DIV align=left>
<DIV style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 16pt; FONT-SIZE: 3pt; WIDTH: 18%"></DIV></DIV>
<DIV align=left>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="3%"></TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Rounds to less than 0.1% of net assets.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">b</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Non-income producing.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">c</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Security has been deemed illiquid because it may not be able to be sold within seven days. At May&nbsp;31, 2010, the value of of this security was $1,096, representing less than 0.01% of net assets.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">d</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>See Note 4 regarding restricted securities.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">e</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Security was purchased pursuant to Rule&nbsp;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&#146;s Board of Trustees. At May&nbsp;31, 2010, the aggregate value of these securities was $51,252,979, representing 32.70% of net assets.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">f</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>The principal amount is stated in U.S. dollars unless otherwise indicated.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">g</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>The coupon rate shown represents the rate at period end.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">h</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Security purchased on a delayed delivery basis.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">i</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Income may be received in additional securities and/or cash.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">j</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Defaulted security or security for which income has been deemed uncollectible.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">k</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>See Note 5 regarding other considerations.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">l</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>The Institutional Fiduciary Trust Money Market Portfolio is managed by the Fund&#146;s investment manager. The rate shown is the annualized seven-day yield at period end.</TD></TR></TABLE></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>Statement of Investments, May&nbsp;31, 2010 (unaudited) (continued)</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left><B>ABBREVIATIONS<BR>
Selected Portfolio</B> </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="7%">&nbsp;</TD>
     <TD width="2%">&nbsp;</TD>
     <TD width="91%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top width="7%">
<DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">FRN </DIV></TD>
     <TD width="2%">&nbsp;</TD>
     <TD vAlign=top align=left width="91%">Floating Rate Note</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top width="7%">
<DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">&nbsp;</DIV></TD>
     <TD width="2%">&nbsp;</TD>
     <TD vAlign=top align=left width="91%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top width="7%">
<DIV style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px">PIK </DIV></TD>
     <TD width="2%">&nbsp;</TD>
     <TD vAlign=top align=left width="91%">Payment-In-Kind</TD></TR></TABLE></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Notes to Statement of Investments (unaudited) </DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>1. ORGANIZATION</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Franklin Universal Trust (Fund) is registered under the Investment Company Act of 1940, as amended, as a closed-end investment company. </DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>2. FINANCIAL INSTRUMENT VALUATION</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>The Fund values its investments in securities and other assets and liabilities 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. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Under procedures approved by the Fund&#146;s Board of Trustees, the Fund may utilize independent pricing services, quotations from securities and financial instrument dealers, and other market sources to determine fair value. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Equity and other securities listed on a securities 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. Over-the-counter securities and listed securities for which there is no reported sale 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 may be valued utilizing a market-based approach in which the fundamental characteristics or relationships to similar securities are used to determine the fair value of the security held. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Additionally, for certain equity securities, the Fund&#146;s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services utilize a market-based approach through which quotes from market makers are used to determine fair value. In other instances, the pricing services utilize proprietary valuation models to develop an income-based valuation which may consider characteristics such as credit risk, yield spreads, benchmark quotes and other unique security features in order to estimate the relevant cash flows which are then used to calculate the fair value. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Corporate debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Fund&#146;s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services utilize a market-based approach through which quotes from market makers are used to determine fair value. In other instances, the pricing services utilize proprietary valuation models to develop an income-based valuation which may consider characteristics such as option-adjusted spreads, credit risk and spreads, benchmark yield curves, coupon rates, maturity and other unique security features in order to estimate the relevant cash flows which are then used to calculate the fair value. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Senior secured corporate loans with floating or variable interest rates generally trade in the over-the-counter market rather than on a securities exchange. The Fund&#146;s pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the pricing services utilize a market-based approach through which quotes from market makers, loan dealers, or financial institutions are used to determine fair value. In other instances, the pricing services utilize proprietary valuation models to develop an income-based valuation which may consider characteristics such as issuer type, coupon, maturity, weighted average maturity, interest rate spreads and yield curves, cash flow and credit risk/quality analysis in order to estimate the relevant cash flows which are then used to calculate the fair value. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>The Fund has procedures to determine the fair value of investments for which market prices are not readily available or which may not be reliably priced. Under these procedures, the Fund primarily employs a market-based approach, which may use prices of recent transactions, various market multiples, book values, and other relevant information for the investment, related assets or liabilities or other comparable assets or liabilities to determine the fair value of the investment. In developing this fair value, the Fund may also give consideration to an income-based approach valuation, which considers anticipated future cash flows of the investment and converts those amounts into a net present 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 a ready market existed. </DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Trading in securities on foreign exchanges and over-the-counter markets may be completed before the daily close of business on the NYSE. Occasionally, events occur between the time at which trading in a foreign security is completed and the close of the NYSE that might call into question the availability (including the reliability) of the value of a foreign security held by the Fund. As a result, variances may arise between the value of the Fund&#146;s portfolio securities as determined at the foreign market close and the latest indications of value at the close of the NYSE. In order to minimize the potential for these discrepancies, the investment manager monitors price movements following the close of trading in foreign stock markets through a series of country specific market proxies (such as baskets of American Depository Receipts, futures contracts and exchange traded funds). These price movements are measured against established trigger threshold
s 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. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>Investments in open-end mutual funds are valued at the closing net asset value. </DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>3. INCOME TAXES</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>At May&nbsp;31, 2010, the cost of investments and net unrealized appreciation (depreciation)&nbsp;for income tax purposes were as follows: </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="88%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">Cost of investments</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">192,392,141</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">Unrealized appreciation</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">17,289,120</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">Unrealized depreciation</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=left width="1%">&nbsp;</TD>
     <TD align=right width="5%">(12,615,228</TD>
     <TD noWrap width="1%">)</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">Net unrealized appreciation (depreciation)</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">4,673,892</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="88%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>4. RESTRICTED SECURITIES</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>At May&nbsp;31, 2010, the Fund held investments in restricted securities, excluding certain securities exempt from registration under the 1933 Act deemed to be liquid, as follows: </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="52%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD noWrap align=center width="6%" colSpan=2><B>Shares</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=left width="52%"><B>Issuer</B></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="6%" colSpan=2><B>Acquisition Date</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="6%" colSpan=2><B>Cost</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="6%" colSpan=2><B>Value</B></TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="100%" colSpan=17>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left width="1%">&nbsp;</TD>
     <TD vAlign=top align=right width="5%">181,875</TD>
     <TD vAlign=top width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">VS Holdings Inc.</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD align=right width="5%">12/06/01</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">181,875</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=left width="1%">$</TD>
     <TD align=right width="5%">&#151;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD vAlign=top align=left width="1%">&nbsp;</TD>
     <TD vAlign=top align=right width="5%">&nbsp;</TD>
     <TD vAlign=top width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">&nbsp;</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" noWrap align=right width="6%" colSpan=2>&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left width="1%">&nbsp;</TD>
     <TD vAlign=top align=right width="5%">&nbsp;</TD>
     <TD vAlign=top width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px"><B>Total Restricted Securities (0.00% of Net Assets)</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD></TR></TABLE></DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>5. OTHER CONSIDERATIONS</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>From time to time, officers, directors or employees of the Fund&#146;s Investment Manager may have discussions or enter into agreements with issuers, underwriters or creditors&#146; committees which, pursuant to the Fund&#146;s policies and requirements of applicable securities laws, could prevent the Fund from trading in the securities of such company for limited or extended periods of time. </DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>6. FAIR VALUE MEASUREMENTS</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>The Fund follows a fair value hierarchy that distinguishes between market data obtained from independent sources (observable inputs) and the Fund&#146;s own market assumptions (unobservable inputs). These inputs are used in determining the value of the Fund&#146;s investments and are summarized in the following fair value hierarchy: </DIV>
<DIV style="MARGIN-TOP: 6pt">
<DIV align=left>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR style="FONT-SIZE: 10pt; BACKGROUND: none transparent scroll repeat 0% 0%; COLOR: #000000" vAlign=top>
     <TD style="BACKGROUND: none transparent scroll repeat 0% 0%" width="2%">&nbsp;</TD>
     <TD noWrap align=left width="3%"><B>&#149;</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Level 1 &#151; quoted prices in active markets for identical securities</TD></TR>
<TR>
     <TD style="FONT-SIZE: 6pt" width="2%">&nbsp;</TD>
     <TD width="3%"></TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR style="FONT-SIZE: 10pt; BACKGROUND: none transparent scroll repeat 0% 0%; COLOR: #000000" vAlign=top>
     <TD style="BACKGROUND: none transparent scroll repeat 0% 0%" width="2%">&nbsp;</TD>
     <TD noWrap align=left width="3%"><B>&#149;</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Level 2 &#151; other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speed, credit risk, etc.)</TD></TR></TABLE></DIV></DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
</DIV>
<DIV style="FONT-FAMILY: Helvetica,Arial,sans-serif">
<DIV style="MARGIN-TOP: 6pt">
<DIV align=left>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR style="FONT-SIZE: 10pt; BACKGROUND: none transparent scroll repeat 0% 0%; COLOR: #000000" vAlign=top>
     <TD style="BACKGROUND: none transparent scroll repeat 0% 0%" width="2%">&nbsp;</TD>
     <TD noWrap align=left width="3%"><B>&#149;</B></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Level 3 &#151; significant unobservable inputs (including the Fund&#146;s own assumptions in determining the fair value of investments)</TD></TR></TABLE></DIV></DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>The following is a summary of the inputs used as of May&nbsp;31, 2010, in valuing the Fund&#146;s assets carried at fair value: </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="52%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="52%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Level 1</B></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Level 2</B></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Level 3</B></TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Total</B></TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="52%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="43%" colSpan=15>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><B>Assets:</B></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Investments in Securities:</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Equity Investments:<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">Automobiles &amp; Components</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">1,096</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">1,096</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">Commercial &amp; Professional Services</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD noWrap align=right width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD noWrap width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top"><B>b</B></SUP></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD noWrap width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top"><B>b</B></SUP></TD></TR>
<TR vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">Diversified Financials</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">454,359</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">454,359</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">Other Equity Investments<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">c</SUP></DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">54,297,254</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">54,297,254</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Senior Floating Rate Interests</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">1,703,274</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">1,703,274</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Corporate Bonds</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">139,460,144</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">139,460,144</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Short Term Investments</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">1,149,906</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">1,149,906</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="52%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="43%" colSpan=15>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="52%">
<DIV style="MARGIN-LEFT: 60px; TEXT-INDENT: -15px">Total Investments in Securities</DIV></TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">55,447,160</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">141,617,777</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">1,096</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">197,066,033</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="52%">&nbsp;</TD>
     <TD width="5%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="43%" colSpan=15>&nbsp;</TD></TR></TABLE></DIV>
<DIV align=left>
<DIV style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 16pt; FONT-SIZE: 3pt; WIDTH: 18%"></DIV></DIV>
<DIV align=left>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="3%"></TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Includes common and preferred stock.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">b</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>Includes security determined to have no value at May&nbsp;31, 2010.</TD></TR>
<TR style="FONT-SIZE: 3pt">
     <TD width="3%">&nbsp;</TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">0</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>For detailed industry descriptions, see the accompanying Statement of Investments.</TD></TR></TABLE></DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>At May&nbsp;31, 2010, the reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value, is as follows: </DIV>
<DIV align=center>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Net Change in</B></TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Unrealized</B></TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Appreciation</B></TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Net Change in</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Balance</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>(Depreciation)</B></TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Balance at</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Net</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Unrealized</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Net</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Transfer</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>at End</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>on Assets</B></TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Beginning of</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Realized</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Appreciation</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Purchases</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>In (Out) of</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>of</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Held at Period</B></TD></TR>
<TR style="FONT-SIZE: 8pt" vAlign=bottom>
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Period</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Gain (Loss)</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>(Depreciation)</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>(Sales)</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Level 3</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>Period</B></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=center width="7%" colSpan=3><B>End</B></TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="73%" colSpan=27>&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="23%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px"><B>Assets</B></DIV></TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="23%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Equity Investments:</DIV></TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="1%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="23%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">Automobiles &amp; Components</DIV></TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">1,096</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">1,096</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="23%">
<DIV style="MARGIN-LEFT: 45px; TEXT-INDENT: -15px">Commercial &amp; Professional Services</DIV></TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=right width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD noWrap width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=right width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD noWrap width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="BACKGROUND: #cceeff" vAlign=bottom>
     <TD width="23%">
<DIV style="MARGIN-LEFT: 30px; TEXT-INDENT: -15px">Corporate Bonds</DIV></TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">7,216</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=right width="3%">&nbsp;</TD>
     <TD align=right width="1%">(718,255</TD>
     <TD noWrap width="3%">)</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">714,387</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=right width="3%">&nbsp;</TD>
     <TD align=right width="1%">(3,348</TD>
     <TD noWrap width="3%">)</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="73%" colSpan=27>&nbsp;</TD></TR>
<TR vAlign=bottom>
     <TD width="23%">
<DIV style="MARGIN-LEFT: 15px; TEXT-INDENT: -15px">Total</DIV></TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">8,312</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=right width="3%">$</TD>
     <TD align=right width="1%">(718,255</TD>
     <TD noWrap width="3%">)</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">714,387</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD noWrap align=right width="3%">$</TD>
     <TD align=right width="1%">(3,348</TD>
     <TD noWrap width="3%">)</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">1,096</TD>
     <TD width="3%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD align=right width="3%">$</TD>
     <TD align=right width="1%">&#151;</TD>
     <TD width="3%">&nbsp;</TD></TR>
<TR style="FONT-SIZE: 1px">
     <TD width="23%">&nbsp;</TD>
     <TD width="4%">&nbsp;</TD>
     <TD style="BORDER-TOP: #000000 1px solid" align=left width="73%" colSpan=27>&nbsp;</TD></TR></TABLE></DIV>
<DIV align=left>
<DIV style="BORDER-TOP: #000000 1px solid; MARGIN-TOP: 16pt; FONT-SIZE: 3pt; WIDTH: 18%"></DIV></DIV>
<DIV align=left>
<TABLE style="FONT-SIZE: 10pt" cellSpacing=0 cellPadding=0 width="100%" border=0>
<TR>
     <TD width="3%"></TD>
     <TD width="1%"></TD>
     <TD></TD></TR>
<TR vAlign=top>
     <TD noWrap align=left width="3%"><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">a</SUP></TD>
     <TD width="1%">&nbsp;</TD>
     <TD>includes security determined to have no value at May&nbsp;31, 2010.</TD></TR></TABLE></DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>7. NEW ACCOUNTING PRONOUNCEMENTS</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>In January&nbsp;2010, the Financial Accounting Standards Board issued an Accounting Standards Update which enhances and clarifies existing fair value measurement disclosure requirements and is effective for interim and annual periods beginning after December&nbsp;15, 2009. The Fund believes the adoption of this Accounting Standards Update will not have a material impact on its financial statements. </DIV>
<DIV style="MARGIN-TOP: 12pt; FONT-SIZE: 10pt" align=left><B>8. SUBSEQUENT EVENTS</B> </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>The Fund has evaluated subsequent events through the issuance of the financial statements and determined that no events have occurred that require disclosure. </DIV>
<DIV style="MARGIN-TOP: 6pt; FONT-SIZE: 10pt" align=left>For information on the Fund&#146;s policy regarding other significant accounting policies, please refer to the Fund&#146;s most recent semiannual or annual shareholder report. </DIV>
<P style="FONT-SIZE: 10pt" align=center></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Item 2. Controls and Procedures.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">(a) </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Evaluation of Disclosure Controls and Procedures</FONT></U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">.&nbsp; The Registrant maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Registrant&#146;s filings under the Securities Exchange Act of 1934 and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission.&nbsp; Such information is accumulated and communicated to the Registrant&#146;s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.&nbsp; The Registrant&#146;s management, including the principal executive officer and the principa
l financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio Holdings on Form N-Q, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant&#146;s management, including the Registrant&#146;s principal executive officer and the Registrant&#146;s principal financial officer, of the effectiveness of the design and operation of the Registrant&#146;s disclosure controls and procedures.&nbsp; Based on such evaluation, the Registrant&#146;s principal executive officer and principal financial officer concluded that the Registrant&#146;s disclosure controls and procedures are effective.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">(b) </FONT><U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Changes in Internal Controls</FONT></U><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">.&nbsp; There have been no significant changes in the Registrant&#146;s internal controls or in other factors that could significantly affect the internal controls subsequent to the date of their evaluation in connection with the preparation of this Quarterly Schedule of Portfolio Holdings on Form N-Q.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Item 3. Exhibits.</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">(a) Certification pursuant to Section 30a-2 under the Investment Company Act of 1940 of Laura F. Fergerson, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: center" align=center><B><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">SIGNATURES</FONT></B></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545>Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'" color=#454545></FONT>&nbsp;</P>
<H1 style="MARGIN: 0in 0in 0pt; TEXT-ALIGN: left" align=left><B><FONT style="FONT-SIZE: 10pt; TEXT-DECORATION: none" face="'Courier New'" color=windowtext>Franklin Universal Trust</FONT></B></H1>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 12pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">By <U>/s/LAURA F. FERGERSON</U></FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Laura F. Fergerson</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer &#150; </FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;Finance and Administration</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Date&nbsp; July 27, 2010</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the </FONT>

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<FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">following persons on behalf of the registrant and in the capacities and on the dates indicated.</FONT></P>
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<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">By <U>/s/LAURA F. FERGERSON</U></FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Laura F. Fergerson</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Executive Officer &#150; </FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;Finance and Administration</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Date&nbsp; July 27, 2010</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'"></FONT>&nbsp;</P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">By <U>/s/GASTON GARDEY</U></FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gaston Gardey</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chief Financial Officer and</FONT></P>
<P style="MARGIN: 0in 0in 0pt; TEXT-INDENT: 0.5in"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">&nbsp;Chief Accounting Officer</FONT></P>
<P style="MARGIN: 0in 0in 0pt"><FONT lang=EN-US style="FONT-SIZE: 10pt" face="'Courier New'">Date&nbsp; July 27, 2010</FONT></P>
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<DOCUMENT>
<TYPE>EX-99.CERT
<SEQUENCE>2
<FILENAME>fut302cert_053110.htm
<DESCRIPTION>SECTION 302 CERTIFICATION
<TEXT>

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<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#16
0;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
Exhibit 3(a)</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">I, Laura F. Fergerson,
certify that:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">1.
I have reviewed this report on Form N-Q of </font><b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">Franklin Universal Trust</font></b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">2. Based on my knowledge, this report does not contain
any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this report; </font><b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&#160;</font></b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&#160;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">3. Based on my
knowledge, the schedules of investments included in this report fairly present
in all material respects the investments of the registrant as of the end of the
fiscal quarter for which the report is filed; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">4. The registrant's other certifying officer(s) and I
are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(a) Designed such disclosure controls and
procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this
report is being prepared;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(b) Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(c) Evaluated the effectiveness of the registrant's
disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such
evaluation; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(d) Disclosed in this report any change in the
registrant's internal control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over
financial reporting; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">5. The registrant's other certifying officer(s) and I have
disclosed to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent
functions):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(a) All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize, and report financial information; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal control over financial reporting.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">7/27/2010</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">S\LAURA F. FERGERSON</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">Laura F. Fergerson </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:12.0pt;">Chief Executive Officer - Finance and Administration</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">I, Gaston Gardey, certify
that:</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">1.
I have reviewed this report on Form N-Q of </font><b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">Franklin Universal Trust</font></b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">;</font></p>

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<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">2. Based on my knowledge,
this report does not contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements made, in light of the
circumstances under which such statements were made, not misleading with
respect to the period covered by this report; </font><b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&#160;</font></b><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&#160;</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">3. Based on my
knowledge, the schedules of investments included in this report fairly present
in all material respects the investments of the registrant as of the end of the
fiscal quarter for which the report is filed; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">4. The registrant's other certifying officer(s) and I
are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company Act of
1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have:</font></p>

<p style="margin-bottom:0in;margin-left:0in;margin-right:0in;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(a) Designed such disclosure controls and
procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report
is being prepared;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(b) Designed such internal control over financial
reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(c) Evaluated the effectiveness of the registrant's
disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of a date
within 90 days prior to the filing date of this report, based on such
evaluation; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(d) Disclosed in this report any change in the
registrant's internal control over financial reporting that occurred during the
registrant's most recent fiscal quarter that has materially affected, or is
reasonably likely to materially affect, the registrant's internal control over
financial reporting; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">5. The registrant's other certifying officer(s) and I
have disclosed to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent
functions):</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(a) All significant deficiencies and material
weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant's
ability to record, process, summarize, and report financial information; and</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:6.0pt;text-align:justify;text-indent:.25in;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">(b) Any fraud, whether or not material, that involves
management or other employees who have a significant role in the registrant's
internal control over financial reporting.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">7/27/2010</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:50%;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">S\GASTON GARDEY</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;line-height:12.0pt;">&nbsp;</font></b></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:11.0pt;">Gaston Gardey </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="'Times New Roman'" lang=EN-US style="font-size:12.0pt;">Chief Financial Officer and Chief Accounting Officer</font></p>








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