N-CSR 1 primary-document.htm

#
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-05569
Franklin Universal Trust
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices)(Zip code)
Alison Baur, One Franklin Parkway, San Mateo, Ca 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 8/31
Date of reporting period: 8/31/23
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
Annual
Report
Franklin
Universal
Trust
August
31,
2023
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
Distribution
Policy
:
The
Fund’s
Board
of
Trustees
(the
“Board”)
has
authorized
a
distribution
policy
(the
“Distribution
Policy”).
Under
the
Distribution
Policy,
the
Fund
pays
monthly
distributions
and
seeks
to
maintain
a
relatively
stable
level
of
distributions
to
shareholders.
With
each
distribution,
the
Fund
will
issue
a
notice
to
its
shareholders
and
an
accompanying
press
release
that
provides
estimates
regarding
the
amount
and
composition
of
the
distribution.
The
Fund
will
send
a
Form
1099-DIV
to
shareholders
for
the
calendar
year
that
will
describe
how
to
report
the
Fund’s
distributions
for
federal
income
tax
purposes.
Shareholders
should
not
draw
any
conclusions
about
the
Fund’s
investment
performance
from
the
amount
of
distributions
or
from
the
terms
of
the
Fund’s
Distribution
Policy.
The
Board
may
amend
or
terminate
the
Distribution
Policy
at
any
time
without
prior
notice
to
shareholders;
however,
at
this
time
there
are
no
reasonably
foreseeable
circumstances
that
might
cause
the
termination
of
the
Distribution
Policy.
franklintempleton.com
Annual
Report
1
Contents
Fund
Overview
2
Performance
Summary
4
Financial
Highlights
and
Schedule
of
Investments
7
Financial
Statements
37
Notes
to
Financial
Statements
41
Report
of
Independent
Registered
Public
Accounting
Firm
51
Tax
Information
52
Important
Information
to
Shareholders
53
Annual
Meeting
of
Shareholders
56
Dividend
Reinvestment
and
Cash
Purchase
Plan
57
Board
Members
and
Officers
59
Shareholder
Information
63
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Annual
Report
Franklin
Universal
Trust
Dear
Shareholder,
This
annual
report
for
Franklin
Universal
Trust
covers
the
fiscal
year
ended
August
31,
2023.
Fund
Overview
Q.
What
is
the
Fund's
investment
strategy?
A.
The
Fund’s
primary
investment
objective
is
to
provide
high,
current
income
consistent
with
preservation
of
capital.
Its
secondary
objective
is
growth
of
income
through
dividend
increases
and
capital
appreciation.
We
invest
primarily
in
two
asset
classes:
high-yield
bonds
and
utility
stocks.
Within
the
high-yield
portion
of
the
portfolio,
we
use
fundamental
research
to
invest
in
a
diversified
portfolio
of
bonds.
Within
the
utility
portion
of
the
portfolio,
we
focus
on
companies
with
attractive
dividend
yields
and
with
a
history
of
increasing
their
dividends.
Q.
What
were
the
overall
market
conditions
during
the
Fund's
reporting
period?
A.
Inflation
levels
and
central
bank
action
remained
the
focus
of
financial
markets
during
the
12-month
period
under
review.
The
U.S.
Federal
Reserve
(Fed)
continued
its
aggressive
action
to
address
the
decades-high
levels
of
inflation,
taking
a
breather
at
its
June
2023
meeting
after
a
15-month
long
rate
hiking
campaign,
followed
by
a
25-basis
point
increase
in
the
fed
funds
target
rate
in
July’s
meeting.
The
Fed
retained
its
“data-dependent”
stance
towards
future
meeting
actions,
as
had
been
widely
expected.
The
UST
yield
curve
shifted
higher
during
the
period
under
review,
especially
the
shorter
end
of
the
curve.
The
yield
curve
remained
inverted,
which
is
often
a
sign
of
a
slowing
economy.
Over
the
period,
headline
inflation
measures
moved
significantly
lower
such
that
a
soft-landing
scenario
for
the
U.S.
economy
increasingly
became
a
general
market
consensus.
While
the
overall
U.S.
market
performed
well,
utilities
underperformed.
Rising
interest
rates
caused
a
rotation
away
from
the
utility
sector
throughout
the
year.
Interest
rates
rose
above
the
average
dividend
yield
for
the
utility
sector,
enticing
investors
to
move
to
higher
yielding
instruments.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
As
interest
rates
are
likely
to
remain
higher
for
longer
than
markets
anticipate,
issuers
with
sizeable
bank
borrowings
continued
to
experience
rising
interest
expenses,
especially
for
those
that
had
not
hedged
their
interest
rate
exposure.
We
expect
a
continued
divergence
in
earnings
trends
between
winners
and
losers
against
a
backdrop
of
elevated
interest
expenses
and
a
potentially
slowing
economy.
We
responded
to
the
challenges
by
reiterating
our
focus
on
prudent
security
selection
and
individual
company
fundamentals.
Throughout
the
year,
we
evaluated
our
utility
holdings’
exposure
to
rising
interest
rates.
Utilities
largely
exposed
to
floating-rate
debt,
or
those
with
near-term
maturities,
saw
some
headwinds
from
the
impact
of
rising
rates.
Across
the
portfolio,
we
also
evaluated
affordability
concerns
among
different
parts
of
the
U.S.
We
believe
that
those
utilities
that
enter
rate
cases
to
pass-through
costs
to
customer
bills
may
see
pressure
receiving
their
full-ask
due
to
inflation’s
impact
on
the
consumer.
Performance
Overview
For
the
12
months
under
review,
the
Fund’s
cumulative
total
returns
were
-1.81%
based
on
net
asset
value
and
-8.24%
based
on
market
price.
For
comparison,
the
Credit
Suisse
(CS)
High
Yield
Index,
which
is
designed
to
mirror
the
investable
universe
of
the
U.S.
dollar-denominated
high-
yield
debt
traded
in
the
U.S.
credit
market,
posted
a
+7.28%
cumulative
total
return,
and
utilities
stocks,
as
measured
by
the
Standard
&
Poor’s
®
(S&P
®
)
500
Utilities
Index,
which
consists
of
all
utility
stocks
in
the
S&P
500
®
Index,
posted
a
-12.65%
cumulative
total
return
for
the
same
period.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
on
page
4
.
The
Fund
has
a
policy
of
seeking
to
maintain
a
relatively
stable
level
of
distributions
to
shareholders.
This
policy
has
no
impact
on
the
Fund’s
investment
strategy
and
may
reduce
the
Fund’s
net
asset
value.
The
Fund’s
investment
manager
believes
the
policy
helps
maintain
the
Fund’s
competitiveness
and
may
benefit
the
Fund’s
market
price
and
premium/discount
to
the
Fund’s
net
asset
value.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
8
.
Franklin
Universal
Trust
3
franklintempleton.com
Annual
Report
Q.
What
were
the
leading
contributors
to
performance?
A.
Security
selection
was
a
leading
contributor
to
performance
within
the
high-yield
(HY)
portfolio.
While
the
broader
market
was
shunning
risk
in
anticipation
of
an
imminent
recession,
our
fundamental
research
led
to
investments
in
several
lower-rated
bonds
that
we
believed
had
strong
credit
profiles
that
would
withstand
a
potential
recession.
These
types
of
bonds
outperformed
over
the
past
year
as
market
views
changed
toward
a
soft-landing
consensus.
Industry
positioning
also
benefited
performance,
in
particular
our
underweighted
exposure
to
some
of
the
more
challenged
sectors
such
as
PayTV
and
Telecom.
HY
bonds
rebounded
from
their
selloff
prior
to
the
period
under
review
and
generated
positive
returns.
For
the
utility
sector,
Southern
Company
was
a
leading
relative
performer
as
the
company
placed
Unit
3
of
its
Vogtle
nuclear
plant
in-
service
and
continues
to
move
toward
completion
of
Unit
4.
CenterPoint
Energy
continued
to
outperform
as
the
company
executes
on
its
industry-leading
growth
plan,
while
Duke
Energy
continued
to
successfully
work
through
its
regulatory
items
in
the
Carolinas.
Q.
What
were
the
leading
detractors
from
performance?
A.
The
Fund’s
overweighted
exposure
to
utility
stocks
detracted
from
performance,
as
they
were
more
impacted
by
rising
rates.
NextEra
Energy
was
a
leading
detractor
from
performance,
as
rising
rates
were
also
a
concern
for
the
renewables
business
along
with
the
ongoing
investigation
into
possibly
violating
campaign
finance
laws.
American
Electric
Power’s
underperformance
was
driven
by
the
failed
sale
of
its
Kentucky
business
and
other
regulatory
headwinds
across
different
service
territories.
Evergy
Inc
was
pressured
throughout
the
year,
as
investors
were
concerned
by
datapoints
that
came
out
of
its
Kansas
rate
case.
Thank
you
for
your
continued
participation
in
Franklin
Universal
Trust.
We
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Glenn
Voyles,
CFA
Jonathan
G.
Belk,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
8/31/23
%
of
Total
Investments
*
Corporate
Bonds
57.1%
Common
Stocks
35.0%
Marketplace
Loans
4.5%
Other
†
0.5%
Short-Term
Investments
2.9%
*
Total
investments
of
the
Fund
excludes
long-term
debt
issued
by
the
Fund.
†
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Top
10
Holdings
8/31/23
Issuer
%
of
Total
Net
Assets
a
a
NextEra
Energy,
Inc.
4.2%
Sempra
3.4%
American
Electric
Power
Co.,
Inc.
2.8%
CMS
Energy
Corp.
2.4%
Alliant
Energy
Corp.
2.2%
Evergy
,
Inc.
2.1%
Southern
Co.
(The)
1.9%
Duke
Energy
Corp.
1.9%
CenterPoint
Energy,
Inc.
1.9%
Freeport-McMoRan,
Inc.
1.7%
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
August
31,
2023
Franklin
Universal
Trust
4
franklintempleton.com
Annual
Report
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Total
returns
do
not
reflect
any
sales
charges
paid
at
inception
or
brokerage
commissions
paid
on
secondary
market
purchases.
Total
return
also
does
not
reflect
brokerage
commissions
or
sales
charges
in
connection
with
the
purchase
or
sale
of
Fund
shares
at
the
opening
of
the
first
business
day
and
sale
on
the
closing
of
the
last
business
day
of
each
period.
The
performance
table
and
graph
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
8/31/23
1
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
Cumulative
Total
Return
2
Average
Annual
Total
Return
2
Based
on
NAV
3
Based
on
market
price
4
Based
on
NAV
3
Based
on
market
price
4
1-Year
-1.81%
-8.24%
-1.81%
-8.24%
5-Year
+22.11%
+36.56%
+4.08%
+6.43%
10-Year
+69.73%
+88.09%
+5.43%
+6.52%
See
page
6
for
Performance
Summary
footnotes.
Franklin
Universal
Trust
Performance
Summary
5
franklintempleton.com
Annual
Report
See
page
6
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
period
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
8/31/13–8/31/23
Franklin
Universal
Trust
Performance
Summary
6
franklintempleton.com
Annual
Report
Shares
Prices
1
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund
is
actively
managed
but
there
is
no
guarantee
that
the
manager's
investment
decisions
will
produce
the
desired
results.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
Equity
securities
are
subject
to
price
fluctuation
and
possible
loss
of
principal.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
Dividends
may
fluctuate
and
are
not
guaranteed,
and
a
company
may
reduce
or
eliminate
its
dividend
at
any
time.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determi-
native
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
1.
The
total
annual
operating
expenses
are
as
of
the
Fund's
annual
report
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Total
return
calculations
represent
the
cumulative
and
average
annual
changes
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Assumes
reinvestment
of
distributions
based
on
net
asset
value.
4.
Assumes
reinvestment
of
distributions
based
on
the
dividend
reinvestment
and
cash
purchase
plan.
5.
Source:
Morningstar.
The
CS
High
Yield
Index
is
designed
to
mirror
the
investable
universe
of
the
U.S.
dollar-denominated
high-yield
debt
traded
in
the
U.S.
credit
market.
The
S&P
®
500
Utilities
Index
is
market
capitalization
weighted
and
consists
of
all
utility
stocks
in
the
S&P
500
®
.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Symbol:
FT
8/31/23
8/31/22
Change
Net
Asset
Value
(NAV)
$7.36
$8.08
-$0.72
Market
Price
(NYSE)
$6.76
$8.00
-$1.24
Distributions
(9/1/22–8/31/23)
Net
Investment
Income
Long-Term
Capital
Gain
Tax
Return
of
Capital
Total
$0.3095
$0.0539
$0.2078
$0.5712
Franklin
Universal
Trust
Financial
Highlights
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
7
a
Year
Ended
August
31,
2023
2022
2021
2020
2019
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$8.08
$8.92
$8.12
$8.57
$7.99
Income
from
investment
operations:
Net
investment
income
a
.........................
0.43
0.41
0.38
0.41
0.38
Net
realized
and
unrealized
gains
(losses)
...........
(0.58)
(0.70)
0.85
(0.48)
0.58
Total
from
investment
operations
....................
(0.15)
(0.29)
1.23
(0.07)
0.96
Less
distributions
from:
Net
investment
income
..........................
(0.31)
(0.51)
(0.43)
(0.38)
(0.38)
Net
realized
gains
.............................
(0.05)
(0.04)
—
(—)
b
—
Tax
return
of
capital
............................
(0.21)
—
—
—
—
Total
distributions
...............................
(0.57)
(0.55)
(0.43)
(0.38)
(0.38)
Net
asset
value,
end
of
year
.......................
$7.36
$8.08
$8.92
$8.12
$8.57
Market
value,
end
of
year
c
.........................
$6.76
$8.00
$8.59
$7.00
$7.37
Total
return
(based
on
net
asset
value
per
share)
d
.......
(1.81)%
(3.41)%
15.33%
(0.67)%
12.40%
Total
return
(based
on
market
value
per
share)
d
.........
(8.24)%
(0.36)%
29.55%
0.25%
15.02%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
2.78%
2.57%
2.50%
2.49%
2.45%
Expenses
net
of
waiver
and
payments
by
affiliates
e
......
2.77%
2.57%
f
2.50%
f
2.49%
f
2.44%
Net
investment
income
...........................
5.66%
4.85%
4.38%
5.01%
4.69%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$184,859
$203,053
$224,246
$204,094
$215,292
Portfolio
turnover
rate
............................
17.73%
22.29%
36.58%
35.26%
21.70%
Total
debt
outstanding
at
end
of
year
(000's)
...........
$65,000
$65,000
$65,000
$65,000
$65,000
Asset
coverage
per
$1,000
of
debt
..................
$3,844
$4,124
$4,450
$4,140
$4,312
Average
amount
of
senior
rate
fixed
Notes
per
share
during
the
year
......................................
$2.59
$2.59
$2.59
$2.59
$2.59
a
Based
on
average
daily
shares
outstanding.
b
Amount
rounds
to
less
than
$0.01
per
share.
c
Based
on
the
last
sale
on
the
New
York
Stock
Exchange.
d
The
Market
Value
Total
Return
is
calculated
assuming
a
purchase
of
common
shares
on
the
opening
of
the
first
business
day
and
a
sale
on
the
closing
of
the
last
business
day
of
each
period.
Dividends
and
distributions
are
assumed
for
the
purposes
of
this
calculation
to
be
reinvested
at
prices
obtained
under
the
Fund's
Dividend
Reinvestment
and
Cash
Purchase
Plan.
Net
Asset
Value
Total
Return
is
calculated
on
the
same
basis,
except
that
the
Fund's
net
asset
value
is
used
on
the
purchase,
sale
and
dividend
reinvestment
dates
instead
of
market
value.
Total
return
does
not
reflect
brokerage
commissions
or
sales
charges
in
connection
with
the
purchase
or
sale
of
Fund
shares.
e
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
f
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
Universal
Trust
Schedule
of
Investments,
August
31,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
46.9%
Electric
Utilities
24.9%
Alliant
Energy
Corp.
...................................
United
States
80,000
$
4,013,600
American
Electric
Power
Co.,
Inc.
.........................
United
States
65,000
5,096,000
Constellation
Energy
Corp.
..............................
United
States
21,666
2,256,731
Duke
Energy
Corp.
....................................
United
States
40,000
3,552,000
Edison
International
...................................
United
States
36,000
2,478,600
Entergy
Corp.
........................................
United
States
30,000
2,857,500
Evergy
,
Inc.
..........................................
United
States
72,000
3,957,840
Exelon
Corp.
.........................................
United
States
65,000
2,607,800
FirstEnergy
Corp.
.....................................
United
States
61,000
2,200,270
NextEra
Energy,
Inc.
...................................
United
States
115,000
7,682,000
Pinnacle
West
Capital
Corp.
.............................
United
States
25,000
1,931,750
PPL
Corp.
...........................................
United
States
24,500
610,540
Southern
Co.
(The)
....................................
United
States
53,000
3,589,690
Xcel
Energy,
Inc.
......................................
United
States
55,000
3,142,150
45,976,471
Independent
Power
and
Renewable
Electricity
Producers
1.5%
a
Talen
Energy
Corp.
....................................
United
States
31,116
1,719,159
a
Talen
Energy
Corp.
....................................
United
States
19,400
1,071,850
2,791,009
Metals
&
Mining
2.6%
BHP
Group
Ltd.,
ADR
..................................
Australia
25,185
1,447,885
Freeport-McMoRan,
Inc.
................................
United
States
80,380
3,207,966
South32
Ltd.,
ADR
....................................
Australia
10,074
110,512
4,766,363
Multi-Utilities
16.3%
CenterPoint
Energy,
Inc.
................................
United
States
122,800
3,424,892
CMS
Energy
Corp.
....................................
United
States
78,000
4,382,820
Consolidated
Edison,
Inc.
...............................
United
States
35,000
3,113,600
Dominion
Energy,
Inc.
..................................
United
States
65,000
3,155,100
DTE
Energy
Co.
......................................
United
States
30,000
3,101,400
NiSource,
Inc.
........................................
United
States
60,000
1,605,600
Public
Service
Enterprise
Group,
Inc.
......................
United
States
45,000
2,748,600
Sempra
.............................................
United
States
90,000
6,319,800
WEC
Energy
Group,
Inc.
................................
United
States
28,000
2,355,360
30,207,172
Oil,
Gas
&
Consumable
Fuels
1.6%
a
Amplify
Energy
Corp.
..................................
United
States
245
1,602
Birch
Permian
Holdings,
Inc.
.............................
United
States
32,490
488,714
California
Resources
Corp.
..............................
United
States
27
1,508
Chesapeake
Energy
Corp.
..............................
United
States
1,871
165,041
DT
Midstream,
Inc.
....................................
United
States
15,000
784,350
Enbridge,
Inc.
........................................
Canada
39,360
1,380,749
Woodside
Energy
Group
Ltd.,
ADR
........................
Australia
9,101
217,332
3,039,296
Total
Common
Stocks
(Cost
$37,675,236)
......................................
86,780,311
Preferred
Stocks
0.3%
Electric
Utilities
0.3%
SCE
Trust
II,
5.1%
....................................
United
States
27,500
530,750
Total
Preferred
Stocks
(Cost
$598,125)
.........................................
530,750
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
a
Country
Warrants
a
Value
a
a
a
a
a
a
Warrants
0.0%
†
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a
California
Resources
Corp.,
10/27/24
......................
United
States
64
$
1,357
Total
Warrants
(Cost
$–)
......................................................
1,357
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
b,c,d,e
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
28,028
1,988
Total
Convertible
Bonds
(Cost
$7,728)
.........................................
1,988
Corporate
Bonds
76.7%
Aerospace
&
Defense
0.3%
e
TransDigm
,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
8/15/28
....
United
States
600,000
602,853
Automobile
Components
2.5%
e
Adient
Global
Holdings
Ltd.
,
Senior
Note,
144A,
8.25%,
4/15/31
......................
United
States
700,000
718,290
Senior
Secured
Note,
144A,
7%,
4/15/28
..................
United
States
400,000
404,503
e
Allison
Transmission,
Inc.
,
Senior
Bond,
144A,
3.75%,
1/30/31
......................
United
States
300,000
250,849
Senior
Note,
144A,
4.75%,
10/01/27
.....................
United
States
600,000
563,846
e
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
1,400,000
1,208,682
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note,
9.5%,
5/31/25
............................
United
States
900,000
919,934
Senior
Note,
5%,
7/15/29
.............................
United
States
600,000
533,096
4,599,200
Automobiles
0.6%
e
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
...........................................
United
Kingdom
1,300,000
1,130,786
Banks
0.5%
d,f
JPMorgan
Chase
&
Co.
,
R
,
Junior
Sub.
Bond
,
FRN
,
8.934
%
,
(
3-month
SOFR
+
3.562
%
),
Perpetual
....................
United
States
900,000
902,340
Beverages
0.3%
e
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
700,000
614,880
Biotechnology
0.2%
e
Emergent
BioSolutions
,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
8/15/28
.
United
States
900,000
433,049
Broadline
Retail
0.5%
e
Macy's
Retail
Holdings
LLC
,
Senior
Bond,
144A,
6.125%,
3/15/32
.....................
United
States
500,000
429,200
Senior
Note,
144A,
5.875%,
3/15/30
.....................
United
States
500,000
437,950
867,150
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Building
Products
2.3%
e
Advanced
Drainage
Systems,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/30
...........................................
United
States
500,000
$
492,999
e
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....................................
United
States
200,000
199,703
e
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
...........................................
United
States
300,000
243,909
e
Eco
Material
Technologies,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
1/31/27
.....................................
United
States
500,000
488,010
e
Emerald
Debt
Merger
Sub
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
....................................
United
States
1,100,000
1,084,237
e
JELD-WEN,
Inc.
,
Senior
Note
,
144A,
4.875
%
,
12/15/27
.........
United
States
300,000
267,322
e
Oscar
AcquisitionCo
LLC
/
Oscar
Finance,
Inc.
,
Senior
Note
,
144A,
9.5
%
,
4/15/30
......................................
United
States
1,000,000
937,076
e
Standard
Industries,
Inc.
,
Senior
Bond,
144A,
4.75%,
1/15/28
......................
United
States
500,000
461,002
Senior
Bond,
144A,
4.375%,
7/15/30
.....................
United
States
100,000
85,821
4,260,079
Capital
Markets
0.2%
e
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/15/29
......................................
United
States
500,000
439,318
Chemicals
3.6%
b,e
Anagram
International,
Inc.
/
Anagram
Holdings
LLC
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
..............................
United
States
257,209
180,118
e
ASP
Unifrax
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
9/30/28
...........................................
United
States
200,000
135,442
e
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
Mexico
300,000
179,883
Celanese
US
Holdings
LLC
,
Senior
Note
,
6.33
%
,
7/15/29
.......
United
States
1,000,000
994,748
e
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........................................
Switzerland
600,000
501,674
e
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
300,000
264,006
e
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
1,500,000
1,408,579
e
Illuminate
Buyer
LLC
/
Illuminate
Holdings
IV,
Inc.
,
Senior
Note
,
144A,
9
%
,
7/01/28
...................................
United
States
1,000,000
926,775
b,e
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
..
United
States
200,000
146,250
e
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
..
United
States
1,000,000
1,032,730
e
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
33,000
32,483
e
Vibrantz
Technologies,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
.....
United
States
1,000,000
825,807
6,628,495
Commercial
Services
&
Supplies
1.5%
e
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
...........
United
States
800,000
690,023
e
Enviri
Corp.
,
Senior
Note
,
144A,
5.75
%
,
7/31/27
..............
United
States
500,000
434,150
e
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
600,000
534,196
e
Stericycle,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
1/15/29
...........
United
States
1,200,000
1,045,898
2,704,267
Communications
Equipment
0.5%
e
CommScope
,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
7/01/28
.........
United
States
1,600,000
892,982
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Construction
&
Engineering
1.2%
e
Arcosa
,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
300,000
$
270,111
e
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.......
United
States
800,000
730,260
e
Weekley
Homes
LLC
/
Weekley
Finance
Corp.
,
Senior
Note
,
144A,
4.875
%
,
9/15/28
.....................................
United
States
1,300,000
1,150,630
2,151,001
Construction
Materials
0.3%
e
Knife
River
Corp.
,
Senior
Note
,
144A,
7.75
%
,
5/01/31
..........
United
States
500,000
512,415
Consumer
Finance
2.1%
Ford
Motor
Credit
Co.
LLC
,
Senior
Note
,
6.95
%
,
3/06/26
........
United
States
500,000
501,735
e
GGAM
Finance
Ltd.
,
Senior
Note
,
144A,
8
%
,
6/15/28
..........
Ireland
700,000
710,472
OneMain
Finance
Corp.
,
Senior
Note
,
9
%
,
1/15/29
............
United
States
1,000,000
1,014,695
e
PRA
Group,
Inc.
,
Senior
Note,
144A,
8.375%,
2/01/28
.....................
United
States
600,000
548,185
Senior
Note,
144A,
5%,
10/01/29
.......................
United
States
300,000
226,555
e
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.........
United
States
900,000
808,722
3,810,364
Consumer
Staples
Distribution
&
Retail
0.4%
e
Albertsons
Cos.,
Inc.
/
Safeway,
Inc.
/
New
Albertsons
LP
/
Albertsons
LLC
,
Senior
Note
,
144A,
3.5
%
,
3/15/29
...........
United
States
800,000
692,752
Containers
&
Packaging
3.8%
e
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
600,000
514,671
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
800,000
782,302
e
LABL,
Inc.
,
Senior
Secured
Note
,
144A,
9.5
%
,
11/01/28
........
United
States
300,000
309,156
e
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note,
144A,
9.25%,
4/15/27
.....................
United
States
1,500,000
1,360,489
Senior
Secured
Note,
144A,
7.875%,
8/15/26
..............
United
States
1,000,000
985,645
e
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
6.625%,
5/13/27
.....................
United
States
375,000
371,018
Senior
Note,
144A,
7.25%,
5/15/31
......................
United
States
800,000
808,160
e
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
..........
United
States
300,000
266,522
e
Pactiv
Evergreen
Group
Issuer,
Inc.
/
Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
1,200,000
1,080,384
e
Trivium
Packaging
Finance
BV
,
Senior
Note
,
144A,
8.5
%
,
8/15/27
.
Netherlands
500,000
477,051
6,955,398
Distributors
0.4%
e
Ritchie
Bros
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
3/15/31
......................
Canada
500,000
517,760
Senior
Secured
Note,
144A,
6.75%,
3/15/28
...............
Canada
300,000
304,050
821,810
Diversified
Consumer
Services
0.4%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
......
United
States
800,000
723,040
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
REITs
1.3%
e
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
800,000
$
625,277
e
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
,
Senior
Note
,
144A,
6
%
,
4/15/25
...........................................
United
States
400,000
393,001
e
Necessity
Retail
REIT,
Inc.
(The)
/
American
Finance
Operating
Partner
LP
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
...............
United
States
900,000
690,098
e
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...........................................
United
States
700,000
643,246
2,351,622
Diversified
Telecommunication
Services
2.5%
e
Altice
France
Holding
SA
,
Senior
Secured
Note
,
144A,
10.5
%
,
5/15/27
...........................................
Luxembourg
1,500,000
815,257
e
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.375%,
6/01/29
.....................
United
States
500,000
455,537
Senior
Bond,
144A,
4.5%,
8/15/30
.......................
United
States
1,700,000
1,432,024
Senior
Bond,
144A,
4.25%,
2/01/31
......................
United
States
200,000
164,237
e
Iliad
Holding
SASU
,
Senior
Secured
Note
,
144A,
7
%
,
10/15/28
...
France
800,000
745,177
e
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
......................................
United
Kingdom
1,100,000
929,791
4,542,023
Electric
Utilities
0.7%
e
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
5.625%,
2/15/27
.....................
United
States
1,000,000
963,610
Senior
Note,
144A,
4.375%,
5/01/29
.....................
United
States
400,000
353,054
1,316,664
Electrical
Equipment
1.3%
e
Regal
Rexnord
Corp.
,
Senior
Bond,
144A,
6.4%,
4/15/33
.......................
United
States
400,000
396,591
Senior
Note,
144A,
6.3%,
2/15/30
.......................
United
States
500,000
498,245
e
Sensata
Technologies
BV
,
Senior
Note
,
144A,
4
%
,
4/15/29
......
United
States
1,000,000
879,310
e
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
800,000
718,945
2,493,091
Electronic
Equipment,
Instruments
&
Components
0.2%
e
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
........
United
States
500,000
434,815
Energy
Equipment
&
Services
2.8%
e
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.
,
b
Secured
Note,
144A,
PIK,
10%,
4/01/26
..................
United
States
982,453
874,175
Senior
Secured
Note,
144A,
7.5%,
4/01/25
................
United
States
402,000
390,877
e
Enerflex
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
10/15/27
........
Canada
900,000
896,157
e
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
600,000
577,834
Nabors
Industries,
Inc.
,
Senior
Note
,
5.75
%
,
2/01/25
...........
United
States
500,000
491,155
e
Transocean
Titan
Financing
Ltd.
,
Senior
Secured
Note
,
144A,
8.375
%
,
2/01/28
.....................................
United
States
300,000
308,485
e
Transocean,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
2/15/30
....
United
States
760,000
778,209
e
Weatherford
International
Ltd.
,
Senior
Note,
144A,
8.625%,
4/30/30
.....................
United
States
500,000
512,584
Senior
Secured
Note,
144A,
6.5%,
9/15/28
................
United
States
300,000
301,014
5,130,490
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Entertainment
1.0%
e
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
5.375
%
,
3/01/25
...........................................
France
1,000,000
$
975,300
Netflix,
Inc.
,
Senior
Bond
,
5.875
%
,
11/15/28
.................
United
States
800,000
824,385
1,799,685
Financial
Services
1.1%
e
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6
%
,
8/15/26
..
United
States
1,200,000
1,052,938
MGIC
Investment
Corp.
,
Senior
Note
,
5.25
%
,
8/15/28
..........
United
States
500,000
477,653
Radian
Group,
Inc.
,
Senior
Note
,
6.625
%
,
3/15/25
.............
United
States
600,000
600,393
2,130,984
Food
Products
0.8%
e
Chobani
LLC
/
Chobani
Finance
Corp.,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
11/15/28
...............................
United
States
800,000
718,608
e
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.......
United
States
200,000
195,670
e
Post
Holdings,
Inc.
,
Senior
Bond,
144A,
5.625%,
1/15/28
.....................
United
States
300,000
287,935
Senior
Bond,
144A,
4.625%,
4/15/30
.....................
United
States
400,000
354,753
1,556,966
Ground
Transportation
1.0%
e
EquipmentShare.com,
Inc.
,
Secured
Note
,
144A,
9
%
,
5/15/28
....
United
States
800,000
795,000
e
First
Student
Bidco
,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
..............................
United
States
900,000
766,276
e
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
300,000
274,020
1,835,296
Health
Care
Equipment
&
Supplies
0.7%
e
Garden
Spinco
Corp.
,
Senior
Note
,
144A,
8.625
%
,
7/20/30
......
United
States
400,000
427,420
e
Medline
Borrower
LP
,
Senior
Note,
144A,
5.25%,
10/01/29
.....................
United
States
500,000
444,508
Senior
Secured
Note,
144A,
3.875%,
4/01/29
..............
United
States
400,000
349,570
1,221,498
Health
Care
Providers
&
Services
3.1%
Centene
Corp.
,
Senior
Bond,
2.5%,
3/01/31
............................
United
States
500,000
398,627
Senior
Note,
2.45%,
7/15/28
...........................
United
States
500,000
428,631
Senior
Note,
2.625%,
8/01/31
..........................
United
States
500,000
398,222
e
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
500,000
288,190
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
300,000
251,589
e
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
1,200,000
1,030,384
e
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
........
Italy
1,000,000
855,000
e
ModivCare
Escrow
Issuer,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
.
United
States
100,000
73,840
e
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
1,200,000
900,210
Tenet
Healthcare
Corp.
,
Senior
Secured
Note,
6.125%,
6/15/30
...................
United
States
700,000
679,183
e
Senior
Secured
Note,
144A,
6.75%,
5/15/31
...............
United
States
500,000
498,150
5,802,026
Health
Care
REITs
0.1%
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
5.25
%
,
8/01/26
.....................................
United
States
200,000
170,136
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotel
&
Resort
REITs
0.3%
e
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
Senior
Note
,
144A,
7.25
%
,
7/15/28
.....................................
United
States
300,000
$
301,769
e
XHR
LP
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/01/29
.........
United
States
400,000
346,446
648,215
Hotels,
Restaurants
&
Leisure
5.9%
e
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4
%
,
10/15/30
.......................................
Canada
600,000
508,831
c,e,g
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
.
United
States
1,800,000
—
e
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875
%
,
4/30/29
.....................................
Czech
Republic
800,000
816,000
e
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
7
%
,
2/15/30
...........................................
United
States
300,000
301,442
e
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
.....................
United
States
400,000
399,176
Senior
Note,
144A,
5.75%,
3/01/27
......................
United
States
1,500,000
1,413,019
e
Carnival
Holdings
Bermuda
Ltd.
,
Senior
Note
,
144A,
10.375
%
,
5/01/28
...........................................
United
States
400,000
435,398
e
Everi
Holdings,
Inc.
,
Senior
Note
,
144A,
5
%
,
7/15/29
...........
United
States
700,000
625,275
e
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.......................
United
States
1,300,000
1,074,678
e
Motion
Bondco
DAC
,
Senior
Note
,
144A,
6.625
%
,
11/15/27
......
United
Kingdom
200,000
185,919
e
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
...........
United
States
300,000
283,144
e
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/15/29
United
States
300,000
252,613
e
Premier
Entertainment
Sub
LLC
/
Premier
Entertainment
Finance
Corp.
,
Senior
Bond,
144A,
5.875%,
9/01/31
.....................
United
States
500,000
387,050
Senior
Note,
144A,
5.625%,
9/01/29
.....................
United
States
500,000
399,550
e
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note,
144A,
5.5%,
8/31/26
.......................
United
States
700,000
671,382
Senior
Note,
144A,
11.625%,
8/15/27
....................
United
States
700,000
763,368
e
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
........
United
States
400,000
358,360
e
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
1,600,000
1,212,456
e
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
...........................
United
States
800,000
786,885
10,874,546
Household
Durables
1.3%
e
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
Senior
Note
,
144A,
4.625
%
,
8/01/29
................................
United
States
1,500,000
1,301,250
e
Dream
Finders
Homes,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
8/15/28
..
United
States
500,000
508,310
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
................
United
States
600,000
513,486
2,323,046
Independent
Power
and
Renewable
Electricity
Producers
1.8%
e
Calpine
Corp.
,
Senior
Bond,
144A,
5%,
2/01/31
........................
United
States
900,000
762,348
Senior
Note,
144A,
4.625%,
2/01/29
.....................
United
States
700,000
609,066
e
Clearway
Energy
Operating
LLC
,
Senior
Bond,
144A,
3.75%,
1/15/32
......................
United
States
400,000
327,836
Senior
Note,
144A,
4.75%,
3/15/28
......................
United
States
600,000
555,328
Senior
Note,
144A,
3.75%,
2/15/31
......................
United
States
300,000
246,923
e
Leeward
Renewable
Energy
Operations
LLC
,
Senior
Note
,
144A,
4.25
%
,
7/01/29
.....................................
United
States
1,000,000
870,924
3,372,425
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Insurance
0.6%
e
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note
,
144A,
6.75
%
,
10/15/27
...........................
United
States
300,000
$
283,888
e
Jones
Deslauriers
Insurance
Management,
Inc.
,
Senior
Note
,
144A,
10.5
%
,
12/15/30
.....................................
Canada
800,000
815,427
1,099,315
IT
Services
1.9%
e
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
500,000
417,981
e
Cogent
Communications
Group,
Inc.
,
Senior
Secured
Note
,
144A,
3.5
%
,
5/01/26
......................................
United
States
500,000
463,348
e
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
500,000
466,758
Senior
Note,
144A,
3.625%,
6/15/29
.....................
United
States
200,000
175,863
Senior
Note,
144A,
3.75%,
10/01/30
.....................
United
States
300,000
259,361
e
Northwest
Fiber
LLC
/
Northwest
Fiber
Finance
Sub,
Inc.
,
Senior
Note
,
144A,
6
%
,
2/15/28
..............................
United
States
1,100,000
883,075
e
Presidio
Holdings,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
2/01/28
......
United
States
900,000
872,907
3,539,293
Life
Sciences
Tools
&
Services
0.5%
e
Fortrea
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
7/01/30
.
United
States
1,000,000
980,000
Machinery
1.6%
e
ATS
Corp.
,
Senior
Note
,
144A,
4.125
%
,
12/15/28
.............
Canada
1,300,000
1,156,423
e
Calderys
Financing
LLC
,
Senior
Secured
Note
,
144A,
11.25
%
,
6/01/28
...........................................
France
800,000
820,970
e
Chart
Industries,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
1/01/30
.
United
States
700,000
718,126
e
Titan
Acquisition
Ltd.
/
Titan
Co-Borrower
LLC
,
Senior
Note
,
144A,
7.75
%
,
4/15/26
.....................................
Canada
300,000
291,904
2,987,423
Media
3.6%
e
Clear
Channel
International
BV
,
Senior
Secured
Note
,
144A,
6.625
%
,
8/01/25
.....................................
United
Kingdom
400,000
396,719
e
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
300,000
236,233
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
500,000
373,095
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
400,000
358,639
Senior
Secured
Note,
144A,
9%,
9/15/28
..................
United
States
500,000
502,950
CSC
Holdings
LLC
,
Senior
Bond,
5.25%,
6/01/24
...........................
United
States
400,000
379,811
e
Senior
Note,
144A,
7.5%,
4/01/28
.......................
United
States
300,000
191,000
e
Senior
Note,
144A,
11.25%,
5/15/28
.....................
United
States
700,000
691,056
c,e
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
700,000
14,437
Senior
Secured
Note,
144A,
5.375%,
8/15/26
..............
United
States
800,000
19,848
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Media
(continued)
e
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
200,000
$
177,424
e
DISH
DBS
Corp.
,
Senior
Secured
Note
,
144A,
5.75
%
,
12/01/28
...
United
States
1,000,000
778,145
e
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
.....................................
United
States
450,000
424,055
e
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
.............
United
States
200,000
175,820
e
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Note
,
144A,
5
%
,
8/15/27
..............................
United
States
100,000
90,605
e
Scripps
Escrow,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
7/15/27
.......
United
States
600,000
485,394
e
Sinclair
Television
Group,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
3/01/30
.
United
States
700,000
373,696
e
Sirius
XM
Radio,
Inc.
,
Senior
Note
,
144A,
4
%
,
7/15/28
.........
United
States
600,000
520,102
e
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
5/01/29
...........................................
United
States
600,000
517,018
6,706,047
Metals
&
Mining
1.6%
ATI,
Inc.
,
Senior
Note
,
7.25
%
,
8/15/30
......................
United
States
700,000
706,951
Commercial
Metals
Co.
,
Senior
Bond
,
3.875
%
,
2/15/31
.........
United
States
700,000
597,296
e
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
600,000
516,031
e
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...........................................
Australia
500,000
419,420
e
Novelis
Corp.
,
Senior
Bond,
144A,
3.875%,
8/15/31
.....................
United
States
100,000
82,886
Senior
Note,
144A,
3.25%,
11/15/26
.....................
United
States
100,000
90,721
e
SunCoke
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/30/29
United
States
600,000
511,122
2,924,427
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.8%
e
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
................................
United
States
1,500,000
1,177,890
e
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
300,000
252,518
1,430,408
Oil,
Gas
&
Consumable
Fuels
10.0%
e
Antero
Resources
Corp.
,
Senior
Note,
144A,
7.625%,
2/01/29
.....................
United
States
166,000
170,268
Senior
Note,
144A,
5.375%,
3/01/30
.....................
United
States
700,000
655,216
e
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
144A,
8.125
%
,
1/15/27
......................
United
States
900,000
860,999
Cheniere
Energy
Partners
LP
,
Senior
Note,
4.5%,
10/01/29
...........................
United
States
1,200,000
1,108,448
Senior
Note,
4%,
3/01/31
.............................
United
States
700,000
618,747
Cheniere
Energy,
Inc.
,
Senior
Note
,
4.625
%
,
10/15/28
..........
United
States
700,000
659,619
e
Chesapeake
Energy
Corp.
,
Senior
Note
,
144A,
5.5
%
,
2/01/26
....
United
States
500,000
488,620
e
Civitas
Resources,
Inc.
,
Senior
Note,
144A,
8.375%,
7/01/28
.....................
United
States
700,000
721,875
Senior
Note,
144A,
8.75%,
7/01/31
......................
United
States
700,000
725,375
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note,
5.75%,
4/01/25
...........................
United
States
600,000
595,473
e
Senior
Note,
144A,
6%,
2/01/29
........................
United
States
200,000
196,550
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
e
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
300,000
$
278,895
e
DT
Midstream,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
6/15/29
........
United
States
700,000
620,879
e
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
1/30/28
.................................
United
States
1,300,000
1,272,921
e
EnLink
Midstream
LLC
,
Senior
Note
,
144A,
6.5
%
,
9/01/30
.......
United
States
800,000
802,949
e
EQM
Midstream
Partners
LP
,
Senior
Note
,
144A,
7.5
%
,
6/01/27
..
United
States
100,000
101,023
e
EQT
Corp.
,
Senior
Note
,
144A,
3.125
%
,
5/15/26
..............
United
States
300,000
279,214
e
Harbour
Energy
plc
,
Senior
Note
,
144A,
5.5
%
,
10/15/26
........
United
Kingdom
500,000
467,325
e
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
........................
United
States
200,000
183,957
Senior
Note,
144A,
5.75%,
2/01/29
......................
United
States
200,000
185,720
Senior
Note,
144A,
6%,
4/15/30
........................
United
States
300,000
279,351
e
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
........
United
States
600,000
581,775
e
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note
,
144A,
11.5
%
,
2/15/28
.....................
United
States
1,800,000
1,822,802
b,c,e,g
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
...
United
States
757,734
—
Occidental
Petroleum
Corp.
,
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
700,000
716,499
Senior
Note,
8.875%,
7/15/30
..........................
United
States
600,000
688,497
e
PBF
Holding
Co.
LLC
/
PBF
Finance
Corp.
,
Senior
Note
,
144A,
7.875
%
,
9/15/30
.....................................
United
States
200,000
199,661
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
6%,
4/15/27
.............................
United
States
1,000,000
990,443
Senior
Note,
4.5%,
5/15/29
............................
United
States
200,000
181,069
e
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
..............
United
States
300,000
254,781
Senior
Secured
Note,
144A,
3.875%,
8/15/29
..............
United
States
300,000
259,815
Senior
Secured
Note,
144A,
6.25%,
1/15/30
...............
United
States
400,000
390,110
e
Venture
Global
LNG,
Inc.
,
Senior
Secured
Note,
144A,
8.125%,
6/01/28
..............
United
States
600,000
605,786
Senior
Secured
Note,
144A,
8.375%,
6/01/31
..............
United
States
500,000
504,820
18,469,482
Paper
&
Forest
Products
0.1%
e
Glatfelter
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
...........
United
States
400,000
279,798
Passenger
Airlines
0.9%
e
American
Airlines
Inc
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.5
%
,
4/20/26
.............................
United
States
641,667
630,328
e
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.....................................
United
States
700,000
672,590
e
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
100,000
94,342
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
300,000
267,143
1,664,403
Personal
Care
Products
0.8%
e
BellRing
Brands,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/30
.........
United
States
800,000
801,077
e
Coty,
Inc./HFC
Prestige
Products,
Inc./HFC
Prestige
International
US
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
7/15/30
...........
United
States
600,000
600,720
1,401,797
Pharmaceuticals
1.4%
e
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
......
Canada
305,000
305,662
e
Bausch
Health
Cos.,
Inc.
,
Secured
Note,
144A,
14%,
10/15/30
.....................
United
States
107,000
65,003
Senior
Secured
Note,
144A,
11%,
9/30/28
.................
United
States
542,000
388,309
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Pharmaceuticals
(continued)
c,e
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco
,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
302,000
$
13,967
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
389,000
20,423
c,e
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
500,000
356,568
c,e
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
225,000
160,395
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
4.75%,
5/09/27
...........................
Israel
600,000
561,397
Senior
Note,
7.875%,
9/15/29
..........................
Israel
300,000
313,061
Senior
Note,
8.125%,
9/15/31
..........................
Israel
300,000
318,217
2,503,002
Real
Estate
Management
&
Development
0.7%
e
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
400,000
373,462
e
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
3.85
%
,
5/15/26
........
United
States
500,000
463,472
e
Greystar
Real
Estate
Partners
LLC
,
Senior
Secured
Note
,
144A,
7.75
%
,
9/01/30
.....................................
United
States
500,000
505,625
1,342,559
Software
1.3%
e
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
.
United
States
900,000
842,636
e
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
............
United
States
800,000
700,650
e
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
1,100,000
913,990
2,457,276
Specialized
REITs
0.5%
e
Iron
Mountain,
Inc.
,
Senior
Bond,
144A,
5.625%,
7/15/32
.....................
United
States
300,000
269,492
Senior
Note,
144A,
7%,
2/15/29
........................
United
States
700,000
698,815
968,307
Specialty
Retail
1.7%
e
Evergreen
Acqco
1
LP
/
TVI,
Inc.
,
Senior
Secured
Note
,
144A,
9.75
%
,
4/26/28
.....................................
United
States
720,000
751,471
e
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
..........
United
States
700,000
533,528
e
Lithia
Motors,
Inc.
,
Senior
Bond
,
144A,
4.375
%
,
1/15/31
........
United
States
300,000
255,521
e
Michaels
Cos.,
Inc.
(The)
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
600,000
416,460
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
300,000
250,395
Murphy
Oil
USA,
Inc.
,
Senior
Note
,
4.75
%
,
9/15/29
............
United
States
700,000
642,607
e
Victoria's
Secret
&
Co.
,
Senior
Note
,
144A,
4.625
%
,
7/15/29
.....
United
States
400,000
289,973
3,139,955
Textiles,
Apparel
&
Luxury
Goods
0.2%
e
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
............
United
States
400,000
401,936
Trading
Companies
&
Distributors
0.5%
e
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
600,000
524,431
e
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
6/15/28
....
United
States
400,000
407,472
931,903
Wireless
Telecommunication
Services
0.5%
T-Mobile
USA,
Inc.
,
Senior
Note,
4.75%,
2/01/28
...........................
United
States
600,000
583,214
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Wireless
Telecommunication
Services
(continued)
T-Mobile
USA,
Inc.,
(continued)
Senior
Note,
2.625%,
2/15/29
..........................
United
States
300,000
$
260,055
843,269
Total
Corporate
Bonds
(Cost
$160,267,838)
.....................................
141,816,307
h
Senior
Floating
Rate
Interests
0.1%
Media
0.1%
c,i
Diamond
Sports
Group
LLC
,
First
Lien,
CME
Term
Loan
,
12.775
%
,
(
3-month
SOFR
+
8
%
),
5/25/26
.........................
United
States
159,053
101,635
Total
Senior
Floating
Rate
Interests
(Cost
$148,172)
.............................
101,635
j
Marketplace
Loans
6.0%
g
Financial
Services
6.0%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$12,516,695)
....................................
11,122,540
Asset-Backed
Securities
0.4%
Financial
Services
0.4%
e,k
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2019-26,
PT,
144A,
FRN,
17.502%,
8/15/44
................
United
States
51,490
48,478
2019-31,
PT,
144A,
FRN,
17.33%,
9/15/44
.................
United
States
43,556
40,379
2019-37,
PT,
144A,
FRN,
18.481%,
10/17/44
...............
United
States
51,895
49,217
2019-42,
PT,
144A,
FRN,
16.521%,
11/15/44
...............
United
States
48,129
45,126
2019-51,
PT,
144A,
FRN,
14.973%,
1/15/45
................
United
States
57,526
54,133
2019-52,
PT,
144A,
FRN,
14.462%,
1/15/45
................
United
States
49,999
47,213
2019-S3,
PT,
144A,
FRN,
10.724%,
6/15/44
................
United
States
7,526
6,987
2019-S4,
PT,
144A,
FRN,
11.927%,
8/15/44
................
United
States
33,217
31,745
2019-S5,
PT,
144A,
FRN,
12.306%,
9/15/44
................
United
States
32,904
30,822
2019-S6,
PT,
144A,
FRN,
10.356%,
10/17/44
...............
United
States
42,032
39,003
2019-S7,
PT,
144A,
FRN,
10.361%,
12/15/44
...............
United
States
28,470
26,356
2019-S8,
PT,
144A,
FRN,
9.46%,
1/15/45
..................
United
States
31,122
28,859
2020-2,
PT,
144A,
FRN,
15.393%,
3/15/45
.................
United
States
48,825
45,842
2020-7,
PT,
144A,
FRN,
14.563%,
4/17/45
.................
United
States
27,470
25,415
e,k
Prosper
Pass-Thru
Trust
III
,
2020-PT1,
A,
144A,
FRN,
19.172%,
3/15/26
................
United
States
24,961
24,145
2020-PT2,
A,
144A,
FRN,
12.75%,
4/15/26
.................
United
States
30,107
28,594
2020-PT3,
A,
144A,
FRN,
8.015%,
5/15/26
.................
United
States
7,174
6,602
e,k
Upgrade
Master
Pass-Thru
Trust
,
2019-PT2
,
A
,
144A,
FRN
,
13.803
%
,
2/15/26
.
...................................
United
States
31,562
30,943
609,859
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$623,653)
..................................
609,859
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a
Chesapeake
Energy
Corp.,
Escrow
Account
.................
United
States
1,500,000
33,750
Total
Escrows
and
Litigation
Trusts
(Cost
$48,985)
..............................
33,750
Total
Long
Term
Investments
(Cost
$211,886,432)
...............................
240,998,497
a
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
Short
Term
Investments
3.9%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
3.9%
l,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.066%
....
United
States
7,233,846
$
7,233,846
Total
Money
Market
Funds
(Cost
$7,233,846)
...................................
7,233,846
Total
Short
Term
Investments
(Cost
$7,233,846
)
.................................
7,233,846
a
Total
Investments
(Cost
$219,120,278)
134.3%
..................................
$248,232,343
Notes
Payable
(35.2)%
.......................................................
(65,000,000)
Other
Assets,
less
Liabilities
0.9%
.............................................
1,626,937
Net
Assets
100.0%
...........................................................
$184,859,280
See
Abbreviations
on
page
50
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Income
may
be
received
in
additional
securities
and/or
cash.
c
See
Note
8
regarding
credit
risk
and
defaulted
securities.
d
Perpetual
security
with
no
stated
maturity
date.
e
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
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.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
August
31,
2023,
the
aggregate
value
of
these
securities
was
$121,935,291,
representing
66.0%
of
net
assets.
f
The
coupon
rate
shown
represents
the
rate
at
period
end.
g
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
h
See
Note
1(d)
regarding
senior
floating
rate
interests.
i
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
j
See
Note
1(e)
regarding
Marketplace
Lending.
See
full
breakdown
of
marketplace
loans
holdings
in
the
table
at
the
end
of
this
schedule.
k
Adjustable
rate
security
with
an
interest
rate
that
is
not
based
on
a
published
reference
index
and
spread.
The
rate
is
based
on
the
structure
of
the
agreement
and
current
market
conditions.
The
coupon
rate
shown
represents
the
rate
at
period
end.
l
See
Note
4(c)
regarding
investments
in
affiliated
management
investment
companies.
m
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Universal
Trust
Schedule
of
Investments,
August
31,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
At
August
31,
2023,
the
Fund
had
the
following marketplace
loans
outstanding.
See
Note
1(e).
Description
Principal
Amount
Value
Marketplace
Loans
-
6.0%
Freedom
Financial
Asset
Management
LLC
APP-10236665.FP.FTS.B,
5.99%,
10/04/23
$
685
$
686
APP-10852298.FP.FTS.B,
5.99%,
10/05/23
856
857
APP-10840576.FP.FTS.B,
5.99%,
10/15/23
874
876
APP-10847318.FP.FTS.B,
5.99%,
10/15/23
941
944
APP-09915050.FP.FTS.B,
5.99%,
11/20/23
792
794
APP-10762832.FP.FTS.B,
15.49%,
11/26/23
440
441
APP-11022068.FP.FTS.B,
5.99%,
12/06/23
1,539
1,542
APP-12381966.FP.FTS.B,
20.49%,
1/20/24
3,046
3,079
APP-11834925.FP.FTS.B,
5.99%,
2/11/24
.
2,404
2,421
APP-11634713.FP.FTS.B,
5.99%,
2/13/24
.
2,639
2,652
APP-13323334.FP.FTS.B,
5.99%,
5/14/24
.
2,651
2,670
APP-13489698.FP.FTS.B,
5.99%,
5/15/24
.
3,485
3,511
APP-13476049.FP.FTS.B,
21.49%,
5/17/24
4,236
4,281
APP-13485474.FP.FTS.B,
15.99%,
5/18/24
2,976
3,004
APP-13471580.FP.FTS.B,
5.99%,
5/19/24
.
3,042
3,066
APP-12399683.FP.FTS.B,
22.49%,
5/20/24
4,563
4,624
APP-15125689.FP.FTS.B,
5.99%,
7/15/24
.
4,073
4,108
APP-15138477.FP.FTS.B,
5.99%,
7/16/24
.
3,236
3,264
APP-14522400.FP.FTS.B,
5.99%,
7/23/24
.
3,934
3,969
APP-15089870.FP.FTS.B,
20.99%,
7/27/24
7,635
7,745
APP-10084299.FP.FTS.B,
16.49%,
8/11/24
5,630
3,515
APP-10541747.FP.FTS.B,
16.99%,
9/05/24
4,814
4,836
APP-10849903.FP.FTS.B,
11.24%,
10/16/24
12,081
12,182
APP-10584167.FP.FTS.B,
16.99%,
10/28/24
..........................
3,297
3,332
APP-11139281.FP.FTS.B,
8.49%,
11/01/24
6,224
6,263
APP-11106155.FP.FTS.B,
12.74%,
11/01/24
9,773
9,838
APP-10836612.FP.FTS.B,
21.49%,
11/15/24
5,460
5,478
APP-11021958.FP.FTS.B,
12.24%,
12/10/24
6,278
6,325
APP-11021643.FP.FTS.B,
10.49%,
12/14/24
7,980
8,049
APP-11695329.FP.FTS.B,
15.99%,
12/15/24
7,616
7,616
APP-11693890.FP.FTS.B,
13.24%,
12/17/24
22,530
22,656
APP-11007940.FP.FTS.B,
10.49%,
12/19/24
6,436
6,503
APP-10839343.FP.FTS.B,
13.99%,
12/19/24
..........................
4,375
4,419
APP-11799520.FP.FTS.B,
16.99%,
12/25/24
5,758
5,805
APP-11681583.FP.FTS.B,
16.99%,
1/30/25
5,515
5,574
APP-10844126.FP.FTS.B,
23.99%,
1/30/25
9,147
9,221
APP-12413621.FP.FTS.B,
15.49%,
2/01/25
12,855
7,941
APP-11766706.FP.FTS.B,
23.99%,
2/02/25
4,830
4,785
APP-11799331.FP.FTS.B,
8.99%,
2/06/25
.
15,971
16,086
APP-11694349.FP.FTS.B,
14.24%,
2/07/25
17,590
17,643
APP-11862313.FP.FTS.B,
16.49%,
2/11/25
5,322
5,328
APP-11869808.FP.FTS.B,
21.99%,
2/15/25
10,001
9,977
APP-12394118.FP.FTS.B,
17.74%,
3/10/25
12,387
12,409
APP-11102104.FP.FTS.B,
23.99%,
3/11/25
3,957
3,938
APP-12410877.FP.FTS.B,
13.74%,
3/15/25
16,857
16,970
APP-12299545.FP.FTS.B,
14.99%,
3/21/25
11,093
11,160
APP-13323354.FP.FTS.B,
10.09%,
5/18/25
10,674
10,796
APP-14953979.FP.FTS.B,
7.74%,
7/13/25
.
20,063
20,246
APP-15094222.FP.FTS.B,
10.24%,
7/14/25
16,176
16,321
APP-15084327.FP.FTS.B,
10.74%,
7/14/25
12,704
12,838
APP-15090883.FP.FTS.B,
25.49%,
7/14/25
3,010
2,957
APP-15034726.FP.FTS.B,
25.49%,
7/25/25
6,583
6,545
APP-10111431.FP.FTS.B,
10.99%,
9/15/25
11,688
11,858
APP-10140977.FP.FTS.B,
24.99%,
9/15/25
6,277
6,507
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-10091198.FP.FTS.B,
15.49%,
9/24/25
$
5,100
$
5,134
APP-10083835.FP.FTS.B,
10.99%,
9/25/25
8,217
8,355
APP-11022514.FP.FTS.B,
18.49%,
10/21/25
10,369
10,615
APP-10582948.FP.FTS.B,
10.99%,
10/22/25
..........................
14,027
14,235
APP-10578403.FP.FTS.B,
15.99%,
10/30/25
..........................
12,081
12,415
APP-10561192.FP.FTS.B,
8.99%,
11/03/25
10,198
10,341
APP-10841976.FP.FTS.B,
10.99%,
11/28/25
10,087
10,229
APP-11116538.FP.FTS.B,
8.99%,
12/10/25
8,973
9,100
APP-11105408.FP.FTS.B,
10.99%,
12/14/25
7,424
7,536
APP-11843242.FP.FTS.B,
12.24%,
12/15/25
12,636
12,786
APP-11097002.FP.FTS.B,
17.99%,
12/15/25
30,824
31,505
APP-11022500.FP.FTS.B,
17.99%,
12/16/25
8,031
8,222
APP-11579320.FP.FTS.B,
16.99%,
12/20/25
13,659
14,107
APP-10868780.FP.FTS.B,
14.49%,
1/02/26
20,153
20,461
APP-11798391.FP.FTS.B,
18.49%,
1/04/26
6,931
7,048
APP-11733010.FP.FTS.B,
15.74%,
1/28/26
22,996
23,525
APP-12378685.FP.FTS.B,
15.99%,
2/01/26
9,725
9,838
APP-11757188.FP.FTS.B,
18.24%,
2/02/26
27,721
28,170
APP-11799488.FP.FTS.B,
16.99%,
2/05/26
13,043
13,237
APP-11757063.FP.FTS.B,
17.99%,
2/05/26
13,875
14,121
APP-12281543.FP.FTS.B,
16.74%,
3/08/26
25,218
25,646
APP-12246304.FP.FTS.B,
18.24%,
3/08/26
23,090
23,501
APP-12397373.FP.FTS.B,
15.99%,
3/15/26
9,807
9,959
APP-12032813.FP.FTS.B,
17.99%,
3/17/26
9,159
9,325
APP-12419810.FP.FTS.B,
15.74%,
3/20/26
26,613
27,190
APP-12270812.FP.FTS.B,
16.99%,
3/22/26
8,801
8,976
APP-12421465.FP.FTS.B,
17.99%,
3/23/26
14,318
14,631
APP-13524997.FP.FTS.B,
10.59%,
3/25/26
11,033
11,184
APP-13511680.FP.FTS.B,
12.84%,
5/05/26
10,825
10,959
APP-13256383.FP.FTS.B,
7.99%,
5/18/26
.
27,030
27,437
APP-13477482.FP.FTS.B,
10.34%,
5/18/26
28,621
29,069
APP-13527002.FP.FTS.B,
15.59%,
5/19/26
7,401
7,529
APP-14943761.FP.FTS.B,
15.99%,
6/01/26
15,839
15,975
APP-15146572.FP.FTS.B,
10.74%,
7/15/26
3,916
3,918
APP-15112645.FP.FTS.B,
16.99%,
7/15/26
15,499
15,653
APP-15065994.FP.FTS.B,
17.74%,
7/15/26
36,977
37,401
APP-15053141.FP.FTS.B,
18.99%,
7/15/26
15,644
15,797
APP-15107872.FP.FTS.B,
20.49%,
7/15/26
11,044
11,193
APP-15064308.FP.FTS.B,
22.49%,
7/15/26
17,321
17,448
APP-15054013.FP.FTS.B,
17.99%,
7/20/26
12,850
13,026
APP-15109634.FP.FTS.B,
19.49%,
7/21/26
7,879
7,992
APP-15053667.FP.FTS.B,
17.99%,
7/22/26
10,303
10,453
APP-15073340.FP.FTS.B,
15.99%,
7/25/26
7,765
7,898
APP-14860724.FP.FTS.B,
20.99%,
7/26/26
15,146
15,380
APP-15111841.FP.FTS.B,
7.84%,
7/28/26
.
22,296
22,653
APP-14956830.FP.FTS.B,
15.74%,
7/28/26
23,232
23,625
APP-15053675.FP.FTS.B,
10.99%,
7/30/26
9,938
10,112
APP-10133595.FP.FTS.B,
11.99%,
8/11/26
13,386
13,604
APP-10140897.FP.FTS.B,
16.99%,
8/12/26
14,638
14,902
APP-10145662.FP.FTS.B,
18.99%,
9/17/26
15,651
16,083
APP-10460831.FP.FTS.B,
21.99%,
9/19/26
5,549
5,713
APP-10572421.FP.FTS.B,
10.49%,
9/20/26
23,535
23,936
APP-10112510.FP.FTS.B,
16.49%,
9/25/26
8,873
9,079
APP-10145175.FP.FTS.B,
14.49%,
9/26/26
6,479
6,612
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-10850556.FP.FTS.B,
11.99%,
10/01/26
$
12,994
$
13,120
APP-09931612.FP.FTS.B,
14.24%,
10/03/26
..........................
11,184
11,324
APP-10838239.FP.FTS.B,
12.49%,
10/12/26
..........................
22,659
23,006
APP-10845328.FP.FTS.B,
11.99%,
10/16/26
17,486
17,768
APP-10704368.FP.FTS.B,
14.99%,
10/16/26
..........................
13,707
13,956
APP-10745909.FP.FTS.B,
17.99%,
10/16/26
..........................
36,499
37,153
APP-10829192.FP.FTS.B,
18.99%,
10/16/26
..........................
18,005
18,451
APP-10852939.FP.FTS.B,
16.49%,
10/17/26
..........................
1,432
1,433
APP-10581131.FP.FTS.B,
22.49%,
10/22/26
7,402
7,625
APP-10575367.FP.FTS.B,
20.99%,
10/25/26
..........................
30,575
3,112
APP-10916894.FP.FTS.B,
20.49%,
11/01/26
14,476
14,746
APP-10384953.FP.FTS.B,
19.99%,
11/02/26
12,071
12,298
APP-10224478.FP.FTS.B,
20.49%,
11/02/26
19,614
20,064
APP-11119432.FP.FTS.B,
11.99%,
11/03/26
15,728
15,957
APP-10577758.FP.FTS.B,
17.49%,
11/04/26
8,683
8,844
APP-11187454.FP.FTS.B,
22.49%,
11/10/26
7,646
7,822
APP-10848002.FP.FTS.B,
17.99%,
11/19/26
18,086
18,496
APP-10859032.FP.FTS.B,
9.99%,
11/21/26
10,883
11,072
APP-10842381.FP.FTS.B,
12.49%,
11/21/26
24,991
25,410
APP-10830375.FP.FTS.B,
19.99%,
11/21/26
11,674
11,994
APP-10692450.FP.FTS.B,
17.49%,
11/29/26
18,794
19,319
APP-10671079.FP.FTS.B,
11.99%,
11/30/26
19,739
20,118
APP-10848317.FP.FTS.B,
12.24%,
11/30/26
14,247
14,512
APP-10670975.FP.FTS.B,
21.49%,
11/30/26
11,942
12,389
APP-10860337.FP.FTS.B,
22.99%,
11/30/26
12,118
12,545
APP-11122151.FP.FTS.B,
16.49%,
12/06/26
13,314
2,449
APP-11094577.FP.FTS.B,
19.49%,
12/08/26
9,161
9,391
APP-11008022.FP.FTS.B,
11.99%,
12/13/26
10,380
10,552
APP-11123090.FP.FTS.B,
14.24%,
12/15/26
17,031
17,336
APP-10314454.FP.FTS.B,
15.99%,
12/15/26
..........................
9,343
909
APP-11021456.FP.FTS.B,
20.99%,
12/15/26
28,029
28,687
APP-10839250.FP.FTS.B,
17.49%,
12/17/26
..........................
4,423
4,423
APP-11121084.FP.FTS.B,
17.49%,
12/19/26
14,914
1,643
APP-11116084.FP.FTS.B,
19.49%,
12/19/26
11,135
11,121
APP-11007668.FP.FTS.B,
19.99%,
12/19/26
13,777
14,117
APP-11091099.FP.FTS.B,
9.99%,
12/20/26
22,394
22,796
APP-11111264.FP.FTS.B,
16.49%,
12/20/26
8,961
9,148
APP-11036570.FP.FTS.B,
22.99%,
12/20/26
12,115
12,448
APP-11874582.FP.FTS.B,
17.49%,
12/23/26
16,461
16,799
APP-11751323.FP.FTS.B,
17.99%,
12/23/26
10,819
11,064
APP-11752200.FP.FTS.B,
21.49%,
12/23/26
15,344
5,197
APP-11767307.FP.FTS.B,
14.49%,
12/24/26
20,420
20,716
APP-11461595.FP.FTS.B,
17.99%,
12/24/26
3,607
3,593
APP-11762193.FP.FTS.B,
18.49%,
12/24/26
14,096
14,427
APP-11677084.FP.FTS.B,
15.49%,
12/26/26
33,417
33,940
APP-11799609.FP.FTS.B,
10.99%,
1/01/27
23,781
24,098
APP-11844341.FP.FTS.B,
16.74%,
1/01/27
25,201
25,514
APP-11744634.FP.FTS.B,
19.99%,
2/01/27
13,835
13,908
APP-11824892.FP.FTS.B,
16.99%,
2/03/27
13,061
13,235
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-11765220.FP.FTS.B,
11.99%,
2/04/27
$
37,455
$
38,017
APP-11724933.FP.FTS.B,
14.24%,
2/05/27
11,039
11,213
APP-11702245.FP.FTS.B,
17.49%,
2/05/27
11,053
10,958
APP-11674918.FP.FTS.B,
20.49%,
2/05/27
19,967
20,246
APP-12397051.FP.FTS.B,
17.49%,
2/06/27
9,399
9,512
APP-11696610.FP.FTS.B,
14.24%,
2/07/27
19,176
19,520
APP-11743079.FP.FTS.B,
16.24%,
2/07/27
31,855
18,317
APP-11757936.FP.FTS.B,
19.99%,
2/07/27
7,445
7,556
APP-11763967.FP.FTS.B,
19.99%,
2/07/27
11,881
12,049
APP-11837813.FP.FTS.B,
20.99%,
2/10/27
9,770
6,039
APP-11838245.FP.FTS.B,
19.99%,
2/11/27
7,745
7,871
APP-11801863.FP.FTS.B,
8.99%,
2/12/27
.
25,628
26,016
APP-11798652.FP.FTS.B,
11.74%,
2/14/27
37,389
37,988
APP-11843528.FP.FTS.B,
19.99%,
2/14/27
2,579
2,561
APP-11864146.FP.FTS.B,
11.24%,
2/15/27
13,369
13,587
APP-11872928.FP.FTS.B,
11.24%,
2/15/27
11,989
12,186
APP-11845152.FP.FTS.B,
11.74%,
2/15/27
32,128
32,652
APP-11801830.FP.FTS.B,
16.49%,
2/15/27
15,459
15,719
APP-11842708.FP.FTS.B,
23.49%,
2/16/27
9,213
1,946
APP-10128827.FP.FTS.B,
25.49%,
2/24/27
7,399
7,615
APP-12304720.FP.FTS.B,
18.74%,
3/06/27
39,429
39,884
APP-12106158.FP.FTS.B,
11.24%,
3/07/27
13,179
13,362
APP-12404066.FP.FTS.B,
22.49%,
3/08/27
27,795
28,104
APP-12408150.FP.FTS.B,
19.99%,
3/10/27
8,414
8,501
APP-12407302.FP.FTS.B,
18.99%,
3/15/27
8,608
8,725
APP-12272662.FP.FTS.B,
16.49%,
3/17/27
15,704
15,923
APP-11863466.FP.FTS.B,
25.49%,
3/17/27
8,192
8,299
APP-12385340.FP.FTS.B,
25.49%,
3/17/27
7,306
7,392
APP-12341500.FP.FTS.B,
20.49%,
3/20/27
13,385
13,582
APP-12396943.FP.FTS.B,
13.49%,
3/21/27
13,435
13,660
APP-12270734.FP.FTS.B,
16.99%,
3/21/27
14,691
14,963
APP-10314654.FP.FTS.B,
19.74%,
3/21/27
26,187
26,604
APP-12381900.FP.FTS.B,
18.49%,
3/22/27
16,759
17,039
APP-13531026.FP.FTS.B,
11.59%,
3/28/27
19,246
19,540
APP-13513406.FP.FTS.B,
14.34%,
4/01/27
39,846
40,295
APP-13478834.FP.FTS.B,
16.99%,
5/03/27
16,576
16,689
APP-13508795.FP.FTS.B,
9.59%,
5/05/27
.
14,007
14,182
APP-13047632.FP.FTS.B,
11.49%,
5/05/27
11,043
11,194
APP-13485036.FP.FTS.B,
13.34%,
5/06/27
10,534
10,676
APP-08710316.FP.FTS.B,
10.99%,
5/13/27
27,319
27,717
APP-13498310.FP.FTS.B,
17.99%,
5/13/27
9,825
9,920
APP-13498730.FP.FTS.B,
11.34%,
5/15/27
15,840
16,083
APP-13329158.FP.FTS.B,
17.99%,
5/15/27
11,660
11,648
APP-13453359.FP.FTS.B,
18.24%,
5/15/27
24,635
24,874
APP-13410410.FP.FTS.B,
19.99%,
5/15/27
8,722
8,809
APP-13486869.FP.FTS.B,
11.34%,
5/16/27
25,492
25,903
APP-13531289.FP.FTS.B,
14.09%,
5/16/27
23,763
24,132
APP-13512105.FP.FTS.B,
19.49%,
5/16/27
21,508
21,732
APP-13473219.FP.FTS.B,
22.49%,
5/16/27
13,161
2,879
APP-13479562.FP.FTS.B,
18.49%,
5/17/27
13,174
13,274
APP-13227905.FP.FTS.B,
21.99%,
5/18/27
8,397
8,487
APP-13517315.FP.FTS.B,
12.09%,
5/19/27
39,730
40,389
APP-13507352.FP.FTS.B,
20.49%,
5/19/27
8,074
8,182
APP-13531806.FP.FTS.B,
16.99%,
5/20/27
16,626
16,894
APP-13485355.FP.FTS.B,
17.24%,
5/20/27
30,264
30,562
APP-13485605.FP.FTS.B,
18.99%,
5/20/27
11,275
11,458
APP-13518313.FP.FTS.B,
18.99%,
5/20/27
14,132
14,262
APP-13302186.FP.FTS.B,
20.49%,
5/20/27
11,871
12,008
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-15111331.FP.FTS.B,
11.99%,
6/11/27
$
18,136
$
18,353
APP-14906773.FP.FTS.B,
9.74%,
7/15/27
.
32,336
32,760
APP-13533233.FP.FTS.B,
14.09%,
7/15/27
21,781
22,091
APP-15064429.FP.FTS.B,
14.49%,
7/15/27
22,331
22,606
APP-15106750.FP.FTS.B,
18.99%,
7/15/27
20,069
2,288
APP-15055216.FP.FTS.B,
19.99%,
7/15/27
14,830
14,894
APP-15070181.FP.FTS.B,
19.99%,
7/15/27
14,827
14,891
APP-15109285.FP.FTS.B,
21.49%,
7/15/27
24,919
24,920
APP-14865954.FP.FTS.B,
11.74%,
7/16/27
22,288
22,588
APP-15149750.FP.FTS.B,
11.99%,
7/16/27
5,553
5,565
APP-14958373.FP.FTS.B,
12.24%,
7/16/27
14,772
14,977
APP-15158424.FP.FTS.B,
11.99%,
7/17/27
15,245
15,455
APP-14914244.FP.FTS.B,
20.99%,
7/22/27
11,981
12,062
APP-15057995.FP.FTS.B,
18.99%,
7/23/27
8,462
8,587
APP-15058449.FP.FTS.B,
11.99%,
7/25/27
9,939
10,099
APP-15078317.FP.FTS.B,
13.99%,
7/25/27
17,413
17,689
APP-15055723.FP.FTS.B,
11.24%,
7/26/27
26,183
26,609
APP-15048744.FP.FTS.B,
16.49%,
7/27/27
19,351
19,575
APP-15053719.FP.FTS.B,
16.99%,
7/28/27
9,365
9,523
APP-11798581.FP.FTS.B,
16.99%,
7/29/27
16,426
3,134
APP-15133409.FP.FTS.B,
15.49%,
7/30/27
21,495
21,866
APP-15053776.FP.FTS.B,
17.49%,
7/30/27
10,163
10,287
APP-15068287.FP.FTS.B,
26.99%,
8/26/27
9,021
3,252
APP-15039962.FP.FTS.B,
12.49%,
8/28/27
43,045
43,763
APP-15053335.FP.FTS.B,
23.49%,
8/28/27
9,116
9,171
APP-15085248.FP.FTS.B,
22.74%,
8/29/27
11,282
11,339
APP-11764720.FP.FTS.B,
21.99%,
10/05/27
9,049
5,331
APP-15070551.FP.FTS.B,
24.74%,
4/27/28
16,263
16,244
3,274,649
LendingClub
Corp.
161393306.LC.FTS.B,
Zero
Cpn,
4/20/24
.
11,988
1,130
153974620.LC.FTS.B,
14.3%,
6/24/24
...
5,279
5,216
154144733.LC.FTS.B,
12.4%,
6/26/24
...
4,414
4,338
153904028.LC.FTS.B,
17.74%,
6/30/24
...
2,829
2,805
155408143.LC.FTS.B,
16.95%,
7/22/24
...
6,414
6,336
155731933.LC.FTS.B,
15.24%,
7/29/24
...
8,102
7,976
156235700.LC.FTS.B,
17.74%,
8/06/24
...
3,861
3,793
156759369.LC.FTS.B,
12.4%,
8/09/24
...
6,050
5,925
156752978.LC.FTS.B,
14.3%,
8/09/24
...
10,161
9,968
156812488.LC.FTS.B,
14.3%,
8/12/24
...
2,779
2,732
158130288.LC.FTS.B,
14.3%,
9/04/24
...
4,068
3,988
155823205.LC.FTS.B,
14.3%,
9/15/24
...
4,927
4,826
159089545.LC.FTS.B,
16.95%,
9/23/24
...
3,515
3,459
159106791.LC.FTS.B,
17.74%,
9/23/24
...
4,353
4,283
159001219.LC.FTS.B,
12.4%,
9/26/24
...
5,979
5,873
158913750.LC.FTS.B,
11.71%,
9/30/24
...
6,712
6,572
160792694.LC.FTS.B,
13.08%,
10/23/24
..
11,779
11,507
158011325.LC.FTS.B,
Zero
Cpn,
11/03/24
7,449
–
161424051.LC.FTS.B,
10.33%,
11/05/24
..
4,463
4,347
161483895.LC.FTS.B,
13.08%,
11/07/24
..
3,766
3,669
162010515.LC.FTS.B,
17.74%,
11/18/24
..
3,586
3,509
162923894.LC.FTS.B,
18.62%,
12/06/24
..
3,621
3,577
163764805.LC.FTS.B,
Zero
Cpn,
12/23/24
11,840
–
163557424.LC.FTS.B,
11.02%,
12/30/24
..
2,413
2,393
164548038.LC.FTS.B,
11.02%,
1/25/25
...
10,427
10,146
165707974.LC.FTS.B,
20.55%,
1/28/25
...
1,475
1,459
164089980.LC.FTS.B,
17.74%,
2/28/25
...
5,791
2,480
Description
Principal
Amount
Value
LendingClub
Corp.
(continued)
167132427.LC.FTS.B,
20.55%,
2/28/25
...
$
8,846
$
8,692
167747801.LC.FTS.B,
16.12%,
3/15/25
...
6,638
6,419
168420680.LC.FTS.B,
17.74%,
3/16/25
...
8,762
8,484
166170570.LC.FTS.B,
17.74%,
3/17/25
...
7,272
7,034
168140265.LC.FTS.B,
15.24%,
3/21/25
...
9,002
8,717
167712249.LC.FTS.B,
14.3%,
4/20/25
...
11,773
11,430
151259806.LC.FTS.B,
Zero
Cpn,
6/04/25
.
9,420
6,799
165352318.LC.FTS.B,
15.24%,
6/22/25
...
14,207
13,681
166444317.LC.FTS.B,
13.08%,
11/04/25
..
20,970
19,913
160809803.LC.FTS.B,
13.08%,
11/23/25
..
13,651
10,240
165520144.LC.FTS.B,
Zero
Cpn,
9/05/26
.
10,970
92
160698361.LC.FTS.B,
Zero
Cpn,
10/23/32
6,766
–
163789996.LC.FTS.B,
18.62%,
12/23/32
..
643
544
164493400.LC.FTS.B,
5%,
1/07/33
......
1,362
1,329
225,681
LendingClub
Corp.
-
LCX
161911117.LC.FTS.B,
20.55%,
11/14/24
..
2,111
2,120
164542068.LC.FTS.B,
25.65%,
1/21/25
...
5,461
5,429
157483547.LC.FTS.B,
Zero
Cpn,
12/13/32
1,688
–
7,549
LendingClub
Corp.
-
LCX
PM
173017997.LC.FTS.B,
14.02%,
12/17/23
..
319
318
172997264.LC.FTS.B,
14.02%,
12/19/23
..
1,346
1,333
173374603.LC.FTS.B,
19.12%,
1/13/24
...
2,382
2,378
184916811.LC.FTS.B,
15.99%,
1/18/25
...
5,632
5,599
185085067.LC.FTS.B,
22.99%,
1/18/25
...
9,470
9,585
184905245.LC.FTS.B,
15.99%,
1/19/25
...
9,851
1,140
185225789.LC.FTS.B,
20.99%,
1/19/25
...
8,247
8,248
185231531.LC.FTS.B,
21.49%,
1/19/25
...
2,207
2,207
185170289.LC.FTS.B,
15.99%,
1/22/25
...
6,603
1,160
184577634.LC.FTS.B,
15.49%,
1/25/25
...
3,708
3,698
185449370.LC.FTS.B,
18.44%,
1/25/25
...
6,889
6,836
185337050.LC.FTS.B,
20.99%,
1/25/25
...
13,196
13,215
185529283.LC.FTS.B,
18.99%,
1/27/25
...
10,851
10,827
185074501.LC.FTS.B,
12.74%,
1/29/25
...
2,613
2,606
185591984.LC.FTS.B,
18.99%,
1/31/25
...
7,783
7,768
184733710.LC.FTS.B,
24.99%,
1/31/25
...
1,964
2,012
185743058.LC.FTS.B,
12.19%,
2/02/25
...
4,363
4,312
185670318.LC.FTS.B,
15.44%,
2/02/25
...
8,359
8,178
185694876.LC.FTS.B,
15.49%,
2/02/25
...
6,411
6,367
185720673.LC.FTS.B,
14.49%,
2/04/25
...
3,323
3,252
184778654.LC.FTS.B,
16.19%,
2/04/25
...
1,960
1,948
185764512.LC.FTS.B,
19.99%,
2/04/25
...
14,345
14,288
185806351.LC.FTS.B,
18.99%,
2/07/25
...
6,867
6,819
185828353.LC.FTS.B,
22.99%,
2/08/25
...
10,567
10,553
186050160.LC.FTS.B,
15.99%,
2/10/25
...
9,787
9,711
185828265.LC.FTS.B,
19.44%,
2/10/25
...
9,149
9,126
185614486.LC.FTS.B,
19.99%,
2/10/25
...
14,356
14,283
186144016.LC.FTS.B,
Zero
Cpn,
2/14/25
.
7,202
–
185731098.LC.FTS.B,
18.99%,
2/14/25
...
2,281
2,270
186141198.LC.FTS.B,
18.99%,
2/14/25
...
2,851
2,837
185870831.LC.FTS.B,
15.99%,
2/15/25
...
4,047
4,025
186248821.LC.FTS.B,
12.94%,
2/16/25
...
8,686
8,632
185952586.LC.FTS.B,
Zero
Cpn,
2/17/25
.
4,709
–
186046548.LC.FTS.B,
16.49%,
2/17/25
...
2,826
2,811
188498393.LC.FTS.B,
18.99%,
4/25/25
...
21,060
21,055
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
PM
(continued)
187330959.LC.FTS.B,
23.99%,
4/25/25
...
$
9,622
$
9,772
188539697.LC.FTS.B,
27.99%,
4/25/25
...
6,273
6,362
188790970.LC.FTS.B,
19.99%,
4/27/25
...
15,691
15,430
188578940.LC.FTS.B,
23.99%,
4/27/25
...
628
638
188852266.LC.FTS.B,
23.99%,
4/27/25
...
3,849
3,911
188854471.LC.FTS.B,
24.79%,
4/27/25
...
3,225
3,278
188781202.LC.FTS.B,
15.99%,
4/28/25
...
8,895
8,651
188845200.LC.FTS.B,
16.99%,
4/28/25
...
1,234
1,237
188849723.LC.FTS.B,
19.49%,
4/28/25
...
1,252
1,258
188683873.LC.FTS.B,
23.99%,
5/01/25
...
8,037
8,062
185664927.LC.FTS.B,
18.49%,
6/16/25
...
3,329
3,302
171733583.LC.FTS.B,
18.24%,
10/30/25
..
11,970
11,735
172637623.LC.FTS.B,
16.08%,
12/17/25
..
10,181
9,941
186109882.LC.FTS.B,
5%,
2/14/26
......
14,329
14,414
184987590.LC.FTS.B,
Zero
Cpn,
1/13/27
.
7,736
–
185030629.LC.FTS.B,
28.99%,
1/13/27
...
4,920
4,971
184976261.LC.FTS.B,
15.44%,
1/18/27
...
15,232
14,190
185102499.LC.FTS.B,
17.49%,
1/18/27
...
11,567
11,224
185242092.LC.FTS.B,
20.99%,
1/19/27
...
23,502
23,214
185186598.LC.FTS.B,
21.99%,
1/19/27
...
6,329
6,246
185203099.LC.FTS.B,
21.99%,
1/19/27
...
10,965
10,817
185257156.LC.FTS.B,
23.99%,
1/19/27
...
10,796
10,651
185208719.LC.FTS.B,
27.99%,
1/19/27
...
7,814
7,908
185284755.LC.FTS.B,
20.24%,
1/21/27
...
18,373
18,123
184608676.LC.FTS.B,
21.99%,
1/21/27
...
11,814
11,670
185190835.LC.FTS.B,
21.99%,
1/21/27
...
16,419
3,129
185280664.LC.FTS.B,
21.99%,
1/21/27
...
13,801
13,515
185094462.LC.FTS.B,
22.99%,
1/21/27
...
9,545
9,431
185215933.LC.FTS.B,
28.99%,
1/25/27
...
14,831
15,033
184953769.LC.FTS.B,
21.99%,
1/27/27
...
22,152
21,937
185465019.LC.FTS.B,
21.99%,
1/27/27
...
19,779
19,587
185285978.LC.FTS.B,
23.19%,
1/27/27
...
23,891
23,616
184862697.LC.FTS.B,
13.19%,
1/28/27
...
11,709
11,266
185051135.LC.FTS.B,
23.99%,
1/28/27
...
19,127
18,829
185551601.LC.FTS.B,
Zero
Cpn,
1/31/27
.
22,021
–
185606478.LC.FTS.B,
Zero
Cpn,
1/31/27
.
22,145
2,070
185593614.LC.FTS.B,
14.94%,
1/31/27
...
4,546
4,427
185625736.LC.FTS.B,
17.24%,
1/31/27
...
11,522
11,218
185553869.LC.FTS.B,
17.44%,
1/31/27
...
13,455
13,098
185325210.LC.FTS.B,
21.49%,
2/01/27
...
19,441
19,068
185773530.LC.FTS.B,
Zero
Cpn,
2/04/27
.
13,169
–
185801067.LC.FTS.B,
15.19%,
2/04/27
...
11,618
11,171
185785605.LC.FTS.B,
16.99%,
2/04/27
...
18,782
18,188
185579608.LC.FTS.B,
23.99%,
2/04/27
...
24,562
24,195
185803689.LC.FTS.B,
12.69%,
2/08/27
...
30,649
28,408
185670781.LC.FTS.B,
14.74%,
2/08/27
...
30,900
29,730
185788975.LC.FTS.B,
20.44%,
2/08/27
...
31,902
31,262
185500483.LC.FTS.B,
23.99%,
2/08/27
...
28,428
27,948
186105140.LC.FTS.B,
14.99%,
2/10/27
...
9,284
8,939
186053383.LC.FTS.B,
18.49%,
2/10/27
...
19,729
19,134
186004411.LC.FTS.B,
21.99%,
2/10/27
...
11,441
11,316
186037923.LC.FTS.B,
23.49%,
2/10/27
...
5,671
5,583
186073191.LC.FTS.B,
23.99%,
2/10/27
...
8,118
7,991
186131505.LC.FTS.B,
Zero
Cpn,
2/14/27
.
10,314
–
185962334.LC.FTS.B,
16.49%,
2/14/27
...
27,313
26,508
186055580.LC.FTS.B,
19.49%,
2/14/27
...
12,697
12,502
186072313.LC.FTS.B,
19.99%,
2/14/27
...
12,813
12,618
186114907.LC.FTS.B,
24.99%,
2/14/27
...
8,402
1,607
Description
Principal
Amount
Value
LendingClub
Corp.
-
LCX
PM
(continued)
185957980.LC.FTS.B,
10.99%,
2/15/27
...
$
21,639
$
20,900
185644818.LC.FTS.B,
17.24%,
2/15/27
...
31,665
29,706
186037630.LC.FTS.B,
23.99%,
2/15/27
...
12,281
12,097
186256667.LC.FTS.B,
Zero
Cpn,
2/16/27
.
18,992
–
185737435.LC.FTS.B,
19.74%,
2/16/27
...
13,382
13,188
186160994.LC.FTS.B,
23.99%,
2/16/27
...
16,244
16,018
186255693.LC.FTS.B,
28.99%,
2/16/27
...
6,653
6,731
185994246.LC.FTS.B,
23.99%,
2/17/27
...
7,027
660
185972627.LC.FTS.B,
Zero
Cpn,
2/23/27
.
12,250
–
184697668.LC.FTS.B,
22.49%,
2/23/27
...
16,153
15,947
185440062.LC.FTS.B,
17.49%,
2/25/27
...
17,312
16,849
186057988.LC.FTS.B,
23.99%,
2/25/27
...
16,721
13,240
185584314.LC.FTS.B,
23.99%,
2/28/27
...
10,521
10,332
188676937.LC.FTS.B,
Zero
Cpn,
4/25/27
.
10,834
1,022
188640868.LC.FTS.B,
20.99%,
4/25/27
...
16,841
16,386
188665152.LC.FTS.B,
20.99%,
4/25/27
...
8,433
8,317
188681928.LC.FTS.B,
22.99%,
4/25/27
...
8,200
8,153
188661710.LC.FTS.B,
23.19%,
4/25/27
...
8,336
8,296
188722342.LC.FTS.B,
28.99%,
4/25/27
...
5,979
6,102
188818650.LC.FTS.B,
20.99%,
4/26/27
...
5,282
5,258
188826193.LC.FTS.B,
22.99%,
4/26/27
...
6,676
6,638
188684882.LC.FTS.B,
23.99%,
4/26/27
...
5,106
4,972
188570436.LC.FTS.B,
25.99%,
4/26/27
...
6,075
5,822
188791237.LC.FTS.B,
27.99%,
4/26/27
...
15,739
15,862
188736809.LC.FTS.B,
Zero
Cpn,
4/27/27
.
10,678
–
188850161.LC.FTS.B,
18.99%,
4/27/27
...
6,540
6,421
188709996.LC.FTS.B,
20.49%,
4/27/27
...
25,807
3,164
188698368.LC.FTS.B,
20.99%,
4/27/27
...
18,161
17,579
188844587.LC.FTS.B,
20.99%,
4/27/27
...
8,253
8,218
188172463.LC.FTS.B,
22.49%,
4/27/27
...
9,625
9,384
188821742.LC.FTS.B,
23.99%,
4/27/27
...
16,731
16,663
188832786.LC.FTS.B,
27.99%,
4/27/27
...
4,254
4,345
188838885.LC.FTS.B,
28.99%,
4/27/27
...
8,541
8,725
188770586.LC.FTS.B,
21.49%,
4/28/27
...
14,890
14,665
188825826.LC.FTS.B,
23.49%,
4/28/27
...
8,347
8,289
188877761.LC.FTS.B,
25.99%,
4/28/27
...
6,223
6,100
188729615.LC.FTS.B,
28.99%,
4/28/27
...
21,356
21,787
188842402.LC.FTS.B,
21.49%,
4/30/27
...
5,047
5,005
188806927.LC.FTS.B,
23.99%,
4/30/27
...
12,788
12,709
188652977.LC.FTS.B,
23.99%,
5/24/27
...
2,964
2,909
185298966.LC.FTS.B,
21.49%,
7/30/27
...
21,290
20,993
188741644.LC.FTS.B,
20.49%,
10/21/27
..
16,862
2,052
186094287.LC.FTS.B,
24.99%,
12/29/27
..
8,953
7,278
188683114.LC.FTS.B,
23.99%,
3/27/28
...
38,174
4,836
1,313,344
Prosper
Funding
LLC
1606124.PS.FTS.B,
12.3%,
8/17/24
.....
3,955
3,874
1616481.PS.FTS.B,
14.89%,
8/17/24
....
7,065
941
1609444.PS.FTS.B,
15%,
8/17/24
.......
2,548
2,179
1610038.PS.FTS.B,
15%,
8/17/24
.......
2,976
2,930
1611259.PS.FTS.B,
13.5%,
8/19/24
.....
1,125
1,110
1607870.PS.FTS.B,
14%,
8/19/24
.......
4,717
–
1608122.PS.FTS.B,
19.8%,
8/20/24
.....
640
637
1619058.PS.FTS.B,
19%,
8/23/24
.......
796
796
1612303.PS.FTS.B,
20.8%,
8/23/24
.....
8,080
8,081
1610720.PS.FTS.B,
16.6%,
8/25/24
.....
3,117
3,079
1610027.PS.FTS.B,
18.09%,
8/27/24
....
2,777
2,769
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1606139.PS.FTS.B,
12.8%,
9/01/24
.....
$
1,332
$
1,310
1610444.PS.FTS.B,
18.09%,
9/08/24
....
5,987
5,961
1625728.PS.FTS.B,
12.49%,
9/16/24
....
10,157
9,928
1622147.PS.FTS.B,
13.6%,
9/16/24
.....
817
800
1626067.PS.FTS.B,
15.4%,
9/17/24
.....
5,681
5,585
1632888.PS.FTS.B,
17.96%,
9/17/24
....
1,132
1,113
1622396.PS.FTS.B,
20.4%,
9/17/24
.....
2,033
2,021
1634583.PS.FTS.B,
18.4%,
9/21/24
.....
1,276
1,272
1623410.PS.FTS.B,
18.5%,
9/21/24
.....
851
849
1634322.PS.FTS.B,
20.46%,
9/21/24
....
1,297
1,294
1626395.PS.FTS.B,
13.87%,
9/24/24
....
14,348
14,101
1632609.PS.FTS.B,
14.39%,
9/26/24
....
2,918
2,860
1626680.PS.FTS.B,
16%,
9/27/24
.......
5,002
4,934
1623737.PS.FTS.B,
18.7%,
9/30/24
.....
917
909
1630510.PS.FTS.B,
11.97%,
10/10/24
....
3,271
3,198
1628891.PS.FTS.B,
14.94%,
10/12/24
...
2,547
663
1626424.PS.FTS.B,
11.7%,
10/19/24
....
5,071
4,264
1648309.PS.FTS.B,
14.49%,
10/26/24
...
4,408
4,338
1645271.PS.FTS.B,
10.8%,
10/27/24
....
8,124
7,961
1648648.PS.FTS.B,
16%,
10/27/24
......
1,846
1,791
1649014.PS.FTS.B,
22.7%,
10/27/24
....
1,733
1,742
1656261.PS.FTS.B,
16%,
10/28/24
......
3,140
3,083
1646552.PS.FTS.B,
15.29%,
10/29/24
...
7,085
6,980
1650988.PS.FTS.B,
15.4%,
11/01/24
....
3,888
2,304
1661430.PS.FTS.B,
12%,
11/05/24
......
5,063
4,925
1658149.PS.FTS.B,
13.4%,
11/08/24
....
2,327
2,269
1664622.PS.FTS.B,
16.9%,
11/08/24
....
1,212
1,192
1664838.PS.FTS.B,
20.01%,
11/08/24
....
2,437
2,401
1666485.PS.FTS.B,
10.5%,
11/09/24
....
1,819
1,772
1665699.PS.FTS.B,
15%,
11/09/24
......
3,769
3,677
1660285.PS.FTS.B,
18.9%,
11/10/24
....
970
958
1653836.PS.FTS.B,
14.79%,
11/12/24
....
942
917
1661257.PS.FTS.B,
17.8%,
11/12/24
....
963
952
1655723.PS.FTS.B,
15.1%,
11/15/24
....
9,429
9,220
1645667.PS.FTS.B,
16.6%,
11/17/24
....
4,999
4,315
1685274.PS.FTS.B,
10.54%,
12/14/24
...
697
680
1685619.PS.FTS.B,
14.39%,
12/14/24
...
3,164
1,861
1672733.PS.FTS.B,
15%,
12/14/24
......
4,997
4,873
1678747.PS.FTS.B,
19.3%,
12/14/24
....
1,031
1,018
1679110.PS.FTS.B,
13.36%,
12/15/24
....
4,823
4,697
1686000.PS.FTS.B,
13.36%,
12/15/24
...
7,406
7,208
1673372.PS.FTS.B,
16%,
12/15/24
......
4,027
3,979
1672982.PS.FTS.B,
22%,
12/15/24
......
1,576
1,557
1680175.PS.FTS.B,
22.6%,
12/16/24
....
2,033
2,025
1674770.PS.FTS.B,
13.1%,
12/17/24
....
7,392
7,217
1674329.PS.FTS.B,
14.89%,
12/17/24
...
2,996
2,925
1674347.PS.FTS.B,
15.86%,
12/17/24
...
7,531
7,352
1678399.PS.FTS.B,
16.3%,
12/22/24
....
1,266
1,246
1700772.PS.FTS.B,
12.1%,
1/12/25
.....
11,510
2,861
1693870.PS.FTS.B,
13.6%,
1/12/25
.....
2,612
2,536
1701129.PS.FTS.B,
16.4%,
1/12/25
.....
5,917
5,736
1688351.PS.FTS.B,
17%,
1/12/25
.......
2,406
2,368
1688342.PS.FTS.B,
17.5%,
1/12/25
.....
8,585
8,448
1688336.PS.FTS.B,
19.2%,
1/12/25
.....
10,209
2,648
1687970.PS.FTS.B,
23.5%,
1/12/25
.....
708
698
1694488.PS.FTS.B,
13.8%,
1/13/25
.....
6,208
6,036
1694470.PS.FTS.B,
15.29%,
1/13/25
....
4,780
636
1689453.PS.FTS.B,
12%,
1/15/25
.......
2,365
2,297
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1701126.PS.FTS.B,
13%,
1/15/25
.......
$
1,325
$
1,304
1690265.PS.FTS.B,
23.3%,
1/18/25
.....
3,902
3,885
1697473.PS.FTS.B,
10.54%,
1/19/25
....
7,668
7,457
1692512.PS.FTS.B,
19.34%,
1/19/25
....
5,496
5,355
1700011.PS.FTS.B,
13.9%,
1/21/25
.....
2,617
2,553
1700775.PS.FTS.B,
16.6%,
1/26/25
.....
17,463
16,918
1688699.PS.FTS.B,
21.8%,
1/27/25
.....
4,768
4,677
1697303.PS.FTS.B,
13.9%,
1/31/25
.....
2,208
2,147
1720755.PS.FTS.B,
13.96%,
2/14/25
....
13,778
13,359
1715041.PS.FTS.B,
11.4%,
2/15/25
.....
1,084
1,051
1720938.PS.FTS.B,
13.81%,
2/15/25
....
5,506
5,340
1707953.PS.FTS.B,
13.96%,
2/15/25
....
11,058
10,710
1707938.PS.FTS.B,
15.86%,
2/15/25
....
7,812
7,583
1715485.PS.FTS.B,
16%,
2/15/25
.......
13,962
13,553
1714630.PS.FTS.B,
16.16%,
2/15/25
....
8,386
8,140
1714624.PS.FTS.B,
19.41%,
2/15/25
....
5,706
5,608
1715122.PS.FTS.B,
19.8%,
2/15/25
.....
1,449
1,419
1720920.PS.FTS.B,
21.2%,
2/15/25
.....
6,058
6,008
1722336.PS.FTS.B,
14.74%,
2/16/25
....
3,542
470
1715734.PS.FTS.B,
19.83%,
2/16/25
....
4,005
3,888
1722360.PS.FTS.B,
22.6%,
2/16/25
.....
1,703
1,689
1723116.PS.FTS.B,
16.29%,
2/17/25
....
1,119
1,101
1720923.PS.FTS.B,
18.7%,
2/28/25
.....
16,553
2,299
1714408.PS.FTS.B,
22.11%,
3/13/25
....
6,197
6,099
1749541.PS.FTS.B,
22.03%,
4/05/25
....
2,178
2,109
1750351.PS.FTS.B,
15.2%,
4/06/25
.....
2,116
2,038
1743776.PS.FTS.B,
20.4%,
4/06/25
.....
18,288
499
1753944.PS.FTS.B,
15.4%,
4/07/25
.....
4,588
4,410
1744391.PS.FTS.B,
24.09%,
4/07/25
....
1,991
1,944
1750903.PS.FTS.B,
24.4%,
4/07/25
.....
5,174
5,055
1745381.PS.FTS.B,
12.9%,
4/08/25
.....
12,055
11,638
1758243.PS.FTS.B,
24.4%,
4/16/25
.....
2,580
2,530
1757968.PS.FTS.B,
13.9%,
4/18/25
.....
3,638
3,512
1742906.PS.FTS.B,
15.4%,
4/30/25
.....
1,300
1,246
1743767.PS.FTS.B,
25.71%,
5/05/25
....
5,560
5,411
1752241.PS.FTS.B,
14.7%,
5/10/25
.....
22,495
21,455
1658650.PS.FTS.B,
13.6%,
10/09/25
....
10,597
5,870
1701120.PS.FTS.B,
15.9%,
12/12/25
....
9,174
8,749
1742903.PS.FTS.B,
18.09%,
2/15/26
....
4,989
–
1606145.PS.FTS.B,
14%,
8/17/26
.......
10,213
9,909
1606127.PS.FTS.B,
15.2%,
8/17/26
.....
6,219
6,020
1607933.PS.FTS.B,
18.5%,
8/19/26
.....
1,410
1,397
1608617.PS.FTS.B,
13.7%,
8/20/26
.....
4,075
3,949
1618680.PS.FTS.B,
15.37%,
8/20/26
....
12,046
11,671
1611802.PS.FTS.B,
29.74%,
8/22/26
....
3,054
3,108
1609277.PS.FTS.B,
15.7%,
8/23/26
.....
9,666
9,375
1610327.PS.FTS.B,
27.6%,
8/24/26
.....
6,023
6,147
1621434.PS.FTS.B,
14.6%,
8/26/26
.....
3,020
2,939
1614454.PS.FTS.B,
17.7%,
8/26/26
.....
7,008
6,995
1621428.PS.FTS.B,
20%,
8/26/26
.......
7,130
7,113
1611746.PS.FTS.B,
14.29%,
8/27/26
....
6,142
5,961
1612838.PS.FTS.B,
18.5%,
9/13/26
.....
6,131
3,588
1619286.PS.FTS.B,
12.5%,
9/16/26
.....
8,357
8,082
1625740.PS.FTS.B,
18.48%,
9/16/26
....
7,191
7,121
1623731.PS.FTS.B,
18.93%,
9/21/26
....
12,986
12,889
1635897.PS.FTS.B,
12%,
9/23/26
.......
15,068
14,595
1635735.PS.FTS.B,
14.68%,
9/23/26
....
10,490
10,159
1627036.PS.FTS.B,
16.33%,
9/25/26
....
9,581
9,265
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1637445.PS.FTS.B,
13.3%,
9/27/26
.....
$
6,920
$
6,708
1626758.PS.FTS.B,
17.96%,
9/30/26
....
16,196
15,662
1634247.PS.FTS.B,
16.7%,
10/05/26
....
17,109
16,515
1626046.PS.FTS.B,
15.18%,
10/16/26
...
6,944
6,699
1644875.PS.FTS.B,
11.6%,
10/26/26
....
5,236
5,070
1655034.PS.FTS.B,
11.7%,
10/26/26
....
16,070
15,561
1648324.PS.FTS.B,
12.2%,
10/26/26
....
14,028
13,582
1644860.PS.FTS.B,
18.33%,
10/26/26
...
9,064
1,468
1645337.PS.FTS.B,
18.48%,
10/27/26
...
14,676
14,569
1646123.PS.FTS.B,
13.32%,
10/28/26
...
5,305
5,148
1649539.PS.FTS.B,
16.7%,
10/28/26
....
14,496
14,064
1650328.PS.FTS.B,
11.2%,
10/29/26
....
6,763
6,619
1646948.PS.FTS.B,
11.79%,
10/29/26
....
10,938
2,374
1649926.PS.FTS.B,
13.8%,
10/29/26
....
23,908
23,209
1650904.PS.FTS.B,
26.43%,
10/29/26
...
6,275
6,410
1656591.PS.FTS.B,
14.79%,
10/31/26
...
25,532
24,944
1655028.PS.FTS.B,
13.8%,
11/01/26
....
5,817
5,616
1647395.PS.FTS.B,
11.89%,
11/03/26
....
7,152
6,872
1661010.PS.FTS.B,
12.5%,
11/05/26
....
18,661
17,966
1661007.PS.FTS.B,
15.8%,
11/05/26
....
14,688
14,110
1654774.PS.FTS.B,
16.18%,
11/05/26
....
25,770
24,756
1661004.PS.FTS.B,
17.8%,
11/05/26
....
4,093
4,007
1661433.PS.FTS.B,
28.23%,
11/05/26
....
3,959
3,968
1651868.PS.FTS.B,
9.45%,
11/08/26
....
9,124
8,791
1658185.PS.FTS.B,
10.5%,
11/08/26
....
6,366
6,134
1658167.PS.FTS.B,
13.5%,
11/08/26
....
17,710
17,036
1658881.PS.FTS.B,
13.8%,
11/09/26
....
17,759
17,086
1653323.PS.FTS.B,
16%,
11/09/26
......
8,825
8,489
1666362.PS.FTS.B,
19%,
11/09/26
......
5,250
5,148
1666359.PS.FTS.B,
21%,
11/09/26
......
4,633
4,663
1666911.PS.FTS.B,
10.62%,
11/10/26
....
9,204
8,872
1660066.PS.FTS.B,
12.6%,
11/10/26
....
25,139
24,229
1660078.PS.FTS.B,
13.93%,
11/10/26
....
14,468
13,944
1646330.PS.FTS.B,
16.2%,
11/10/26
....
22,258
21,500
1666890.PS.FTS.B,
17%,
11/10/26
......
11,845
11,625
1652018.PS.FTS.B,
19.23%,
11/15/26
....
11,339
11,069
1662505.PS.FTS.B,
25.4%,
11/15/26
....
7,796
7,867
1651871.PS.FTS.B,
20.66%,
11/20/26
....
4,202
4,102
1651913.PS.FTS.B,
25.67%,
11/22/26
....
5,566
5,536
1672147.PS.FTS.B,
16.56%,
12/03/26
...
15,053
14,673
1666100.PS.FTS.B,
18.33%,
12/03/26
...
3,941
954
1672316.PS.FTS.B,
10.44%,
12/14/26
...
9,391
9,052
1678354.PS.FTS.B,
11.07%,
12/14/26
....
10,884
10,491
1678396.PS.FTS.B,
11.2%,
12/14/26
....
4,664
–
1685634.PS.FTS.B,
12.5%,
12/14/26
....
5,862
5,651
1672730.PS.FTS.B,
13.8%,
12/14/26
....
25,873
24,894
1685271.PS.FTS.B,
16.8%,
12/14/26
....
11,307
10,876
1678387.PS.FTS.B,
18.33%,
12/14/26
...
10,347
10,111
1678372.PS.FTS.B,
22.8%,
12/14/26
....
8,595
8,637
1685631.PS.FTS.B,
27.02%,
12/14/26
...
4,798
4,816
1686078.PS.FTS.B,
10.5%,
12/15/26
....
8,672
8,361
1686378.PS.FTS.B,
17.23%,
12/15/26
...
6,156
5,019
1687344.PS.FTS.B,
19%,
12/17/26
......
3,797
3,725
1685997.PS.FTS.B,
12.87%,
12/18/26
...
6,622
6,379
1687950.PS.FTS.B,
11.5%,
12/20/26
....
10,797
10,422
1675010.PS.FTS.B,
12.5%,
12/20/26
....
8,098
7,819
1685637.PS.FTS.B,
11.7%,
12/28/26
....
21,994
21,182
1672718.PS.FTS.B,
14.38%,
1/07/27
....
6,119
5,887
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1701111.PS.FTS.B,
10.29%,
1/12/27
.....
$
18,298
$
17,618
1700808.PS.FTS.B,
11.4%,
1/12/27
.....
7,419
7,143
1700766.PS.FTS.B,
14.68%,
1/12/27
....
74
73
1701108.PS.FTS.B,
15.7%,
1/12/27
.....
26,682
25,604
1701147.PS.FTS.B,
21.63%,
1/12/27
....
8,267
1,193
1687964.PS.FTS.B,
22.2%,
1/12/27
.....
5,935
5,929
1694491.PS.FTS.B,
12.62%,
1/13/27
....
11,217
10,801
1694725.PS.FTS.B,
18.4%,
1/13/27
.....
11,620
11,343
1701537.PS.FTS.B,
19.3%,
1/13/27
.....
11,680
11,399
1695958.PS.FTS.B,
10.5%,
1/14/27
.....
11,079
10,664
1689173.PS.FTS.B,
11.2%,
1/14/27
.....
14,448
13,916
1695787.PS.FTS.B,
11.7%,
1/14/27
.....
18,584
17,900
1689251.PS.FTS.B,
19%,
1/14/27
.......
3,109
3,036
1689623.PS.FTS.B,
19%,
1/14/27
.......
2,472
2,414
1694719.PS.FTS.B,
16.93%,
1/17/27
....
13,789
13,208
1705005.PS.FTS.B,
15%,
1/19/27
.......
19,736
18,987
1702455.PS.FTS.B,
15.18%,
1/20/27
....
12,221
11,761
1702237.PS.FTS.B,
11.7%,
1/25/27
.....
7,766
1,672
1703169.PS.FTS.B,
25.6%,
2/11/27
.....
12,821
12,511
1707746.PS.FTS.B,
9.45%,
2/14/27
.....
5,156
4,963
1720764.PS.FTS.B,
22.5%,
2/14/27
.....
8,853
8,813
1720917.PS.FTS.B,
13.7%,
2/15/27
.....
9,588
9,196
1714633.PS.FTS.B,
14.39%,
2/15/27
....
11,721
2,658
1707950.PS.FTS.B,
16.5%,
2/15/27
.....
7,795
7,475
1714648.PS.FTS.B,
16.7%,
2/15/27
.....
5,853
5,612
1721346.PS.FTS.B,
16.7%,
2/15/27
.....
15,609
15,204
1720911.PS.FTS.B,
18.59%,
2/15/27
....
19,715
19,196
1714642.PS.FTS.B,
18.7%,
2/15/27
.....
7,891
7,683
1714636.PS.FTS.B,
23.58%,
2/15/27
....
4,486
4,442
1707734.PS.FTS.B,
10.29%,
2/16/27
....
12,333
11,971
1722117.PS.FTS.B,
15.18%,
2/16/27
....
6,190
5,938
1709201.PS.FTS.B,
18.48%,
2/16/27
....
9,852
9,598
1714627.PS.FTS.B,
11.4%,
2/17/27
.....
15,896
15,304
1709846.PS.FTS.B,
26.5%,
2/17/27
.....
8,561
1,272
1720908.PS.FTS.B,
15.29%,
2/22/27
....
23,641
19,266
1712903.PS.FTS.B,
15.29%,
2/23/27
....
7,463
7,177
1715713.PS.FTS.B,
10.8%,
3/14/27
.....
7,909
3,953
1749550.PS.FTS.B,
11.5%,
4/05/27
.....
11,800
11,324
1752624.PS.FTS.B,
17.23%,
4/05/27
....
16,214
15,420
1753011.PS.FTS.B,
12%,
4/06/27
.......
11,832
11,358
1749859.PS.FTS.B,
19.06%,
4/06/27
....
5,980
3,441
1752981.PS.FTS.B,
21%,
4/06/27
.......
5,366
5,233
1750735.PS.FTS.B,
16%,
4/07/27
.......
4,464
4,282
1755072.PS.FTS.B,
10.8%,
4/08/27
.....
4,366
4,214
1754293.PS.FTS.B,
13.4%,
4/12/27
.....
9,538
9,095
1747163.PS.FTS.B,
16.2%,
4/12/27
.....
20,163
19,225
1744328.PS.FTS.B,
14.89%,
4/15/27
....
16,082
15,308
1752654.PS.FTS.B,
12.76%,
4/30/27
....
12,203
11,851
1607291.PS.FTS.B,
28.59%,
7/18/27
....
5,370
5,211
1623734.PS.FTS.B,
18.4%,
8/21/27
.....
7,568
7,245
1,659,556
Upgrade,
Inc.
-
Card
992290768.UG.FTS.B,
29.49%,
10/03/23
.
6
6
992431329.UG.FTS.B,
Zero
Cpn,
11/03/23
34
2
992294700.UG.FTS.B,
29.49%,
11/03/23
.
19
19
992375568.UG.FTS.B,
17.97%,
12/02/23
.
20
9
992432014.UG.FTS.B,
Zero
Cpn,
1/03/24
.
27
2
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
992327673.UG.FTS.B,
28.98%,
1/03/24
..
$
16
$
14
992270166.UG.FTS.B,
17.71%,
4/03/24
..
43
43
992258570.UG.FTS.B,
26.44%,
4/03/24
..
14
14
992343756.UG.FTS.B,
29.49%,
4/03/24
..
272
272
992392020.UG.FTS.B,
29.49%,
4/03/24
..
140
10
992460590.UG.FTS.B,
29.49%,
4/03/24
..
–
–
992249570.UG.FTS.B,
20.96%,
4/04/24
..
64
65
992270855.UG.FTS.B,
Zero
Cpn,
4/05/24
.
115
8
992271480.UG.FTS.B,
Zero
Cpn,
4/05/24
.
143
10
992339612.UG.FTS.B,
Zero
Cpn,
4/05/24
.
122
9
992393132.UG.FTS.B,
Zero
Cpn,
4/05/24
.
44
3
992419177.UG.FTS.B,
Zero
Cpn,
4/05/24
.
119
8
992445453.UG.FTS.B,
Zero
Cpn,
4/05/24
.
466
33
992320075.UG.FTS.B,
16.49%,
4/05/24
..
13
13
992425399.UG.FTS.B,
18.96%,
4/05/24
..
46
46
992413501.UG.FTS.B,
19.3%,
4/05/24
...
452
452
992425235.UG.FTS.B,
19.99%,
4/05/24
..
228
230
992253128.UG.FTS.B,
20.96%,
4/05/24
..
109
109
992321694.UG.FTS.B,
20.96%,
4/05/24
..
67
67
992324567.UG.FTS.B,
20.96%,
4/05/24
..
190
191
992247109.UG.FTS.B,
21.48%,
4/05/24
..
2,067
(80)
992291104.UG.FTS.B,
21.48%,
4/05/24
..
164
60
992270384.UG.FTS.B,
22.47%,
4/05/24
..
47
47
992310198.UG.FTS.B,
22.47%,
4/05/24
..
181
182
992313421.UG.FTS.B,
22.47%,
4/05/24
..
16
15
992275523.UG.FTS.B,
23.45%,
4/05/24
..
42
42
992460308.UG.FTS.B,
25.44%,
4/05/24
..
46
45
992258284.UG.FTS.B,
27.99%,
4/05/24
..
48
48
992240601.UG.FTS.B,
28.48%,
4/05/24
..
97
98
992252825.UG.FTS.B,
28.48%,
4/05/24
..
188
191
992262433.UG.FTS.B,
28.48%,
4/05/24
..
270
273
992269299.UG.FTS.B,
28.48%,
4/05/24
..
33
33
992332109.UG.FTS.B,
28.48%,
4/05/24
..
60
60
992336619.UG.FTS.B,
28.48%,
4/05/24
..
7
7
992425560.UG.FTS.B,
28.48%,
4/05/24
..
116
117
992255211.UG.FTS.B,
29.47%,
4/05/24
..
43
15
992342504.UG.FTS.B,
29.48%,
4/05/24
..
180
183
992406244.UG.FTS.B,
29.48%,
4/05/24
..
139
140
992424634.UG.FTS.B,
29.48%,
4/05/24
..
261
263
992453174.UG.FTS.B,
29.48%,
4/05/24
..
36
37
992237034.UG.FTS.B,
29.49%,
4/05/24
..
7
7
992241305.UG.FTS.B,
29.49%,
4/05/24
..
59
60
992245006.UG.FTS.B,
29.49%,
4/05/24
..
38
38
992245608.UG.FTS.B,
29.49%,
4/05/24
..
53
54
992250322.UG.FTS.B,
29.49%,
4/05/24
..
13
13
992251623.UG.FTS.B,
29.49%,
4/05/24
..
27
27
992253455.UG.FTS.B,
29.49%,
4/05/24
..
64
4
992253980.UG.FTS.B,
29.49%,
4/05/24
..
116
117
992263652.UG.FTS.B,
29.49%,
4/05/24
..
41
41
992269988.UG.FTS.B,
29.49%,
4/05/24
..
78
79
992270710.UG.FTS.B,
29.49%,
4/05/24
..
59
60
992272262.UG.FTS.B,
29.49%,
4/05/24
..
39
34
992278624.UG.FTS.B,
29.49%,
4/05/24
..
162
165
992301548.UG.FTS.B,
29.49%,
4/05/24
..
14
13
992305197.UG.FTS.B,
29.49%,
4/05/24
..
102
103
992306483.UG.FTS.B,
29.49%,
4/05/24
..
49
50
992312387.UG.FTS.B,
29.49%,
4/05/24
..
60
60
992319935.UG.FTS.B,
29.49%,
4/05/24
..
–
–
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
992324074.UG.FTS.B,
29.49%,
4/05/24
..
$
119
$
117
992326465.UG.FTS.B,
29.49%,
4/05/24
..
108
8
992330489.UG.FTS.B,
29.49%,
4/05/24
..
192
196
992345378.UG.FTS.B,
29.49%,
4/05/24
..
603
611
992366199.UG.FTS.B,
29.49%,
4/05/24
..
26
25
992371567.UG.FTS.B,
29.49%,
4/05/24
..
200
203
992388420.UG.FTS.B,
29.49%,
4/05/24
..
28
28
992389706.UG.FTS.B,
29.49%,
4/05/24
..
14
14
992425321.UG.FTS.B,
29.49%,
4/05/24
..
80
81
992436268.UG.FTS.B,
29.49%,
4/05/24
..
60
60
992442175.UG.FTS.B,
29.49%,
4/05/24
..
748
754
992356295.UG.FTS.B,
29.49%,
6/03/24
..
37
38
992241102.UG.FTS.B,
29.49%,
7/03/24
..
106
90
992343713.UG.FTS.B,
29.49%,
8/03/24
..
57
58
992326831.UG.FTS.B,
Zero
Cpn,
9/03/24
.
56
4
992319118.UG.FTS.B,
29.49%,
10/03/24
.
271
79
992385683.UG.FTS.B,
21.98%,
3/28/25
..
28
29
992428468.UG.FTS.B,
25.95%,
4/03/25
..
104
105
992268108.UG.FTS.B,
29.49%,
4/03/25
..
310
311
992269560.UG.FTS.B,
29.49%,
4/03/25
..
261
262
992274902.UG.FTS.B,
29.49%,
4/03/25
..
207
14
992290976.UG.FTS.B,
29.49%,
4/03/25
..
261
267
992291590.UG.FTS.B,
29.49%,
4/03/25
..
–
–
992310969.UG.FTS.B,
29.49%,
4/03/25
..
156
156
992335320.UG.FTS.B,
29.49%,
4/03/25
..
1,371
1,426
992345576.UG.FTS.B,
29.49%,
4/03/25
..
245
254
992357933.UG.FTS.B,
29.49%,
4/03/25
..
211
223
992375406.UG.FTS.B,
29.49%,
4/03/25
..
25
25
992460328.UG.FTS.B,
29.49%,
4/03/25
..
98
7
992258313.UG.FTS.B,
21.98%,
4/04/25
..
85
86
992301470.UG.FTS.B,
28.98%,
4/04/25
..
128
94
992387188.UG.FTS.B,
28.98%,
4/04/25
..
230
237
992453316.UG.FTS.B,
28.98%,
4/04/25
..
240
241
992463571.UG.FTS.B,
28.98%,
4/04/25
..
91
94
992266370.UG.FTS.B,
29.49%,
4/04/25
..
415
429
992342016.UG.FTS.B,
29.49%,
4/04/25
..
210
211
992421008.UG.FTS.B,
29.49%,
4/04/25
..
34
35
992421200.UG.FTS.B,
29.49%,
4/04/25
..
155
160
992279429.UG.FTS.B,
Zero
Cpn,
4/05/25
.
44
3
992294259.UG.FTS.B,
Zero
Cpn,
4/05/25
.
347
24
992369900.UG.FTS.B,
Zero
Cpn,
4/05/25
.
44
3
992399278.UG.FTS.B,
Zero
Cpn,
4/05/25
.
4,241
292
992433503.UG.FTS.B,
Zero
Cpn,
4/05/25
.
–
–
992437875.UG.FTS.B,
Zero
Cpn,
4/05/25
.
306
21
992264407.UG.FTS.B,
14.97%,
4/05/25
..
694
694
992391676.UG.FTS.B,
15.97%,
4/05/25
..
80
80
992275748.UG.FTS.B,
17.97%,
4/05/25
..
539
536
992417616.UG.FTS.B,
17.99%,
4/05/25
..
89
91
992286525.UG.FTS.B,
18.8%,
4/05/25
...
110
112
992323394.UG.FTS.B,
18.97%,
4/05/25
..
1,336
1,350
992415664.UG.FTS.B,
18.97%,
4/05/25
..
1,419
1,434
992239422.UG.FTS.B,
19.21%,
4/05/25
..
339
339
992416415.UG.FTS.B,
19.21%,
4/05/25
..
1,249
1,273
992424538.UG.FTS.B,
19.21%,
4/05/25
..
778
784
992432194.UG.FTS.B,
19.8%,
4/05/25
...
329
332
992256001.UG.FTS.B,
19.97%,
4/05/25
..
401
408
992290432.UG.FTS.B,
19.99%,
4/05/25
..
3,693
3,858
992331017.UG.FTS.B,
19.99%,
4/05/25
..
200
205
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
992346135.UG.FTS.B,
19.99%,
4/05/25
..
$
350
$
365
992431381.UG.FTS.B,
19.99%,
4/05/25
..
78
79
992433537.UG.FTS.B,
19.99%,
4/05/25
..
940
971
992255166.UG.FTS.B,
20.46%,
4/05/25
..
54
54
992386358.UG.FTS.B,
20.46%,
4/05/25
..
1,596
1,626
992444107.UG.FTS.B,
20.46%,
4/05/25
..
76
76
992278945.UG.FTS.B,
21.46%,
4/05/25
..
33
5
992282788.UG.FTS.B,
21.46%,
4/05/25
..
739
743
992258743.UG.FTS.B,
21.97%,
4/05/25
..
28
28
992293341.UG.FTS.B,
21.98%,
4/05/25
..
1,106
132
992296469.UG.FTS.B,
21.98%,
4/05/25
..
206
209
992440479.UG.FTS.B,
21.98%,
4/05/25
..
199
201
992238906.UG.FTS.B,
22.97%,
4/05/25
..
2,734
2,762
992265045.UG.FTS.B,
25.95%,
4/05/25
..
128
130
992302611.UG.FTS.B,
25.95%,
4/05/25
..
938
935
992250719.UG.FTS.B,
27.95%,
4/05/25
..
293
306
992375541.UG.FTS.B,
27.95%,
4/05/25
..
38
38
992243919.UG.FTS.B,
28.98%,
4/05/25
..
36
37
992249070.UG.FTS.B,
28.98%,
4/05/25
..
204
213
992258333.UG.FTS.B,
28.98%,
4/05/25
..
298
311
992260520.UG.FTS.B,
28.98%,
4/05/25
..
409
424
992263589.UG.FTS.B,
28.98%,
4/05/25
..
49
50
992263759.UG.FTS.B,
28.98%,
4/05/25
..
327
333
992271131.UG.FTS.B,
28.98%,
4/05/25
..
290
301
992271316.UG.FTS.B,
28.98%,
4/05/25
..
140
146
992278811.UG.FTS.B,
28.98%,
4/05/25
..
115
120
992281862.UG.FTS.B,
28.98%,
4/05/25
..
363
371
992290941.UG.FTS.B,
28.98%,
4/05/25
..
97
101
992300542.UG.FTS.B,
28.98%,
4/05/25
..
139
143
992305223.UG.FTS.B,
28.98%,
4/05/25
..
145
151
992314013.UG.FTS.B,
28.98%,
4/05/25
..
5
5
992314088.UG.FTS.B,
28.98%,
4/05/25
..
95
97
992315976.UG.FTS.B,
28.98%,
4/05/25
..
110
25
992318621.UG.FTS.B,
28.98%,
4/05/25
..
28
28
992321475.UG.FTS.B,
28.98%,
4/05/25
..
373
388
992350450.UG.FTS.B,
28.98%,
4/05/25
..
756
759
992362215.UG.FTS.B,
28.98%,
4/05/25
..
793
811
992377531.UG.FTS.B,
28.98%,
4/05/25
..
29
29
992386343.UG.FTS.B,
28.98%,
4/05/25
..
100
104
992391277.UG.FTS.B,
28.98%,
4/05/25
..
51
16
992404668.UG.FTS.B,
28.98%,
4/05/25
..
116
116
992412921.UG.FTS.B,
28.98%,
4/05/25
..
395
412
992420787.UG.FTS.B,
28.98%,
4/05/25
..
152
36
992421379.UG.FTS.B,
28.98%,
4/05/25
..
127
130
992426381.UG.FTS.B,
28.98%,
4/05/25
..
99
102
992430529.UG.FTS.B,
28.98%,
4/05/25
..
61
63
992452945.UG.FTS.B,
28.98%,
4/05/25
..
180
183
992453117.UG.FTS.B,
28.98%,
4/05/25
..
43
44
992456750.UG.FTS.B,
28.98%,
4/05/25
..
156
161
992338606.UG.FTS.B,
29.45%,
4/05/25
..
94
95
992376094.UG.FTS.B,
29.48%,
4/05/25
..
135
142
992236701.UG.FTS.B,
29.49%,
4/05/25
..
32
32
992239162.UG.FTS.B,
29.49%,
4/05/25
..
124
130
992240128.UG.FTS.B,
29.49%,
4/05/25
..
538
550
992241600.UG.FTS.B,
29.49%,
4/05/25
..
95
99
992243368.UG.FTS.B,
29.49%,
4/05/25
..
297
307
992247116.UG.FTS.B,
29.49%,
4/05/25
..
218
223
992252024.UG.FTS.B,
29.49%,
4/05/25
..
65
17
Description
Principal
Amount
Value
Upgrade,
Inc.
-
Card
(continued)
992255844.UG.FTS.B,
29.49%,
4/05/25
..
$
92
$
92
992256275.UG.FTS.B,
29.49%,
4/05/25
..
42
43
992260816.UG.FTS.B,
29.49%,
4/05/25
..
146
152
992264748.UG.FTS.B,
29.49%,
4/05/25
..
41
42
992268866.UG.FTS.B,
29.49%,
4/05/25
..
271
277
992268980.UG.FTS.B,
29.49%,
4/05/25
..
80
84
992271586.UG.FTS.B,
29.49%,
4/05/25
..
141
148
992275962.UG.FTS.B,
29.49%,
4/05/25
..
199
204
992275994.UG.FTS.B,
29.49%,
4/05/25
..
17
17
992276049.UG.FTS.B,
29.49%,
4/05/25
..
161
169
992286064.UG.FTS.B,
29.49%,
4/05/25
..
433
452
992291050.UG.FTS.B,
29.49%,
4/05/25
..
25
25
992291806.UG.FTS.B,
29.49%,
4/05/25
..
473
499
992293542.UG.FTS.B,
29.49%,
4/05/25
..
82
84
992301441.UG.FTS.B,
29.49%,
4/05/25
..
182
190
992303097.UG.FTS.B,
29.49%,
4/05/25
..
200
209
992312103.UG.FTS.B,
29.49%,
4/05/25
..
418
97
992320378.UG.FTS.B,
29.49%,
4/05/25
..
177
185
992321464.UG.FTS.B,
29.49%,
4/05/25
..
258
265
992324857.UG.FTS.B,
29.49%,
4/05/25
..
79
83
992326966.UG.FTS.B,
29.49%,
4/05/25
..
107
111
992340410.UG.FTS.B,
29.49%,
4/05/25
..
54
55
992341543.UG.FTS.B,
29.49%,
4/05/25
..
65
67
992341609.UG.FTS.B,
29.49%,
4/05/25
..
24
24
992341758.UG.FTS.B,
29.49%,
4/05/25
..
206
218
992344325.UG.FTS.B,
29.49%,
4/05/25
..
126
133
992354024.UG.FTS.B,
29.49%,
4/05/25
..
22
22
992355380.UG.FTS.B,
29.49%,
4/05/25
..
65
67
992359643.UG.FTS.B,
29.49%,
4/05/25
..
385
398
992359656.UG.FTS.B,
29.49%,
4/05/25
..
618
649
992359703.UG.FTS.B,
29.49%,
4/05/25
..
115
120
992361376.UG.FTS.B,
29.49%,
4/05/25
..
43
43
992368911.UG.FTS.B,
29.49%,
4/05/25
..
260
267
992369632.UG.FTS.B,
29.49%,
4/05/25
..
182
188
992371487.UG.FTS.B,
29.49%,
4/05/25
..
149
156
992371951.UG.FTS.B,
29.49%,
4/05/25
..
181
188
992377543.UG.FTS.B,
29.49%,
4/05/25
..
705
43
992391427.UG.FTS.B,
29.49%,
4/05/25
..
142
149
992394239.UG.FTS.B,
29.49%,
4/05/25
..
105
107
992401130.UG.FTS.B,
29.49%,
4/05/25
..
147
155
992401571.UG.FTS.B,
29.49%,
4/05/25
..
81
5
992403505.UG.FTS.B,
29.49%,
4/05/25
..
148
155
992418075.UG.FTS.B,
29.49%,
4/05/25
..
31
31
992419811.UG.FTS.B,
29.49%,
4/05/25
..
113
117
992424526.UG.FTS.B,
29.49%,
4/05/25
..
207
214
992425789.UG.FTS.B,
29.49%,
4/05/25
..
295
305
992426541.UG.FTS.B,
29.49%,
4/05/25
..
395
410
992427607.UG.FTS.B,
29.49%,
4/05/25
..
142
146
992429564.UG.FTS.B,
29.49%,
4/05/25
..
80
84
992444668.UG.FTS.B,
29.49%,
4/05/25
..
1,313
1,364
992444707.UG.FTS.B,
29.49%,
4/05/25
..
99
102
992452371.UG.FTS.B,
29.49%,
4/05/25
..
115
119
992454738.UG.FTS.B,
29.49%,
4/05/25
..
1,578
1,639
992455102.UG.FTS.B,
29.49%,
4/05/25
..
304
312
992455358.UG.FTS.B,
29.49%,
4/05/25
..
83
84
992459731.UG.FTS.B,
29.49%,
4/05/25
..
49
51
992391014.UG.FTS.B,
29.49%,
6/03/25
..
149
103
992444060.UG.FTS.B,
28.98%,
8/03/25
..
889
644
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
992455279.UG.FTS.B,
29.49%,
8/03/25
..
$
463
$
29
992424737.UG.FTS.B,
25.95%,
4/03/26
..
804
564
992351381.UG.FTS.B,
21.97%,
12/03/27
.
–
–
992432730.UG.FTS.B,
29.49%,
2/01/28
..
–
–
992457201.UG.FTS.B,
29.48%,
5/01/28
..
4
–
992356084.UG.FTS.B,
29.49%,
6/03/28
..
–
–
992271618.UG.FTS.B,
Zero
Cpn,
7/03/28
.
18
1
992376698.UG.FTS.B,
28.98%,
9/02/28
..
3
3
992403635.UG.FTS.B,
15.97%,
9/03/28
..
2
2
992335344.UG.FTS.B,
21.48%,
9/03/28
..
12
2
992359180.UG.FTS.B,
29.48%,
9/03/28
..
3
3
992247201.UG.FTS.B,
29.49%,
9/03/28
..
1
1
52,639
Upstart
Network,
Inc.
L1729715.UP.FTS.B,
8.39%,
9/17/24
....
2,341
2,334
L1722095.UP.FTS.B,
11.17%,
9/17/24
....
400
399
FW1729768.UP.FTS.B,
11.21%,
9/17/24
..
1,200
1,199
FW1730324.UP.FTS.B,
15.67%,
9/17/24
..
2,555
2,547
L1729539.UP.FTS.B,
18.67%,
9/17/24
....
1,075
1,080
L1730191.UP.FTS.B,
23.36%,
9/17/24
....
1,260
90
L1730194.UP.FTS.B,
23.58%,
9/17/24
....
486
488
FW1730336.UP.FTS.B,
30.16%,
9/17/24
..
2,330
2,340
L1902385.UP.FTS.B,
8.05%,
10/22/24
....
2,089
2,080
L1902094.UP.FTS.B,
9.69%,
10/22/24
....
424
422
L1902354.UP.FTS.B,
12.7%,
10/22/24
....
2,172
2,166
L1902268.UP.FTS.B,
14.19%,
10/22/24
...
2,815
206
L1901213.UP.FTS.B,
15.08%,
10/22/24
...
11,920
11,443
FW1900872.UP.FTS.B,
18.12%,
10/22/24
.
2,723
2,736
L1902710.UP.FTS.B,
18.85%,
10/22/24
...
2,510
2,530
FW1902685.UP.FTS.B,
20.49%,
10/22/24
.
1,726
53
L1900998.UP.FTS.B,
21.32%,
10/22/24
...
2,262
2,264
L1901625.UP.FTS.B,
21.76%,
10/22/24
...
2,724
2,666
L1875546.UP.FTS.B,
21.84%,
10/22/24
...
841
845
L1902017.UP.FTS.B,
22.16%,
10/22/24
...
257
255
L1900754.UP.FTS.B,
23.33%,
10/22/24
...
1,590
1,596
FW1901937.UP.FTS.B,
24.32%,
10/22/24
.
5,718
5,725
L2031380.UP.FTS.B,
6.17%,
11/12/24
....
3,293
3,264
L2032548.UP.FTS.B,
7.85%,
11/12/24
....
4,841
4,819
L2031918.UP.FTS.B,
8.28%,
11/12/24
....
1,340
1,334
L2002430.UP.FTS.B,
8.48%,
11/12/24
....
1,662
229
L2031630.UP.FTS.B,
9.03%,
11/12/24
....
3,146
3,133
L2031494.UP.FTS.B,
9.06%,
11/12/24
....
2,743
1,608
L2032651.UP.FTS.B,
9.8%,
11/12/24
.....
1,583
1,576
L2033075.UP.FTS.B,
11.83%,
11/12/24
...
5,077
5,052
L2032627.UP.FTS.B,
14.45%,
11/12/24
...
938
942
L2032469.UP.FTS.B,
17.26%,
11/12/24
...
204
202
L2031921.UP.FTS.B,
19.5%,
11/12/24
....
2,924
2,935
FW2031299.UP.FTS.B,
21.82%,
11/12/24
.
4,080
4,074
L2031497.UP.FTS.B,
23.3%,
11/12/24
....
1,083
1,082
FW2033085.UP.FTS.B,
25.77%,
11/12/24
.
3,504
3,500
FW2032765.UP.FTS.B,
27.87%,
11/12/24
.
3,640
528
FW2030908.UP.FTS.B,
29.29%,
11/12/24
.
2,679
766
L2102014.UP.FTS.B,
8.1%,
11/23/24
.....
1,516
1,512
L2102521.UP.FTS.B,
9.48%,
11/23/24
....
3,293
3,284
L2102773.UP.FTS.B,
10.25%,
11/23/24
...
545
543
L2103582.UP.FTS.B,
11.94%,
11/23/24
...
2,800
2,792
L2102080.UP.FTS.B,
12.09%,
11/23/24
...
1,167
1,163
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2102945.UP.FTS.B,
12.52%,
11/23/24
...
$
3,769
$
275
L2103173.UP.FTS.B,
14.48%,
11/23/24
...
2,039
2,036
FW2102978.UP.FTS.B,
15.1%,
11/23/24
..
2,011
147
L2101642.UP.FTS.B,
15.95%,
11/23/24
...
3,639
3,663
L2102263.UP.FTS.B,
17.21%,
11/23/24
...
958
965
L2103519.UP.FTS.B,
17.52%,
11/23/24
...
1,651
1,662
L2099426.UP.FTS.B,
18.86%,
11/23/24
...
1,215
1,220
L2103410.UP.FTS.B,
20.18%,
11/23/24
...
2,969
185
L2103709.UP.FTS.B,
20.75%,
11/23/24
...
1,082
1,090
L2102185.UP.FTS.B,
21.19%,
11/23/24
...
3,701
3,728
L2103127.UP.FTS.B,
21.34%,
11/23/24
...
5,182
5,199
FW2103254.UP.FTS.B,
28.98%,
11/23/24
.
1,667
1,674
L2250253.UP.FTS.B,
5.3%,
12/14/24
....
6,293
6,229
L2249821.UP.FTS.B,
9.1%,
12/14/24
....
478
476
L2249474.UP.FTS.B,
9.8%,
12/14/24
....
1,192
1,186
L2249818.UP.FTS.B,
9.92%,
12/14/24
....
1,773
1,763
L2248588.UP.FTS.B,
10.67%,
12/14/24
...
6,709
6,671
L2251137.UP.FTS.B,
11.74%,
12/14/24
...
12,204
12,128
L2249713.UP.FTS.B,
11.85%,
12/14/24
...
1,953
1,946
L2249391.UP.FTS.B,
12.58%,
12/14/24
...
1,031
1,026
L2251228.UP.FTS.B,
12.94%,
12/14/24
...
740
736
L2250705.UP.FTS.B,
13.29%,
12/14/24
...
295
292
L2248867.UP.FTS.B,
14.64%,
12/14/24
...
2,237
2,225
L2251099.UP.FTS.B,
15.99%,
12/14/24
...
678
678
FW2249991.UP.FTS.B,
16.74%,
12/14/24
.
2,528
698
L2250280.UP.FTS.B,
16.83%,
12/14/24
...
1,102
1,090
L2248645.UP.FTS.B,
17.82%,
12/14/24
...
3,293
1,975
L2249946.UP.FTS.B,
17.98%,
12/14/24
...
2,042
2,048
FW2249440.UP.FTS.B,
19.65%,
12/14/24
.
518
518
L2250240.UP.FTS.B,
20.48%,
12/14/24
...
528
528
L2250459.UP.FTS.B,
21.22%,
12/14/24
...
2,299
2,294
L2251174.UP.FTS.B,
21.98%,
12/14/24
...
1,418
1,406
FW2250657.UP.FTS.B,
22.04%,
12/14/24
.
525
527
L2249754.UP.FTS.B,
22.91%,
12/14/24
...
2,001
293
FW2249744.UP.FTS.B,
24.36%,
12/14/24
.
1,053
1,050
FW2251405.UP.FTS.B,
24.46%,
12/14/24
.
1,068
1,066
FW2250179.UP.FTS.B,
25.41%,
12/14/24
.
2,256
338
FW2250656.UP.FTS.B,
26.59%,
12/14/24
.
633
631
FW2250011.UP.FTS.B,
27.44%,
12/14/24
.
2,096
2,086
FW2250630.UP.FTS.B,
28.93%,
12/14/24
.
809
807
FW2249206.UP.FTS.B,
28.96%,
12/14/24
.
922
(3)
FW2248284.UP.FTS.B,
29.12%,
12/14/24
.
1,707
1,697
L2251006.UP.FTS.B,
6.59%,
12/15/24
....
1,172
1,162
L2253130.UP.FTS.B,
10.71%,
12/15/24
...
2,904
2,891
L2250196.UP.FTS.B,
14.38%,
12/15/24
...
2,736
2,745
FW2251549.UP.FTS.B,
16.2%,
12/15/24
..
85
84
L2253233.UP.FTS.B,
17.76%,
12/15/24
...
2,806
2,807
L2251602.UP.FTS.B,
18.36%,
12/15/24
...
1,792
1,798
L2252717.UP.FTS.B,
19.17%,
12/15/24
...
2,575
2,584
FW2253350.UP.FTS.B,
19.8%,
12/15/24
..
2,291
646
L2252886.UP.FTS.B,
20.6%,
12/15/24
....
676
679
L2249377.UP.FTS.B,
20.67%,
12/15/24
...
3,903
3,899
L2252058.UP.FTS.B,
20.99%,
12/15/24
...
820
59
L2240893.UP.FTS.B,
21.21%,
12/15/24
...
13,059
13,107
FW2252326.UP.FTS.B,
21.53%,
12/15/24
.
4,188
4,203
FW2249426.UP.FTS.B,
22.47%,
12/15/24
.
3,431
3,416
FW2251845.UP.FTS.B,
22.89%,
12/15/24
.
937
932
L2251577.UP.FTS.B,
23.09%,
12/15/24
...
1,650
1,643
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2253201.UP.FTS.B,
23.48%,
12/15/24
...
$
1,592
$
1,590
FW2251095.UP.FTS.B,
15.84%,
12/20/24
.
1,020
286
L2248952.UP.FTS.B,
12.98%,
12/21/24
...
3,455
3,442
L2499293.UP.FTS.B,
6.07%,
1/24/25
....
7,915
7,848
L2491823.UP.FTS.B,
6.34%,
1/24/25
....
2,479
2,457
FW2498281.UP.FTS.B,
7.12%,
1/24/25
...
443
439
L2499253.UP.FTS.B,
7.19%,
1/24/25
....
20,865
20,688
L2491568.UP.FTS.B,
7.35%,
1/24/25
....
1,553
1,467
L2499551.UP.FTS.B,
8.93%,
1/24/25
....
5,052
5,030
L2498976.UP.FTS.B,
9.51%,
1/24/25
....
7,611
7,578
L2499846.UP.FTS.B,
10.23%,
1/24/25
....
3,060
3,047
L2498779.UP.FTS.B,
11.48%,
1/24/25
....
542
514
L2497791.UP.FTS.B,
11.97%,
1/24/25
....
2,067
2,061
L2499082.UP.FTS.B,
12.89%,
1/24/25
....
7,277
7,256
FW2499139.UP.FTS.B,
14.86%,
1/24/25
..
873
244
L2499336.UP.FTS.B,
15.49%,
1/24/25
....
794
798
L2497860.UP.FTS.B,
16.59%,
1/24/25
....
800
803
FW2499341.UP.FTS.B,
16.67%,
1/24/25
..
795
798
L2497587.UP.FTS.B,
16.78%,
1/24/25
....
940
941
L2499854.UP.FTS.B,
22.79%,
1/24/25
....
3,889
3,906
L2500532.UP.FTS.B,
23.03%,
1/24/25
....
1,128
28
FW2497753.UP.FTS.B,
26.22%,
1/24/25
..
3,406
3,407
FW2499886.UP.FTS.B,
26.23%,
1/24/25
..
6,070
6,056
FW2498195.UP.FTS.B,
26.98%,
1/24/25
..
5,007
5,003
FW2496668.UP.FTS.B,
5.04%,
1/25/25
...
10,791
10,694
L2501009.UP.FTS.B,
5.3%,
1/25/25
.....
4,919
4,877
L2501544.UP.FTS.B,
6.11%,
1/25/25
.....
1,732
1,717
L2477274.UP.FTS.B,
6.54%,
1/25/25
....
3,215
3,188
L2502696.UP.FTS.B,
7.45%,
1/25/25
....
2,474
2,463
FW2502837.UP.FTS.B,
8.49%,
1/25/25
...
504
502
L2501769.UP.FTS.B,
8.83%,
1/25/25
....
5,050
5,028
FW2502102.UP.FTS.B,
9.39%,
1/25/25
...
244
242
L2501978.UP.FTS.B,
10.16%,
1/25/25
....
1,130
306
L2502709.UP.FTS.B,
10.64%,
1/25/25
....
8,670
8,633
FW2502461.UP.FTS.B,
10.75%,
1/25/25
..
1,197
1,189
L2503015.UP.FTS.B,
11.17%,
1/25/25
....
512
510
FW2503195.UP.FTS.B,
11.21%,
1/25/25
..
6,934
6,915
L2502561.UP.FTS.B,
11.5%,
1/25/25
.....
1,497
1,493
L2500956.UP.FTS.B,
13.21%,
1/25/25
....
1,285
1,278
FW2503345.UP.FTS.B,
13.6%,
1/25/25
...
1,569
1,562
FW2503482.UP.FTS.B,
16.69%,
1/25/25
..
549
551
FW2501793.UP.FTS.B,
17.35%,
1/25/25
..
1,072
1,077
L2502079.UP.FTS.B,
20.91%,
1/25/25
....
2,744
2,757
L2501394.UP.FTS.B,
21.45%,
1/25/25
....
7,266
7,253
L2500631.UP.FTS.B,
22.56%,
1/25/25
....
5,548
5,551
FW2502139.UP.FTS.B,
27.5%,
1/25/25
...
3,434
3,436
FW2503051.UP.FTS.B,
29.1%,
1/25/25
...
558
556
L1729059.UP.FTS.B,
7.36%,
2/17/25
....
723
716
L1730069.UP.FTS.B,
14.07%,
2/17/25
....
10,454
10,006
FW1729714.UP.FTS.B,
27.13%,
2/17/25
..
3,628
1,056
L2031949.UP.FTS.B,
13.15%,
4/12/25
....
8,305
606
FW2032694.UP.FTS.B,
22.49%,
4/12/25
..
3,735
3,686
L2971722.UP.FTS.B,
8.62%,
4/19/25
....
11,216
11,120
L2972108.UP.FTS.B,
15.03%,
4/19/25
....
2,014
2,004
L2970836.UP.FTS.B,
15.68%,
4/19/25
....
3,053
3,034
FW2972173.UP.FTS.B,
22.89%,
4/19/25
..
6,721
6,672
L2103839.UP.FTS.B,
11.98%,
4/23/25
....
3,651
3,628
FW2103646.UP.FTS.B,
26.77%,
4/23/25
..
2,007
142
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2032368.UP.FTS.B,
20.11%,
4/27/25
..
$
6,347
$
6,282
FW2250596.UP.FTS.B,
22.87%,
5/14/25
..
2,028
2,003
FW2248798.UP.FTS.B,
28.6%,
5/14/25
...
1,564
450
L2253008.UP.FTS.B,
17.8%,
5/15/25
....
3,068
3,054
L2253679.UP.FTS.B,
22.11%,
5/15/25
....
2,876
833
FW2249116.UP.FTS.B,
28.33%,
5/15/25
..
868
863
L2502143.UP.FTS.B,
21.34%,
6/25/25
....
7,960
7,855
FW1902521.UP.FTS.B,
21.52%,
8/22/25
..
565
543
FW2971973.UP.FTS.B,
20.05%,
9/19/25
..
2,787
2,755
FW2503206.UP.FTS.B,
28.84%,
11/25/25
.
735
731
FW1729657.UP.FTS.B,
9.44%,
9/17/26
...
4,696
4,659
L1729743.UP.FTS.B,
11.64%,
9/17/26
....
34,144
33,903
L1728160.UP.FTS.B,
12.23%,
9/17/26
....
3,431
3,407
L1730112.UP.FTS.B,
15.91%,
9/17/26
....
2,117
2,105
L1729289.UP.FTS.B,
17.07%,
9/17/26
....
2,136
2,123
FW1729970.UP.FTS.B,
18.27%,
9/17/26
..
18,637
17,624
L1729699.UP.FTS.B,
18.77%,
9/17/26
....
2,227
2,206
L1729786.UP.FTS.B,
18.84%,
9/17/26
....
4,327
4,302
L1729529.UP.FTS.B,
20.22%,
9/17/26
....
9,921
1,476
L1729751.UP.FTS.B,
20.66%,
9/17/26
....
5,124
5,134
FW1730043.UP.FTS.B,
21.14%,
9/17/26
..
3,370
3,384
L1730077.UP.FTS.B,
21.62%,
9/17/26
....
4,179
4,128
L1730290.UP.FTS.B,
23.01%,
9/17/26
....
5,640
5,664
L1730120.UP.FTS.B,
23.06%,
9/17/26
....
8,216
8,235
L1729719.UP.FTS.B,
23.41%,
9/17/26
....
7,310
7,334
L1729627.UP.FTS.B,
24.42%,
9/17/26
....
7,486
7,519
L1729824.UP.FTS.B,
25.14%,
9/17/26
....
4,943
4,963
L1729392.UP.FTS.B,
25.28%,
9/17/26
....
751
754
FW1729302.UP.FTS.B,
28.5%,
9/17/26
...
1,075
1,080
FW1730388.UP.FTS.B,
28.64%,
9/17/26
..
11,831
11,883
FW1729744.UP.FTS.B,
29.63%,
9/17/26
..
6,955
6,986
FW1729641.UP.FTS.B,
30.22%,
9/17/26
..
3,722
3,739
FW1728143.UP.FTS.B,
30.44%,
9/17/26
..
4,085
4,102
FW1730150.UP.FTS.B,
30.64%,
9/17/26
..
867
865
FW1729390.UP.FTS.B,
32.18%,
9/17/26
..
1,856
1,807
FW1728926.UP.FTS.B,
32.35%,
9/17/26
..
2,133
2,138
FW1902353.UP.FTS.B,
5.71%,
10/22/26
..
9,323
9,245
L1902780.UP.FTS.B,
7.49%,
10/22/26
....
4,697
4,660
L1902219.UP.FTS.B,
10.65%,
10/22/26
...
6,931
6,884
L1901059.UP.FTS.B,
11.8%,
10/22/26
....
2,833
2,669
L1901748.UP.FTS.B,
12.93%,
10/22/26
...
6,324
6,281
FW1902782.UP.FTS.B,
14.11%,
10/22/26
.
14,180
14,087
L1901083.UP.FTS.B,
14.22%,
10/22/26
...
3,527
253
L1902333.UP.FTS.B,
15.82%,
10/22/26
...
17,288
17,193
FW1901571.UP.FTS.B,
16.95%,
10/22/26
.
9,076
9,027
L1901582.UP.FTS.B,
17.7%,
10/22/26
....
17,235
1,246
L1901001.UP.FTS.B,
18.48%,
10/22/26
...
3,504
253
FW1901195.UP.FTS.B,
18.66%,
10/22/26
.
1,690
1,677
L1901585.UP.FTS.B,
18.87%,
10/22/26
...
445
439
L1901212.UP.FTS.B,
19.55%,
10/22/26
...
4,453
4,465
L1902855.UP.FTS.B,
19.55%,
10/22/26
...
2,217
2,205
L1901595.UP.FTS.B,
20.19%,
10/22/26
...
3,663
117
L1900981.UP.FTS.B,
20.57%,
10/22/26
...
2,643
2,504
L1901936.UP.FTS.B,
21.29%,
10/22/26
...
8,224
8,264
L1902840.UP.FTS.B,
22.56%,
10/22/26
...
9,875
9,804
L1901067.UP.FTS.B,
23.17%,
10/22/26
...
11,350
11,406
L1901771.UP.FTS.B,
24.44%,
10/22/26
...
3,678
3,659
L1902683.UP.FTS.B,
25.19%,
10/22/26
...
9,192
9,239
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
31
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1901951.UP.FTS.B,
25.24%,
10/22/26
...
$
1,839
$
1,848
FW1902836.UP.FTS.B,
25.41%,
10/22/26
.
37,544
37,683
L1902657.UP.FTS.B,
25.42%,
10/22/26
...
1,586
1,590
FW1902401.UP.FTS.B,
25.71%,
10/22/26
.
3,612
3,623
L1902021.UP.FTS.B,
25.72%,
10/22/26
...
2,032
1,947
FW1902199.UP.FTS.B,
26.04%,
10/22/26
.
3,234
3,250
FW1902133.UP.FTS.B,
27.21%,
10/22/26
.
16,247
2,468
FW1886406.UP.FTS.B,
27.97%,
10/22/26
.
9,999
2,951
FW1901053.UP.FTS.B,
28.68%,
10/22/26
.
2,736
2,750
FW1902391.UP.FTS.B,
31.19%,
10/22/26
.
2,838
2,852
FW1901303.UP.FTS.B,
31.21%,
10/22/26
.
3,013
3,029
FW1900628.UP.FTS.B,
31.23%,
10/22/26
.
872
877
FW1902681.UP.FTS.B,
31.63%,
10/22/26
.
6,357
6,391
FW1901994.UP.FTS.B,
32.7%,
10/22/26
..
6,269
1,855
FW1902299.UP.FTS.B,
31.27%,
10/27/26
.
6,306
6,341
L2031623.UP.FTS.B,
9.89%,
11/12/26
....
24,389
24,171
L2032896.UP.FTS.B,
9.9%,
11/12/26
.....
4,927
4,886
L2031352.UP.FTS.B,
11.14%,
11/12/26
...
1,679
1,663
L2032147.UP.FTS.B,
11.65%,
11/12/26
...
5,707
5,658
L2032600.UP.FTS.B,
12.19%,
11/12/26
...
5,372
5,326
L2032561.UP.FTS.B,
12.57%,
11/12/26
...
10,781
10,680
FW2032979.UP.FTS.B,
12.77%,
11/12/26
.
5,753
5,704
L2032884.UP.FTS.B,
12.78%,
11/12/26
...
5,753
5,705
FW2032727.UP.FTS.B,
12.91%,
11/12/26
.
2,519
2,498
L2032885.UP.FTS.B,
12.92%,
11/12/26
...
3,556
3,525
FW2031248.UP.FTS.B,
13.13%,
11/12/26
.
6,303
458
FW2032795.UP.FTS.B,
13.19%,
11/12/26
.
5,770
5,722
L2030962.UP.FTS.B,
13.54%,
11/12/26
...
6,036
1,550
FW2032278.UP.FTS.B,
13.85%,
11/12/26
.
3,579
3,548
L2032791.UP.FTS.B,
14.03%,
11/12/26
...
2,142
2,123
L2032226.UP.FTS.B,
14.31%,
11/12/26
...
17,676
17,525
L2031580.UP.FTS.B,
14.88%,
11/12/26
...
1,156
1,143
L2032373.UP.FTS.B,
14.92%,
11/12/26
...
7,300
7,239
FW2032722.UP.FTS.B,
14.98%,
11/12/26
.
5,834
5,785
FW2032454.UP.FTS.B,
15.76%,
11/12/26
.
1,025
1,010
L2032268.UP.FTS.B,
15.84%,
11/12/26
...
15,054
14,904
L2033071.UP.FTS.B,
15.91%,
11/12/26
...
2,721
2,696
FW2031845.UP.FTS.B,
15.93%,
11/12/26
.
11,974
1,696
FW2032538.UP.FTS.B,
16.45%,
11/12/26
.
3,967
147
L2032366.UP.FTS.B,
16.55%,
11/12/26
...
5,693
5,643
L2033082.UP.FTS.B,
16.64%,
11/12/26
...
13,532
398
L2030808.UP.FTS.B,
16.75%,
11/12/26
...
6,282
6,231
FW2032502.UP.FTS.B,
16.77%,
11/12/26
.
5,920
5,867
L2033005.UP.FTS.B,
16.99%,
11/12/26
...
2,971
2,941
L2033008.UP.FTS.B,
17.14%,
11/12/26
...
4,743
4,702
L2031479.UP.FTS.B,
17.32%,
11/12/26
...
12,195
1,736
L2030768.UP.FTS.B,
17.71%,
11/12/26
...
3,719
3,687
L2032284.UP.FTS.B,
17.94%,
11/12/26
...
3,731
3,689
L2032006.UP.FTS.B,
17.99%,
11/12/26
...
4,646
4,592
FW2031117.UP.FTS.B,
18.34%,
11/12/26
.
7,469
7,398
L2032837.UP.FTS.B,
18.39%,
11/12/26
...
7,471
7,407
L2030864.UP.FTS.B,
18.46%,
11/12/26
...
7,176
7,118
L2032849.UP.FTS.B,
19.14%,
11/12/26
...
9,007
8,930
FW2032194.UP.FTS.B,
19.49%,
11/12/26
.
5,847
1,614
L2030806.UP.FTS.B,
19.55%,
11/12/26
...
3,011
2,982
FW2032947.UP.FTS.B,
19.59%,
11/12/26
.
18,876
18,709
L2031425.UP.FTS.B,
19.77%,
11/12/26
...
4,858
1,342
L2031289.UP.FTS.B,
19.82%,
11/12/26
...
6,031
5,974
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2032060.UP.FTS.B,
20.25%,
11/12/26
...
$
4,536
$
4,493
L2032456.UP.FTS.B,
20.93%,
11/12/26
...
1,136
1,125
L2032266.UP.FTS.B,
21.24%,
11/12/26
...
3,799
3,799
FW2033134.UP.FTS.B,
22.19%,
11/12/26
.
5,935
5,926
L2032183.UP.FTS.B,
24.12%,
11/12/26
...
7,738
7,740
FW2032995.UP.FTS.B,
24.13%,
11/12/26
.
2,328
2,302
FW2031872.UP.FTS.B,
24.66%,
11/12/26
.
23,336
23,295
FW2033202.UP.FTS.B,
25.01%,
11/12/26
.
12,352
12,350
L2032689.UP.FTS.B,
25.21%,
11/12/26
...
4,517
4,475
FW2031174.UP.FTS.B,
25.25%,
11/12/26
.
7,447
7,437
L2032525.UP.FTS.B,
25.33%,
11/12/26
...
779
772
L2031145.UP.FTS.B,
25.44%,
11/12/26
...
3,665
3,631
L2031934.UP.FTS.B,
25.51%,
11/12/26
...
2,340
2,341
FW2031600.UP.FTS.B,
26.6%,
11/12/26
..
3,830
3,827
FW2031539.UP.FTS.B,
26.65%,
11/12/26
.
4,094
2,421
L2032677.UP.FTS.B,
26.71%,
11/12/26
...
6,282
6,284
FW2032877.UP.FTS.B,
27.2%,
11/12/26
..
3,867
3,865
FW2003411.UP.FTS.B,
27.5%,
11/12/26
..
5,859
5,857
FW2032753.UP.FTS.B,
27.55%,
11/12/26
.
1,101
1,101
FW2031263.UP.FTS.B,
27.74%,
11/12/26
.
3,511
251
FW2032946.UP.FTS.B,
27.87%,
11/12/26
.
20,314
11,989
FW2032799.UP.FTS.B,
29.91%,
11/12/26
.
1,917
1,918
FW2030797.UP.FTS.B,
30%,
11/12/26
...
18,039
18,024
FW2033131.UP.FTS.B,
30.02%,
11/12/26
.
404
397
FW2033213.UP.FTS.B,
30.17%,
11/12/26
.
1,200
1,200
FW2031644.UP.FTS.B,
30.67%,
11/12/26
.
1,444
1,444
FW2031627.UP.FTS.B,
30.86%,
11/12/26
.
4,016
4,018
FW2031985.UP.FTS.B,
31%,
11/12/26
...
1,172
1,158
FW2031873.UP.FTS.B,
31.05%,
11/12/26
.
803
804
FW2032325.UP.FTS.B,
31.07%,
11/12/26
.
964
965
FW2031596.UP.FTS.B,
31.1%,
11/12/26
..
4,427
4,424
FW2032994.UP.FTS.B,
31.15%,
11/12/26
.
2,832
139
FW2033066.UP.FTS.B,
31.16%,
11/12/26
.
5,873
5,875
FW2031715.UP.FTS.B,
31.33%,
11/12/26
.
3,862
3,863
L2030886.UP.FTS.B,
25.5%,
11/19/26
....
16,224
16,233
FW2101958.UP.FTS.B,
6.23%,
11/23/26
..
26,701
26,493
L2101736.UP.FTS.B,
8.06%,
11/23/26
....
666
661
L2103598.UP.FTS.B,
8.71%,
11/23/26
....
11,167
11,084
L2102006.UP.FTS.B,
8.84%,
11/23/26
....
34,932
34,673
FW2103621.UP.FTS.B,
10.34%,
11/23/26
.
4,134
4,104
L2101981.UP.FTS.B,
11.14%,
11/23/26
...
6,370
6,326
L2102059.UP.FTS.B,
12.22%,
11/23/26
...
15,219
15,115
L2101522.UP.FTS.B,
12.34%,
11/23/26
...
24,016
23,854
L2103822.UP.FTS.B,
12.78%,
11/23/26
...
3,596
3,572
L2101315.UP.FTS.B,
12.86%,
11/23/26
...
3,759
3,721
L2102939.UP.FTS.B,
13.35%,
11/23/26
...
2,527
2,510
L2076017.UP.FTS.B,
13.49%,
11/23/26
...
2,717
2,696
L2095249.UP.FTS.B,
14.31%,
11/23/26
...
11,632
11,556
FW2102638.UP.FTS.B,
15.48%,
11/23/26
.
5,939
5,883
L2068146.UP.FTS.B,
16.06%,
11/23/26
...
7,359
7,316
L2102751.UP.FTS.B,
16.5%,
11/23/26
....
2,951
2,934
L2103150.UP.FTS.B,
16.57%,
11/23/26
...
4,344
4,314
FW2101751.UP.FTS.B,
16.63%,
11/23/26
.
14,769
14,683
L2101428.UP.FTS.B,
17.6%,
11/23/26
....
12,863
930
L2099233.UP.FTS.B,
17.83%,
11/23/26
...
12,121
11,459
L2050778.UP.FTS.B,
18.01%,
11/23/26
...
6,707
6,669
L2102051.UP.FTS.B,
19.71%,
11/23/26
...
4,223
4,190
L2103543.UP.FTS.B,
19.91%,
11/23/26
...
820
59
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
32
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2102941.UP.FTS.B,
20.37%,
11/23/26
.
$
15,129
$
15,195
L2102313.UP.FTS.B,
20.5%,
11/23/26
....
1,126
1,131
L2102253.UP.FTS.B,
20.85%,
11/23/26
...
5,919
5,945
L2102703.UP.FTS.B,
20.89%,
11/23/26
...
3,808
3,816
L2103055.UP.FTS.B,
22.44%,
11/23/26
...
996
990
L2102400.UP.FTS.B,
22.64%,
11/23/26
...
4,559
4,577
L2101750.UP.FTS.B,
24.17%,
11/23/26
...
5,538
5,295
L2103547.UP.FTS.B,
24.76%,
11/23/26
...
868
821
FW2102727.UP.FTS.B,
24.84%,
11/23/26
.
3,108
3,123
L2103842.UP.FTS.B,
25.11%,
11/23/26
...
3,113
3,095
L2101935.UP.FTS.B,
25.31%,
11/23/26
...
1,013
1,017
L2103945.UP.FTS.B,
25.34%,
11/23/26
...
2,128
2,132
L2101880.UP.FTS.B,
25.39%,
11/23/26
...
2,341
2,347
L2103491.UP.FTS.B,
25.4%,
11/23/26
....
733
728
L2102346.UP.FTS.B,
25.43%,
11/23/26
...
4,185
1,222
L2103588.UP.FTS.B,
25.44%,
11/23/26
...
2,978
869
L2102028.UP.FTS.B,
25.89%,
11/23/26
...
4,690
4,711
L2052565.UP.FTS.B,
26.09%,
11/23/26
...
12,755
12,815
FW2101678.UP.FTS.B,
26.5%,
11/23/26
..
2,955
873
FW2103284.UP.FTS.B,
27.1%,
11/23/26
..
3,092
3,103
FW2103532.UP.FTS.B,
28.75%,
11/23/26
.
7,939
7,977
FW2102091.UP.FTS.B,
29.86%,
11/23/26
.
4,784
740
FW2101041.UP.FTS.B,
30.44%,
11/23/26
.
5,960
53
FW2102371.UP.FTS.B,
30.85%,
11/23/26
.
6,419
6,451
FW2103786.UP.FTS.B,
31.2%,
11/23/26
..
1,296
1,295
FW2103069.UP.FTS.B,
31.22%,
11/23/26
.
1,769
1,778
FW2102063.UP.FTS.B,
31.99%,
11/23/26
.
13,281
917
FW2033208.UP.FTS.B,
31.39%,
11/25/26
.
3,135
3,131
FW2102410.UP.FTS.B,
22.44%,
12/07/26
.
3,961
3,967
L2250662.UP.FTS.B,
8.88%,
12/14/26
....
7,858
7,790
L2249279.UP.FTS.B,
9.09%,
12/14/26
....
3,577
3,545
L2251398.UP.FTS.B,
9.28%,
12/14/26
....
5,731
5,682
L2250829.UP.FTS.B,
9.77%,
12/14/26
....
975
964
L2247842.UP.FTS.B,
9.8%,
12/14/26
....
5,327
5,278
L2251213.UP.FTS.B,
9.85%,
12/14/26
....
8,632
8,554
FW2251249.UP.FTS.B,
10.34%,
12/14/26
.
13,716
13,592
L2248805.UP.FTS.B,
10.51%,
12/14/26
...
7,503
1,920
L2249903.UP.FTS.B,
11.03%,
12/14/26
...
2,176
2,156
L2251005.UP.FTS.B,
11.75%,
12/14/26
...
12,904
936
FW2249158.UP.FTS.B,
11.8%,
12/14/26
..
10,939
10,840
L2251043.UP.FTS.B,
12.11%,
12/14/26
...
23,385
23,175
L2250070.UP.FTS.B,
12.15%,
12/14/26
...
5,097
5,051
L2251230.UP.FTS.B,
12.48%,
12/14/26
...
1,423
1,410
L2249726.UP.FTS.B,
12.59%,
12/14/26
...
6,538
6,478
L2251302.UP.FTS.B,
12.76%,
12/14/26
...
4,481
2,388
L2247235.UP.FTS.B,
13.18%,
12/14/26
...
2,944
2,918
L2250820.UP.FTS.B,
13.59%,
12/14/26
...
2,362
2,341
FW2250025.UP.FTS.B,
13.65%,
12/14/26
.
5,541
5,487
L2240508.UP.FTS.B,
14.03%,
12/14/26
...
41
40
L2251167.UP.FTS.B,
14.16%,
12/14/26
...
6,299
6,243
L2247268.UP.FTS.B,
14.22%,
12/14/26
...
36,361
35,993
L2249868.UP.FTS.B,
14.41%,
12/14/26
...
4,460
4,417
L2250559.UP.FTS.B,
14.84%,
12/14/26
...
5,606
5,552
FW2250857.UP.FTS.B,
15.23%,
12/14/26
.
22,100
21,879
L2251440.UP.FTS.B,
16.23%,
12/14/26
...
1,084
1,073
L2249248.UP.FTS.B,
16.43%,
12/14/26
...
9,011
8,925
L2250291.UP.FTS.B,
16.44%,
12/14/26
...
6,474
467
L2250624.UP.FTS.B,
16.92%,
12/14/26
...
4,527
4,484
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2249629.UP.FTS.B,
17.8%,
12/14/26
....
$
4,799
$
4,756
L2249002.UP.FTS.B,
18.13%,
12/14/26
...
2,660
2,632
L2250560.UP.FTS.B,
18.18%,
12/14/26
...
7,603
7,522
FW2248499.UP.FTS.B,
18.23%,
12/14/26
.
4,370
316
FW2248341.UP.FTS.B,
18.43%,
12/14/26
.
19,251
19,047
L2248252.UP.FTS.B,
18.48%,
12/14/26
...
2,303
2,276
FW2249113.UP.FTS.B,
18.58%,
12/14/26
.
19,053
18,851
L2249404.UP.FTS.B,
18.82%,
12/14/26
...
3,423
239
L2250499.UP.FTS.B,
19.65%,
12/14/26
...
2,904
411
L2251037.UP.FTS.B,
19.7%,
12/14/26
....
1,383
1,368
L2249412.UP.FTS.B,
19.96%,
12/14/26
...
1,539
1,522
L2248975.UP.FTS.B,
19.98%,
12/14/26
...
7,998
7,912
FW2250365.UP.FTS.B,
20.49%,
12/14/26
.
22,885
22,657
L2250843.UP.FTS.B,
20.5%,
12/14/26
....
4,242
4,197
L2250558.UP.FTS.B,
20.67%,
12/14/26
...
6,252
6,246
L2251409.UP.FTS.B,
20.71%,
12/14/26
...
9,265
9,166
L2251393.UP.FTS.B,
20.81%,
12/14/26
...
3,811
3,804
L2249780.UP.FTS.B,
21.14%,
12/14/26
...
6,192
6,186
L2250707.UP.FTS.B,
21.52%,
12/14/26
...
4,630
4,585
L2249030.UP.FTS.B,
21.69%,
12/14/26
...
1,708
1,690
L2249288.UP.FTS.B,
21.82%,
12/14/26
...
4,197
4,184
L2249149.UP.FTS.B,
21.87%,
12/14/26
...
7,773
7,690
FW2248314.UP.FTS.B,
21.92%,
12/14/26
.
2,721
2,719
L2249898.UP.FTS.B,
22.33%,
12/14/26
...
17,099
16,936
L2251333.UP.FTS.B,
22.77%,
12/14/26
...
12,624
12,609
L2249183.UP.FTS.B,
22.87%,
12/14/26
...
2,736
2,733
L2250810.UP.FTS.B,
23.01%,
12/14/26
...
5,767
851
FW2251497.UP.FTS.B,
23.11%,
12/14/26
.
4,454
4,389
L2250010.UP.FTS.B,
23.56%,
12/14/26
...
3,924
3,920
FW2248500.UP.FTS.B,
23.6%,
12/14/26
..
2,356
2,349
FW2248932.UP.FTS.B,
23.62%,
12/14/26
.
1,581
1,576
L2249765.UP.FTS.B,
23.67%,
12/14/26
...
3,141
3,138
L2250948.UP.FTS.B,
23.7%,
12/14/26
....
35,341
35,306
L2248306.UP.FTS.B,
23.97%,
12/14/26
...
19,668
19,649
FW2249399.UP.FTS.B,
24.09%,
12/14/26
.
3,874
277
L2250334.UP.FTS.B,
24.44%,
12/14/26
...
6,861
6,788
L2250245.UP.FTS.B,
24.75%,
12/14/26
...
1,486
1,480
L2250314.UP.FTS.B,
24.91%,
12/14/26
...
2,768
2,768
L2249782.UP.FTS.B,
24.98%,
12/14/26
...
3,322
3,318
L2248144.UP.FTS.B,
25.08%,
12/14/26
...
3,681
3,672
L2250779.UP.FTS.B,
25.12%,
12/14/26
...
1,505
1,501
L2249254.UP.FTS.B,
25.13%,
12/14/26
...
6,722
75
L2248450.UP.FTS.B,
25.14%,
12/14/26
...
4,752
4,700
L2248417.UP.FTS.B,
25.23%,
12/14/26
...
1,742
1,741
L2249856.UP.FTS.B,
25.32%,
12/14/26
...
951
950
L2249823.UP.FTS.B,
25.41%,
12/14/26
...
3,447
3,408
L2251395.UP.FTS.B,
25.45%,
12/14/26
...
1,745
1,743
L2251149.UP.FTS.B,
25.46%,
12/14/26
...
2,114
611
L2249309.UP.FTS.B,
25.75%,
12/14/26
...
3,340
3,330
L2250992.UP.FTS.B,
25.92%,
12/14/26
...
7,961
7,936
FW2248550.UP.FTS.B,
26.2%,
12/14/26
..
3,583
3,580
L2249257.UP.FTS.B,
26.38%,
12/14/26
...
7,100
7,084
FW2249342.UP.FTS.B,
27.92%,
12/14/26
.
4,445
4,423
FW2251120.UP.FTS.B,
28.37%,
12/14/26
.
10,468
10,457
FW2249976.UP.FTS.B,
28.77%,
12/14/26
.
1,468
1,460
FW2249682.UP.FTS.B,
30.35%,
12/14/26
.
1,318
1,313
FW2249951.UP.FTS.B,
30.44%,
12/14/26
.
1,632
1,627
FW2249983.UP.FTS.B,
30.63%,
12/14/26
.
1,597
947
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
33
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2250251.UP.FTS.B,
30.69%,
12/14/26
.
$
4,978
$
1,455
FW2251385.UP.FTS.B,
30.75%,
12/14/26
.
4,562
4,513
FW2249049.UP.FTS.B,
30.95%,
12/14/26
.
5,195
5,183
FW2249935.UP.FTS.B,
30.97%,
12/14/26
.
3,003
2,993
FW2247285.UP.FTS.B,
30.98%,
12/14/26
.
5,293
374
FW2248234.UP.FTS.B,
31.09%,
12/14/26
.
6,840
6,824
FW2251092.UP.FTS.B,
31.1%,
12/14/26
..
1,558
1,553
FW2250801.UP.FTS.B,
31.11%,
12/14/26
.
2,286
2,276
FW2249041.UP.FTS.B,
31.12%,
12/14/26
.
898
897
FW2250974.UP.FTS.B,
31.12%,
12/14/26
.
2,697
2,689
FW2251215.UP.FTS.B,
31.16%,
12/14/26
.
3,484
509
FW2248893.UP.FTS.B,
31.17%,
12/14/26
.
1,470
1,468
FW2249653.UP.FTS.B,
31.19%,
12/14/26
.
3,103
3,099
FW2251410.UP.FTS.B,
31.25%,
12/14/26
.
3,778
3,767
FW2247969.UP.FTS.B,
31.61%,
12/14/26
.
5,449
801
FW2250563.UP.FTS.B,
31.74%,
12/14/26
.
2,918
206
L2251963.UP.FTS.B,
7.31%,
12/15/26
....
8,787
8,713
L2252296.UP.FTS.B,
8.02%,
12/15/26
....
10,648
10,559
L2141755.UP.FTS.B,
8.51%,
12/15/26
....
34,954
34,659
L2251219.UP.FTS.B,
8.53%,
12/15/26
....
1,781
1,766
L2252339.UP.FTS.B,
8.65%,
12/15/26
....
17,828
17,680
L2252737.UP.FTS.B,
8.71%,
12/15/26
....
14,983
14,859
L2252298.UP.FTS.B,
8.83%,
12/15/26
....
2,198
2,116
L2252476.UP.FTS.B,
9.18%,
12/15/26
....
7,160
7,097
FW2253701.UP.FTS.B,
10.99%,
12/15/26
.
9,257
9,176
L2253738.UP.FTS.B,
11.28%,
12/15/26
...
21,800
21,615
L2247794.UP.FTS.B,
12.65%,
12/15/26
...
3,301
3,273
L2253650.UP.FTS.B,
13.61%,
12/15/26
...
4,799
4,759
L2253384.UP.FTS.B,
13.79%,
12/15/26
...
8,870
8,797
L2251912.UP.FTS.B,
13.91%,
12/15/26
...
2,589
2,568
L2253091.UP.FTS.B,
14.6%,
12/15/26
....
22,259
22,076
L2252906.UP.FTS.B,
14.66%,
12/15/26
...
8,252
8,185
L2252920.UP.FTS.B,
14.66%,
12/15/26
...
2,230
2,212
L2252357.UP.FTS.B,
15.18%,
12/15/26
...
4,177
4,138
L2252931.UP.FTS.B,
15.49%,
12/15/26
...
2,555
2,531
FW2249675.UP.FTS.B,
16.01%,
12/15/26
.
11,281
11,166
L2252976.UP.FTS.B,
16.75%,
12/15/26
...
4,783
4,740
L2252199.UP.FTS.B,
17.21%,
12/15/26
...
7,104
7,047
L2251888.UP.FTS.B,
17.72%,
12/15/26
...
5,023
361
L2253164.UP.FTS.B,
17.76%,
12/15/26
...
4,094
4,042
FW2252613.UP.FTS.B,
17.78%,
12/15/26
.
2,579
2,543
FW2253547.UP.FTS.B,
18.3%,
12/15/26
..
2,241
2,202
L2252566.UP.FTS.B,
19.55%,
12/15/26
...
4,569
4,533
FW2251546.UP.FTS.B,
19.76%,
12/15/26
.
11,516
11,405
L2252438.UP.FTS.B,
19.81%,
12/15/26
...
3,072
3,042
L2252318.UP.FTS.B,
20.43%,
12/15/26
...
2,312
2,290
L2250838.UP.FTS.B,
20.47%,
12/15/26
...
2,479
2,434
L2251727.UP.FTS.B,
20.77%,
12/15/26
...
1,934
1,912
L2253118.UP.FTS.B,
21.32%,
12/15/26
...
15,495
15,498
L2252879.UP.FTS.B,
22.23%,
12/15/26
...
899
133
L2251670.UP.FTS.B,
22.36%,
12/15/26
...
3,898
3,899
L2252753.UP.FTS.B,
22.36%,
12/15/26
...
2,369
2,337
L2252135.UP.FTS.B,
22.59%,
12/15/26
...
2,342
2,342
L2251712.UP.FTS.B,
23.15%,
12/15/26
...
23,689
6,789
FW2253422.UP.FTS.B,
24.48%,
12/15/26
.
9,261
9,246
L2250541.UP.FTS.B,
24.85%,
12/15/26
...
2,374
2,369
L2252209.UP.FTS.B,
25.21%,
12/15/26
...
1,058
1,053
L2252447.UP.FTS.B,
25.4%,
12/15/26
....
951
952
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2253392.UP.FTS.B,
25.5%,
12/15/26
..
$
5,641
$
5,637
FW2248936.UP.FTS.B,
26.48%,
12/15/26
.
4,705
4,702
FW2251714.UP.FTS.B,
28.54%,
12/15/26
.
4,797
4,797
FW2252023.UP.FTS.B,
28.67%,
12/15/26
.
3,709
3,711
FW2253234.UP.FTS.B,
28.94%,
12/15/26
.
8,827
8,827
FW2252989.UP.FTS.B,
29.41%,
12/15/26
.
9,389
1,388
FW2252237.UP.FTS.B,
29.62%,
12/15/26
.
5,093
361
FW2252233.UP.FTS.B,
30.05%,
12/15/26
.
2,030
2,031
FW2247630.UP.FTS.B,
30.42%,
12/15/26
.
2,590
2,469
FW2252687.UP.FTS.B,
30.62%,
12/15/26
.
12,212
12,218
FW2252113.UP.FTS.B,
30.81%,
12/15/26
.
1,157
1,104
FW2251570.UP.FTS.B,
31.17%,
12/15/26
.
9,799
9,804
FW2253186.UP.FTS.B,
31.17%,
12/15/26
.
1,714
1,715
FW2253542.UP.FTS.B,
31.19%,
12/15/26
.
1,551
1,552
FW2251389.UP.FTS.B,
31.46%,
12/15/26
.
15,476
15,460
FW2251813.UP.FTS.B,
31.46%,
12/15/26
.
3,517
3,518
L2249483.UP.FTS.B,
20.19%,
12/28/26
...
7,755
7,675
L2253562.UP.FTS.B,
23.61%,
12/28/26
...
3,956
3,959
L2499407.UP.FTS.B,
5.37%,
1/24/27
....
35,584
35,304
L2497781.UP.FTS.B,
5.7%,
1/24/27
.....
4,280
4,246
L2499766.UP.FTS.B,
6.26%,
1/24/27
....
4,297
4,264
FW2499326.UP.FTS.B,
6.71%,
1/24/27
...
6,119
816
L2498743.UP.FTS.B,
7.47%,
1/24/27
....
7,946
7,882
L2492277.UP.FTS.B,
7.6%,
1/24/27
.....
4,917
4,877
L2500086.UP.FTS.B,
7.95%,
1/24/27
....
8,972
8,897
L2497458.UP.FTS.B,
8.44%,
1/24/27
....
25,347
25,142
L2497353.UP.FTS.B,
9.69%,
1/24/27
....
9,528
9,452
L2499026.UP.FTS.B,
10.04%,
1/24/27
....
14,711
14,587
L2498801.UP.FTS.B,
10.59%,
1/24/27
....
19,924
19,763
L2499730.UP.FTS.B,
10.93%,
1/24/27
....
7,368
7,308
L2500305.UP.FTS.B,
11.35%,
1/24/27
....
742
736
L2498662.UP.FTS.B,
11.41%,
1/24/27
....
7,419
7,360
FW2499235.UP.FTS.B,
11.45%,
1/24/27
..
4,817
4,778
L2498623.UP.FTS.B,
12.18%,
1/24/27
....
1,641
1,627
FW2497574.UP.FTS.B,
12.62%,
1/24/27
..
25,809
24,274
L2497797.UP.FTS.B,
12.7%,
1/24/27
....
5,238
5,196
L2500282.UP.FTS.B,
13.29%,
1/24/27
....
7,511
7,451
L2498730.UP.FTS.B,
14.35%,
1/24/27
....
4,536
4,500
FW2499948.UP.FTS.B,
14.6%,
1/24/27
...
5,300
5,258
L2499978.UP.FTS.B,
14.9%,
1/24/27
....
27,585
7,148
L2500513.UP.FTS.B,
14.9%,
1/24/27
....
15,173
15,052
L2499400.UP.FTS.B,
15.39%,
1/24/27
....
11,031
2,981
L2498019.UP.FTS.B,
15.41%,
1/24/27
....
22,831
22,650
L2499756.UP.FTS.B,
15.54%,
1/24/27
....
22,850
1,568
FW2500346.UP.FTS.B,
16.35%,
1/24/27
..
15,911
15,765
L2494019.UP.FTS.B,
16.44%,
1/24/27
....
4,594
4,557
L2497377.UP.FTS.B,
16.51%,
1/24/27
....
4,214
4,179
L2499062.UP.FTS.B,
17.84%,
1/24/27
....
1,185
1,117
FW2494435.UP.FTS.B,
17.9%,
1/24/27
...
31,599
8,612
L2500130.UP.FTS.B,
18.16%,
1/24/27
....
5,415
5,367
L2497198.UP.FTS.B,
18.3%,
1/24/27
....
4,885
728
L2498470.UP.FTS.B,
18.32%,
1/24/27
....
10,319
10,230
L2500098.UP.FTS.B,
18.6%,
1/24/27
....
5,817
5,770
L2497796.UP.FTS.B,
18.8%,
1/24/27
....
5,435
5,387
L2500341.UP.FTS.B,
18.83%,
1/24/27
....
1,942
1,925
L2497754.UP.FTS.B,
19.19%,
1/24/27
....
2,412
2,391
FW2498275.UP.FTS.B,
19.45%,
1/24/27
..
7,827
7,384
L2499146.UP.FTS.B,
19.77%,
1/24/27
....
3,708
3,499
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
34
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2498546.UP.FTS.B,
19.91%,
1/24/27
....
$
5,167
$
5,112
L2497528.UP.FTS.B,
19.93%,
1/24/27
....
3,907
3,873
L2499090.UP.FTS.B,
20.13%,
1/24/27
....
4,694
4,652
FW2498254.UP.FTS.B,
20.72%,
1/24/27
..
2,508
82
FW2499205.UP.FTS.B,
20.72%,
1/24/27
..
4,818
4,594
L2497852.UP.FTS.B,
20.98%,
1/24/27
....
3,056
220
L2499153.UP.FTS.B,
21.13%,
1/24/27
....
944
936
L2498554.UP.FTS.B,
21.26%,
1/24/27
....
4,284
305
L2497527.UP.FTS.B,
21.34%,
1/24/27
....
3,938
3,943
L2497646.UP.FTS.B,
21.52%,
1/24/27
....
814
802
L2497439.UP.FTS.B,
21.55%,
1/24/27
....
2,759
2,724
L2500177.UP.FTS.B,
21.66%,
1/24/27
....
4,735
4,741
FW2494038.UP.FTS.B,
22.37%,
1/24/27
..
3,168
3,140
L2499540.UP.FTS.B,
22.38%,
1/24/27
....
5,040
136
FW2497553.UP.FTS.B,
23.05%,
1/24/27
..
13,812
13,824
FW2498441.UP.FTS.B,
23.1%,
1/24/27
...
8,587
8,598
L2500427.UP.FTS.B,
23.85%,
1/24/27
....
8,379
8,304
L2499847.UP.FTS.B,
24.09%,
1/24/27
....
19,870
19,686
L2500224.UP.FTS.B,
25.04%,
1/24/27
....
4,572
4,572
L2500298.UP.FTS.B,
25.15%,
1/24/27
....
1,286
1,274
FW2497649.UP.FTS.B,
25.29%,
1/24/27
..
32,169
32,207
L2498291.UP.FTS.B,
25.35%,
1/24/27
....
1,061
76
L2500230.UP.FTS.B,
25.4%,
1/24/27
....
4,184
4,189
L2500426.UP.FTS.B,
25.41%,
1/24/27
....
1,046
1,047
L2497705.UP.FTS.B,
25.44%,
1/24/27
....
3,212
3,062
L2500467.UP.FTS.B,
25.44%,
1/24/27
....
1,368
1,370
L2497190.UP.FTS.B,
26.04%,
1/24/27
....
2,341
2,320
L2500357.UP.FTS.B,
26.3%,
1/24/27
....
7,518
7,526
FW2498744.UP.FTS.B,
26.78%,
1/24/27
..
8,103
8,112
FW2499122.UP.FTS.B,
26.89%,
1/24/27
..
1,749
1,749
FW2498012.UP.FTS.B,
27.23%,
1/24/27
..
4,791
4,796
FW2499103.UP.FTS.B,
27.5%,
1/24/27
...
2,439
2,442
FW2497665.UP.FTS.B,
27.6%,
1/24/27
...
8,786
8,701
FW2500434.UP.FTS.B,
27.81%,
1/24/27
..
838
246
L2497724.UP.FTS.B,
27.87%,
1/24/27
....
4,238
4,200
FW2497801.UP.FTS.B,
28.11%,
1/24/27
..
5,734
5,730
FW2497947.UP.FTS.B,
28.25%,
1/24/27
..
31,110
31,146
FW2499989.UP.FTS.B,
28.3%,
1/24/27
...
6,940
6,722
L2498023.UP.FTS.B,
28.37%,
1/24/27
....
3,147
3,053
FW2497725.UP.FTS.B,
28.51%,
1/24/27
..
999
296
FW2499482.UP.FTS.B,
28.65%,
1/24/27
..
13,408
13,423
FW2498534.UP.FTS.B,
28.67%,
1/24/27
..
1,502
1,433
FW2499784.UP.FTS.B,
29.61%,
1/24/27
..
7,129
6,799
FW2500060.UP.FTS.B,
29.62%,
1/24/27
..
3,655
1,091
FW2498768.UP.FTS.B,
30.06%,
1/24/27
..
1,228
1,229
FW2497607.UP.FTS.B,
30.5%,
1/24/27
...
1,401
1,383
FW2497688.UP.FTS.B,
30.73%,
1/24/27
..
998
993
FW2499403.UP.FTS.B,
30.76%,
1/24/27
..
2,312
2,314
FW2498079.UP.FTS.B,
30.78%,
1/24/27
..
2,575
395
FW2498894.UP.FTS.B,
31.13%,
1/24/27
..
2,977
2,980
FW2498422.UP.FTS.B,
31.2%,
1/24/27
...
828
829
FW2498197.UP.FTS.B,
31.21%,
1/24/27
..
1,090
1,041
FW2497608.UP.FTS.B,
31.43%,
1/24/27
..
1,408
1,409
FW2499925.UP.FTS.B,
31.73%,
1/24/27
..
1,295
1,286
FW2497327.UP.FTS.B,
33.75%,
1/24/27
..
1,589
1,591
FW2502639.UP.FTS.B,
4.89%,
1/25/27
...
9,557
9,482
L2502859.UP.FTS.B,
5.46%,
1/25/27
....
36,443
36,146
L2443263.UP.FTS.B,
6.66%,
1/25/27
....
6,105
6,058
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2501608.UP.FTS.B,
7.8%,
1/25/27
.....
$
14,482
$
14,371
L2501651.UP.FTS.B,
8.03%,
1/25/27
....
6,428
468
L2501547.UP.FTS.B,
8.21%,
1/25/27
....
4,357
4,322
L2502319.UP.FTS.B,
8.49%,
1/25/27
....
29,790
29,528
L2501796.UP.FTS.B,
9.36%,
1/25/27
....
11,417
11,327
L2502134.UP.FTS.B,
9.38%,
1/25/27
....
23,271
23,085
L2502374.UP.FTS.B,
9.72%,
1/25/27
....
6,236
6,187
L2502174.UP.FTS.B,
9.86%,
1/25/27
....
12,484
12,384
FW2498378.UP.FTS.B,
11.81%,
1/25/27
..
22,316
22,140
L2502791.UP.FTS.B,
11.84%,
1/25/27
....
5,945
5,884
L2501198.UP.FTS.B,
12.05%,
1/25/27
....
9,314
9,241
L2500626.UP.FTS.B,
12.15%,
1/25/27
....
3,557
3,523
L2502704.UP.FTS.B,
12.53%,
1/25/27
....
2,792
392
L2502644.UP.FTS.B,
12.76%,
1/25/27
....
8,338
605
FW2502179.UP.FTS.B,
12.78%,
1/25/27
..
1,497
1,485
L2501977.UP.FTS.B,
12.89%,
1/25/27
....
29,814
29,576
L2502535.UP.FTS.B,
13.13%,
1/25/27
....
36,364
36,061
L2502247.UP.FTS.B,
13.43%,
1/25/27
....
3,007
2,983
L2503471.UP.FTS.B,
13.93%,
1/25/27
....
3,771
3,741
L2501470.UP.FTS.B,
14.16%,
1/25/27
....
11,538
11,439
L2500808.UP.FTS.B,
14.3%,
1/25/27
....
5,593
5,549
FW2502376.UP.FTS.B,
14.43%,
1/25/27
..
11,346
11,257
L2500633.UP.FTS.B,
14.62%,
1/25/27
....
3,449
3,421
L2501876.UP.FTS.B,
14.91%,
1/25/27
....
3,035
3,011
L2501591.UP.FTS.B,
16.26%,
1/25/27
....
12,841
12,733
FW2502838.UP.FTS.B,
16.27%,
1/25/27
..
30,611
30,369
FW2500763.UP.FTS.B,
16.29%,
1/25/27
..
3,290
3,264
L2503404.UP.FTS.B,
16.88%,
1/25/27
....
6,781
6,723
L2499095.UP.FTS.B,
16.97%,
1/25/27
....
2,305
2,286
L2500943.UP.FTS.B,
17.28%,
1/25/27
....
6,107
6,056
FW2502260.UP.FTS.B,
17.52%,
1/25/27
..
5,718
838
L2501997.UP.FTS.B,
17.77%,
1/25/27
....
3,859
3,829
FW2501148.UP.FTS.B,
17.78%,
1/25/27
..
1,543
1,531
FW2501125.UP.FTS.B,
17.82%,
1/25/27
..
1,158
1,148
L2502739.UP.FTS.B,
18.1%,
1/25/27
....
4,817
4,774
L2502439.UP.FTS.B,
18.98%,
1/25/27
....
5,415
5,367
L2495525.UP.FTS.B,
19.03%,
1/25/27
....
5,432
5,385
L2501884.UP.FTS.B,
19.04%,
1/25/27
....
7,907
7,827
L2502391.UP.FTS.B,
19.43%,
1/25/27
....
11,606
11,511
L2500727.UP.FTS.B,
19.88%,
1/25/27
....
6,329
6,275
FW2501295.UP.FTS.B,
20.14%,
1/25/27
..
782
776
FW2500961.UP.FTS.B,
20.28%,
1/25/27
..
5,221
5,218
L2500557.UP.FTS.B,
21.25%,
1/25/27
....
5,440
388
FW2501561.UP.FTS.B,
21.33%,
1/25/27
..
4,550
4,550
L2503424.UP.FTS.B,
21.51%,
1/25/27
....
7,726
7,659
L2501728.UP.FTS.B,
21.52%,
1/25/27
....
4,076
4,025
L2500163.UP.FTS.B,
21.71%,
1/25/27
....
12,300
12,147
L2502058.UP.FTS.B,
21.83%,
1/25/27
....
7,900
7,912
L2500977.UP.FTS.B,
22.64%,
1/25/27
....
5,552
5,560
L2502763.UP.FTS.B,
23.93%,
1/25/27
....
3,346
979
FW2503468.UP.FTS.B,
24.6%,
1/25/27
...
2,711
2,715
FW2503375.UP.FTS.B,
24.71%,
1/25/27
..
2,519
2,509
FW2503209.UP.FTS.B,
25.12%,
1/25/27
..
5,591
5,598
L2502753.UP.FTS.B,
25.33%,
1/25/27
....
2,876
452
L2501592.UP.FTS.B,
25.36%,
1/25/27
....
957
958
L2500577.UP.FTS.B,
25.4%,
1/25/27
....
1,207
1,209
L2503342.UP.FTS.B,
25.48%,
1/25/27
....
5,266
5,256
L2500860.UP.FTS.B,
25.49%,
1/25/27
....
1,113
1,113
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
35
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2501610.UP.FTS.B,
25.67%,
1/25/27
....
$
2,659
$
2,663
L2502912.UP.FTS.B,
25.69%,
1/25/27
....
16,654
16,672
L2502995.UP.FTS.B,
25.82%,
1/25/27
....
2,520
2,518
FW2501208.UP.FTS.B,
25.83%,
1/25/27
..
15,735
15,759
L2500786.UP.FTS.B,
26.35%,
1/25/27
....
2,249
2,228
FW2503491.UP.FTS.B,
26.41%,
1/25/27
..
1,774
1,776
FW2501330.UP.FTS.B,
26.47%,
1/25/27
..
4,514
4,512
FW2502187.UP.FTS.B,
26.63%,
1/25/27
..
4,048
4,054
FW2503082.UP.FTS.B,
26.84%,
1/25/27
..
2,070
2,066
FW2499783.UP.FTS.B,
27.06%,
1/25/27
..
8,754
1,375
FW2501053.UP.FTS.B,
27.35%,
1/25/27
..
6,584
6,593
FW2474863.UP.FTS.B,
27.63%,
1/25/27
..
2,680
2,684
FW2502652.UP.FTS.B,
27.68%,
1/25/27
..
3,988
3,994
FW2503169.UP.FTS.B,
27.77%,
1/25/27
..
810
811
FW2501180.UP.FTS.B,
28.56%,
1/25/27
..
2,453
2,456
FW2500797.UP.FTS.B,
28.58%,
1/25/27
..
1,613
1,614
FW2502849.UP.FTS.B,
29.19%,
1/25/27
..
1,208
1,209
FW2501203.UP.FTS.B,
30.73%,
1/25/27
..
1,156
1,157
FW2503502.UP.FTS.B,
31.01%,
1/25/27
..
2,111
2,112
FW2502222.UP.FTS.B,
31.02%,
1/25/27
..
1,062
1,063
FW2501430.UP.FTS.B,
31.03%,
1/25/27
..
1,490
1,490
FW2502879.UP.FTS.B,
31.04%,
1/25/27
..
23,980
24,014
FW2502647.UP.FTS.B,
31.05%,
1/25/27
..
6,898
6,890
FW2502834.UP.FTS.B,
31.11%,
1/25/27
..
2,192
2,192
FW2502954.UP.FTS.B,
31.14%,
1/25/27
..
4,339
305
FW2499746.UP.FTS.B,
31.16%,
1/25/27
..
2,979
2,983
FW2500654.UP.FTS.B,
31.21%,
1/25/27
..
818
819
FW2503208.UP.FTS.B,
31.21%,
1/25/27
..
2,151
2,154
FW2502423.UP.FTS.B,
32.98%,
1/25/27
..
1,366
94
FW2502276.UP.FTS.B,
33.54%,
1/25/27
..
4,292
4,285
FW2500954.UP.FTS.B,
23.81%,
2/07/27
..
6,537
6,538
L1729483.UP.FTS.B,
18.23%,
2/17/27
....
13,863
994
L1729858.UP.FTS.B,
25.05%,
2/17/27
....
19,143
19,223
FW1729684.UP.FTS.B,
29.1%,
2/17/27
...
10,388
10,389
FW1729695.UP.FTS.B,
29.91%,
2/17/27
..
44,873
42,480
L1902477.UP.FTS.B,
13.65%,
3/22/27
....
7,470
7,394
L1902300.UP.FTS.B,
22.58%,
3/22/27
....
4,294
1,245
L1901141.UP.FTS.B,
24.79%,
3/22/27
....
1,637
247
L1901660.UP.FTS.B,
25.23%,
3/22/27
....
1,396
1,398
FW1901509.UP.FTS.B,
31.16%,
3/22/27
..
6,583
6,580
L2031108.UP.FTS.B,
11.34%,
4/12/27
....
37,258
36,825
L2030856.UP.FTS.B,
13.22%,
4/12/27
....
7,446
7,356
L2031106.UP.FTS.B,
17.27%,
4/12/27
....
6,656
1,779
L2030776.UP.FTS.B,
18.15%,
4/12/27
....
4,282
4,240
L2032168.UP.FTS.B,
21.6%,
4/12/27
....
8,674
8,586
L2032065.UP.FTS.B,
22.33%,
4/12/27
....
17,482
1,266
FW2032681.UP.FTS.B,
22.41%,
4/12/27
..
2,110
2,078
L2032407.UP.FTS.B,
25.01%,
4/12/27
....
983
977
FW2030941.UP.FTS.B,
26.62%,
4/12/27
..
24,923
3,641
L2032337.UP.FTS.B,
26.62%,
4/12/27
....
7,985
4,743
FW2031474.UP.FTS.B,
30.22%,
4/12/27
..
2,947
(134)
L2972334.UP.FTS.B,
6.17%,
4/19/27
....
38,135
37,849
L2972137.UP.FTS.B,
6.42%,
4/19/27
....
11,458
11,373
L2971979.UP.FTS.B,
6.84%,
4/19/27
....
20,523
20,370
L2971286.UP.FTS.B,
7.38%,
4/19/27
....
19,207
19,065
L2972081.UP.FTS.B,
7.8%,
4/19/27
.....
4,060
4,030
FW2972190.UP.FTS.B,
7.92%,
4/19/27
...
36,457
36,189
L2971556.UP.FTS.B,
10.11%,
4/19/27
....
18,904
18,712
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2971728.UP.FTS.B,
11.46%,
4/19/27
....
$
8,415
$
8,330
L2971948.UP.FTS.B,
12.78%,
4/19/27
....
5,923
5,867
L2971527.UP.FTS.B,
13.17%,
4/19/27
....
8,335
8,252
L2967243.UP.FTS.B,
14.24%,
4/19/27
....
13,573
13,437
L2970341.UP.FTS.B,
15.34%,
4/19/27
....
5,486
767
L2971759.UP.FTS.B,
16.29%,
4/19/27
....
6,132
6,057
L2971657.UP.FTS.B,
16.32%,
4/19/27
....
1,756
1,736
L2971854.UP.FTS.B,
16.46%,
4/19/27
....
2,488
2,460
FW2968818.UP.FTS.B,
17.01%,
4/19/27
..
13,201
13,039
L2970277.UP.FTS.B,
17.94%,
4/19/27
....
26,036
25,717
FW2971812.UP.FTS.B,
18.16%,
4/19/27
..
22,800
22,535
L2972316.UP.FTS.B,
18.63%,
4/19/27
....
40,686
40,232
L2971776.UP.FTS.B,
19.69%,
4/19/27
....
5,416
5,350
L2972008.UP.FTS.B,
20.74%,
4/19/27
....
4,531
4,516
FW2971982.UP.FTS.B,
21.48%,
4/19/27
..
1,406
1,391
L2970145.UP.FTS.B,
22.58%,
4/19/27
....
7,237
7,135
L2971880.UP.FTS.B,
24%,
4/19/27
......
26,893
25,277
FW2971643.UP.FTS.B,
24.95%,
4/19/27
..
17,966
17,900
L2971841.UP.FTS.B,
25.2%,
4/19/27
....
1,213
1,207
L2971769.UP.FTS.B,
25.23%,
4/19/27
....
5,814
873
FW2972220.UP.FTS.B,
26.42%,
4/19/27
..
3,298
3,281
L2971662.UP.FTS.B,
26.49%,
4/19/27
....
846
834
FW2972102.UP.FTS.B,
26.72%,
4/19/27
..
2,767
2,756
FW2972305.UP.FTS.B,
27.33%,
4/19/27
..
5,092
5,066
FW2972030.UP.FTS.B,
28.07%,
4/19/27
..
4,257
4,235
FW2101729.UP.FTS.B,
20.8%,
4/23/27
...
27,094
7,610
L2100737.UP.FTS.B,
22.28%,
4/23/27
....
15,001
15,077
FW2101765.UP.FTS.B,
29.07%,
4/23/27
..
3,269
3,282
FW2103611.UP.FTS.B,
30.3%,
4/23/27
...
1,101
1,067
FW2103415.UP.FTS.B,
31.09%,
4/23/27
..
10,877
10,860
L2250389.UP.FTS.B,
13.11%,
5/14/27
....
15,352
15,182
FW2249624.UP.FTS.B,
13.82%,
5/14/27
..
4,539
1,153
FW2249414.UP.FTS.B,
19.5%,
5/14/27
...
5,894
5,814
L2248430.UP.FTS.B,
21.51%,
5/14/27
....
1,158
613
L2250436.UP.FTS.B,
22.79%,
5/14/27
....
15,183
15,101
L2250392.UP.FTS.B,
22.93%,
5/14/27
....
2,814
2,795
L2251286.UP.FTS.B,
25.89%,
5/14/27
....
1,876
1,862
FW2248226.UP.FTS.B,
29.45%,
5/14/27
..
2,803
196
FW2250225.UP.FTS.B,
30.13%,
5/14/27
..
1,493
1,491
FW2250032.UP.FTS.B,
32.02%,
5/14/27
..
3,976
2,343
L2252226.UP.FTS.B,
14.86%,
5/15/27
....
40,219
39,756
L2251988.UP.FTS.B,
19.87%,
5/15/27
....
2,213
159
L2252234.UP.FTS.B,
21.66%,
5/15/27
....
3,634
3,576
FW2253145.UP.FTS.B,
24.76%,
5/15/27
..
11,676
11,408
FW2253490.UP.FTS.B,
28.02%,
5/15/27
..
4,645
331
FW2252591.UP.FTS.B,
31.67%,
5/15/27
..
6,704
6,485
L2497417.UP.FTS.B,
12.27%,
6/24/27
....
18,668
18,468
L2497350.UP.FTS.B,
13.11%,
6/24/27
....
8,143
7,637
FW2497520.UP.FTS.B,
17.89%,
6/24/27
..
5,259
4,940
L2499350.UP.FTS.B,
18.35%,
6/24/27
....
24,321
22,835
FW2498266.UP.FTS.B,
27.06%,
6/24/27
..
3,490
3,283
FW2463420.UP.FTS.B,
28.55%,
6/24/27
..
859
855
FW2497794.UP.FTS.B,
30.97%,
6/24/27
..
6,804
(450)
FW2497583.UP.FTS.B,
31.24%,
6/24/27
..
6,655
6,614
L2472114.UP.FTS.B,
7.63%,
6/25/27
.....
15,136
15,010
L2501446.UP.FTS.B,
11.34%,
6/25/27
....
2,486
179
L2503121.UP.FTS.B,
17.35%,
6/25/27
....
9,936
9,815
L2499889.UP.FTS.B,
20.18%,
6/25/27
....
22,153
21,890
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
36
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2502792.UP.FTS.B,
24.01%,
6/25/27
....
$
4,992
$
1,471
L2503278.UP.FTS.B,
24.32%,
6/25/27
....
9,743
699
L2500638.UP.FTS.B,
25.31%,
6/25/27
....
881
877
FW2503221.UP.FTS.B,
29%,
6/25/27
....
23,760
6,856
FW2501815.UP.FTS.B,
29.99%,
6/25/27
..
6,885
486
FW1729187.UP.FTS.B,
30.3%,
7/17/27
...
5,753
5,758
L2032742.UP.FTS.B,
22.42%,
9/12/27
....
2,368
2,339
FW2972075.UP.FTS.B,
9.42%,
9/19/27
...
31,900
29,910
FW2251363.UP.FTS.B,
16.36%,
10/14/27
.
37,835
37,375
L2253724.UP.FTS.B,
25.49%,
10/15/27
...
288
283
L2500059.UP.FTS.B,
25.4%,
11/24/27
....
2,540
52
FW2500185.UP.FTS.B,
30.96%,
11/24/27
.
6,704
6,688
FW2499865.UP.FTS.B,
31.15%,
11/24/27
.
1,675
(4)
FW2498394.UP.FTS.B,
31.2%,
11/24/27
..
4,602
715
L2498668.UP.FTS.B,
13.66%,
11/25/27
...
33,351
33,035
FW2502338.UP.FTS.B,
30.04%,
11/25/27
.
4,646
9
L2971929.UP.FTS.B,
24.66%,
2/19/28
....
18,296
18,038
L1901406.UP.FTS.B,
27.3%,
10/22/28
....
4,606
4,646
L2475583.UP.FTS.B,
20.34%,
1/25/29
....
504
498
4,589,122
Total
Marketplace
Loans
(Cost
$12,516,695)
....
$11,122,540
Franklin
Universal
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
August
31,
2023
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
37
Franklin
Universal
Trust
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$211,886,432
Cost
-
Non-controlled
affiliates
(Note
4
c
)
........................................................
7,233,846
Value
-
Unaffiliated
issuers
..................................................................
$240,998,497
Value
-
Non-controlled
affiliates
(Note
4
c
)
.......................................................
7,233,846
Cash
....................................................................................
29,082
Receivables:
Investment
securities
sold
...................................................................
199,250
Dividends
and
interest
.....................................................................
3,016,488
Total
assets
..........................................................................
251,477,163
Liabilities:
Payables:
Management
fees
.........................................................................
155,988
Trustees'
fees
and
expenses
.................................................................
135
Accrued
interest
(Note
3)
...................................................................
1,173,631
Senior
fixed
rate
Notes,
at
par
value
of
$65,000,000
less
unamortized
Note
issuance
costs
of
$984
(Note
3
)
.......
64,999,016
Accrued
expenses
and
other
liabilities
...........................................................
289,113
Total
liabilities
.........................................................................
66,617,883
Net
assets,
at
value
.................................................................
$184,859,280
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$158,969,690
Total
distributable
earnings
(losses)
.............................................................
25,889,590
Net
assets,
at
value
.................................................................
$184,859,280
Shares
outstanding
.........................................................................
25,131,894
Net
asset
value
per
share
....................................................................
$7.36
Franklin
Universal
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
August
31,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
38
Franklin
Universal
Trust
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$19,664)
Unaffiliated
issuers
........................................................................
$3,715,799
Non-controlled
affiliates
(Note
4
c
)
.............................................................
315,913
Interest:
Unaffiliated
issuers
........................................................................
12,089,878
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
5,279
Non-controlled
affiliates
(Note
4
c
)
.............................................................
6,883
Total
investment
income
...................................................................
16,133,752
Expenses:
Management
fees
(Note
4
a
)
...................................................................
1,922,245
Transfer
agent
fees
.........................................................................
79,550
Custodian
fees
(Note
5
)
......................................................................
2,012
Reports
to
shareholders
fees
..................................................................
49,508
Professional
fees
...........................................................................
99,983
Trustees'
fees
and
expenses
..................................................................
2,977
Amortization
of
note
issuance
costs
(Note
3)
......................................................
25,034
Marketplace
lending
fees
(Note
1
e
)
.............................................................
459,588
Interest
expense
(Note
3)
.....................................................................
2,541,518
Other
....................................................................................
146,061
Total
expenses
.........................................................................
5,328,476
Expense
reductions
(Note
5
)
...............................................................
(900)
Expenses
waived/paid
by
affiliates
(Note
4c)
...................................................
(33,460)
Net
expenses
.........................................................................
5,294,116
Net
investment
income
................................................................
10,839,636
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(6,178,389)
Foreign
currency
transactions
................................................................
(1,260)
Net
realized
gain
(loss)
..................................................................
(6,179,649)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(8,498,807)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
536
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(8,498,271)
Net
realized
and
unrealized
gain
(loss)
............................................................
(14,677,920)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$(3,838,284)
Franklin
Universal
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
39
Franklin
Universal
Trust
Year
Ended
August
31,
2023
Year
Ended
August
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$10,839,636
$10,398,489
Net
realized
gain
(loss)
.................................................
(6,179,649)
2,697,904
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(8,498,271)
(20,486,901)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(3,838,284)
(7,390,508)
Distributions
to
shareholders
..............................................
(9,130,871)
(13,802,436)
Distributions
to
shareholders
from
tax
return
of
capital
...........................
(5,224,467)
—
Total
distributions
to
shareholders
..........................................
(14,355,338)
(13,802,436)
Net
increase
(decrease)
in
net
assets
...................................
(18,193,622)
(21,192,944)
Net
assets:
Beginning
of
year
.......................................................
203,052,902
224,245,846
End
of
year
...........................................................
$184,859,280
$203,052,902
Franklin
Universal
Trust
Financial
Statements
Statement
of
Cash
Flows
for
the
year
ended
August
31,
2023
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
Franklin
Universal
Trust
Cash
flow
from
operating
activities:
Dividends,
interest
and
other
income
received
.....................................................
$
15,438,549
Operating
expenses
paid
.....................................................................
(2,735,660)
Interest
expense
paid
........................................................................
(2,544,634)
Cash
collateral
paid
for
securities
loaned
.........................................................
(167,512)
Realized
loss
on
foreign
currency
transactions
.....................................................
(1,260)
Purchases
of
long-term
investments
.............................................................
(43,528,436)
Sales
and
maturities
of
long-term
investments
.....................................................
42,429,156
Net
sales
of
short-term
investments
.............................................................
2,609,956
Cash
provided
-
operating
activities
..........................................................
11,500,159
Cash
flow
from
financing
activities:
Cash
distributions
to
shareholders
..............................................................
(14,355,338)
Cash
used
-
financing
activities
.............................................................
(14,355,338)
Net
increase
(decrease)
in
cash
.................................................................
(2,855,179)
Cash
at
beginning
of
year
......................................................................
2,884,261
Cash
at
end
of
year
...........................................................................
$29,082
Reconciliation
of
Net
Increase
(Decrease)
in
Net
Assets
resulting
from
Operating
Activities
to
Net
Cash
Provided
by
Operating
Activities
for
the
year
ended
August
31,
2023
Net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
....................................
$
(3,838,284)
Adjustments
to
reconcile
net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
to
net
cash
provided
by
operating
activities:
Net
amortization
income
..................................................................
(208,170)
Amortization
of
Note
issuance
costs
..........................................................
25,034
Reinvested
dividends
from
non-controlled
affiliates
...............................................
(315,913)
Interest
received
in
the
form
of
securities
......................................................
(25,377)
Increase
in
dividends
and
interest
receivable
and
other
assets
......................................
(120,902)
Decrease
in
interest
payable
...............................................................
(3,116)
Decrease
in
payable
to
affiliates,
accrued
expenses,
and
other
liabilities
...............................
(8,096)
Increase
in
receivable
for
investments
sold
.....................................................
(199,250)
Decrease
in
collateral
for
securities
loaned
.....................................................
(167,512)
Decrease
in
cost
of
investments
.............................................................
7,862,938
Increase
in
unrealized
depreciation
on
investments.
..............................................
8,498,807
Net
cash
provided
by
operating
activities
...........................................................
$11,500,159
Franklin
Universal
Trust
41
franklintempleton.com
Annual
Report
Notes
to
Financial
Statements
1.
Organization
and
Significant
Accounting
Policies
Franklin
Universal
Trust (Fund)
is
registered under
the
Investment
Company
Act
of
1940
(1940
Act)
as
a
closed-end
management
investment
company.
The
Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
following
summarizes
the
Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Senior
Fixed
Rate
Notes
issued
by
the
Fund
are
carried
at
cost.
Under
compliance
policies
and
procedures
approved
by
the
Fund’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the
OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
Investments
in
repurchase
agreements
are
valued
at
cost,
which
approximates
fair
value.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
Franklin
Universal
Trust
Notes
to
Financial
Statements
42
franklintempleton.com
Annual
Report
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the
Fund.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/
or
third-party
vendor,
is
reported
separately
in
the
Statement
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to
any
cash
collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
August
31,
2023,
the
Fund
had
no
securities
on
loan.
d.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
43
franklintempleton.com
Annual
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principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
e.
Marketplace
Lending
The
Fund
invests
in
loans
obtained
through
marketplace
lending.
Marketplace
lending,
sometimes
referred
to
as
peer-to-peer
lending,
is
a
method
of
financing
in
which
a
platform
facilitates
the
borrowing
and
lending
of
money.
It
is
considered
an
alternative
to
more
traditional
forms
of
debt
financing.
Prospective
borrowers
are
required
to
provide
certain
financial
information
to
the
platform,
including,
but
not
limited
to,
the
intended
purpose
of
the
loan,
income,
employment
information,
credit
score,
debt-to-income
ratio,
credit
history
(including
defaults
and
delinquencies)
and
home
ownership
status.
Based
on
this
and
other
information,
the
platform
assigns
its
own
credit
rating
to
the
borrower
and
sets
the
interest
rate
for
the
requested
loan.
The
platform
then
posts
the
borrowing
requests
online,
giving
investors
the
opportunity
to
purchase
the
loans
based
on
factors
such
as
the
interest
rates
and
expected
yields
of
the
loans,
the
borrower
background
data,
and
the
credit
rating
assigned
by
the
platform.
When
the
Fund
invests
in
these
loans,
it
usually
purchases
all
rights,
title
and
interest
in
the
loans
pursuant
to
a
loan
purchase
agreement
directly
from
the
platform.
The
platform
or
a
third-party
servicer
typically
continues
to
service
the
loans,
collecting
payments
and
distributing
them
to
the
Fund,
less
any
servicing
fees
assessed.
The
servicer
is
typically
responsible
for
taking
actions
against
a
borrower
in
the
event
of
a
default
on
the
loan.
Servicing
fees,
along
with
other
administration
fees,
are
included
in
marketplace
lending
fees
in
the
Statement
of
Operations.
The Fund,
as
an
investor
in
a
loan,
would
be
entitled
to
receive
payment
only
from
the
borrower
and
would
not
be
able
to
recover
any
deficiency
from
the
platform,
except
under
very
narrow
circumstances.
The
loans
in
which
the
Fund
may
invest
are
unsecured.
f.
Income
and
Deferred
Taxes
It
is the
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
August
31,
2023,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
g.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income
in
the
Statement
of
Operations.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Senior
Floating
Rate
Interests
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
44
franklintempleton.com
Annual
Report
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
h.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
i.
Guarantees
and
Indemnifications
Under
the
Fund’s
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Fund
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Fund
that
have
not
yet
occurred.
Currently,
the
Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
August
31,
2023,
there
were
an
unlimited
number
of
shares
authorized
($0.01
par
value).
During
the
years ended
August
31,
2023
and
August
31,
2022
there
were
no
shares
issued;
all
reinvested
distributions
were
satisfied
with
previously
issued
shares
purchased
in
the
open
market.
Under
the
Board
approved
open-market
share
repurchase
program,
the
Fund
may
purchase,
from
time
to
time,
Fund
shares
in
open-market
transactions,
at
the
discretion
of
management.
During
the
years ended
August
31,
2023
and
August
31,
2022,
there
were
no
shares
repurchased.
3.
Senior
Fixed
Rate
Notes
On
August
28,
2018,
the
Fund
issued
$65
million
principal
amount
of
a
new
class
of
five-year
senior
fixed
rate
notes
(Notes).
The
Notes
bear
interest,
payable
semi-annually,
at
a
rate
of
3.91%
per
year,
to
maturity
on
September
15,
2023.
The
Notes
are
general
unsecured
obligations
of
the
Fund
and
rank
senior
to
trust
shares
and
all
existing
or
future
unsecured
indebtedness
of
the
Fund.
For
the
year
ended
August
31,
2023,
total
interest
paid
by
the
Fund
on
the
Notes
was
$2,544,634.
The
Fund
is
required
to
maintain
on
a
monthly
basis
a
specified
discounted
asset
value
for
its
portfolio
in
compliance
with
guidelines
established
in
the
Notes
Agreement,
and
is
required
under
the
1940
Act
to
maintain
asset
coverage
for
the
Notes
of
at
least
300%.
The
Fund
has
met
these
requirements
during
the
year
ended
August
31,
2023.
The
issuance
costs
of
$114,819
incurred
by
the
Fund
are
deferred
and
amortized
on
an
interest
method
basis
over
the
term
of
the
Notes.
For
the
year
ended
August
31,
2023,
the
Fund
amortized
$25,034
of
Notes
issuance
costs.
Subject
to
certain
restrictions
and
make
whole
premiums,
the
Fund
may
prepay
the
Notes
at
any
time.
At
August
31,
2023,
if
the
Notes
were
fully
prepaid,
the
make
whole
premium
related
to
the
current
balance
of
the
Notes
would
have
been
$0.
The
Fund
employs
an
income-based
approach
to
determine
the
fair
value
of
the
Notes,
which
uses
the
Notes’
current
credit
rating,
remaining
time
to
maturity,
stated
coupon
rates,
the
current
yield
of
a
comparable
asset,
and
a
liquidity
premium.
At
August
31,
2023,
the
estimated
fair
value
of
the
Notes
was
approximately
$64,954,000.
The
inputs
used
in
determining
the
fair
value
of
the
Notes
represent
Level
3
in
the
fair
value
hierarchy.
See
Note
9
regarding
fair
value
measurements
for
additional
information
about
fair
value
hierarchy
and
Level
3
inputs.
1.
Organization
and
Significant
Accounting
Policies
(continued)
g.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
45
franklintempleton.com
Annual
Report
On
September
15,
2023,
the
Notes
matured
and
were
paid
in
full.
4.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated
weekly
and
paid
monthly,
to
Advisers
of
0.75%
per
year
of
the
average
weekly
managed
assets.
Managed
assets
are
defined
as
the
Fund’s
gross
asset
value
minus
the
sum
of
accrued
liabilities,
other
than
the
principal
amount
of
the
Notes.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
August
31,
2023,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Universal
Trust
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.066%
$9,360,377
$32,679,309
$(34,805,840)
$—
$—
$7,233,846
7,233,846
$315,913
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
5.066%
$134,000
$7,795,000
$(7,929,000)
$—
$—
$—
—
$6,883
Total
Affiliated
Securities
...
$9,494,377
$40,474,309
$(42,734,840)
$—
$—
$7,233,846
$322,796
3.
Senior
Fixed
Rate
Notes
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
46
franklintempleton.com
Annual
Report
5.
Expense
Offset
Arrangement
The Fund has
previously
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Fund's
custodian
expenses.
During
the
year
ended
August
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
Effective
July
10,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
6.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
August
31,
2023,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Fund
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
August
31,
2023,
the
Fund
deferred
late-year
ordinary
losses
of
$563.
The
tax
character
of
distributions
paid
during
the
years
ended
August
31,
2023
and
2022,
was
as
follows:
At
August
31,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
paydown
losses,
bond
discounts
and
premiums,
corporate
actions
and
complex
securities.
7.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
year
ended
August
31,
2023,
aggregated
$43,528,436
and
$46,214,053,
respectively.
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$81,983
Long
term
................................................................................
3,063,507
Total
capital
loss
carryforwards
...............................................................
$3,145,490
2023
2022
Distributions
paid
from:
Ordinary
income
..........................................................
$7,777,366
$13,022,703
Long
term
capital
gain
......................................................
1,353,505
779,733
Return
of
capital
...........................................................
5,224,467
—
$14,355,338
$13,802,436
Cost
of
investments
..........................................................................
$219,196,616
Unrealized
appreciation
........................................................................
$53,002,757
Unrealized
depreciation
........................................................................
(23,967,030)
Net
unrealized
appreciation
(depreciation)
..........................................................
$29,035,727
Franklin
Universal
Trust
Notes
to
Financial
Statements
47
franklintempleton.com
Annual
Report
8.
Credit Risk
and
Defaulted
Securities
At
August
31,
2023,
the
Fund
had
54.6%
of
its
portfolio
invested
in
high
yield
or
other
securities
rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund
held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
August
31,
2023,
the
aggregate
value
of
these
securities
was
$689,261,
representing
0.4%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
9.
Credit
Facility
On
September
15,
2023,
the
Fund
entered
into
a
senior
secured
margin
loan
and
security
agreement
(Credit
Facility)
with
Bank
of
America,
N.A.
(BofA)
pursuant
to
which
the
Fund
borrowed
the
maximum
commitment
amount
of
$60
million
for
a
3-year
term,
which
matures
on
September
14,
2026.
The
Credit
Facility
provides
a
source
of
funds
to
the
Fund
to
purchase
additional
investments
as
part
of
its
investment
strategy.
Under
the
terms
of
the
Credit
Facility,
the
Fund
pays
interest
on
outstanding
borrowings
at
a
fixed
rate
of
5.95%.
Collateral
pledged
by
the
Fund
associated
with
outstanding
borrowings
is
held
in
a
segregated
account
with
the
Fund’s
custodian.
10.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
August
31,
2023,
in
valuing
the
Fund's
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
Electric
Utilities
........................
$
45,976,471
$
—
$
—
$
45,976,471
Independent
Power
and
Renewable
Electricity
Producers
..........................
1,071,850
1,719,159
—
2,791,009
Metals
&
Mining
.......................
4,766,363
—
—
4,766,363
Multi-Utilities
..........................
30,207,172
—
—
30,207,172
Franklin
Universal
Trust
Notes
to
Financial
Statements
48
franklintempleton.com
Annual
Report
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Oil,
Gas
&
Consumable
Fuels
.............
$
2,550,582
$
488,714
$
—
$
3,039,296
Preferred
Stocks
.........................
530,750
—
—
530,750
Warrants
...............................
1,357
—
—
1,357
Convertible
Bonds
.......................
—
1,988
—
1,988
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
602,853
—
602,853
Automobile
Components
.................
—
4,599,200
—
4,599,200
Automobiles
..........................
—
1,130,786
—
1,130,786
Banks
...............................
—
902,340
—
902,340
Beverages
...........................
—
614,880
—
614,880
Biotechnology
.........................
—
433,049
—
433,049
Broadline
Retail
.......................
—
867,150
—
867,150
Building
Products
......................
—
4,260,079
—
4,260,079
Capital
Markets
........................
—
439,318
—
439,318
Chemicals
...........................
—
6,628,495
—
6,628,495
Commercial
Services
&
Supplies
...........
—
2,704,267
—
2,704,267
Communications
Equipment
..............
—
892,982
—
892,982
Construction
&
Engineering
...............
—
2,151,001
—
2,151,001
Construction
Materials
..................
—
512,415
—
512,415
Consumer
Finance
.....................
—
3,810,364
—
3,810,364
Consumer
Staples
Distribution
&
Retail
......
—
692,752
—
692,752
Containers
&
Packaging
.................
—
6,955,398
—
6,955,398
Distributors
...........................
—
821,810
—
821,810
Diversified
Consumer
Services
............
—
723,040
—
723,040
Diversified
REITs
......................
—
2,351,622
—
2,351,622
Diversified
Telecommunication
Services
.....
—
4,542,023
—
4,542,023
Electric
Utilities
........................
—
1,316,664
—
1,316,664
Electrical
Equipment
....................
—
2,493,091
—
2,493,091
Electronic
Equipment,
Instruments
&
Components
........................
—
434,815
—
434,815
Energy
Equipment
&
Services
.............
—
5,130,490
—
5,130,490
Entertainment
.........................
—
1,799,685
—
1,799,685
Financial
Services
......................
—
2,130,984
—
2,130,984
Food
Products
........................
—
1,556,966
—
1,556,966
Ground
Transportation
..................
—
1,835,296
—
1,835,296
Health
Care
Equipment
&
Supplies
.........
—
1,221,498
—
1,221,498
Health
Care
Providers
&
Services
..........
—
5,802,026
—
5,802,026
Health
Care
REITs
.....................
—
170,136
—
170,136
Hotel
&
Resort
REITs
...................
—
648,215
—
648,215
Hotels,
Restaurants
&
Leisure
.............
—
10,874,546
—
a
10,874,546
Household
Durables
....................
—
2,323,046
—
2,323,046
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
3,372,425
—
3,372,425
Insurance
............................
—
1,099,315
—
1,099,315
IT
Services
...........................
—
3,539,293
—
3,539,293
Life
Sciences
Tools
&
Services
............
—
980,000
—
980,000
Machinery
............................
—
2,987,423
—
2,987,423
Media
...............................
—
6,706,047
—
6,706,047
Metals
&
Mining
.......................
—
2,924,427
—
2,924,427
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
1,430,408
—
1,430,408
Oil,
Gas
&
Consumable
Fuels
.............
—
18,469,482
—
a
18,469,482
Paper
&
Forest
Products
.................
—
279,798
—
279,798
Passenger
Airlines
.....................
—
1,664,403
—
1,664,403
10.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
49
franklintempleton.com
Annual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
At
August
31,
2023,
the
reconciliation is
as follows:
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Personal
Care
Products
.................
$
—
$
1,401,797
$
—
$
1,401,797
Pharmaceuticals
.......................
—
2,503,002
—
2,503,002
Real
Estate
Management
&
Development
....
—
1,342,559
—
1,342,559
Software
.............................
—
2,457,276
—
2,457,276
Specialized
REITs
......................
—
968,307
—
968,307
Specialty
Retail
........................
—
3,139,955
—
3,139,955
Textiles,
Apparel
&
Luxury
Goods
..........
—
401,936
—
401,936
Trading
Companies
&
Distributors
..........
—
931,903
—
931,903
Wireless
Telecommunication
Services
.......
—
843,269
—
843,269
Senior
Floating
Rate
Interests
...............
—
101,635
—
101,635
Marketplace
Loans
.......................
—
—
11,122,540
11,122,540
Asset-Backed
Securities
...................
—
609,859
—
609,859
Escrows
and
Litigation
Trusts
...............
—
33,750
—
33,750
Short
Term
Investments
...................
7,233,846
—
—
7,233,846
Total
Investments
in
Securities
...........
$92,338,391
$144,771,412
$11,122,540
$248,232,343
a
Includes
financial
instruments
determined
to
have
no
value.
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
c
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Universal
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
Oil,
Gas
&
Consumable
Fuels
..........
$
—
d
$
—
$
(151)
$
—
$
—
$
—
$
(74,975)
$
75,126
$
—
$
—
Warrants
:
Oil,
Gas
&
Consumable
Fuels
..........
—
d
—
—
d
—
—
—
—
—
—
—
Corporate
Bonds
:
Hotels,
Restaurants
&
Leisure
.........
540
—
—
—
—
—
—
(540)
—
d
(540)
Oil,
Gas
&
Consumable
Fuels
..........
—
—
—
3,864
—
—
—
(3,864)
—
d
(3,864)
Marketplace
Loans
:
Financial
Services
...
21,006,789
65,045
(9,771,298)
—
—
—
(453,448)
275,452
11,122,540
d
(483,153)
Total
Investments
in
Securities
............
$21,007,329
$65,045
$(9,771,449)
$3,864
$—
$—
$(528,423)
$346,174
$11,122,540
$(487,557)
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
10.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
50
franklintempleton.com
Annual
Report
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
August
31,
2023,
are
as
follows:
11.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
c
Transferred
into
Level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
or
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
d
Includes
financial
instruments
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Universal
Trust
Assets:
Investments
in
Securities:
Marketplace
Loans:
Financial
Services
...........
$11,122,540
Discounted
cash
flow
Loss-adjusted
discount
rate
0.1%
-
18.7%
(8.3%)
Decrease
Projected
loss
rate
3.3%
-
50.1%
(18.7%)
Decrease
All
Other
Investments
..........
—
c
Total
$11,122,540
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
c
Includes
financial
instruments
determined
to
have
no
value.
Selected
Portfolio
ADR
American
Depositary
Receipt
CME
Chicago
Mercantile
Exchange
FRN
Floating
Rate
Note
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
SOFR
Secured
Overnight
Financing
Rate
10.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
51
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
and
Shareholders
of
Franklin
Universal
Trust
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
Universal
Trust
(the
"Fund")
as
of
August
31,
2023,
the
related
statements
of
operations
and
cash
flows
for
the
year
ended
August
31,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
August
31,
2023,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2023
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
August
31,
2023,
the
results
of
its
operations
and
its
cash
flows
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
August
31,
2023
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2023
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
August
31,
2023
by
correspondence
with
the
custodian
and
transfer
agent.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
PricewaterhouseCoopers
LLP
San
Francisco,
California
October
23,
2023
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Universal
Trust
Tax
Information
(unaudited)
52
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
August
31,
2023:
Pursuant
to:
Amount
Reported
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
$1,538,072
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$3,459,032
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$3,754,460
Qualified
Net
Interest
Income
(QII)
§871(k)(1)(C)
$4,486,955
Section
163(j)
Interest
Earned
§163(j)
$4,646,418
Franklin
Universal
Trust
53
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Annual
Report
Important
Information
to
Shareholders
Share
Repurchase
Program
The
Fund’s
Board
previously
authorized
an
open-market
share
repurchase
program,
pursuant
to
which
the
Fund
may
purchase
Fund
shares,
from
time
to
time,
up
to
10%
of
the
Fund’s
common
shares
in
open-market
transactions,
at
the
discretion
of
management.
This
authorization
remains
in
effect.
Approval
of
Borrowing
Arrangements
Effective
as
of
September
15,
2023,
the
Fund
is
a
party
to
a
committed,
senior,
secured
line
of
credit
(the
“Credit
Facility”)
with
Bank
of
America,
N.A.
The
Credit
Facility
has
a
maximum
commitment
of
$60,000,000
and
continues
for
a
three-year
term,
maturing
on
September
14,
2026.
Please
See
Note
9
for
additional
details.
The
purpose
of
the
Credit
Facility
Renewal
is
to
retire
and
refinance
the
Fund’s
outstanding
$65
million
in
notes.
Information
About
the
Fund’s
Goal
and
Main
Investments,
Principal
Investment
Strategy,
and
Principal
Risks
Your
Fund’s
Goal
and
Main
Investments
The
Fund’s
primary
investment
objective
is
to
provide
high,
current
income
consistent
with
preservation
of
capital.
Its
secondary
objective
is
growth
of
income
through
dividend
increases
and
capital
appreciation.
Principal
Investment
Strategy
We
invest
primarily
in
two
asset
classes:
high-yield
bonds
and
utility
stocks.
Within
the
high-yield
portion
of
the
portfolio,
we
use
fundamental
research
to
invest
in
a
diversified
portfolio
of
bonds.
Within
the
utility
portion
of
the
portfolio,
we
focus
on
companies
with
attractive
dividend
yields
and
with
a
history
of
increasing
their
dividends.
In
seeking
to
obtain
higher
income,
the
Fund
may
invest
in
a
significant
portion
of
its
portfolio
in
lower-rated
U.S.
debt
securities
that
have
high
income
producing
characteristics,
including
obligations
of
corporations
and
other
business
organizations.
Lower-rated
securities
generally
pay
higher
yields
than
more
highly
rated
securities
to
compensate
investors
for
the
higher
risk.
The
Fund
may
also
invest
in
income
producing
debt
obligations
of
the
U.S.
Government,
its
agencies
and
instrumentalities,
and
foreign
governments
and
supranational
organizations.
Under
normal
market
conditions,
the
Fund
generally
will
invest
between
60%
and
80%
of
its
total
assets
in
high
income
producing
debt
securities
of
U.S.
and
foreign
issuers,
allocated
among
issuers,
geographic
regions,
and
currency
denominations
in
a
manner
that
is
consistent
with
its
objectives
based
upon
relative
interest
rates
among
various
instruments
denominated
in
different
currencies,
the
outlook
for
changes
in
these
interest
rates,
and
anticipated
changes
in
currency
exchange
rates.
Under
normal
market
conditions,
the
Fund
will
invest
approximately
20%
to
40%
of
its
assets
in
dividend-paying
common
and
preferred
stocks.
The
Fund
will
emphasize
investment
in
common
stocks
paying
high
current
dividends
with
a
focus
on
public
utility
companies.
The
Fund
may
also
invest
in
the
equity
and
convertible
securities
of
companies
engaged
in
the
business
of
extracting
and
processing
precious
metals
and
natural
resources,
such
as
gold
mining
stocks.
The
Fund
may
also
invest
a
small
portion
of
its
total
assets
in
loans
originated
through
on-line
marketplace
lending
platforms
that
provide
a
marketplace
for
lending
through
the
purchase
of
loans
(either
individually
or
in
aggregations)
and
other
types
of
marketplace
lending
instruments
(See
the
Notes
to
Financial
Statements
for
further
information)
.
Securities
may
be
purchased
by
the
Fund
on
a
“when
issued”
or
on
a
“forward
delivery”
basis,
which
means
that
the
obligations
will
be
delivered
at
a
future
date
beyond
customary
settlement
time.
The
Fund
employs
leverage
through
the
use
of
a
senior
secured
revolving
credit
facility
which
provided
the
Fund
with
the
opportunity
to
retire
and
refinance
prior
leverage.
(See
the
Notes
to
Financial
Statements
for
further
information)
.
The
Fund
may
also
invest
in
short-term
U.S.
government
securities
and
other
money
market
instruments
(including
certificates
of
deposit,
commercial
paper,
bankers’
acceptances,
short-term
foreign
government
securities,
and
repurchase
agreements)
although
it
typically
will
not
invest
more
than
5%
of
its
total
assets
in
such
securities
except
for
temporary
defensive
purposes.
Franklin
Universal
Trust
Important
Information
to
Shareholders
54
franklintempleton.com
Annual
Report
Principal
Investment
Risks
You
could
lose
money
by
investing
in
the
Fund.
Closed-end
fund
shares
are
not
deposits
or
obligations
of,
or
guaranteed
or
endorsed
by,
any
bank,
and
are
not
insured
by
the
Federal
Deposit
Insurance
Corporation,
the
Federal
Reserve
Board,
or
any
other
agency
of
the
U.S.
government.
High-Yield
Debt
Securities
Issuers
of
lower-rated
or
“high-yield”
debt
securities
(also
known
as
“junk
bonds”)
are
not
as
strong
financially
as
those
issuing
higher
credit
quality
debt
securities.
High-yield
debt
securities
are
generally
considered
predominantly
speculative
by
the
applicable
rating
agencies
as
their
issuers
are
more
likely
to
encounter
financial
difficulties
because
they
may
be
more
highly
leveraged,
or
because
of
other
considerations.
In
addition,
high
yield
debt
securities
generally
are
more
vulnerable
to
changes
in
the
relevant
economy,
such
as
a
recession
or
a
sustained
period
of
rising
interest
rates,
that
could
affect
their
ability
to
make
interest
and
principal
payments
when
due.
The
prices
of
high-yield
debt
securities
generally
fluctuate
more
than
those
of
higher
credit
quality.
High-yield
debt
securities
are
generally
more
illiquid
(harder
to
sell)
and
harder
to
value.
Interest
Rate
When
interest
rates
rise,
debt
security
prices
generally
fall.
The
opposite
is
also
generally
true:
debt
security
prices
rise
when
interest
rates
fall.
Interest
rate
changes
are
influenced
by
a
number
of
factors,
including
government
policy,
monetary
policy,
inflation
expectations,
perceptions
of
risk,
and
supply
of
and
demand
for
bonds.
In
general,
securities
with
longer
maturities
or
durations
are
more
sensitive
to
interest
rate
changes.
Credit
An
issuer
of
debt
securities
may
fail
to
make
interest
payments
or
repay
principal
when
due,
in
whole
or
in
part.
Changes
in
an
issuer’s
financial
strength
or
in
a
security’s
or
government’s
credit
rating
may
affect
a
security’s
value.
Utilities
Industry
Utility
company
equity
securities
historically
have
been
sensitive
to
interest
rate
movements:
when
interest
rates
have
risen,
the
stock
prices
of
these
companies
have
tended
to
fall.
Regulatory
changes
in
certain
states
have
led
to
greater
competition
in
the
industry
and
the
emergence
of
non-regulated
providers
as
a
significant
part
of
the
industry,
and
could
impact
the
operations
of
regulated
providers
and
increase
the
cost
of
compliance.
These
trends
have
also
made
shares
of
some
utility
companies
less
sensitive
to
interest
rate
changes
but
more
sensitive
to
changes
in
revenue
and
earnings
and
caused
them
to
reduce
the
ratio
of
their
earnings
they
pay
out
as
dividends.
In
addition,
the
industry
is
subject
to
a
variety
of
risks
specific
to
this
industry:
utilities
may
find
it
difficult
to
obtain
adequate
returns
on
invested
capital
in
spite
of
rate
increases
or
because
rate
increases
become
increasingly
difficult
to
obtain;
they
may
face
difficulty
in
financing
large
construction
programs
during
inflationary
and
rising
interest
rate
periods;
utilities
are
subject
to
many
restrictions
on
operations
and
increased
costs
due
to
environmental
and
safety
regulations;
utilities
may
face
difficulties
in
obtaining
fuel
sources,
such
as
coal,
for
electric
generation
at
reasonable
prices;
utilities
may
face
risks
associated
with
the
operation
of
nuclear
power
plants
(including
litigation,
issues
associated
with
the
use
of
radioactive
materials
and
the
effects
of
natural
or
man-made
disasters);
utilities
may
face
greater
demands
in
providing
reliable
service
with
the
increasing
complexity
of
the
power
grid;
utilities
also
may
be
subject
to
adverse
effects
of
the
results
of
energy
conservation
programs
as
well
as
other
factors
affecting
the
level
of
demand
for
services.
Market
The
market
values
of
securities
or
other
investments
owned
by
the
Fund
will
go
up
or
down,
sometimes
rapidly
or
unpredictably.
The
market
value
of
a
security
or
other
investment
may
be
reduced
by
market
activity
or
other
results
of
supply
and
demand
unrelated
to
the
issuer.
This
is
a
basic
risk
associated
with
all
investments.
When
there
are
more
sellers
than
buyers,
prices
tend
to
fall.
Likewise,
when
there
are
more
buyers
than
sellers,
prices
tend
to
rise.
Leverage
The
Fund
employs
leverage
through
a
senior
secured
revolving
credit
facility
which
provides
the
Fund
with
a
source
to
refinance
and
retire
other
leverage.
The
Fund’s
use
of
leverage
creates
an
opportunity
for
increased
returns,
but
it
also
creates
special
risks.
The
cost
of
leverage
rises
and
falls
with
changes
in
short-term
interest
rates.
The
costs
of
using
leverage
may
be
greater
than
the
proceeds
of
the
leverage.
The
Fund’s
leveraging
strategy
may
not
be
successful.
Franklin
Universal
Trust
Important
Information
to
Shareholders
55
franklintempleton.com
Annual
Report
Foreign
Securities
(non-U.S.)
Investing
in
foreign
securities
typically
involves
more
risks
than
investing
in
U.S.
securities,
and
includes
risks
associated
with:
(i)
internal
and
external
political
and
economic
developments
–
e.g.,
the
political,
economic
and
social
policies
and
structures
of
some
foreign
countries
may
be
less
stable
and
more
volatile
than
those
in
the
U.S.
or
some
foreign
countries
may
be
subject
to
trading
restrictions
or
economic
sanctions;
(ii)
trading
practices
–
e.g.,
government
supervision
and
regulation
of
foreign
securities
and
currency
markets,
trading
systems
and
brokers
may
be
less
than
in
the
U.S.;
(iii)
availability
of
information
–
e.g.,
foreign
issuers
may
not
be
subject
to
the
same
disclosure,
accounting
and
financial
reporting
standards
and
practices
as
U.S.
issuers;
(iv)
limited
markets
–
e.g.,
the
securities
of
certain
foreign
issuers
may
be
less
liquid
(harder
to
sell)
and
more
volatile;
and
(v)
currency
exchange
rate
fluctuations
and
policies
–
e.g.,
fluctuations
may
negatively
affect
investments
denominated
in
foreign
currencies
and
any
income
received
or
expenses
paid
by
the
Fund
in
that
foreign
currency.
The
risks
of
foreign
investments
may
be
greater
in
developing
or
emerging
market
countries.
Management
The
Fund
is
subject
to
management
risk
because
it
is
an
actively
managed
investment
portfolio.
The
Fund’s
investment
manager
applies
investment
techniques
and
risk
analyses
in
making
investment
decisions
for
the
Fund,
but
there
can
be
no
guarantee
that
these
decisions
will
produce
the
desired
results.
The
following
information
is
a
summary
of
certain
changes
since
the
last
fiscal
year.
This
information
may
not
reflect
all
of
the
changes
that
have
occurred
since
you
purchased
the
Fund.
There
have
not
been
any
material
changes
during
the
last
fiscal
year.
Franklin
Universal
Trust
Annual
Meeting
of
Shareholders
56
franklintempleton.com
Annual
Report
The
Annual
Meeting
of
Shareholders
(the
“Meeting”)
for
Franklin
Universal
Trust
(Fund)
was
held
on
March
9,
2023.
At
the
Meeting,
shareholders
elected
Harris
J.
Ashton,
Edith
E.
Holiday
and
Rupert
H.
Johnson,
Jr.
as
Trustees
of
the
Fund
to
hold
office
for
a
three
year
term,
set
to
expire
at
the
2026
Annual
Meeting
of
Shareholders.
These
terms
continue,
however,
until
their
successors
are
duly
elected
and
qualified
or
until
a
Trustee’s
resignation,
retirement,
death
or
removal,
whichever
is
earlier.
The
results
of
the
voting
were
as
follows:
Note:
Terrance
J.
Checki,
Mary
C.
Choksi,
Gregory
E.
Johnson,
J.
Michael
Luttig,
Larry
D.
Thompson
and
Valerie
M.
Williams
are
Trustees
of
the
Fund
who
are
currently
serving
and
whose
terms
of
office
continued
after
the
meeting.
Trustee
Nominees
Shares
For
Shares
Withheld
Harris
J.
Ashton
13,231,125
4,300,912
Edith
E.
Holiday
13,237,945
4,294,092
Rupert
H.
Johnson,
Jr.
13,236,202
4,295,836
Franklin
Universal
Trust
57
franklintempleton.com
Annual
Report
Dividend
Reinvestment
and
Cash
Purchase
Plan
The
Fund’s
Dividend
Reinvestment
and
Cash
Purchase
Plan
(Plan)
offers
you
a
prompt
and
simple
way
to
reinvest
dividends
and
capital
gain
distributions
in
shares
of
the
Fund.
The
Plan
also
allows
you
to
purchase
additional
shares
of
the
Fund
by
making
voluntary
cash
payments.
Equiniti
Trust
Company,
LLC
(Plan
Agent),
P.O.
Box
922,
Wall
Street
Station,
New
York,
NY
10269-0560,
acts
as
your
Plan
Agent
in
administering
the
Plan.
You
are
automatically
enrolled
in
the
Plan
unless
you
elect
to
receive
dividends
or
distributions
in
cash.
If
you
own
shares
in
your
own
name,
you
should
notify
the
Plan
Agent,
in
writing,
if
you
wish
to
receive
dividends
or
distributions
in
cash.
If
the
Fund
declares
a
dividend
or
capital
gain
distribution
payable
either
in
cash
or
in
stock
of
the
Fund
and
the
market
price
of
shares
on
the
valuation
date
equals
or
exceeds
the
net
asset
value,
the
Fund
will
issue
new
shares
to
you
at
the
higher
of
net
asset
value
or
95%
of
the
then
current
market
price.
Whenever
the
Fund
declares
a
distribution
from
capital
gains
or
an
income
dividend
payable
in
either
cash
or
shares,
if
the
net
asset
value
per
share
of
the
Fund’s
common
stock
exceeds
the
market
price
per
share
on
the
valuation
date,
the
Plan
Agent
shall
apply
the
amount
of
such
dividend
or
distribution
payable
to
participants
to
the
purchase
of
shares
(less
their
pro
rata
share
of
brokerage
commissions
incurred
with
respect
to
open
market
purchases
in
connection
with
the
reinvestment
of
such
dividend
or
distribution).
If
the
price
exceeds
the
net
asset
value
before
the
Plan
Agent
has
completed
its
purchases,
the
average
purchase
price
may
exceed
the
net
asset
value,
resulting
in
fewer
shares
being
acquired
than
if
the
Fund
had
issued
new
shares.
All
reinvestments
are
in
full
and
fractional
shares,
carried
to
three
decimal
places.
The
Fund
will
not
issue
shares
under
the
Plan
at
a
price
below
net
asset
value.
The
Plan
permits
you
on
a
voluntary
basis
to
submit
in
cash
payments
of
not
less
than
$100
each
up
to
a
total
of
$5,000
per
month
to
purchase
additional
shares
of
the
Fund.
It
is
entirely
up
to
you
whether
you
wish
to
buy
additional
shares
with
voluntary
cash
payments,
and
you
do
not
have
to
send
in
the
same
amount
each
time
if
you
do.
These
payments
should
be
made
by
check
or
money
order
payable
to
Equiniti
Trust
Company,
LLC
and
sent
to
Equiniti
Trust
Company,
LLC,
P.O.
Box
922,
Wall
Street
Station,
New
York,
NY
10269-0560,
Attn:
Franklin
Universal
Trust.
Your
cash
payment
will
be
aggregated
with
the
payments
of
other
participants
and
invested
on
your
behalf
by
the
Plan
Agent
in
shares
of
the
Fund
that
are
purchased
in
the
open
market.
The
Plan
Agent
will
invest
cash
payments
on
approximately
the
5th
of
each
month
in
which
no
dividend
or
distribution
is
payable
and,
during
each
month
in
which
a
dividend
or
distribution
is
payable,
will
invest
cash
payments
beginning
on
the
dividend
payment
date.
Under
no
circumstances
will
interest
be
paid
on
your
funds
held
by
the
Plan
Agent.
Accordingly,
you
should
send
any
voluntary
cash
payments
you
wish
to
make
shortly
before
an
investment
date
but
in
sufficient
time
to
ensure
that
your
payment
will
reach
the
Plan
Agent
not
less
than
two
business
days
before
an
investment
date.
Payments
received
less
than
two
business
days
before
an
investment
date
will
be
invested
during
the
next
month
or,
if
there
are
more
than
30
days
until
the
next
investment
date,
will
be
returned
to
you.
You
may
obtain
a
refund
of
any
cash
payment
by
written
notice,
if
the
Plan
Agent
receives
the
written
notice
not
less
than
48
hours
before
an
investment
date.
There
is
no
direct
charge
to
participants
for
reinvesting
dividends
and
capital
gain
distributions,
since
the
Plan
Agent’s
fees
are
paid
by
the
Fund.
However,
when
shares
are
purchased
in
the
open
market,
each
participant
will
pay
a
pro
rata
portion
of
any
brokerage
commissions
incurred.
The
Plan
Agent
will
deduct
a
$5.00
service
fee
from
each
of
your
voluntary
cash
payments.
The
automatic
reinvestment
of
dividends
and
capital
gain
distributions
does
not
relieve
you
of
any
taxes
which
may
be
payable
on
dividends
or
distributions.
In
connection
with
the
reinvestment
of
dividends
and
capital
gain
distributions,
if
the
Fund
issues
new
shares,
shareholders
receiving
such
shares
generally
will
be
treated
as
having
a
distribution
equal
to
the
market
value
of
the
shares
received,
and
if
shares
are
purchased
on
the
open
market,
shareholders
generally
will
be
treated
as
having
received
a
distribution
equal
to
the
cash
distribution
that
would
have
been
paid.
The
Fund
does
not
issue
new
shares
in
connection
with
voluntary
cash
payments.
All
investments
are
in
full
and
fractional
shares,
carried
to
three
decimal
places.
If
the
market
price
exceeds
the
net
asset
value
at
the
time
the
Plan
Agent
purchases
the
additional
shares,
you
will
receive
shares
at
a
price
greater
than
the
net
asset
value.
Franklin
Universal
Trust
Dividend
Reinvestment
and
Cash
Purchase
Plan
58
franklintempleton.com
Annual
Report
You
will
receive
a
monthly
account
statement
from
the
Plan
Agent
showing
total
dividends
and
capital
gain
distributions,
date
of
investment,
shares
acquired
and
price
per
share,
and
total
shares
of
record
held
by
you
and
by
the
Plan
Agent
for
you.
You
are
entitled
to
vote
all
shares
of
record,
including
shares
purchased
for
you
by
the
Plan
Agent,
and,
if
you
vote
by
proxy,
your
proxy
will
include
all
such
shares.
As
long
as
you
participate
in
the
Plan,
the
Plan
Agent
will
hold
the
shares
it
has
acquired
for
you
in
safekeeping,
in
its
name
or
in
the
name
of
its
nominee.
This
convenience
provides
added
protection
against
loss,
theft
or
inadvertent
destruction
of
certificates.
However,
you
may
request
that
a
certificate
representing
your
Plan
shares
be
issued
to
you.
You
may
withdraw
from
the
Plan
without
penalty
at
any
time
by
notifying
the
Plan
Agent,
in
writing,
at
the
address
above.
If
you
withdraw,
you
will
receive,
without
charge,
stock
certificates
issued
in
your
name
for
all
full
shares.
The
Plan
Agent
will
convert
any
fractional
shares
you
hold
at
the
time
of
your
withdrawal
to
cash
at
current
market
price
and
send
you
a
check
for
the
proceeds.
If
you
hold
shares
in
your
own
name,
please
address
all
notices,
correspondence,
questions,
or
other
communications
regarding
the
Plan
to
the
Plan
Agent
at
the
address
noted
above.
If
your
shares
are
not
held
in
your
name,
you
should
contact
your
brokerage
firm,
bank,
or
other
nominee
for
more
information
and
to
determine
if
our
nominee
will
participate
in
the
Plan
on
your
behalf.
The
Fund
or
the
Plan
Agent
may
amend
or
terminate
the
Plan.
You
will
receive
written
notice
at
least
90
days
before
the
effective
date
of
termination
or
of
any
amendment.
In
the
case
of
termination,
you
will
receive
written
notice
at
least
90
days
before
the
record
date
of
any
dividend
or
capital
gain
distribution
by
the
Fund.
Franklin
Universal
Trust
Board
Members
and
Officers
59
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1998
119
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2018
119
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
119
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Universal
Trust
60
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2004
and
Lead
Independent
Trustee
since
2019
119
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
119
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
The
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
119
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
(2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Universal
Trust
61
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
110
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016)
and
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Gregory
E.
Johnson
2
(1961)
Chairman
of
the
Board,
Senior
Vice
President
and
Trustee
Chairman
of
the
Board
and
Senior
Vice
President
since
January
2023
and
Trustee
since
2013
129
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
Rupert
H.
Johnson,
Jr.
3
(1945)
Trustee
Since
1988
119
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Ted
P.
Becker
(1951)
Chief
Compliance
Officer
Since
June
2023
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Global
Compliance
of
Franklin
Templeton
(since
2020);
Chief
Compliance
Officer
of
Legg
Mason
Partners
Fund
Advisor,
LLC
(since
2006);
Chief
Compliance
Officer
of
certain
funds
associated
with
Legg
Mason
&
Co.
or
its
affiliates
(since
2006);
formerly
,
Director
of
Global
Compliance
at
Legg
Mason
(2006
to
2020);
Managing
Director
of
Compliance
of
Legg
Mason
&
Co.
(2005
to
2020).
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
Universal
Trust
62
franklintempleton.com
Annual
Report
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
1.
We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
2.
Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
3.Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
a
major
shareholder
of
Resources,
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
-
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
June
2023
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Universal
Trust
Shareholder
Information
63
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
UNIVERSAL
TRUST
(Fund)
At
an
in-person
meeting
held
on
April
18,
2023
(Meeting),
the
Board
of
Trustees
(Board)
of
the
Fund,
including
a
majority
of
the
trustees
who
are
not
“interested
persons”
as
defined
in
the
Investment
Company
Act
of
1940
(Independent
Trustees),
reviewed
and
approved
the
continuance
of
the
investment
management
agreement
between
Franklin
Advisers,
Inc.
(Manager)
and
the
Fund
(Management
Agreement)
for
an
additional
one-year
period.
The
Independent
Trustees
received
advice
from
and
met
separately
with
Independent
Trustee
counsel
in
considering
whether
to
approve
the
continuation
of
the
Management
Agreement.
In
considering
the
continuation
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters;
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
reviewed
and
considered
prior
to
and
at
the
Meeting.
The
Board
reviewed
and
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
and
considered
information
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund
(including
its
share
price
discount
to
net
asset
value);
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
acknowledged
management’s
continued
development
of
strategies
to
address
areas
of
heightened
concern
in
the
mutual
fund
industry,
including
various
regulatory
initiatives
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
Franklin
Templeton
(FT)
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
reassessment
of
the
fund
offerings
in
response
to
the
market
environment
and
project
initiatives
and
capital
investments
relating
to
the
services
provided
to
the
Fund
by
the
FT
organization.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement
and
investments
to
promote
alternative
investing.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Franklin
Universal
Trust
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64
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Annual
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Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2022.
The
Board
considered
the
performance
returns
for
the
Fund
in
comparison
to
the
performance
returns
of
mutual
funds
deemed
comparable
to
the
Fund
included
in
a
universe
(Performance
Universe)
selected
by
Broadridge
Financial
Solutions,
Inc.
(Broadridge),
an
independent
provider
of
investment
company
data.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
a
Performance
Universe.
The
Board
also
reviewed
and
considered
Fund
performance
reports
provided
and
discussions
that
occurred
with
portfolio
managers
at
Board
meetings
throughout
the
year.
A
summary
of
the
Fund’s
performance
results
is
below.
Such
results
are
based
on
net
asset
value
without
regard
to
market
discounts
or
premiums.
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
leveraged
closed-end
high
yield
funds.
The
Board
noted
that
the
Fund’s
annualized
income
return
for
the
one-,
three-,
five-
and
10-year
periods
was
below
the
median
and
in
the
fifth
quintile
(worst)
of
its
Performance
Universe.
The
Board
also
noted
that
the
Fund’s
annualized
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
and
in
the
first
quintile
(best)
of
its
Performance
Universe.
The
Board
further
noted
that
the
Fund’s
annualized
income
return
for
each
of
the
one-,
three-,
five-
and
10-year
periods,
while
below
the
median,
was
6.52%,
5.62%,
5.31%
and
5.61%,
respectively.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
underlying
fund
expenses;
investment-related
expenses;
and
other
non-management
fees.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
the
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
11
other
high
yield
(leveraged)
funds.
The
Board
noted
that
the
Management
Rate
for
the
Fund
was
below
the
median
of
its
Expense
Group.
The
Board
also
noted
that
the
annual
total
expense
ratio
for
the
Fund
was
above
the
median
and
in
the
fifth
quintile
(most
expensive)
of
its
Expense
Group.
The
Board
inquired
about
the
above
median
annual
total
expense
ratio
for
the
Fund
and
noted
management’s
explanation
that
the
expense
ratio
reflected
investment-related
expenses
that
were
higher
than
those
of
other
funds
in
the
Expense
Group.
After
consideration
of
the
above,
the
Board
concluded
that
the
Management
Rate
charged
to
the
Fund
is
reasonable.
Profitability
The
Board
reviewed
and
considered
information
regarding
the
profits
realized
by
the
Manager
and
its
affiliates
in
connection
with
the
operation
of
the
Fund.
In
this
respect,
the
Board
considered
the
Fund
profitability
analysis
provided
by
the
Manager
that
addresses
the
overall
profitability
of
FT’s
US
fund
business,
as
well
as
its
profits
in
providing
investment
management
and
other
services
to
each
of
the
individual
funds
during
the
12-month
period
ended
September
30,
2022,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
PricewaterhouseCoopers
LLP,
auditor
to
FRI
and
certain
FT
funds,
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
Franklin
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Trust
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65
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Annual
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by
the
Manager
but,
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
The
Board
believes
that
the
Manager’s
ability
to
realize
economies
of
scale
and
the
sharing
of
such
benefit
is
a
more
relevant
consideration
in
the
case
of
an
open-end
fund
whose
size
increases
as
a
result
of
the
continuous
sale
of
its
shares.
A
closed-end
fund,
such
as
the
Fund,
does
not
continuously
offer
shares,
and
growth
following
its
initial
public
offering
will
primarily
result
from
market
appreciation,
which
benefits
its
shareholders.
While
believing
economies
of
scale
to
be
less
of
a
factor
in
the
context
of
a
closed-end
fund,
the
Board
believes
at
some
point
an
increase
in
size
may
lead
to
economies
of
scale
that
would
be
shared
with
the
Fund
and
its
shareholders
and
intends
to
monitor
future
growth
of
the
Fund
accordingly.
The
Board
recognized
that
there
would
not
likely
be
any
economies
of
scale
for
the
Fund
until
the
Fund’s
assets
grow.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuation
of
the
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
FUT
A
10/23
©
2023
Franklin
Templeton
Investments.
All
rights
reserved.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
Franklin
Universal
Trust
Investment
Manager
Transfer
Agent
Franklin
Advisers,
Inc.
(800)
DIAL
BEN
®
/
342-5236
Equiniti
Trust
Company,
LLC
6201
15th
Avenue
Brooklyn,
NY
11219
www.equiniti.com
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

    Item 4. Principal Accountant Fees and Services.

    (a)      Audit Fees

The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $79,340 for the fiscal year ended August 31, 2023 and $73,797 for the fiscal year ended August 31, 2022.

    (b)      Audit-Related Fees

    There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.

    There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.

    (c)      Tax Fees

    There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.

    The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $70,000 for the fiscal year ended August 31, 2023, and $0 for the fiscal year ended August 31, 2022. The services for which these fees were paid included global access to tax platform International Tax View.

    (d)      All Other Fees

    There were no fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4.

    The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $13,000 for the fiscal year ended August 31, 2023 and $276,195 for the fiscal year ended August 31, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, professional fees relating to security counts, fees in connection with license for accounting and business knowledge platform Viewpoint, and fees in connection with license for employee development tool ProEdge.

(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.

    (e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.

    (f) No disclosures are required by this Item 4(f).

    (g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $83,000 for the fiscal year ended August 31, 2023 and $276,195 for the fiscal year ended August 31, 2022.

    (h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) N/A
(j) N/A
Item 5. Audit Committee
of Listed Registrants.
Members of the Audit Committee are:
Terrence J. Checki,
Mary C. Choksi
,
Edith E. Holiday,
J. Michael Luttig and Larry D. Thompson.
Item 6. Schedule of Investments. N/A
Item 7
. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
The board of trustees of the Fund has delegated the authority to vote proxies related to the portfolio securities held by the Fund to the Fund's investment manager, Franklin Advisers, Inc. in accordance with the Proxy Voting Policies and Procedures (Policies) adopted by the investment manager.
RESPONSIBILITY OF THE INVESTMENT MANAGER TO VOTE PROXIES
Franklin Templeton Investment Solutions, a separate investment group within Franklin Templeton, comprised of investment personnel from the SEC-registered investment advisers listed on Appendix A (hereinafter individually an “Investment Manager” and collectively the "Investment Managers") have delegated the administrative duties with respect to voting proxies for securities to the Franklin Templeton Proxy Group. Proxy duties consist of disseminating proxy materials and analyses of issuers whose stock is owned by any client (including both investment companies and any separate accounts managed by the Investment Managers) that has either delegated proxy voting administrative responsibility to the Investment Managers or has asked for information and/or recommendations on the issues to be voted. The Investment Managers will inform advisory clients that have not delegated the voting responsibility but that have requested voting advice about the Investment Managers’ views on such proxy votes. The Proxy Group also provides these services to other advisory affiliates of the Investment Managers.
The Proxy Group will process proxy votes on behalf of, and the Investment Managers vote proxies solely in the best interests of, separate account clients, the Investment Managers’-managed investment company shareholders, or shareholders of funds that have appointed Franklin Templeton International Services S.à.r.l. (“FTIS S.à.r.l.”) as the Management Company, provided such funds or clients have properly delegated such responsibility in writing, or, where employee benefit plan assets subject to the Employee Retirement Income Security Act of 1974, as amended, are involved (“ERISA accounts”), in the best interests of the plan participants and beneficiaries (collectively, "Advisory Clients"), unless (i) the power to vote has been specifically retained by the named fiduciary in the documents in which the named fiduciary appointed the Investment Managers or (ii) the documents otherwise expressly prohibit the Investment Managers from voting proxies. The Investment Managers recognize that the exercise of voting rights on securities held by ERISA plans for which the Investment Managers have voting responsibility is a fiduciary duty that must be exercised with care, skill, prudence and diligence.
In certain circumstances, Advisory Clients are permitted to direct their votes in a solicitation pursuant to the Investment Management Agreement. An Advisory Client that wishes to direct its vote shall give reasonable prior written notice to the Investment Managers indicating such intention and provide written instructions directing the Investment Managers or the Proxy Group to vote regarding the solicitation. Where such prior written notice is received, the Proxy Group will vote proxies in accordance with such written notification received from the Advisory Client.
The Investment Managers have adopted and implemented Proxy Voting Policies and Procedures (“Proxy Policies”) that they believe are reasonably designed to ensure that proxies are voted in the best interest of Advisory Clients in accordance with their fiduciary duties and rule 206(4)-6 under the Investment Advisers Act of 1940. To the extent that the Investment Managers have a subadvisory agreement with an affiliated investment manager (the “Affiliated Subadviser”) with respect to a particular Advisory Client, the Investment Managers may delegate proxy voting responsibility to the Affiliated Subadviser. The Investment Managers may also delegate proxy voting responsibility to a subadviser that is not an Affiliated Subadviser in certain limited situations as disclosed to fund shareholders (e.g., where an Investment Manager to a pooled investment vehicle has engaged a subadviser that is not an Affiliated Subadviser to manage all or a portion of the assets).
HOW THE INVESTMENT MANAGERS VOTE PROXIES
Proxy Services
All proxies received by the Proxy Group will be voted based upon the Investment Managers’ instructions and/or policies. To assist it in analyzing proxies of equity securities, the Investment Managers subscribe to Institutional Shareholder Services Inc. ("ISS"), an unaffiliated third-party corporate governance research service that provides in-depth analyses of shareholder meeting agendas and vote recommendations. In addition, the Investment Managers subscribe to ISS’s Proxy Voting Service and Vote Disclosure Service. These services include receipt of proxy ballots, custodian bank relations, account maintenance, vote execution, ballot reconciliation, vote record maintenance, comprehensive reporting capabilities, and vote disclosure services. Also, the Investment Managers subscribe to Glass, Lewis & Co., LLC ("Glass Lewis"), an unaffiliated third-party analytical research firm, to receive analyses and vote recommendations on the shareholder meetings of publicly held U.S. companies, as well as a limited subscription to its international research.
* Rule 38a-1 under the Investment Company Act of 1940 (“1940 Act”) and Rule 206(4)-7 under the Investment Advisers Act of 1940 (“Advisers Act”) (together the Compliance Rule”) require registered investment companies and registered investment advisers to, among other things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws (“Compliance Rule Policies and Procedures”).
Although analyses provided by ISS, Glass Lewis, and/or another independent third-party proxy service provider (each a “Proxy Service”) are thoroughly reviewed and considered in making a final voting decision, the Investment Managers do not consider recommendations from a Proxy Service or any third-party to be determinative of the Investment Managers’ ultimate decision. Rather, the Investment Managers exercise their independent judgment in making voting decisions. As a matter of policy, the officers, directors and employees of the Investment Managers and the Proxy Group will not be influenced by outside sources whose interests conflict with the interests of Advisory Clients.
For ease of reference, the Proxy Policies often refer to all Advisory Clients. However, our processes and practices seek to ensure that proxy voting decisions are suitable for individual Advisory Clients. In some cases, the Investment Managers’ evaluation may result in an individual Advisory Client or Investment Manager voting differently, depending upon the nature and objective of the fund or account, the composition of its portfolio, whether the Investment Manager has adopted a specialty or custom voting policy, and other factors.
Conflicts of Interest
All conflicts of interest will be resolved in the best interests of the Advisory Clients. The Investment Managers are affiliates of a large, diverse financial services firm with many affiliates and makes its best efforts to mitigate conflicts of interest. However, as a general matter, the Investment Managers take the position that relationships between certain affiliates that do not use the “Franklin Templeton” name (“Independent Affiliates”) and an issuer (e.g., an investment management relationship between an issuer and an Independent Affiliate) do not present a conflict of interest for an Investment Manager in voting proxies with respect to such issuer because: (i) the Investment Managers operate as an independent business unit from the Independent Affiliate business units, and (ii) informational barriers exist between the Investment Managers and the Independent Affiliate business units.
Material conflicts of interest could arise in a variety of situations, including as a result of the Investment Managers’ or an affiliate’s (other than an Independent Affiliate as described above): (i) material business relationship with an issuer or proponent, (ii) direct or indirect pecuniary interest in an issuer or proponent; or (iii) significant personal or family relationship with an issuer or proponent.
Material conflicts of interest are identified by the Proxy Group based upon analyses of client, distributor, broker dealer, and vendor lists, information periodically gathered from directors and officers, and information derived from other sources, including public filings. The Proxy Group gathers and analyzes this information on a best-efforts basis, as much of this information is provided directly by individuals and groups other than the Proxy Group, and the Proxy Group relies on the accuracy of the information it receives from such parties.
Nonetheless, even though a potential conflict of interest between the Investment Managers or an affiliate (other than an Independent Affiliate as described above) and an issuer may exist: (1) the Investment Managers may vote in opposition to the recommendations of an issuer’s management even if contrary to the recommendations of a third-party proxy voting research provider; (2) if management has made no recommendations, the Proxy Group may defer to the voting instructions of the Investment Managers; and (3) with respect to shares held by Franklin Resources, Inc. or its affiliates for their own corporate accounts, such shares may be voted without regard to these conflict procedures.
Otherwise, in
situations where a material conflict of interest is identified between the Investment Managers or one of its affiliates (other than Independent Affiliates) and an issuer, the Proxy Group may vote consistent with the voting recommendation of a Proxy Service or send the proxy directly to the relevant Advisory Clients with the Investment Managers’ recommendation regarding the vote for approval. To address certain affiliate conflict situations, the Investment Managers will employ pass-through voting or mirror voting when required pursuant to a fund’s governing documents or applicable law.
Where the Proxy Group refers a matter to an Advisory Client, it may rely upon the instructions of a representative of the Advisory Client, such as the board of directors or trustees, a committee of the board, or an appointed delegate in the case of a U.S. registered investment company, a conducting officer in the case of a fund that has appointed FTIS S.à.r.l as its Management Company, the Independent Review Committee for Canadian investment funds, or a plan administrator in the case of an employee benefit plan. A quorum of the board of directors or trustees or of a committee of the board can be reached by a majority of members, or a majority of non-recused members. The Proxy Group may determine to vote all shares held by Advisory Clients of the Investment Managers and affiliated Investment Managers (other than Independent Affiliates) in accordance with the instructions of one or more of the Advisory Clients.
The Investment Managers may also decide whether to vote proxies for securities deemed to present conflicts of interest that are sold following a record date, but before a shareholder meeting date. The Investment Managers may consider various factors in deciding whether to vote such proxies, including the Investment Managers’ long-term view of the issuer’s securities for investment, or it may defer the decision to vote to the applicable Advisory Client. The Investment Managers also may be unable to vote, or choose not to vote, a proxy for securities deemed to present a conflict of interest for any of the reasons outlined in the first paragraph of the section of these policies entitled “Proxy Procedures.”
Weight Given Management Recommendations
One of the primary factors the Investment Managers consider when determining the desirability of investing in a particular company is the quality and depth of that company's management. Accordingly, the recommendation of management on any issue is a factor that the Investment Managers consider in determining how proxies should be voted. However, the Investment Managers do not consider recommendations from management to be determinative of the Investment Managers’ ultimate decision. Each issue is considered on its own merits, and the Investment Managers will not support the position of a company's management in any situation where it determines that the ratification of management's position would adversely affect the investment merits of owning that company's shares.
Engagement with Issuers
The Investment Managers believe that engagement with issuers is important to good corporate governance and to assist in making proxy voting decisions. The Investment Managers may engage with issuers to discuss specific ballot items to be voted on in advance of an annual or special meeting to obtain further information or clarification on the proposals. The Investment Managers may also engage with management on a range of environmental, social or corporate governance issues throughout the year.
THE PROXY GROUP
The Proxy Group is part of the Franklin Templeton’s Global Sustainability Strategy Team’s Stewardship Team. Full-time staff members and support staff are devoted to proxy voting administration and oversight and providing support and assistance where needed. On a daily basis, the Proxy Group will review each proxy upon receipt as well as any agendas, materials and recommendations that they receive from a Proxy Service or other sources. The Proxy Group maintains a record of all shareholder meetings that are scheduled for companies whose securities are held by the Investment Managers’ managed funds and accounts. For each shareholder meeting, a member of the Proxy Group will consult with the research analyst that follows the security and provide the analyst with the agenda, analyses of one or more Proxy Services, recommendations and any other information provided to the Proxy Group. Except in situations identified as presenting material conflicts of interest, the Investment Managers’ research analyst and relevant portfolio manager(s) are responsible for making the final voting decision based on their review of the agenda, analyses of one or more Proxy Services, proxy statements, their knowledge of the company and any other information publicly available.
In situations where the Investment Managers have not responded with vote recommendations to the Proxy Group by the deadline date, the Proxy Group may vote consistent with the vote recommendations of a Proxy Service. Except in cases where the Proxy Group is voting consistent with the voting recommendation of a Proxy Service, the Proxy Group must obtain voting instructions from the Investment Managers’ research analysts, relevant portfolio manager(s), legal counsel and/or the Advisory Client prior to submitting the vote. In the event that an account holds a security that an Investment Manager did not purchase on its behalf, and the Investment Manager does not normally consider the security as a potential investment for other accounts, the Proxy Group may vote consistent with the voting recommendations of a Proxy Service or take no action on the meeting.
PROXY ADMINISTRATION PROCEDURES
Situations Where Proxies Are Not Voted
The Proxy Group is fully cognizant of its responsibility to process proxies and maintain proxy records as may be required by relevant rules and regulations. In addition, the Investment Managers understand their fiduciary duty to vote proxies and that proxy voting decisions may affect the value of shareholdings. Therefore, the Investment Managers will generally attempt to process every proxy they receive for all domestic and foreign securities.
However, there may be situations in which the Investment Managers may be unable to successfully vote a proxy, or may choose not to vote a proxy, such as where: (i) a proxy ballot was not received from the custodian bank; (ii) a meeting notice was received too late; (iii) there are fees imposed upon the exercise of a vote and it is determined that such fees outweigh the benefit of voting; (iv) there are legal encumbrances to voting, including blocking restrictions in certain markets that preclude the ability to dispose of a security if an Investment Manager votes a proxy or where the Investment Manager is prohibited from voting by applicable law, economic or other sanctions, or other regulatory or market requirements, including but not limited to, effective Powers of Attorney; (v) additional documentation or the disclosure of beneficial owner details is required; (vi) the Investment Managers held shares on the record date but has sold them prior to the meeting date; (vii) the Advisory Client held shares on the record date, but the Advisory Client closed the account prior to the meeting date; (viii) a proxy voting service is not offered by the custodian in the market; (ix) due to either system error or human error, the Investment Managers’ intended vote is not correctly submitted; (x) the Investment Managers believe it is not in the best interest of the Advisory Client to vote the proxy for any other reason not enumerated herein; or (xi) a security is subject to a securities lending or similar program that has transferred legal title to the security to another person.
Rejected Votes
Even if the Investment Managers use reasonable efforts to vote a proxy on behalf of their Advisory Clients, such vote or proxy may be rejected because of (a) operational or procedural issues experienced by one or more third parties involved in voting proxies in such jurisdictions; (b) changes in the process or agenda for the meeting by the issuer for which the Investment Managers do not have sufficient notice; or (c) the exercise by the issuer of its discretion to reject the vote of the Investment Managers. In addition, despite the best efforts of the Proxy Group and its agents, there may be situations where the Investment Managers’ votes are not received, or properly tabulated, by an issuer or the issuer’s agent.
Securities on Loan
The Investment Managers or their affiliates may, on behalf of one or more of the proprietary registered investment companies advised by the Investment Managers or their affiliates, make efforts to recall any security on loan where the Investment Manager or its affiliates (a) learn of a vote on an event that may materially affect a security on loan and (b) determine that it is in the best interests of such proprietary registered investment companies to recall the security for voting purposes. The ability to timely recall shares is not entirely within the control of the Investment Managers. Under certain circumstances, the recall of shares in time for such shares to be voted may not be possible due to applicable proxy voting record dates or other administrative considerations.
Split Voting
There may be instances in certain non-U.S. markets where split voting is not allowed. Split voting occurs when a position held within an account is voted in accordance with two differing instructions. Some markets and/or issuers only allow voting on an entire position and do not accept split voting. In certain cases, when more than one Franklin Templeton investment manager has accounts holding shares of an issuer that are held in an omnibus structure, the Proxy Group will seek direction from an appropriate representative of the Advisory Client with multiple Investment Managers (such as a conducting officer of the Management Company in the case of a SICAV), or the Proxy Group will submit the vote based on the voting instructions provided by the Investment Manager with accounts holding the greatest number of shares of the security within the omnibus structure.
Bundled Items
If several issues are bundled together in a single voting item, the Investment Managers will assess the total benefit to shareholders and the extent that such issues should be subject to separate voting proposals.
PROCEDURES FOR MEETINGS INVOLVING FIXED INCOME SECURITIES & PRIVATELY HELD ISSUERS
From time to time, certain custodians may process events for fixed income securities through their proxy voting channels rather than corporate action channels for administrative convenience. In such cases, the Proxy Group will receive ballots for such events on the ISS voting platform. The Proxy Group will solicit voting instructions from the Investment Managers for each account or fund involved. If the Proxy Group does not receive voting instructions from the Investment Managers, the Proxy Group will take no action on the event. The Investment Managers may be unable to vote a proxy for a fixed income security, or may choose not to vote a proxy, for the reasons described under the section entitled “Proxy Procedures.”
In the rare instance where there is a vote for a privately held issuer, the decision will generally be made by the relevant portfolio managers or research analysts.
The Proxy Group will monitor such meetings involving fixed income securities or privately held issuers for conflicts of interest in accordance with these procedures. If a fixed income or privately held issuer is flagged as a potential conflict of interest, the Investment Managers may nonetheless vote as it deems in the best interests of its Advisory Clients. The Investment Managers will report such decisions on an annual basis to Advisory Clients as may be required.
Appendix A
These Proxy Policies apply to accounts managed by personnel within Franklin Templeton Investment Solutions, which includes the following Investment Managers:
Franklin Advisers, Inc. (FAV)
Franklin Advisory Services, LLC (FASL)
Franklin Mutual Advisers LLC (FMA)
Franklin Templeton Investments Corp. (FTIC)
Franklin Templeton Investment Management Limited (FTIML)
Templeton Asset Management Ltd. (TAML)
The following Proxy Policies apply to FAV, FMA, FTIC, FTIML, and TAML only:
HOW THE INVESTMENT MANAGERS VOTE PROXIES
Proxy Services
Certain of the Investment Managers’ separate accounts or funds (or a portion thereof) are included under Franklin Templeton Investment Solutions (“FTIS”), a separate investment group within Franklin Templeton, and employ a quantitative strategy.
For such accounts, FTIS’s proprietary methodologies rely on a combination of quantitative, qualitative, and behavioral analysis rather than fundamental security research and analyst coverage that an actively managed portfolio would ordinarily employ. Accordingly, absent client direction, in light of the high number of positions held by such accounts and the considerable time and effort that would be required to review proxy statements and ISS or Glass Lewis recommendations, the Investment Manager may review ISS’s non-US Benchmark guidelines, ISS’s specialty guidelines (in particular, ISS’s Sustainability guidelines), or Glass Lewis’s US guidelines (the “the ISS and Glass Lewis Proxy Voting Guidelines”) and determine, consistent with the best interest of its clients, to provide standing instructions to the Proxy Group to vote proxies according to the recommendations of ISS or Glass Lewis.
The Investment Manager, however, retains the ability to vote a proxy differently than ISS or Glass Lewis recommends if the Investment Manager determines that it would be in the best interests of Advisory Clients.
The following Proxy Policies apply to FASL only:
HOW THE INVESTMENT MANAGERS VOTE PROXIES
Proxy Services
The Franklin LibertyQ branded smart beta exchange traded funds and other passively managed exchange traded funds (collectively, “ETFs”), seek to track a particular securities index. As a result, each ETF may hold the securities of hundreds of issuers. Because the primary criteria for determining whether a security should be included (or continued to be included) in an ETF’s investment portfolio is whether such security is a representative component of the securities index that the ETF is seeking to track, the ETFs do not require the fundamental security research and analyst coverage that an actively managed portfolio would require. Accordingly, in light of the high number of positions held by an ETF and the considerable time and effort that would be required to review proxy statements and ISS or Glass Lewis recommendations, the Investment Manager may review ISS’s non-US Benchmark guidelines, ISS’s specialty guidelines (in particular, ISS’s Sustainability guidelines), or Glass Lewis’s US guidelines (the “ISS and Glass Lewis Proxy Voting Guidelines”) and determine, consistent with the best interest of its clients, to provide standing instructions to the Proxy Group to vote proxies according to the recommendations of ISS or Glass Lewis rather than analyze each individual proxy vote. Permitting the Investment Manager of the ETFs to defer its judgment for voting on a proxy to the recommendations of ISS or Glass Lewis may result in a proxy related to the securities of a particular issuer held by an ETF being voted differently from the same proxy that is voted on by other funds managed by the Investment Managers.
The following Proxy Policies apply to FTIC, FTIML, and TAML only:
HOW THE INVESTMENT MANAGERS VOTE PROXIES
Proxy Services
For accounts managed by the Templeton Global Equity Group (“TGEG”), in making voting decisions, the Investment Manager may consider Glass Lewis’s Proxy Voting Guidelines, ISS’s Benchmark Policies, ISS’s Sustainability Policy, and TGEG’s custom sustainability guidelines, which reflect what TGEG believes to be good environmental, social, and governance practices.
The following Proxy Policies apply to FTIC only:
RESPONSIBILITY OF THE INVESTMENT MANAGERS TO VOTE PROXIES
To the extent that the Investment Manager has a subadvisory agreement with an affiliated investment manager (the “Affiliated Subadviser”) with respect to a particular Advisory Client or the Investment Manager chooses securities for an Advisory Client’s portfolios that are recommended by an Affiliated Subadviser, the Investment Manager may delegate proxy voting responsibility to the Affiliated Subadviser or vote proxies in accordance with the Affiliated Subadviser’s recommendations.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) As of October 30, 2023, the portfolio managers of the Fund is as follows:
GLENN I. VOYLES CFA
, Senior Vice President of Advisers
Mr. Voyles has been a manager of the Fund since 1999, providing research and advice on the purchases and sales of individual securities, and portfolio risk assessment for the global income component of the Fund. He joined Franklin Templeton Investments in 1993.
JONATHAN G. BELK CFA
, Portfolio Manager of Advisers
Mr. Belk has been a portfolio manager of the Fund since August 2020. He joined Franklin Templeton in 2004.
CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.
(a)(2) This section reflects information about the portfolio managers as of the fiscal year ended August 31, 2023.
The following table shows the number of other accounts managed by each portfolio manager and the total assets in the accounts managed within each category:

Name | Number of Other Registered Investment Companies Managed1 | Assets of Other Registered Investment Companies Managed (x $1 million)1 | Number of Other Pooled Investment Vehicles Managed1 | Assets of Other Pooled Investment Vehicles Managed (x $1 million)1 | Number of Other Accounts Managed1 | Assets of Other Accounts Managed (x $1 million)1
Glenn I. Voyles | 4 | 3,476.4 | 4 | 1,034.1 | 1 | 38.7
Jonathan G. Belk | 2 | 478.1 |  |  |  |

1.
The various pooled investment vehicles and accounts listed are managed by a team of investment professionals. Accordingly, the individual managers listed would not be solely responsible for managing such listed amounts.
Portfolio managers that provide investment services to the Fund may also provide services to a variety of other investment products, including other funds, institutional accounts and private accounts. The advisory fees for some of such other products and accounts may be different than that charged to the Fund and may include performance based compensation (as noted, in the chart above, if any). This may result in fees that are higher (or lower) than the advisory fees paid by the Fund. As a matter of policy, each fund or account is managed solely for the benefit of the beneficial owners thereof. As discussed below, the separation of the trading execution function from the portfolio management function and the application of objectively based trade allocation procedures help to mitigate potential conflicts of interest that may arise as a result of the portfolio managers managing accounts with different advisory fees.
Conflicts.
The management of multiple funds, including the Fund, and accounts may also give rise to potential conflicts of interest if the funds and other accounts have different objectives, benchmarks, time horizons, and fees as the portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts. The investment manager seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment strategies that are used in connection with the management of the Fund. Accordingly, portfolio holdings, position sizes, and industry and sector exposures tend to be similar across similar portfolios, which may minimize the potential for conflicts of interest. As noted above, the separate management of the trade execution and valuation functions from the portfolio management process also helps to reduce potential conflicts of interest. However, securities selected for funds or accounts other than the Fund may outperform the securities selected for the Fund. Moreover, if a portfolio manager identifies a limited investment opportunity that may be suitable for more than one fund or other account, the Fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity across all eligible funds and other accounts. The investment manager seeks to manage such potential conflicts by using procedures intended to provide a fair allocation of buy and sell opportunities among funds and other accounts.
The structure of a portfolio manager’s compensation may give rise to potential conflicts of interest. A portfolio manager’s base pay and bonus tend to increase with additional and more complex responsibilities that include increased assets under management. As such, there may be an indirect relationship between a portfolio manager’s marketing or sales efforts and his or her bonus.
Finally, the management of personal accounts by a portfolio manager may give rise to potential conflicts of interest. While the funds and the manager have adopted a code of ethics which they believe contains provisions reasonably necessary to prevent a wide range of prohibited activities by portfolio managers and others with respect to their personal trading activities, there can be no assurance that the code of ethics addresses all individual conduct that could result in conflicts of interest.
The manager and the Fund have adopted certain compliance procedures that are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and every situation where a conflict arises.
Compensation.
The investment manager seeks to maintain a compensation program that is competitively positioned to attract, retain and motivate top-quality investment professionals. Portfolio managers receive a base salary, a cash incentive bonus opportunity, an equity compensation opportunity, and a benefits package. Portfolio manager compensation is reviewed annually and the level of compensation is based on individual performance, the salary range for a portfolio manager’s level of responsibility and Franklin Templeton guidelines. Portfolio managers are provided no financial incentive to favor one fund or account over another. Each portfolio manager’s compensation consists of the following three elements:
Base salary
Each portfolio manager is paid a base salary.
Annual bonus
Annual bonuses are structured to align the interests of the portfolio manager with those of the Fund’s shareholders. Each portfolio manager is eligible to receive an annual bonus. Bonuses generally are split between cash (50% to 65%) and restricted shares of Resources stock (17.5% to 25%) and mutual fund shares (17.5% to 25%). The deferred equity-based compensation is intended to build a vested interest of the portfolio manager in the financial performance of both Resources and mutual funds advised by the investment manager. The bonus plan is intended to provide a competitive level of annual bonus compensation that is tied to the portfolio manager achieving consistently strong investment performance, which aligns the financial incentives of the portfolio manager and Fund shareholders. The Chief Investment Officer of the investment manager and/or other officers of the investment manager, with responsibility for the Fund, have discretion in the granting of annual bonuses to portfolio managers in accordance with Franklin Templeton guidelines. The following factors are generally used in determining bonuses under the plan:

- Investment performance.
  Primary consideration is given to the historic investment performance over the 1, 3 and 5 preceding years of all accounts managed by the portfolio manager. The pre-tax performance of each fund managed is measured relative to a relevant peer group and/or applicable benchmark as appropriate.
- Non-investment performance.
  The more qualitative contributions of the portfolio manager to the investment manager’s business and the investment management team, including professional knowledge, productivity, responsiveness to client needs and communication, are evaluated in determining the amount of any bonus award.
- Responsibilities.
  The characteristics and complexity of funds managed by the portfolio manager are factored in the investment manager’s appraisal.

Additional long-term equity-based compensation
Portfolio managers may also be awarded restricted shares or units of Resources stock or restricted shares or units of one or more mutual funds. Awards of such deferred equity-based compensation typically vest over time, so as to create incentives to retain key talent.
Benefits
Portfolio managers also participate in benefit plans and programs available generally to all employees of the investment manager.
Ownership of Fund shares.
The investment manager has a policy of encouraging portfolio managers to invest in the funds they manage. Exceptions arise when, for example, a fund is closed to new investors or when tax considerations or jurisdictional constraints cause such an investment to be inappropriate for the portfolio manager. The following is the dollar range of Fund shares beneficially owned by the portfolio manager (such amounts may change from time to time):

Portfolio Manager | Dollar Range of Fund Shares Beneficially Owned
Glenn I. Voyles | None
Johnathan G. Belk | None

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures. The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, 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. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal 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.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls
. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.
Securities lending agent
The board of trustees has approved the Fund’s participation in a securities lending program. Under the securities lending program, Bank of New York Mellon serves as the Fund’s securities lending agent.
For the fiscal year ended August 31, 2023, the income earned by the Fund as well as the fees and/or compensation paid by the Fund in dollars pursuant to a securities lending agreement between the Trust with respect to the Fund and the Securities Lending Agent were as follows (figures may differ from those shown in shareholder reports due to time of availability and use of estimates):

Gross income earned by the Fund from securities lending activities | $15,115
Fees and/or compensation paid by the Fund for securities lending activities and related services |
Fees paid to Securities Lending Agent from revenue split | $1,166
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) not included in a revenue split | -
Administrative fees not included in a revenue split | -
Indemnification fees not included in a revenue split | -
Rebate (paid to borrower) | $1,787
Other fees not included above | -
Aggregate fees/compensation paid by the Fund for securities lending activities | $2,953
Net income from securities lending activities | $12,162

Item 13. Exhibits.
(a)(1) Code of Ethics
codeofethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
section302
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
section906
(c)
Pursuant to the Securities and Exchange Commission’s Order granting relief from Section 19(b) of the Investment Company Act of 1940, the 19(a) Notices to Beneficial Owners are attached hereto as Exhibit
pressrelease
SIGNATURES
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.
FRANKLIN
UNIVERSAL TRUST
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date October 30, 2023
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 following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date October 30, 2023
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date October 30, 2023