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: 8/31/24
Item 1. Reports to Stockholders.
| a.) | The following is a copy of the report transmitted to shareholders pursuant to Rule 30e-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.
Franklin
Universal
Trust
August
31,
2024
Not
FDIC
Insured
No
Bank
Guarantee
May
Lose
Value
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.
Contents
Fund
Overview
2
Performance
Summary
5
Financial
Highlights
and
Schedule
of
Investments
8
Financial
Statements
31
Notes
to
Financial
Statements
35
Report
of
Independent
Registered
Public
Accounting
Firm
45
Tax
Information
46
Important
Information
to
Shareholders
47
Annual
Meeting
of
Shareholders
50
Dividend
Reinvestment
and
Cash
Purchase
Plan
51
Board
Members
and
Officers
53
Shareholder
Information
57
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
Franklin
Universal
Trust
Dear
Shareholder,
This
annual
report
for
Franklin
Universal
Trust
covers
the
fiscal
year
ended
August
31,
2024.
Effective
January
1,
2024,
the
Fund
changed
its
reference
index
from
the
Credit
Suisse
(CS)
High
Yield
Index
to
the
ICE
BofA
US
High
Yield
Constrained
Index.
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.
The
path
of
disinflation
has
been
one
of
the
main
drivers
of
short-term
yields
for
the
12-month
reporting
period.
The
U.S.
Federal
Reserve
(Fed)
raised
the
fed
funds
rate
in
July
2023
to
5.25%
-
5.50%
before
pausing,
keeping
their
policy
rate
stable
for
the
remainder
of
the
period
under
review.
Although
inflation
trended
downward,
it
proved
more
“sticky”
than
originally
anticipated.
Coming
into
2024,
the
market
was
pricing
in
at
least
five
rate
cuts
in
2024,
expecting
the
Fed
to
respond
to
a
slowing
U.S.
economy.
The
economy
continued
to
grow
at
a
modest
pace,
supported
by
a
strong
job
market
and
resilient
consumer
spending.
This
caused
the
Fed
to
hold
rates
for
higher
and
longer.
At
the
Fed’s
June
2024
meeting,
the
median
projection
for
the
fed
funds
rate
was
for
only
one
cut
by
the
end
of
2024,
which
caused
short-term
U.S.
Treasury
(UST)
bill
rates
to
remain
elevated.
Come
early
August
2024,
markets
experienced
a
spike
in
financial
market
volatility
after
a
weaker-than-expected
U.S.
labor
market
report
led
to
fears
that
a
recession
may
already
be
underway.
More
benign
data
releases
that
followed
helped
support
market
sentiment.
Later
in
the
month,
investors
were
relieved
at
Fed
Chair
Jerome
Powell’s
speech
during
the
Jackson
Hole
Economic
Policy
Symposium,
which
indicated
that
a
shift
in
monetary
policy
was
imminent.
Consequently,
UST
yields
declined
across
the
curve
during
August
2024
—
led
by
shorter-term
maturities
—
while
the
UST
yield
curve
remained
inverted.
The
macroeconomic
backdrop
was
a
tailwind
for
the
utility
sector
coming
off
a
number
of
challenges
in
the
previous
reporting
period.
These
challenges
included
rising
rates,
higher
inflation,
and
the
wars
overseas.
However,
the
narrative
has
shifted
to
the
Fed
possibly
lowering
interest
rates
in
late
2024
due
to
moderating
inflation
and
slowly
rising
unemployment.
Utilities
tend
to
trade
inversely
to
the
direction
of
interest
rates.
As
interest
rates
fall,
the
dividend
yield
for
utilities
looks
more
enticing
for
income
investors.
This
led
the
utilities
index
to
perform
in-line
with
the
S&P
during
this
time
period.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
With
economic
growth
slowing
but
still
positive,
we
expect
a
continued
bifurcation
between
winners
and
losers
in
the
high-yield
(HY)
market.
Most
of
corporate
America
is
still
performing
well,
but
there
is
a
segment
of
the
market
facing
secular
challenges
that
are
likely
to
persist.
We
find
value
in
select
HY
credits
and
maintain
our
focus
on
prudent
security
selection
and
individual
company
fundamentals.
However,
as
spreads
over
Treasuries
have
tightened
and
valuations
compressed,
we
find
that
the
incremental
compensation
for
taking
on
added
risk
is
often
inadequate,
so
we
have
generally
increased
the
quality
of
the
HY
portfolio.
Throughout
the
year,
we
evaluate
our
holdings'
exposure
to
rising
interest
rates.
Utilities
with
large
exposure
to
floating-
rate
debt,
or
those
with
near-term
maturities,
experienced
some
headwinds
from
rising
rates.
After
those
securities
sold
off,
it
created
opportunities
where
certain
utilities
may
benefit
if
interest
rates
ease
over
time.
We
also
evaluate
affordability
concerns
in
different
regulatory
regimes
across
the
U.S.
We
favor
jurisdictions
where
utilities
have
historically
positive
relationships
with
their
regulators.
This
increases
the
likelihood
that
those
utilities
will
enter
into
favorable
rate
outcomes
to
pass-through
inflationary
costs
to
customer
bills.
In
contrast,
utilities
that
cannot
receive
their
full
ask
may
have
a
more
challenged
financial
outcome.
Portfolio
Composition
8/31/24
%
of
Total
Investments
Corporate
Bonds
59.1%
Common
Stocks
37.1%
Marketplace
Loans
2.0%
Other
*
0.3%
Short-Term
Investments
1.5%
*
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.
Performance
Overview
For
the
12
months
under
review,
the
Fund’s
cumulative
total
returns
were
+19.18%
based
on
net
asset
value
and
+16.20%
based
on
market
price.
For
comparison,
the
ICE
Bofa
US
High
Yield
Constrained
Index,
which
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-
grade
corporate
debt
publicly
issues
in
the
U.S.
domestic
market,
posted
a
+12.47%
cumulative
total
return.
1
The
Fund
previously
compared
performance
to
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
+12.04%
cumulative
total
return.
1
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
+25.55%
cumulative
total
return
for
the
same
period.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
on
page
5
.
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.
Q.
What
were
the
leading
contributors
to
performance?
A.
Security
selection
was
a
leading
contributor
to
performance
within
the
HY
portfolio.
In
particular,
our
fundamental
research
led
to
favorable
security
selection
in
the
energy,
finance
and
media
non-cable
sectors.
Industry
positioning
also
benefited
performance,
in
particular
our
underweight
exposure
to
some
of
the
more
challenged
sectors
such
as
PayTV
and
Telecom.
Talen
Energy
reorganized
equity
generated
a
strong
total
return
during
the
period
driven
by
monetizing
multiple
non-core
assets
at
favorable
prices
and
entering
into
a
pioneering
data
center
sale
and
long-term
power
supply
commitment
with
Amazon
Web
Services.
Constellation
was
a
significant
outperformer
over
the
time
period
due
to
its
ownership
of
nuclear
and
natural
gas
generation
plants.
The
rise
in
commodity
costs
and
favorable
federal
government
incentives
led
to
higher-than-expected
forward
guidance
and
multiple
expansion.
Southern
Company
was
a
leading
relative
performer
for
the
sector,
as
the
company
placed
Unit
4
of
its
Vogtle
Nuclear
plant
with
in
place
and
completed
the
project.
Additionally,
Southern
Company
announced
large
demand
increases
from
data
centers
due
to
their
jurisdiction
(Georgia)
and
customer
relationships.
Lastly,
Public
Service
Enterprise
Group
outperformed
on
positive
rate
case
outcomes
and
the
possibility
of
upside
from
data
center
exposure.
Q.
What
were
the
leading
detractors
from
performance?
A.
Our
yield-curve
positioning
hindered
results
during
the
period
under
review.
The
Trust
held
duration
below
that
of
the
benchmark,
which
was
a
headwind
to
performance
as
treasury
rates
rallied.
The
cash
exposure
was
a
drag
given
consistent
interest
income
was
below
that
of
the
total
return
for
both
HY
and
utilities
in
the
period
under
review.
Evergy
was
a
key
detractor
to
performance
due
to
an
unfavorable
rate
case
outcome
in
Kansas
that
led
to
a
downward
revision
in
forward
guidance.
Sempra
underperformed
mainly
due
to
some
delays
in
its
LNG
construction
non-regulated
business
segment,
as
Texas
and
California
Utilities
outperformed
expectations.
Lastly,
DTE
contributed
to
underperformance
due
to
some
concerns
around
Michigan’s
regulatory
environment,
though
operationally
the
company
has
been
performing
well.
Top
10
Holdings
8/31/24
Issuer
%
of
Total
Net
Assets
a
a
NextEra
Energy,
Inc.
4.5%
Sempra
3.6%
CMS
Energy
Corp.
2.6%
Alliant
Energy
Corp.
2.3%
Southern
Co.
(The)
2.2%
Duke
Energy
Corp.
2.2%
Constellation
Energy
Corp.
2.1%
Evergy,
Inc.
2.1%
DTE
Energy
Co.
1.8%
Public
Service
Enterprise
Group,
Inc.
1.8%
1.
Source:
Morningstar.
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.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
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
9
.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
There
were
no
significant
changes
to
the
HY
component
or
the
utility
component
of
the
Fund
during
the
reporting
period.
Utilities
has
a
low-turnover
historically,
as
we
have
a
long-term
predominantly
regulated-business
model
investment
strategy.
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,
2024,
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.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
August
31,
2024
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
8/31/24
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
+19.18%
+16.20%
+19.18%
+16.20%
5-Year
+29.46%
+37.97%
+5.30%
+6.65%
10-Year
+74.16%
+87.23%
+5.70%
+6.47%
See
page
7
for
Performance
Summary
footnotes.
Franklin
Universal
Trust
Performance
Summary
See
page
7
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.
8/31/14–8/31/24
Franklin
Universal
Trust
Performance
Summary
Share
Prices
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.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
annual
report
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
voluntary
fee
waivers,
expense
caps
and/or
reimbursements.
Voluntary
waivers
may
be
modified
or
discontinued
at
any
time
without
notice.
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
ICE
Bofa
US
High
Yield
Constrained
Index
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-grade
corporate
debt
publicly
issued
in
the
U.S.
domestic
market.
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
®
.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Symbol:
FT
8/31/24
8/31/23
Change
Net
Asset
Value
(NAV)
$8.20
$7.36
+$0.84
Market
Price
(NYSE)
$7.28
$6.76
+$0.52
Distributions
Per
Share
(9/1/23–8/31/24)
Net
Investment
Income
Tax
Return
of
Capital
Total
$0.2968
$0.2132
$0.5100
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Year
Ended
August
31,
2024
2023
2022
2021
2020
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$7.36
$8.08
$8.92
$8.12
$8.57
Income
from
investment
operations:
Net
investment
income
a
.........................
0.33
0.43
0.41
0.38
0.41
Net
realized
and
unrealized
gains
(losses)
...........
1.02
(0.58)
(0.70)
0.85
(0.48)
Total
from
investment
operations
....................
1.35
(0.15)
(0.29)
1.23
(0.07)
Less
distributions
from:
Net
investment
income
..........................
(0.30)
(0.31)
(0.51)
(0.43)
(0.38)
Net
realized
gains
.............................
—
(0.05)
(0.04)
—
(—)
b
Tax
return
of
capital
............................
(0.21)
(0.21)
—
—
—
Total
distributions
...............................
(0.51)
(0.57)
(0.55)
(0.43)
(0.38)
Net
asset
value,
end
of
year
.......................
$8.20
$7.36
$8.08
$8.92
$8.12
Market
value,
end
of
year
c
.........................
$7.28
$6.76
$8.00
$8.59
$7.00
Total
return
(based
on
net
asset
value
per
share)
d
.......
19.18%
(1.81)%
(3.41)%
15.33%
(0.67)%
Total
return
(based
on
market
value
per
share)
d
.........
16.20%
(8.24)%
(0.36)%
29.55%
0.25%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
3.32%
2.78%
2.57%
2.50%
2.49%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
3.31%
2.77%
e
2.57%
e,f
2.50%
e,f
2.49%
e,f
Net
investment
income
...........................
4.36%
5.66%
4.85%
4.38%
5.01%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$206,193
$184,859
$203,053
$224,246
$204,094
Portfolio
turnover
rate
............................
21.79%
17.73%
22.29%
36.58%
35.26%
Total
outstanding
borrowings
on
credit
facility
at
end
of
year
(000’s)
.......................................
$60,000
$—
$—
$—
$—
Total
debt
outstanding
at
end
of
year
(000's)
...........
$—
$65,000
$65,000
$65,000
$65,000
Asset
coverage
per
$1,000
of
debt
..................
$4,437
$3,844
$4,124
$4,450
$4,140
Average
amount
of
senior
fixed
rate
Notes
per
share
during
the
year
......................................
$0.11
$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%.
Schedule
of
Investments,
August
31,
2024
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
47.4%
Electric
Utilities
25.9%
Alliant
Energy
Corp.
.................................
United
States
80,000
$
4,661,600
American
Electric
Power
Co.,
Inc.
.......................
United
States
36,000
3,610,080
Constellation
Energy
Corp.
............................
United
States
21,666
4,261,703
Duke
Energy
Corp.
..................................
United
States
40,000
4,558,000
Edison
International
.................................
United
States
36,000
3,133,080
Entergy
Corp.
......................................
United
States
30,000
3,620,700
Evergy,
Inc.
........................................
United
States
72,000
4,258,080
Exelon
Corp.
.......................................
United
States
65,000
2,475,850
FirstEnergy
Corp.
...................................
United
States
61,000
2,679,120
NextEra
Energy,
Inc.
.................................
United
States
115,000
9,258,650
Pinnacle
West
Capital
Corp.
...........................
United
States
25,000
2,188,000
PPL
Corp.
.........................................
United
States
24,500
781,795
Southern
Co.
(The)
..................................
United
States
53,000
4,579,200
Xcel
Energy,
Inc.
....................................
United
States
55,000
3,367,650
53,433,508
Metals
&
Mining
2.7%
BHP
Group
Ltd.,
ADR
................................
Australia
25,185
1,388,449
Freeport-McMoRan,
Inc.
..............................
United
States
40,380
1,788,026
Newmont
Corp.
.....................................
United
States
26,000
1,388,140
Rio
Tinto
plc,
ADR
...................................
Australia
15,000
949,050
South32
Ltd.,
ADR
..................................
Australia
10,074
106,281
5,619,946
Multi-Utilities
17.1%
CenterPoint
Energy,
Inc.
..............................
United
States
122,800
3,352,440
CMS
Energy
Corp.
..................................
United
States
78,000
5,293,080
Consolidated
Edison,
Inc.
.............................
United
States
35,000
3,554,600
Dominion
Energy,
Inc.
................................
United
States
65,000
3,633,500
DTE
Energy
Co.
....................................
United
States
30,000
3,750,600
NiSource,
Inc.
......................................
United
States
60,000
1,983,600
Public
Service
Enterprise
Group,
Inc.
....................
United
States
45,000
3,633,750
Sempra
...........................................
United
States
90,000
7,396,200
WEC
Energy
Group,
Inc.
..............................
United
States
28,000
2,604,840
35,202,610
Oil,
Gas
&
Consumable
Fuels
1.6%
a
Amplify
Energy
Corp.
................................
United
States
245
1,747
Birch
Permian
Holdings,
Inc.
...........................
United
States
32,490
244,698
California
Resources
Corp.
............................
United
States
27
1,417
Chesapeake
Energy
Corp.
............................
United
States
1,871
139,371
DT
Midstream,
Inc.
..................................
United
States
15,000
1,178,850
Enbridge,
Inc.
......................................
Canada
39,360
1,581,485
Woodside
Energy
Group
Ltd.,
ADR
......................
Australia
9,101
166,821
3,314,389
Pharmaceuticals
0.1%
a
Endo,
Inc.
.........................................
United
States
11,359
306,693
Total
Common
Stocks
(Cost
$
35,797,134)
....................................
97,877,146
Preferred
Stocks
0.3%
Electric
Utilities
0.3%
SCE
Trust
II,
5.1%
..................................
United
States
27,500
566,500
Total
Preferred
Stocks
(Cost
$598,125)
.......................................
566,500
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
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
$
1,091
Total
Warrants
(Cost
$–)
....................................................
1,091
Principal
Amount
*
Corporate
Bonds
75.5%
Aerospace
&
Defense
0.5%
b,c
Bombardier,
Inc.
,
Senior
Note
,
144A,
7
%
,
6/01/32
...........
Canada
900,000
938,017
Automobile
Components
2.8%
b,c
Adient
Global
Holdings
Ltd.
,
Senior
Note,
144A,
8.25%,
4/15/31
....................
United
States
700,000
744,682
Senior
Secured
Note,
144A,
7%,
4/15/28
................
United
States
400,000
411,472
b
Allison
Transmission,
Inc.
,
Senior
Bond,
144A,
3.75%,
1/30/31
....................
United
States
300,000
272,917
Senior
Note,
144A,
4.75%,
10/01/27
...................
United
States
600,000
587,892
b,c
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
........................................
United
States
1,400,000
1,184,391
b,c
Garrett
Motion
Holdings,
Inc.
/
Garrett
LX
I
SARL
,
Senior
Note
,
144A,
7.75
%
,
5/31/32
...............................
United
States
700,000
725,022
c
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note,
9.5%,
5/31/25
..........................
United
States
560,000
562,357
Senior
Note,
5%,
7/15/29
...........................
United
States
600,000
557,769
b,c
ZF
North
America
Capital,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
4/23/30
.........................................
Germany
700,000
720,124
5,766,626
Automobiles
0.5%
b,c
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
.........................................
United
Kingdom
1,100,000
1,098,133
Beverages
0.3%
b,c
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
Canada
700,000
665,260
Biotechnology
0.6%
b
Emergent
BioSolutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
8/15/28
United
States
900,000
669,261
b
Grifols
SA
,
Senior
Note
,
144A,
4.75
%
,
10/15/28
............
Spain
600,000
570,481
1,239,742
Building
Products
2.4%
b,c
Advanced
Drainage
Systems,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/30
.........................................
United
States
500,000
508,722
b
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
.........................................
United
States
300,000
250,522
b,c
Eco
Material
Technologies,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
1/31/27
...................................
United
States
500,000
506,947
b,c
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
........................
United
States
900,000
922,756
b
Miter
Brands
Acquisition
Holdco,
Inc.
/
MIWD
Borrower
LLC
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/01/32
..............
United
States
500,000
514,138
b,c
Smyrna
Ready
Mix
Concrete
LLC
,
Senior
Secured
Note
,
144A,
8.875
%
,
11/15/31
..................................
United
States
1,200,000
1,289,417
b
Standard
Building
Solutions,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
8/15/32
.........................................
United
States
400,000
412,468
b
Standard
Industries,
Inc.
,
c
Senior
Bond,
144A,
4.75%,
1/15/28
....................
United
States
500,000
486,711
Senior
Bond,
144A,
4.375%,
7/15/30
...................
United
States
100,000
93,597
4,985,278
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Capital
Markets
0.5%
b,c
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/15/29
...............................
United
States
500,000
$
477,614
b
StoneX
Group,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
3/01/31
United
States
500,000
526,177
1,003,791
Chemicals
2.7%
b,d,e
Anagram
Holdings
LLC
/
Anagram
International,
Inc.
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
........................
United
States
257,209
3,851
b
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
.........................................
Mexico
300,000
233,455
b
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
........................................
Switzerland
600,000
487,239
b
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
...
United
States
200,000
189,300
b,c
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
.
United
States
1,500,000
1,311,144
b,c
Illuminate
Buyer
LLC
/
Illuminate
Holdings
IV,
Inc.
,
Senior
Note
,
144A,
9
%
,
7/01/28
.................................
United
States
1,000,000
1,013,831
b,d
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
United
States
220,500
174,103
b,c
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
United
States
1,200,000
1,285,772
b
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
...................................
United
States
33,000
32,681
b,c
Vibrantz
Technologies,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
...
United
States
1,000,000
913,178
5,644,554
Commercial
Services
&
Supplies
2.9%
b,c
Allied
Universal
Holdco
LLC
,
Senior
Secured
Note
,
144A,
7.875
%
,
2/15/31
...................................
United
States
1,200,000
1,219,366
b,c
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
.........
United
States
800,000
793,384
b,c
Enviri
Corp.
,
Senior
Note
,
144A,
5.75
%
,
7/31/27
............
United
States
500,000
488,397
b,c
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
.............
United
States
600,000
568,683
b
RR
Donnelley
&
Sons
Co.
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/01/29
.........................................
United
States
800,000
793,250
b,c
Stericycle,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
1/15/29
.........
United
States
700,000
681,690
b,c
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.....
United
States
800,000
779,132
b
Wrangler
Holdco
Corp.
,
Senior
Note
,
144A,
6.625
%
,
4/01/32
...
Canada
700,000
723,214
6,047,116
Communications
Equipment
0.6%
b
CommScope
LLC
,
Senior
Note
,
144A,
7.125
%
,
7/01/28
.......
United
States
1,600,000
1,180,467
Construction
&
Engineering
0.2%
b
Arcosa,
Inc.
,
c
Senior
Note,
144A,
4.375%,
4/15/29
...................
United
States
300,000
284,714
Senior
Note,
144A,
6.875%,
8/15/32
...................
United
States
100,000
104,306
389,020
Consumer
Finance
2.4%
b
Encore
Capital
Group,
Inc.
,
Senior
Secured
Note,
144A,
9.25%,
4/01/29
.............
United
States
600,000
639,451
Senior
Secured
Note,
144A,
8.5%,
5/15/30
..............
United
States
400,000
418,883
b,c
FirstCash,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
3/01/32
.........
United
States
1,100,000
1,131,419
b
Macquarie
Airfinance
Holdings
Ltd.
,
Senior
Note,
144A,
6.4%,
3/26/29
.....................
United
Kingdom
100,000
104,133
Senior
Note,
144A,
6.5%,
3/26/31
.....................
United
Kingdom
200,000
211,018
c
OneMain
Finance
Corp.
,
Senior
Note
,
9
%
,
1/15/29
..........
United
States
1,400,000
1,489,355
b,c
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.......
United
States
900,000
879,869
4,874,128
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Consumer
Staples
Distribution
&
Retail
0.4%
b,c
US
Foods,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
9/15/28
.........
United
States
700,000
$
729,034
Containers
&
Packaging
2.9%
b
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note
,
144A,
5.25
%
,
8/15/27
.....................
United
States
600,000
361,578
b,c
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note,
144A,
9.25%,
4/15/27
...................
United
States
1,500,000
1,525,134
Senior
Secured
Note,
144A,
7.875%,
4/15/27
............
United
States
1,000,000
1,035,180
b,c
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
6.625%,
5/13/27
...................
United
States
375,000
376,588
Senior
Note,
144A,
7.25%,
5/15/31
....................
United
States
800,000
810,499
b
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
...
United
States
300,000
285,310
b,c
Pactiv
Evergreen
Group
Issuer,
Inc.
/
Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
......
United
States
1,200,000
1,146,926
b,c
Trivium
Packaging
Finance
BV
,
Senior
Note
,
144A,
8.5
%
,
8/15/27
Netherlands
500,000
500,832
6,042,047
Distributors
0.6%
b
Gates
Corp.
,
Senior
Note
,
144A,
6.875
%
,
7/01/29
...........
United
States
400,000
410,798
b,c
Ritchie
Bros
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
3/15/31
....................
Canada
500,000
532,104
Senior
Secured
Note,
144A,
6.75%,
3/15/28
.............
Canada
300,000
309,020
1,251,922
Diversified
Consumer
Services
0.4%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....
United
States
800,000
741,059
Diversified
REITs
1.1%
b,c
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
.................
United
States
800,000
729,978
b,c
Necessity
Retail
REIT,
Inc.
(The)
/
American
Finance
Operating
Partner
LP
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
.............
United
States
900,000
827,586
b,c
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...................................
United
States
700,000
679,376
2,236,940
Diversified
Telecommunication
Services
1.9%
b
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
c
Senior
Bond,
144A,
5.375%,
6/01/29
...................
United
States
500,000
474,754
c
Senior
Bond,
144A,
4.5%,
8/15/30
.....................
United
States
1,700,000
1,517,670
Senior
Bond,
144A,
4.25%,
2/01/31
....................
United
States
200,000
173,709
b,c
Iliad
Holding
SASU
,
Senior
Secured
Note
,
144A,
7
%
,
10/15/28
.
France
800,000
812,636
b,c
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
....................................
United
Kingdom
1,100,000
972,369
3,951,138
Electric
Utilities
0.7%
b
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
5.625%,
2/15/27
...................
United
States
500,000
499,598
c
Senior
Note,
144A,
4.375%,
5/01/29
...................
United
States
400,000
383,211
Senior
Note,
144A,
7.75%,
10/15/31
...................
United
States
100,000
106,475
Senior
Note,
144A,
6.875%,
4/15/32
...................
United
States
400,000
415,737
1,405,021
Electrical
Equipment
0.8%
c
Regal
Rexnord
Corp.
,
Senior
Note,
6.3%,
2/15/30
..........................
United
States
500,000
528,251
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electrical
Equipment
(continued)
c
Regal
Rexnord
Corp.,
(continued)
Senior
Note,
6.4%,
4/15/33
..........................
United
States
400,000
$
424,774
b,c
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
........................................
United
States
800,000
768,468
1,721,493
Electronic
Equipment,
Instruments
&
Components
0.4%
b,c
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
......
United
States
500,000
472,274
b
Zebra
Technologies
Corp.
,
Senior
Note
,
144A,
6.5
%
,
6/01/32
..
United
States
300,000
310,246
782,520
Energy
Equipment
&
Services
2.1%
b
Enerflex
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
10/15/27
......
Canada
700,000
727,299
b,c
Kodiak
Gas
Services
LLC
,
Senior
Note
,
144A,
7.25
%
,
2/15/29
..
United
States
700,000
725,568
b
Nabors
Industries,
Inc.
,
Senior
Note,
144A,
9.125%,
1/31/30
...................
United
States
300,000
321,723
Senior
Note,
144A,
8.875%,
8/15/31
...................
United
States
1,000,000
1,002,788
Oceaneering
International,
Inc.
,
Senior
Note
,
6
%
,
2/01/28
.....
United
States
300,000
304,148
b
Transocean
Titan
Financing
Ltd.
,
Senior
Secured
Note
,
144A,
8.375
%
,
2/01/28
...................................
United
States
100,000
103,793
b
Transocean,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
2/15/30
..
United
States
680,000
718,890
b,c
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
4/30/30
.........................................
United
States
500,000
519,349
4,423,558
Entertainment
0.4%
b,c
Banijay
Entertainment
SAS
,
Senior
Secured
Note
,
144A,
8.125
%
,
5/01/29
.........................................
France
800,000
832,741
Financial
Services
2.7%
b
Freedom
Mortgage
Holdings
LLC
,
Senior
Note
,
144A,
9.25
%
,
2/01/29
.........................................
United
States
300,000
307,599
b
GGAM
Finance
Ltd.
,
Senior
Note,
144A,
8%,
2/15/27
......................
Ireland
200,000
208,637
Senior
Note,
144A,
8%,
6/15/28
......................
Ireland
700,000
748,696
b
Jefferson
Capital
Holdings
LLC
,
Senior
Note,
144A,
6%,
8/15/26
......................
United
States
500,000
499,230
Senior
Note,
144A,
9.5%,
2/15/29
.....................
United
States
1,400,000
1,494,912
b,c
Nationstar
Mortgage
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
11/15/31
........................................
United
States
1,100,000
1,069,551
b
PRA
Group,
Inc.
,
Senior
Note,
144A,
8.375%,
2/01/28
...................
United
States
600,000
612,836
Senior
Note,
144A,
5%,
10/01/29
.....................
United
States
300,000
270,851
Senior
Note,
144A,
8.875%,
1/31/30
...................
United
States
400,000
413,938
5,626,250
Food
Products
1.4%
b
Chobani
LLC
/
Chobani
Finance
Corp.,
Inc.
,
Senior
Note,
144A,
7.625%,
7/01/29
...................
United
States
200,000
209,823
c
Senior
Secured
Note,
144A,
4.625%,
11/15/28
...........
United
States
800,000
773,952
b
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.....
United
States
200,000
202,695
c
Pilgrim's
Pride
Corp.
,
Senior
Bond
,
6.875
%
,
5/15/34
.........
United
States
1,100,000
1,217,329
b,c
Post
Holdings,
Inc.
,
Senior
Bond,
144A,
5.625%,
1/15/28
...................
United
States
113,000
112,832
Senior
Bond,
144A,
4.625%,
4/15/30
...................
United
States
400,000
380,426
2,897,057
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Ground
Transportation
1.0%
b,c
First
Student
Bidco,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
.....................
United
States
900,000
$
838,569
b
Watco
Cos.
LLC
/
Watco
Finance
Corp.
,
Senior
Note
,
144A,
7.125
%
,
8/01/32
...................................
United
States
500,000
518,158
b,c
XPO,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
2/01/32
.............
United
States
700,000
732,822
2,089,549
Health
Care
Equipment
&
Supplies
0.7%
b
Bausch
+
Lomb
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
........................................
United
States
400,000
420,586
b,c
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
....
United
States
500,000
491,451
b,c
Neogen
Food
Safety
Corp.
,
Senior
Note
,
144A,
8.625
%
,
7/20/30
United
States
400,000
436,827
1,348,864
Health
Care
Providers
&
Services
3.2%
c
Centene
Corp.
,
Senior
Bond,
2.5%,
3/01/31
..........................
United
States
500,000
424,792
Senior
Note,
2.45%,
7/15/28
.........................
United
States
500,000
457,875
Senior
Note,
2.625%,
8/01/31
........................
United
States
500,000
424,548
b
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.125%,
4/01/30
..................
United
States
500,000
396,382
Senior
Secured
Note,
144A,
6%,
1/15/29
................
United
States
300,000
285,285
Senior
Secured
Note,
144A,
10.875%,
1/15/32
...........
United
States
500,000
541,886
b
DaVita,
Inc.
,
c
Senior
Note,
144A,
4.625%,
6/01/30
...................
United
States
1,200,000
1,132,265
Senior
Note,
144A,
6.875%,
9/01/32
...................
United
States
200,000
204,740
b,c
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
......
Italy
1,000,000
942,474
b
ModivCare
Escrow
Issuer,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
United
States
100,000
71,638
b
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
........................................
United
States
1,000,000
444,791
c
Tenet
Healthcare
Corp.
,
Senior
Secured
Note,
6.125%,
6/15/30
.................
United
States
700,000
711,509
Senior
Secured
Note,
6.75%,
5/15/31
..................
United
States
500,000
518,871
6,557,056
Health
Care
REITs
0.1%
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond
,
5.25
%
,
8/01/26
...............................
United
States
200,000
188,325
Hotel
&
Resort
REITs
0.7%
b,c
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
Senior
Note,
144A,
7.25%,
7/15/28
....................
United
States
300,000
312,219
Senior
Note,
144A,
6.5%,
4/01/32
.....................
United
States
1,100,000
1,133,708
1,445,927
Hotels,
Restaurants
&
Leisure
5.1%
b
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4
%
,
10/15/30
.....................................
Canada
400,000
366,721
b,e,f
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
United
States
1,800,000
—
b
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875
%
,
4/30/29
..............................
Czech
Republic
800,000
833,552
b,c
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note,
144A,
7%,
2/15/30
................
United
States
300,000
310,898
Senior
Secured
Note,
144A,
6.5%,
2/15/32
..............
United
States
800,000
822,605
b,c
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
...................
United
States
200,000
202,160
Senior
Note,
144A,
5.75%,
3/01/27
....................
United
States
1,500,000
1,505,905
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
b,c
Carnival
Holdings
Bermuda
Ltd.
,
Senior
Note
,
144A,
10.375
%
,
5/01/28
.........................................
United
States
400,000
$
432,998
b,c
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.................
United
States
1,300,000
1,170,648
b
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
.........
United
States
300,000
300,024
b
Royal
Caribbean
Cruises
Ltd.
,
c
Senior
Note,
144A,
5.5%,
8/31/26
.....................
United
States
500,000
501,086
Senior
Note,
144A,
6.25%,
3/15/32
....................
United
States
300,000
310,003
Senior
Note,
144A,
6%,
2/01/33
......................
United
States
500,000
512,506
b,c
Six
Flags
Entertainment
Corp.
/
Six
Flags
Theme
Parks,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
5/01/32
.............
United
States
1,000,000
1,029,953
b,c
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
......
United
States
400,000
384,158
b
Viking
Cruises
Ltd.
,
Senior
Note,
144A,
5.875%,
9/15/27
...................
United
States
300,000
299,869
c
Senior
Note,
144A,
7%,
2/15/29
......................
United
States
600,000
608,197
b,c
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
.........................
United
States
800,000
849,567
10,440,850
Household
Durables
2.2%
b,c
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
Senior
Note
,
144A,
4.625
%
,
8/01/29
.........................
United
States
1,500,000
1,421,589
b,c
Dream
Finders
Homes,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
8/15/28
United
States
500,000
529,868
b,c
LGI
Homes,
Inc.
,
Senior
Note
,
144A,
8.75
%
,
12/15/28
........
United
States
800,000
852,860
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
..............
United
States
600,000
554,230
b,c
Weekley
Homes
LLC
/
Weekley
Finance
Corp.
,
Senior
Note
,
144A,
4.875
%
,
9/15/28
..............................
United
States
1,300,000
1,266,835
4,625,382
Household
Products
0.2%
b
Energizer
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
3/31/29
..
United
States
400,000
376,460
Independent
Power
and
Renewable
Electricity
Producers
1.7%
b,c
Calpine
Corp.
,
Senior
Bond,
144A,
5%,
2/01/31
......................
United
States
900,000
863,534
Senior
Note,
144A,
4.625%,
2/01/29
...................
United
States
700,000
668,260
b
Clearway
Energy
Operating
LLC
,
c
Senior
Bond,
144A,
3.75%,
1/15/32
....................
United
States
400,000
355,619
Senior
Note,
144A,
4.75%,
3/15/28
....................
United
States
400,000
388,960
Senior
Note,
144A,
3.75%,
2/15/31
....................
United
States
300,000
272,434
b
Leeward
Renewable
Energy
Operations
LLC
,
Senior
Note
,
144A,
4.25
%
,
7/01/29
...................................
United
States
1,000,000
944,480
3,493,287
Insurance
1.4%
b
Acrisure
LLC
/
Acrisure
Finance,
Inc.
,
Senior
Note,
144A,
8.5%,
6/15/29
.....................
United
States
400,000
415,676
Senior
Secured
Note,
144A,
7.5%,
11/06/30
.............
United
States
400,000
410,887
b
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note,
144A,
6.75%,
10/15/27
...................
United
States
300,000
298,934
Senior
Secured
Note,
144A,
7%,
1/15/31
................
United
States
500,000
517,250
Jones
Deslauriers
Insurance
Management,
Inc.
,
b
Senior
Note,
144A,
10.5%,
12/15/30
...................
Canada
1,200,000
1,305,290
2,948,037
IT
Services
1.3%
b,c
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
.........................................
United
States
500,000
470,990
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
(continued)
b
Cogent
Communications
Group,
Inc.
/
Cogent
Communications
Finance,
Inc.
,
Senior
Note
,
144A,
7
%
,
6/15/27
............
United
States
700,000
$
708,801
b
Fortress
Intermediate
3,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
6/01/31
.........................................
United
States
600,000
623,190
b
Gartner,
Inc.
,
c
Senior
Note,
144A,
4.5%,
7/01/28
.....................
United
States
500,000
491,376
Senior
Note,
144A,
3.625%,
6/15/29
...................
United
States
200,000
188,963
c
Senior
Note,
144A,
3.75%,
10/01/30
...................
United
States
300,000
278,000
2,761,320
Life
Sciences
Tools
&
Services
0.5%
b,c
Fortrea
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
7/01/30
United
States
1,000,000
1,020,787
Machinery
1.6%
b,c
ATS
Corp.
,
Senior
Note
,
144A,
4.125
%
,
12/15/28
...........
Canada
1,300,000
1,217,776
b,c
Calderys
Financing
LLC
,
Senior
Secured
Note
,
144A,
11.25
%
,
6/01/28
.........................................
France
800,000
868,415
b
Esab
Corp.
,
Senior
Note
,
144A,
6.25
%
,
4/15/29
.............
United
States
600,000
617,126
Hillenbrand,
Inc.
,
Senior
Note
,
6.25
%
,
2/15/29
..............
United
States
600,000
608,362
3,311,679
Media
2.8%
b
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
....................
United
States
300,000
261,768
c
Senior
Note,
144A,
7.5%,
6/01/29
.....................
United
States
500,000
421,984
c
Senior
Secured
Note,
144A,
5.125%,
8/15/27
............
United
States
400,000
391,089
c
Senior
Secured
Note,
144A,
9%,
9/15/28
................
United
States
500,000
531,946
b
CSC
Holdings
LLC
,
Senior
Bond,
144A,
3.375%,
2/15/31
...................
United
States
300,000
194,032
c
Senior
Note,
144A,
11.25%,
5/15/28
...................
United
States
700,000
622,760
Senior
Note,
144A,
11.75%,
1/31/29
...................
United
States
500,000
441,816
b,e
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Senior
Note,
144A,
6.625%,
8/15/27
...................
United
States
700,000
9,188
Senior
Secured
Note,
144A,
5.375%,
8/15/26
............
United
States
800,000
10,500
b
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
..................
United
States
200,000
193,855
b,c
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
..............................
United
States
450,000
411,882
b
McGraw-Hill
Education,
Inc.
,
Senior
Secured
Note
,
144A,
7.375
%
,
9/01/31
...................................
United
States
800,000
826,805
b
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
...........
United
States
200,000
188,274
b
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Bond,
144A,
4.625%,
3/15/30
...................
United
States
100,000
93,837
Senior
Note,
144A,
5%,
8/15/27
......................
United
States
100,000
99,389
b,c
Scripps
Escrow,
Inc.
,
Senior
Note
,
144A,
5.875
%
,
7/15/27
.....
United
States
600,000
430,059
b,c
Sirius
XM
Radio,
Inc.
,
Senior
Note
,
144A,
4
%
,
7/15/28
.......
United
States
600,000
562,588
5,691,772
Metals
&
Mining
1.7%
c
ATI,
Inc.
,
Senior
Note
,
7.25
%
,
8/15/30
....................
United
States
700,000
745,853
b
Cleveland-Cliffs,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/32
........
United
States
600,000
603,303
c
Commercial
Metals
Co.
,
Senior
Bond
,
3.875
%
,
2/15/31
.......
United
States
700,000
635,711
b
Constellium
SE
,
c
Senior
Note,
144A,
3.75%,
4/15/29
....................
United
States
600,000
554,256
Senior
Note,
144A,
6.375%,
8/15/32
...................
United
States
400,000
406,341
b,c
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...................................
Australia
500,000
459,178
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Metals
&
Mining
(continued)
b
Novelis
Corp.
,
Senior
Bond,
144A,
3.875%,
8/15/31
...................
United
States
100,000
$
89,764
Senior
Note,
144A,
3.25%,
11/15/26
...................
United
States
100,000
96,353
3,590,759
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.8%
b,c
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
.........................
United
States
1,500,000
1,331,341
b
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
...............
United
States
300,000
289,362
1,620,703
Oil,
Gas
&
Consumable
Fuels
10.2%
b
Antero
Resources
Corp.
,
Senior
Note,
144A,
7.625%,
2/01/29
...................
United
States
166,000
172,229
c
Senior
Note,
144A,
5.375%,
3/01/30
...................
United
States
700,000
691,956
b,c
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note,
144A,
8.125%,
1/15/27
...................
United
States
900,000
871,604
Senior
Secured
Note,
144A,
9.25%,
7/15/29
.............
United
States
800,000
824,656
Cheniere
Energy
Partners
LP
,
Senior
Note,
4.5%,
10/01/29
.........................
United
States
500,000
489,295
c
Senior
Note,
4%,
3/01/31
...........................
United
States
700,000
660,684
b
Chesapeake
Energy
Corp.
,
Senior
Note
,
144A,
6.75
%
,
4/15/29
.
United
States
500,000
507,784
b
CITGO
Petroleum
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
1/15/29
.........................................
United
States
500,000
520,123
b,c
Civitas
Resources,
Inc.
,
Senior
Note,
144A,
8.375%,
7/01/28
...................
United
States
700,000
738,860
Senior
Note,
144A,
8.75%,
7/01/31
....................
United
States
700,000
756,299
b,c
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
......................................
United
States
300,000
304,368
b
DT
Midstream,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
6/15/29
......
United
States
300,000
285,252
b,c
EnLink
Midstream
LLC
,
Senior
Note
,
144A,
6.5
%
,
9/01/30
.....
United
States
800,000
855,785
b
EQM
Midstream
Partners
LP
,
Senior
Note
,
144A,
7.5
%
,
6/01/27
United
States
100,000
103,138
b,c
EQT
Corp.
,
Senior
Note
,
144A,
3.125
%
,
5/15/26
............
United
States
300,000
291,450
b
Harbour
Energy
plc
,
Senior
Note
,
144A,
5.5
%
,
10/15/26
......
United
Kingdom
500,000
496,701
b
Hess
Midstream
Operations
LP
,
Senior
Note
,
144A,
6.5
%
,
6/01/29
United
States
500,000
516,315
b
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
......................
United
States
200,000
198,214
c
Senior
Note,
144A,
6%,
4/15/30
......................
United
States
300,000
298,645
c
Senior
Note,
144A,
8.375%,
11/01/33
..................
United
States
700,000
767,207
b
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
......
United
States
400,000
401,625
b
Kraken
Oil
&
Gas
Partners
LLC
,
Senior
Note
,
144A,
7.625
%
,
8/15/29
.........................................
United
States
600,000
618,909
b,c
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note
,
144A,
11.5
%
,
2/15/28
...................
United
States
1,800,000
1,972,064
b,c
Matador
Resources
Co.
,
Senior
Note
,
144A,
6.5
%
,
4/15/32
....
United
States
700,000
710,966
d,e,f,g
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
.
United
States
757,734
—
b,c
Northriver
Midstream
Finance
LP
,
Senior
Secured
Note
,
144A,
6.75
%
,
7/15/32
...................................
Canada
1,100,000
1,136,452
b
PBF
Holding
Co.
LLC
/
PBF
Finance
Corp.
,
Senior
Note
,
144A,
7.875
%
,
9/15/30
...................................
United
States
200,000
208,137
b
Sunoco
LP
,
Senior
Note
,
144A,
7.25
%
,
5/01/32
.............
United
States
500,000
529,180
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
6%,
4/15/27
...........................
United
States
500,000
501,677
Senior
Note,
4.5%,
5/15/29
..........................
United
States
200,000
192,187
b,c
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
............
United
States
300,000
278,283
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
b,c
Venture
Global
Calcasieu
Pass
LLC,
(continued)
Senior
Secured
Note,
144A,
3.875%,
8/15/29
............
United
States
300,000
$
283,831
Senior
Secured
Note,
144A,
6.25%,
1/15/30
.............
United
States
400,000
416,136
b
Venture
Global
LNG,
Inc.
,
c
Senior
Secured
Note,
144A,
8.125%,
6/01/28
............
United
States
600,000
628,795
Senior
Secured
Note,
144A,
9.5%,
2/01/29
..............
United
States
500,000
563,782
c
Senior
Secured
Note,
144A,
8.375%,
6/01/31
............
United
States
500,000
531,209
b,c
Viper
Energy,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
11/01/31
......
United
States
700,000
745,205
Vital
Energy,
Inc.
,
Senior
Note,
9.75%,
10/15/30
........................
United
States
400,000
439,312
b
Senior
Note,
144A,
7.875%,
4/15/32
...................
United
States
500,000
512,277
21,020,592
Paper
&
Forest
Products
0.2%
b
Glatfelter
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
.........
United
States
400,000
348,320
Passenger
Airlines
0.7%
b
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.5
%
,
4/20/26
....................
United
States
408,333
406,543
b
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
..............................
United
States
700,000
693,448
b
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
............
United
States
100,000
97,687
c
Senior
Secured
Note,
144A,
4.625%,
4/15/29
............
United
States
300,000
285,774
1,483,452
Personal
Care
Products
0.3%
b,c
Coty,
Inc.
/
HFC
Prestige
Products,
Inc.
/
HFC
Prestige
International
US
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
7/15/30
.........................................
United
States
600,000
622,004
Pharmaceuticals
1.2%
b
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
....
Canada
305,000
297,023
b
Bausch
Health
Cos.,
Inc.
,
Secured
Note,
144A,
14%,
10/15/30
...................
United
States
107,000
94,139
Senior
Secured
Note,
144A,
11%,
9/30/28
...............
United
States
542,000
497,285
b
Endo
Finance
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/15/31
.........................................
United
States
200,000
212,606
c
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
4.75%,
5/09/27
.........................
Israel
600,000
590,178
Senior
Note,
7.875%,
9/15/29
........................
Israel
300,000
330,721
Senior
Note,
8.125%,
9/15/31
........................
Israel
300,000
343,694
2,365,646
Real
Estate
Management
&
Development
0.7%
b,c
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
10.5
%
,
1/15/28
..........................
United
States
335,834
345,506
b,c
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
3.85
%
,
5/15/26
......
United
States
500,000
488,223
b,c
Greystar
Real
Estate
Partners
LLC
,
Senior
Secured
Note
,
144A,
7.75
%
,
9/01/30
...................................
United
States
500,000
533,596
1,367,325
Software
1.1%
b,c
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
United
States
600,000
588,020
b,c
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
..........
United
States
800,000
768,098
b,c
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
......
United
States
1,100,000
1,005,206
2,361,324
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Specialized
REITs
0.5%
b,c
Iron
Mountain,
Inc.
,
Senior
Bond,
144A,
5.625%,
7/15/32
...................
United
States
300,000
$
295,786
Senior
Note,
144A,
7%,
2/15/29
......................
United
States
700,000
727,547
1,023,333
Specialty
Retail
0.6%
b,c
Evergreen
Acqco
1
LP
/
TVI,
Inc.
,
Senior
Secured
Note
,
144A,
9.75
%
,
4/26/28
...................................
United
States
648,000
684,171
b,c
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
........
United
States
700,000
627,931
1,312,102
Textiles,
Apparel
&
Luxury
Goods
0.4%
b,c
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
..........
United
States
700,000
753,260
Trading
Companies
&
Distributors
1.6%
b,c
EquipmentShare.com,
Inc.
,
Secured
Note,
144A,
9%,
5/15/28
.....................
United
States
800,000
832,754
Secured
Note,
144A,
8.625%,
5/15/32
..................
United
States
600,000
628,170
b,c
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
........................................
United
States
600,000
556,374
b,c
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
6/15/29
......
United
States
900,000
926,281
b
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
3/15/29
.
United
States
400,000
410,944
3,354,523
Wireless
Telecommunication
Services
0.8%
b
Altice
France
Holding
SA
,
Senior
Secured
Note
,
144A,
10.5
%
,
5/15/27
.........................................
Luxembourg
1,500,000
595,100
f
Digicel
Group
Holdings
Ltd.
,
Zero
Cpn.,
11/17/33
...............................
Bermuda
26,768
750
Zero
Cpn.,
11/17/33
...............................
Bermuda
218
143
b,c
Zegona
Finance
plc
,
Senior
Secured
Note
,
144A,
8.625
%
,
7/15/29
.........................................
United
Kingdom
1,100,000
1,144,756
1,740,749
Total
Corporate
Bonds
(Cost
$162,713,785)
...................................
155,736,299
h
Senior
Floating
Rate
Interests
0.1%
Media
0.1%
abc
abc
abc
abc
abc
abc
Diamond
Sports
Group
LLC
,
e,i
First
Lien,
CME
Term
Loan,
15.442%,
(1-month
SOFR
+
10%),
5/26/26
.........................................
United
States
70,724
65,533
d
First
Lien,
Debtor-In-Possession
Term
Loan,
PIK,
5%,
12/02/24
United
States
84,267
109,734
175,267
a
a
a
a
a
a
Total
Senior
Floating
Rate
Interests
(Cost
$150,465)
...........................
175,267
j
Marketplace
Loans
2.5%
f
Financial
Services
2.5%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$5,869,008)
...................................
5,201,571
Asset-Backed
Securities
0.1%
Financial
Services
0.1%
abc
abc
abc
abc
abc
abc
b,k
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2019-26,
PT,
144A,
FRN,
10.175%,
8/15/44
..............
United
States
4,084
3,966
2019-31,
PT,
144A,
FRN,
11.977%,
9/15/44
..............
United
States
6,116
4,556
2019-37,
PT,
144A,
FRN,
14.39%,
10/17/44
..............
United
States
7,751
6,973
2019-42,
PT,
144A,
FRN,
10.541%,
11/15/44
.............
United
States
7,127
6,315
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Asset-Backed
Securities
(continued)
Financial
Services
(continued)
b,k
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I,
(continued)
2019-51,
PT,
144A,
FRN,
12.624%,
1/15/45
..............
United
States
14,124
$
13,014
2019-52,
PT,
144A,
FRN,
13.791%,
1/15/45
..............
United
States
10,405
9,699
2019-S5,
PT,
144A,
FRN,
4.712%,
9/15/44
...............
United
States
2,658
2,388
2019-S6,
PT,
144A,
FRN,
6.994%,
10/17/44
..............
United
States
5,864
5,746
2019-S7,
PT,
144A,
FRN,
6%,
12/15/44
.................
United
States
4,054
3,844
2019-S8,
PT,
144A,
FRN,
5.262%,
1/15/45
...............
United
States
6,430
5,423
2020-2,
PT,
144A,
FRN,
14.807%,
3/15/45
...............
United
States
12,894
12,358
2020-7,
PT,
144A,
FRN,
12.561%,
4/17/45
...............
United
States
8,705
8,243
abc
abc
abc
abc
abc
abc
b,k
Prosper
Pass-Thru
Trust
III
,
2020-PT1,
A,
144A,
FRN,
6.02%,
3/15/26
................
United
States
6,849
5,862
2020-PT2,
A,
144A,
FRN,
2.357%,
4/15/26
...............
United
States
9,505
8,633
2020-PT3,
A,
144A,
FRN,
7.183%,
5/15/26
...............
United
States
1,886
1,585
abc
abc
abc
abc
abc
abc
b,k
Upgrade
Master
Pass-Thru
Trust
,
2019-PT2
,
A
,
144A,
FRN
,
20.878
%
,
2/15/26
.
.................................
United
States
6,294
6,082
104,687
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$109,131)
................................
104,687
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a
Chesapeake
Energy
Corp.,
Escrow
Account
...............
United
States
1,500,000
28,125
a,f
Endo
DAC,
Escrow
Account
...........................
United
States
302,000
—
a,f
Endo
DAC,
Escrow
Account
...........................
United
States
389,000
—
a,f
Endo,
Inc.,
Escrow
Account
............................
United
States
500,000
—
a,f
Par
Pharmaceutical,
Inc.,
Escrow
Account
.................
United
States
225,000
—
Total
Escrows
and
Litigation
Trusts
(Cost
$48,985)
............................
28,125
Total
Long
Term
Investments
(Cost
$205,286,633)
.............................
259,690,686
a
Short
Term
Investments
2.0%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
2.0%
l,m
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.982%
..
United
States
4,054,622
4,054,622
Total
Money
Market
Funds
(Cost
$4,054,622)
.................................
4,054,622
Total
Short
Term
Investments
(Cost
$4,054,622
)
...............................
4,054,622
a
Total
Investments
(Cost
$209,341,255)
127.9%
................................
$263,745,308
n
Credit
Facility
(29.1)%
......................................................
(60,000,000)
Other
Assets,
less
Liabilities
1.2%
...........................................
2,448,026
Net
Assets
100.0%
.........................................................
$206,193,334
a
a
a
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
See
Abbreviations
on
page
44
.
*
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
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,
2024,
the
aggregate
value
of
these
securities
was
$141,197,227,
representing
68.5%
of
net
assets.
c
A
portion
or
all
of
the
security
is
pledged
as
collateral
in
connection
with
the
Fund’s
credit
facility.
d
Income
may
be
received
in
additional
securities
and/or
cash.
e
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
7.
f
Fair
valued
using
significant
unobservable
inputs.
See
Note
10
regarding
fair
value
measurements.
g
See
Note
8
regarding
restricted
securities.
h
See
Note
1(c)
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(d)
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.
n
See
Note
9
regarding
credit
facility.
Schedule
of
Investments,
August
31,
2024
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
At
August
31,
2024,
the
Fund
had
the
following
marketplace
loans
outstanding.
See
Note
1(d).
Description
Principal
Amount
Value
Marketplace
Loans
-
2.5%
Freedom
Financial
Asset
Management
LLC
APP-10849903.FP.FTS.B
,
11
.24
%
,
10/16/24
$
1,805
$
1,809
APP-11139281.FP.FTS.B
,
8
.49
%
,
11/01/24
1,260
1,262
APP-11106155.FP.FTS.B
,
12
.74
%
,
11/01/24
2,089
2,093
APP-11021958.FP.FTS.B
,
12
.24
%
,
12/10/24
1,357
1,360
APP-10836612.FP.FTS.B
,
21
.49
%
,
12/15/24
2,772
1,229
APP-11693890.FP.FTS.B
,
13
.24
%
,
12/17/24
4,235
4,247
APP-11007940.FP.FTS.B
,
10
.49
%
,
12/19/24
1,439
1,445
APP-11799520.FP.FTS.B
,
16
.99
%
,
12/25/24
1,508
1,517
APP-11766706.FP.FTS.B
,
23
.99
%
,
2/02/25
1,656
1,667
APP-11694349.FP.FTS.B
,
14
.24
%
,
2/07/25
5,804
5,840
APP-12394118.FP.FTS.B
,
17
.74
%
,
3/10/25
4,623
4,726
APP-14953979.FP.FTS.B
,
7
.74
%
,
7/13/25
.
9,473
9,539
APP-15094222.FP.FTS.B
,
10
.24
%
,
7/14/25
7,733
7,784
APP-15090883.FP.FTS.B
,
25
.49
%
,
7/14/25
430
422
APP-15034726.FP.FTS.B
,
25
.49
%
,
7/25/25
3,449
3,522
APP-10111431.FP.FTS.B
,
10
.99
%
,
9/15/25
6,198
6,268
APP-10140977.FP.FTS.B
,
24
.99
%
,
9/15/25
3,862
4,051
APP-10091198.FP.FTS.B
,
15
.49
%
,
9/24/25
1,500
1,508
APP-11022514.FP.FTS.B
,
18
.49
%
,
10/26/25
6,229
6,446
APP-10578403.FP.FTS.B
,
15
.99
%
,
10/30/25
7,326
7,577
APP-10561192.FP.FTS.B
,
8
.99
%
,
11/03/25
5,770
5,837
APP-10841976.FP.FTS.B
,
10
.99
%
,
11/28/25
4,029
4,063
APP-11105408.FP.FTS.B
,
10
.99
%
,
12/14/25
4,370
4,427
APP-11843242.FP.FTS.B
,
12
.24
%
,
12/15/25
7,574
7,669
APP-11022500.FP.FTS.B
,
17
.99
%
,
12/16/25
4,896
5,060
APP-11579320.FP.FTS.B
,
16
.99
%
,
12/20/25
8,431
8,885
APP-10868780.FP.FTS.B
,
14
.49
%
,
1/02/26
12,644
13,034
APP-11798391.FP.FTS.B
,
18
.49
%
,
1/04/26
4,429
4,549
APP-12378685.FP.FTS.B
,
15
.99
%
,
2/01/26
6,264
6,362
APP-11757188.FP.FTS.B
,
18
.24
%
,
2/02/26
6,079
6,157
APP-11757063.FP.FTS.B
,
17
.99
%
,
2/05/26
8,934
9,247
APP-12281543.FP.FTS.B
,
16
.74
%
,
3/08/26
16,372
16,885
APP-12246304.FP.FTS.B
,
18
.24
%
,
3/08/26
15,089
15,639
APP-12397373.FP.FTS.B
,
15
.99
%
,
3/15/26
6,374
6,491
APP-11799488.FP.FTS.B
,
16
.99
%
,
3/16/26
9,188
9,447
APP-12419810.FP.FTS.B
,
15
.74
%
,
3/20/26
18,224
18,780
APP-12270812.FP.FTS.B
,
16
.99
%
,
3/22/26
5,775
5,956
APP-12421465.FP.FTS.B
,
17
.99
%
,
3/23/26
4,472
4,501
APP-13524997.FP.FTS.B
,
10
.59
%
,
3/25/26
7,092
7,191
APP-13511680.FP.FTS.B
,
12
.84
%
,
5/05/26
7,196
7,295
APP-13477482.FP.FTS.B
,
10
.34
%
,
5/18/26
18,883
19,173
APP-13527002.FP.FTS.B
,
15
.59
%
,
5/19/26
5,016
5,106
APP-14943761.FP.FTS.B
,
15
.99
%
,
6/01/26
10,978
11,137
APP-15112645.FP.FTS.B
,
16
.99
%
,
7/15/26
10,762
11,144
APP-15053141.FP.FTS.B
,
18
.99
%
,
7/15/26
11,062
11,418
APP-15107872.FP.FTS.B
,
20
.49
%
,
7/15/26
8,174
2,850
APP-15064308.FP.FTS.B
,
22
.49
%
,
7/15/26
12,432
12,964
APP-15065994.FP.FTS.B
,
17
.74
%
,
7/20/26
28,034
8,945
APP-15054013.FP.FTS.B
,
17
.99
%
,
7/20/26
9,072
9,324
APP-15109634.FP.FTS.B
,
19
.49
%
,
7/21/26
5,604
5,762
APP-15073340.FP.FTS.B
,
15
.99
%
,
7/25/26
5,444
5,544
APP-14860724.FP.FTS.B
,
20
.99
%
,
7/26/26
10,880
11,363
APP-15111841.FP.FTS.B
,
7
.84
%
,
7/28/26
.
17,814
2,428
APP-14956830.FP.FTS.B
,
15
.74
%
,
7/28/26
16,316
16,877
APP-10133595.FP.FTS.B
,
11
.99
%
,
8/11/26
9,445
9,590
APP-10140897.FP.FTS.B
,
16
.99
%
,
8/12/26
10,562
10,772
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-10145662.FP.FTS.B
,
18
.99
%
,
9/17/26
$
11,429
$
11,858
APP-13256383.FP.FTS.B
,
7
.99
%
,
9/18/26
.
20,476
20,798
APP-10460831.FP.FTS.B
,
21
.99
%
,
9/19/26
4,134
4,310
APP-10572421.FP.FTS.B
,
10
.49
%
,
9/20/26
16,714
16,991
APP-10112510.FP.FTS.B
,
16
.49
%
,
9/25/26
6,435
6,593
APP-09931612.FP.FTS.B
,
14
.24
%
,
10/03/26
8,131
8,248
APP-10838239.FP.FTS.B
,
12
.49
%
,
10/12/26
16,458
16,722
APP-10845328.FP.FTS.B
,
11
.99
%
,
10/16/26
12,657
12,863
APP-10704368.FP.FTS.B
,
14
.99
%
,
10/16/26
10,051
10,265
APP-10745909.FP.FTS.B
,
17
.99
%
,
10/16/26
27,099
27,671
APP-10829192.FP.FTS.B
,
18
.99
%
,
10/16/26
13,422
13,926
APP-10581131.FP.FTS.B
,
22
.49
%
,
10/22/26
5,539
5,806
APP-10384953.FP.FTS.B
,
19
.99
%
,
11/02/26
9,113
9,441
APP-11119432.FP.FTS.B
,
11
.99
%
,
11/03/26
11,516
11,691
APP-11187454.FP.FTS.B
,
22
.49
%
,
11/10/26
2,438
2,444
APP-10848002.FP.FTS.B
,
17
.99
%
,
11/19/26
13,420
13,880
APP-10842381.FP.FTS.B
,
12
.49
%
,
11/21/26
18,144
18,454
APP-10671079.FP.FTS.B
,
11
.99
%
,
11/30/26
14,599
14,881
APP-10670975.FP.FTS.B
,
21
.49
%
,
11/30/26
8,990
9,510
APP-11094577.FP.FTS.B
,
19
.49
%
,
12/08/26
6,989
7,298
APP-11008022.FP.FTS.B
,
11
.99
%
,
12/13/26
7,623
7,754
APP-11021456.FP.FTS.B
,
20
.99
%
,
12/15/26
21,468
22,516
APP-11116084.FP.FTS.B
,
19
.49
%
,
12/19/26
3,275
3,255
APP-11007668.FP.FTS.B
,
19
.99
%
,
12/19/26
10,553
11,017
APP-11091099.FP.FTS.B
,
9
.99
%
,
12/20/26
16,314
16,615
APP-11111264.FP.FTS.B
,
16
.49
%
,
12/20/26
6,740
6,906
APP-11874582.FP.FTS.B
,
17
.49
%
,
12/23/26
12,390
12,816
APP-11677084.FP.FTS.B
,
15
.49
%
,
12/26/26
25,043
25,509
APP-10848317.FP.FTS.B
,
12
.24
%
,
12/30/26
11,106
11,311
APP-11799609.FP.FTS.B
,
10
.99
%
,
1/01/27
17,710
17,981
APP-11844341.FP.FTS.B
,
16
.74
%
,
1/01/27
19,229
19,779
APP-10224478.FP.FTS.B
,
20
.49
%
,
1/02/27
16,493
17,116
APP-11036570.FP.FTS.B
,
22
.99
%
,
1/20/27
4,608
4,642
APP-10830375.FP.FTS.B
,
19
.99
%
,
1/21/27
10,769
1,046
APP-11824892.FP.FTS.B
,
16
.99
%
,
2/03/27
9,985
10,174
APP-11724933.FP.FTS.B
,
14
.24
%
,
2/05/27
8,375
8,533
APP-11674918.FP.FTS.B
,
20
.49
%
,
2/05/27
15,648
16,246
APP-12397051.FP.FTS.B
,
17
.49
%
,
2/06/27
7,265
7,477
APP-11743079.FP.FTS.B
,
16
.24
%
,
2/07/27
23,829
24,634
APP-11757936.FP.FTS.B
,
19
.99
%
,
2/07/27
5,805
6,003
APP-11763967.FP.FTS.B
,
19
.99
%
,
2/07/27
9,263
9,607
APP-11838245.FP.FTS.B
,
19
.99
%
,
2/11/27
5,487
5,649
APP-11798652.FP.FTS.B
,
11
.74
%
,
2/14/27
29,666
8,681
APP-11843528.FP.FTS.B
,
19
.99
%
,
2/14/27
645
646
APP-11845152.FP.FTS.B
,
11
.74
%
,
2/15/27
24,091
24,522
APP-11752200.FP.FTS.B
,
21
.49
%
,
2/23/27
12,627
7,727
APP-10128827.FP.FTS.B
,
25
.49
%
,
2/24/27
5,524
5,770
APP-12106158.FP.FTS.B
,
11
.24
%
,
3/07/27
9,925
10,083
APP-11696610.FP.FTS.B
,
14
.24
%
,
3/07/27
16,108
4,744
APP-12404066.FP.FTS.B
,
22
.49
%
,
3/08/27
24,035
2,438
APP-11801830.FP.FTS.B
,
16
.49
%
,
3/15/27
12,367
12,639
APP-12407302.FP.FTS.B
,
18
.99
%
,
3/15/27
6,968
7,188
APP-11863466.FP.FTS.B
,
25
.49
%
,
3/17/27
6,544
6,849
APP-12385340.FP.FTS.B
,
25
.49
%
,
3/17/27
5,874
6,137
APP-12341500.FP.FTS.B
,
20
.49
%
,
3/20/27
10,546
11,019
APP-12396943.FP.FTS.B
,
13
.49
%
,
3/21/27
10,093
10,306
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12270734.FP.FTS.B
,
16
.99
%
,
3/21/27
$
11,416
$
11,700
APP-12408150.FP.FTS.B
,
19
.99
%
,
3/21/27
7,524
961
APP-13531026.FP.FTS.B
,
11
.59
%
,
3/28/27
14,631
14,920
APP-13513406.FP.FTS.B
,
14
.34
%
,
4/01/27
30,937
31,452
APP-11744634.FP.FTS.B
,
19
.99
%
,
4/01/27
11,463
7,640
APP-12304720.FP.FTS.B
,
18
.74
%
,
4/06/27
31,930
32,865
APP-11872928.FP.FTS.B
,
11
.24
%
,
4/15/27
9,736
9,912
APP-13478834.FP.FTS.B
,
16
.99
%
,
5/03/27
13,019
13,405
APP-13508795.FP.FTS.B
,
9
.59
%
,
5/05/27
.
10,664
10,830
APP-13047632.FP.FTS.B
,
11
.49
%
,
5/05/27
7,711
7,837
APP-13485036.FP.FTS.B
,
13
.34
%
,
5/06/27
8,166
8,317
APP-08710316.FP.FTS.B
,
10
.99
%
,
5/13/27
20,847
21,221
APP-13498730.FP.FTS.B
,
11
.34
%
,
5/15/27
12,192
12,413
APP-13329158.FP.FTS.B
,
17
.99
%
,
5/15/27
5,391
5,433
APP-13453359.FP.FTS.B
,
18
.24
%
,
5/15/27
19,550
20,200
APP-13512105.FP.FTS.B
,
19
.49
%
,
5/16/27
17,158
17,739
APP-13479562.FP.FTS.B
,
18
.49
%
,
5/17/27
10,954
3,642
APP-13227905.FP.FTS.B
,
21
.99
%
,
5/18/27
6,778
7,038
APP-13517315.FP.FTS.B
,
12
.09
%
,
5/19/27
30,681
31,270
APP-13507352.FP.FTS.B
,
20
.49
%
,
5/19/27
6,297
6,515
APP-13531806.FP.FTS.B
,
16
.99
%
,
5/20/27
13,020
13,341
APP-13485605.FP.FTS.B
,
18
.99
%
,
5/20/27
9,002
9,329
APP-13518313.FP.FTS.B
,
18
.99
%
,
6/20/27
11,744
12,241
APP-13302186.FP.FTS.B
,
20
.49
%
,
6/25/27
9,941
10,319
APP-14906773.FP.FTS.B
,
9
.74
%
,
7/15/27
.
25,036
25,451
APP-15064429.FP.FTS.B
,
14
.49
%
,
7/15/27
17,651
17,965
APP-15070181.FP.FTS.B
,
19
.99
%
,
7/15/27
11,985
12,331
APP-14865954.FP.FTS.B
,
11
.74
%
,
7/16/27
17,410
17,704
APP-15149750.FP.FTS.B
,
11
.99
%
,
7/16/27
2,221
2,221
APP-15057995.FP.FTS.B
,
18
.99
%
,
7/23/27
6,799
6,954
APP-15058449.FP.FTS.B
,
11
.99
%
,
7/25/27
7,788
7,938
APP-15078317.FP.FTS.B
,
13
.99
%
,
7/25/27
13,745
14,033
APP-15055723.FP.FTS.B
,
11
.24
%
,
7/26/27
20,450
20,847
APP-15048744.FP.FTS.B
,
16
.49
%
,
7/27/27
15,480
15,989
APP-15053719.FP.FTS.B
,
16
.99
%
,
7/28/27
7,511
7,698
APP-15133409.FP.FTS.B
,
15
.49
%
,
7/30/27
17,082
17,533
APP-15053776.FP.FTS.B
,
17
.49
%
,
7/30/27
8,264
8,461
APP-15039962.FP.FTS.B
,
12
.49
%
,
8/28/27
34,514
35,190
APP-14958373.FP.FTS.B
,
12
.24
%
,
9/16/27
12,407
12,631
APP-15070551.FP.FTS.B
,
24
.74
%
,
4/27/28
13,879
14,203
APP-10084299.FP.FTS.B
,
16
.49
%
,
8/11/34
669
518
1,583,376
LendingClub
Corp.
155731933.LC.FTS.B
,
15
.24
%
,
9/29/24
...
2,474
236
158913750.LC.FTS.B
,
11
.71
%
,
9/30/24
...
1,087
1,084
160792694.LC.FTS.B
,
13
.08
%
,
10/23/24
..
1,793
1,791
161424051.LC.FTS.B
,
10
.33
%
,
11/05/24
..
938
934
162010515.LC.FTS.B
,
17
.74
%
,
11/18/24
..
2,043
192
164089980.LC.FTS.B
,
17
.74
%
,
2/28/25
...
4,045
–
167132427.LC.FTS.B
,
20
.55
%
,
2/28/25
...
3,769
3,816
161483895.LC.FTS.B
,
13
.08
%
,
3/07/25
...
1,636
196
167747801.LC.FTS.B
,
16
.12
%
,
3/15/25
...
5,811
–
168420680.LC.FTS.B
,
17
.74
%
,
3/16/25
...
3,416
3,395
166170570.LC.FTS.B
,
17
.74
%
,
3/17/25
...
4,917
462
168140265.LC.FTS.B
,
15
.24
%
,
3/21/25
...
3,700
3,678
167712249.LC.FTS.B
,
14
.3
%
,
4/20/25
...
3,993
3,974
165352318.LC.FTS.B
,
15
.24
%
,
6/22/25
...
6,553
6,486
Description
Principal
Amount
Value
LendingClub
Corp.
(continued)
160809803.LC.FTS.B
,
13
.08
%
,
2/23/26
...
$
7,769
$
7,563
151259806.LC.FTS.B
,
20
%
,
6/04/34
.....
7,796
–
155823205.LC.FTS.B
,
14
.3
%
,
7/24/34
...
1,027
1,033
156812488.LC.FTS.B
,
14
.3
%
,
9/21/34
...
14
14
159089545.LC.FTS.B
,
16
.95
%
,
9/23/34
...
294
295
153974620.LC.FTS.B
,
14
.3
%
,
9/24/34
...
633
80
35,229
LendingClub
Corp.
-
LCX
164542068.LC.FTS.B
,
25
.65
%
,
1/21/25
...
1,814
1,831
LendingClub
Corp.
-
LCX
PM
184916811.LC.FTS.B
,
15
.99
%
,
1/18/25
...
2,059
2,057
185085067.LC.FTS.B
,
22
.99
%
,
1/18/25
...
3,109
3,150
184905245.LC.FTS.B
,
15
.99
%
,
1/19/25
...
7,990
–
185231531.LC.FTS.B
,
21
.49
%
,
1/19/25
...
719
725
185449370.LC.FTS.B
,
18
.44
%
,
1/25/25
...
2,568
2,556
185337050.LC.FTS.B
,
20
.99
%
,
1/25/25
...
7,900
603
185529283.LC.FTS.B
,
18
.99
%
,
1/27/25
...
3,497
3,491
185074501.LC.FTS.B
,
12
.74
%
,
1/29/25
...
830
829
185743058.LC.FTS.B
,
12
.19
%
,
2/02/25
...
1,543
1,532
185720673.LC.FTS.B
,
14
.49
%
,
2/04/25
...
1,188
1,176
184778654.LC.FTS.B
,
16
.19
%
,
2/04/25
...
819
366
185806351.LC.FTS.B
,
18
.99
%
,
2/07/25
...
4,386
205
185828353.LC.FTS.B
,
22
.99
%
,
2/08/25
...
5,182
954
186050160.LC.FTS.B
,
15
.99
%
,
2/10/25
...
3,524
3,507
185828265.LC.FTS.B
,
19
.44
%
,
2/10/25
...
3,348
3,370
186144016.LC.FTS.B
,
Zero
Cpn
,
2/14/25
.
4,706
–
185731098.LC.FTS.B
,
18
.99
%
,
2/14/25
...
833
830
186141198.LC.FTS.B
,
18
.99
%
,
2/14/25
...
1,041
1,037
186248821.LC.FTS.B
,
12
.94
%
,
2/16/25
...
3,446
3,443
188498393.LC.FTS.B
,
18
.99
%
,
4/25/25
...
10,112
10,130
187330959.LC.FTS.B
,
23
.99
%
,
4/25/25
...
4,310
4,406
188790970.LC.FTS.B
,
19
.99
%
,
4/27/25
...
6,904
6,927
188578940.LC.FTS.B
,
23
.99
%
,
4/27/25
...
321
326
188852266.LC.FTS.B
,
23
.99
%
,
4/27/25
...
1,926
1,966
188781202.LC.FTS.B
,
15
.99
%
,
4/28/25
...
3,842
3,796
188845200.LC.FTS.B
,
16
.99
%
,
4/28/25
...
536
537
188849723.LC.FTS.B
,
19
.49
%
,
4/28/25
...
549
557
188683873.LC.FTS.B
,
23
.99
%
,
5/01/25
...
3,924
3,980
185591984.LC.FTS.B
,
18
.99
%
,
5/28/25
...
4,131
4,126
188854471.LC.FTS.B
,
24
.79
%
,
8/27/25
...
1,988
264
171733583.LC.FTS.B
,
18
.24
%
,
10/30/25
..
7,462
7,469
186109882.LC.FTS.B
,
5
%
,
2/14/26
......
8,753
3,615
185664927.LC.FTS.B
,
5
%
,
2/16/26
......
2,710
226
185030629.LC.FTS.B
,
28
.99
%
,
1/13/27
...
3,932
3,984
184976261.LC.FTS.B
,
15
.44
%
,
1/18/27
...
13,495
1,269
185203099.LC.FTS.B
,
21
.99
%
,
1/19/27
...
7,334
7,322
185257156.LC.FTS.B
,
23
.99
%
,
1/19/27
...
8,483
8,527
185208719.LC.FTS.B
,
27
.99
%
,
1/19/27
...
6,044
6,123
185284755.LC.FTS.B
,
20
.24
%
,
1/21/27
...
14,228
14,140
184608676.LC.FTS.B
,
21
.99
%
,
1/21/27
...
9,220
9,279
185280664.LC.FTS.B
,
21
.99
%
,
1/21/27
...
10,928
10,867
185094462.LC.FTS.B
,
22
.99
%
,
1/21/27
...
7,472
7,521
185465019.LC.FTS.B
,
21
.99
%
,
1/27/27
...
15,435
15,514
184862697.LC.FTS.B
,
13
.19
%
,
1/28/27
...
8,835
8,612
185102499.LC.FTS.B
,
17
.49
%
,
1/28/27
...
8,908
8,755
185593614.LC.FTS.B
,
14
.94
%
,
1/31/27
...
3,441
3,391
185625736.LC.FTS.B
,
17
.24
%
,
1/31/27
...
8,101
7,972
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
PM
(continued)
185553869.LC.FTS.B
,
17
.44
%
,
1/31/27
...
$
10,122
$
9,966
185801067.LC.FTS.B
,
15
.19
%
,
2/04/27
...
8,898
8,660
185785605.LC.FTS.B
,
16
.99
%
,
2/04/27
...
14,600
14,300
185670781.LC.FTS.B
,
14
.74
%
,
2/08/27
...
23,622
23,006
186105140.LC.FTS.B
,
14
.99
%
,
2/10/27
...
8,395
–
186053383.LC.FTS.B
,
18
.49
%
,
2/10/27
...
15,410
15,103
186073191.LC.FTS.B
,
23
.99
%
,
2/10/27
...
6,437
6,445
186037923.LC.FTS.B
,
23
.49
%
,
2/12/27
...
4,496
4,490
185962334.LC.FTS.B
,
16
.49
%
,
2/14/27
...
21,033
20,627
186072313.LC.FTS.B
,
19
.99
%
,
2/14/27
...
9,953
9,843
186114907.LC.FTS.B
,
24
.99
%
,
2/14/27
...
6,232
–
185957980.LC.FTS.B
,
10
.99
%
,
2/15/27
...
14,338
13,984
185644818.LC.FTS.B
,
17
.24
%
,
2/15/27
...
20,217
19,354
185788975.LC.FTS.B
,
20
.44
%
,
2/15/27
...
25,085
24,744
186037630.LC.FTS.B
,
23
.99
%
,
2/15/27
...
9,787
9,790
185737435.LC.FTS.B
,
19
.74
%
,
2/16/27
...
12,410
–
186255693.LC.FTS.B
,
28
.99
%
,
2/16/27
...
5,374
5,451
185994246.LC.FTS.B
,
23
.99
%
,
2/17/27
...
5,085
–
186057988.LC.FTS.B
,
23
.99
%
,
2/25/27
...
13,069
13,121
186004411.LC.FTS.B
,
21
.99
%
,
2/28/27
...
9,848
1,947
185584314.LC.FTS.B
,
23
.99
%
,
2/28/27
...
8,329
8,278
188681928.LC.FTS.B
,
22
.99
%
,
4/25/27
...
7,249
–
188818650.LC.FTS.B
,
20
.99
%
,
4/26/27
...
4,214
4,206
188684882.LC.FTS.B
,
23
.99
%
,
4/26/27
...
4,162
4,105
188791237.LC.FTS.B
,
27
.99
%
,
4/26/27
...
13,103
13,318
188850161.LC.FTS.B
,
18
.99
%
,
4/27/27
...
5,178
5,110
188698368.LC.FTS.B
,
20
.99
%
,
4/27/27
...
17,075
1,610
188844587.LC.FTS.B
,
20
.99
%
,
4/27/27
...
6,585
6,573
188821742.LC.FTS.B
,
23
.99
%
,
4/27/27
...
13,492
13,613
188832786.LC.FTS.B
,
27
.99
%
,
4/27/27
...
3,482
3,568
188770586.LC.FTS.B
,
21
.49
%
,
4/28/27
...
11,904
11,778
188825826.LC.FTS.B
,
23
.49
%
,
4/28/27
...
6,723
6,769
188877761.LC.FTS.B
,
25
.99
%
,
4/28/27
...
5,009
5,030
188729615.LC.FTS.B
,
28
.99
%
,
4/28/27
...
17,546
17,969
188842402.LC.FTS.B
,
21
.49
%
,
4/30/27
...
4,071
4,052
188806927.LC.FTS.B
,
23
.99
%
,
4/30/27
...
10,429
10,517
188652977.LC.FTS.B
,
23
.99
%
,
5/24/27
...
2,438
2,423
185215933.LC.FTS.B
,
15
%
,
6/25/27
.....
12,798
10,677
185500483.LC.FTS.B
,
15
%
,
7/18/27
.....
24,329
19,686
185186598.LC.FTS.B
,
21
.99
%
,
8/19/27
...
6,154
118
185051135.LC.FTS.B
,
23
.99
%
,
8/28/27
...
17,812
3,522
185440062.LC.FTS.B
,
10
%
,
9/25/27
.....
15,809
12,109
185579608.LC.FTS.B
,
23
.99
%
,
10/15/27
..
23,258
2,870
188826193.LC.FTS.B
,
22
.99
%
,
12/26/27
..
6,458
1,274
186094287.LC.FTS.B
,
5
%
,
2/29/28
......
8,365
6,779
568,217
Prosper
Funding
LLC
1632609.PS.FTS.B
,
14
.39
%
,
10/06/24
...
529
529
1630510.PS.FTS.B
,
11
.97
%
,
10/10/24
....
528
528
1626424.PS.FTS.B
,
11
.7
%
,
10/19/24
....
1,905
342
1645271.PS.FTS.B
,
10
.8
%
,
10/27/24
....
1,184
1,189
1649014.PS.FTS.B
,
22
.7
%
,
10/27/24
....
290
296
1656261.PS.FTS.B
,
16
%
,
10/28/24
......
738
740
1646552.PS.FTS.B
,
15
.29
%
,
10/29/24
...
1,528
1,557
1658149.PS.FTS.B
,
13
.4
%
,
11/08/24
....
496
496
1664838.PS.FTS.B
,
20
.01
%
,
11/08/24
....
349
348
1661257.PS.FTS.B
,
17
.8
%
,
11/12/24
....
210
210
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1655723.PS.FTS.B
,
15
.1
%
,
11/15/24
....
$
2,132
$
2,125
1685619.PS.FTS.B
,
14
.39
%
,
12/14/24
...
675
673
1672733.PS.FTS.B
,
15
%
,
12/14/24
......
1,347
1,340
1678747.PS.FTS.B
,
19
.3
%
,
12/14/24
....
283
284
1679110.PS.FTS.B
,
13
.36
%
,
12/15/24
....
400
398
1672982.PS.FTS.B
,
22
%
,
12/15/24
......
438
440
1680175.PS.FTS.B
,
22
.6
%
,
12/16/24
....
380
380
1674770.PS.FTS.B
,
13
.1
%
,
12/17/24
....
1,970
1,970
1674347.PS.FTS.B
,
15
.86
%
,
12/17/24
...
2,015
2,015
1673372.PS.FTS.B
,
16
%
,
12/17/24
......
925
926
1688336.PS.FTS.B
,
19
.2
%
,
1/12/25
.....
8,547
2,139
1687970.PS.FTS.B
,
23
.5
%
,
1/12/25
.....
284
284
1694470.PS.FTS.B
,
15
.29
%
,
1/13/25
....
2,047
2,047
1674329.PS.FTS.B
,
14
.89
%
,
1/16/25
....
1,013
1,008
1700772.PS.FTS.B
,
12
.1
%
,
1/17/25
.....
2,092
2,077
1690265.PS.FTS.B
,
23
.3
%
,
1/18/25
.....
897
900
1692512.PS.FTS.B
,
19
.34
%
,
1/19/25
....
313
311
1700011.PS.FTS.B
,
13
.9
%
,
1/21/25
.....
865
863
1688699.PS.FTS.B
,
21
.8
%
,
1/27/25
.....
1,662
1,661
1697303.PS.FTS.B
,
13
.9
%
,
1/31/25
.....
806
804
1720938.PS.FTS.B
,
13
.81
%
,
2/15/25
....
3,795
3,795
1715485.PS.FTS.B
,
16
%
,
2/15/25
.......
5,016
4,998
1714630.PS.FTS.B
,
16
.16
%
,
2/15/25
....
3,015
3,004
1714624.PS.FTS.B
,
19
.41
%
,
2/15/25
....
3,003
2,682
1715122.PS.FTS.B
,
19
.8
%
,
2/15/25
.....
545
546
1720920.PS.FTS.B
,
21
.2
%
,
2/15/25
.....
3,261
470
1722360.PS.FTS.B
,
22
.6
%
,
2/16/25
.....
422
425
1723116.PS.FTS.B
,
16
.29
%
,
2/17/25
....
655
100
1720755.PS.FTS.B
,
13
.96
%
,
2/28/25
....
5,772
5,718
1749541.PS.FTS.B
,
22
.03
%
,
4/05/25
....
969
963
1750351.PS.FTS.B
,
15
.2
%
,
4/06/25
.....
896
887
1745381.PS.FTS.B
,
12
.9
%
,
4/08/25
.....
5,139
5,065
1714408.PS.FTS.B
,
22
.11
%
,
4/12/25
....
5,102
258
1753944.PS.FTS.B
,
15
.4
%
,
4/14/25
.....
3,125
3,125
1750903.PS.FTS.B
,
24
.4
%
,
4/15/25
.....
2,800
2,489
1758243.PS.FTS.B
,
24
.4
%
,
4/16/25
.....
1,678
507
1742906.PS.FTS.B
,
15
.4
%
,
4/30/25
.....
617
608
1743767.PS.FTS.B
,
25
.71
%
,
5/05/25
....
2,833
2,833
1752241.PS.FTS.B
,
14
.7
%
,
5/10/25
.....
18,559
11,097
1701129.PS.FTS.B
,
16
.4
%
,
7/17/25
.....
3,659
3,604
1701120.PS.FTS.B
,
15
.9
%
,
12/12/25
....
5,463
5,310
1606127.PS.FTS.B
,
15
.2
%
,
8/17/26
.....
4,467
4,414
1607933.PS.FTS.B
,
18
.5
%
,
8/19/26
.....
1,024
1,039
1608617.PS.FTS.B
,
13
.7
%
,
8/20/26
.....
2,899
2,852
1609277.PS.FTS.B
,
15
.7
%
,
8/23/26
.....
6,935
6,864
1610327.PS.FTS.B
,
27
.6
%
,
8/24/26
.....
4,546
4,729
1621434.PS.FTS.B
,
14
.6
%
,
8/26/26
.....
1,682
1,665
1621428.PS.FTS.B
,
20
%
,
8/26/26
.......
5,210
5,300
1611746.PS.FTS.B
,
14
.29
%
,
8/27/26
....
4,380
4,316
1625740.PS.FTS.B
,
18
.48
%
,
9/16/26
....
5,289
5,366
1623731.PS.FTS.B
,
18
.93
%
,
9/21/26
....
9,569
9,730
1635897.PS.FTS.B
,
12
%
,
9/23/26
.......
10,777
10,617
1635735.PS.FTS.B
,
14
.68
%
,
9/23/26
....
7,592
7,478
1627036.PS.FTS.B
,
16
.33
%
,
9/25/26
....
6,993
6,907
1637445.PS.FTS.B
,
13
.3
%
,
9/27/26
.....
4,995
4,917
1626758.PS.FTS.B
,
17
.96
%
,
9/30/26
....
12,053
11,912
1634247.PS.FTS.B
,
16
.7
%
,
10/05/26
....
12,714
12,544
1626046.PS.FTS.B
,
15
.18
%
,
10/16/26
...
5,157
5,057
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Prosper
Funding
LLC
(continued)
1644875.PS.FTS.B
,
11
.6
%
,
10/26/26
....
$
3,786
$
3,721
1648324.PS.FTS.B
,
12
.2
%
,
10/26/26
....
10,169
9,995
1644860.PS.FTS.B
,
18
.33
%
,
10/26/26
...
6,827
976
1645337.PS.FTS.B
,
18
.48
%
,
10/27/26
...
10,931
11,110
1646123.PS.FTS.B
,
13
.32
%
,
10/28/26
...
3,991
3,948
1649926.PS.FTS.B
,
13
.8
%
,
10/29/26
....
17,658
17,721
1661010.PS.FTS.B
,
12
.5
%
,
11/05/26
....
13,702
13,412
1654774.PS.FTS.B
,
16
.18
%
,
11/05/26
....
19,225
18,882
1651868.PS.FTS.B
,
9
.45
%
,
11/08/26
....
6,609
6,474
1658185.PS.FTS.B
,
10
.5
%
,
11/08/26
....
4,633
4,538
1653323.PS.FTS.B
,
16
%
,
11/09/26
......
6,578
6,470
1666362.PS.FTS.B
,
19
%
,
11/09/26
......
3,963
3,999
1666911.PS.FTS.B
,
10
.62
%
,
11/10/26
....
6,702
6,568
1660066.PS.FTS.B
,
12
.6
%
,
11/10/26
....
18,467
18,095
1666890.PS.FTS.B
,
17
%
,
11/10/26
......
8,902
8,969
1661433.PS.FTS.B
,
28
.23
%
,
11/14/26
....
3,287
852
1666359.PS.FTS.B
,
21
%
,
11/15/26
......
3,542
3,652
1662505.PS.FTS.B
,
25
.4
%
,
11/15/26
....
6,035
6,257
1651871.PS.FTS.B
,
20
.66
%
,
11/20/26
....
3,210
3,229
1651913.PS.FTS.B
,
25
.67
%
,
11/22/26
....
4,366
4,489
1672316.PS.FTS.B
,
10
.44
%
,
12/14/26
...
6,909
6,757
1685634.PS.FTS.B
,
12
.5
%
,
12/14/26
....
4,353
4,257
1672730.PS.FTS.B
,
13
.8
%
,
12/14/26
....
19,339
18,991
1685271.PS.FTS.B
,
16
.8
%
,
12/14/26
....
9,114
2,097
1678372.PS.FTS.B
,
22
.8
%
,
12/14/26
....
6,660
6,880
1672147.PS.FTS.B
,
16
.56
%
,
12/15/26
...
11,461
11,490
1687344.PS.FTS.B
,
19
%
,
12/17/26
......
2,889
2,923
1685997.PS.FTS.B
,
12
.87
%
,
12/18/26
...
4,929
4,821
1678354.PS.FTS.B
,
11
.07
%
,
12/20/26
....
8,050
7,874
1687950.PS.FTS.B
,
11
.5
%
,
12/20/26
....
7,935
7,782
1675010.PS.FTS.B
,
12
.5
%
,
12/20/26
....
5,868
5,754
1678387.PS.FTS.B
,
18
.33
%
,
12/23/26
...
7,446
7,484
1685637.PS.FTS.B
,
11
.7
%
,
12/28/26
....
16,818
16,450
1672718.PS.FTS.B
,
14
.38
%
,
1/07/27
....
4,655
4,544
1686078.PS.FTS.B
,
10
.5
%
,
1/08/27
.....
6,627
6,473
1701111.PS.FTS.B
,
10
.29
%
,
1/12/27
.....
13,549
13,249
1700808.PS.FTS.B
,
11
.4
%
,
1/12/27
.....
5,538
5,415
1701108.PS.FTS.B
,
15
.7
%
,
1/12/27
.....
20,288
19,917
1694491.PS.FTS.B
,
12
.62
%
,
1/13/27
....
8,417
8,231
1694725.PS.FTS.B
,
18
.4
%
,
1/13/27
.....
8,935
9,010
1701537.PS.FTS.B
,
19
.3
%
,
1/13/27
.....
9,013
9,088
1695958.PS.FTS.B
,
10
.5
%
,
1/14/27
.....
8,242
8,052
1689173.PS.FTS.B
,
11
.2
%
,
1/14/27
.....
11,095
9,105
1695787.PS.FTS.B
,
11
.7
%
,
1/14/27
.....
13,890
13,586
1694719.PS.FTS.B
,
16
.93
%
,
1/17/27
....
10,556
10,345
1702455.PS.FTS.B
,
15
.18
%
,
1/20/27
....
9,297
9,079
1689251.PS.FTS.B
,
19
%
,
1/21/27
.......
2,410
2,425
1707746.PS.FTS.B
,
9
.45
%
,
2/14/27
.....
3,828
3,742
1720917.PS.FTS.B
,
13
.7
%
,
2/15/27
.....
7,298
7,168
1714648.PS.FTS.B
,
16
.7
%
,
2/15/27
.....
4,511
4,430
1721346.PS.FTS.B
,
16
.7
%
,
2/15/27
.....
12,030
12,140
1720911.PS.FTS.B
,
18
.59
%
,
2/15/27
....
15,312
15,447
1714642.PS.FTS.B
,
18
.7
%
,
2/15/27
.....
6,131
6,185
1714636.PS.FTS.B
,
23
.58
%
,
2/15/27
....
3,544
3,662
1707734.PS.FTS.B
,
10
.29
%
,
2/16/27
....
6,327
6,225
1709201.PS.FTS.B
,
18
.48
%
,
2/16/27
....
7,648
7,719
1714627.PS.FTS.B
,
11
.4
%
,
2/17/27
.....
11,983
11,699
1703169.PS.FTS.B
,
25
.6
%
,
2/25/27
.....
10,797
11,121
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1749550.PS.FTS.B
,
11
.5
%
,
4/05/27
.....
$
9,060
$
8,802
1752624.PS.FTS.B
,
17
.23
%
,
4/05/27
....
12,756
12,413
1753011.PS.FTS.B
,
12
%
,
4/06/27
.......
9,105
8,848
1754293.PS.FTS.B
,
13
.4
%
,
4/12/27
.....
7,384
7,206
1747163.PS.FTS.B
,
16
.2
%
,
4/12/27
.....
15,796
15,410
1744328.PS.FTS.B
,
14
.89
%
,
4/15/27
....
12,552
12,227
1752654.PS.FTS.B
,
12
.76
%
,
4/30/27
....
9,539
9,253
1750735.PS.FTS.B
,
16
%
,
5/06/27
.......
3,671
3,645
1607291.PS.FTS.B
,
28
.59
%
,
7/18/27
....
4,654
4,093
1650328.PS.FTS.B
,
11
.2
%
,
7/29/27
.....
6,457
6,229
1705005.PS.FTS.B
,
15
%
,
12/19/27
......
16,215
7,081
1610038.PS.FTS.B
,
15
%
,
8/17/34
.......
1,089
47
1610444.PS.FTS.B
,
18
.09
%
,
9/08/34
....
555
560
1626067.PS.FTS.B
,
15
.4
%
,
9/17/34
.....
469
472
1634583.PS.FTS.B
,
18
.4
%
,
9/21/34
.....
107
107
1623410.PS.FTS.B
,
18
.5
%
,
9/21/34
.....
71
72
1626395.PS.FTS.B
,
13
.87
%
,
9/24/34
....
1,198
1,202
1626680.PS.FTS.B
,
16
%
,
9/27/34
.......
414
418
766,130
Upgrade,
Inc.
-
Card
992391277.UG.FTS.B
,
28
.98
%
,
10/03/24
.
15
16
992255166.UG.FTS.B
,
20
.46
%
,
4/03/25
..
25
2
992428468.UG.FTS.B
,
25
.95
%
,
4/03/25
..
47
48
992236701.UG.FTS.B
,
29
.49
%
,
4/03/25
..
19
1
992256275.UG.FTS.B
,
29
.49
%
,
4/03/25
..
11
11
992269560.UG.FTS.B
,
29
.49
%
,
4/03/25
..
102
102
992290976.UG.FTS.B
,
29
.49
%
,
4/03/25
..
180
147
992291050.UG.FTS.B
,
29
.49
%
,
4/03/25
..
3
3
992354024.UG.FTS.B
,
29
.49
%
,
4/03/25
..
8
8
992357933.UG.FTS.B
,
29
.49
%
,
4/03/25
..
97
101
992361376.UG.FTS.B
,
29
.49
%
,
4/03/25
..
3
3
992387188.UG.FTS.B
,
28
.98
%
,
4/04/25
..
36
36
992453316.UG.FTS.B
,
28
.98
%
,
4/04/25
..
76
76
992266370.UG.FTS.B
,
29
.49
%
,
4/04/25
..
191
195
992342016.UG.FTS.B
,
29
.49
%
,
4/04/25
..
95
95
992421200.UG.FTS.B
,
29
.49
%
,
4/04/25
..
68
70
992264407.UG.FTS.B
,
14
.97
%
,
4/05/25
..
294
294
992391676.UG.FTS.B
,
15
.97
%
,
4/05/25
..
29
29
992417616.UG.FTS.B
,
17
.99
%
,
4/05/25
..
39
39
992286525.UG.FTS.B
,
18
.8
%
,
4/05/25
...
47
47
992415664.UG.FTS.B
,
18
.97
%
,
4/05/25
..
879
62
992416415.UG.FTS.B
,
19
.21
%
,
4/05/25
..
474
480
992424538.UG.FTS.B
,
19
.21
%
,
4/05/25
..
142
142
992432194.UG.FTS.B
,
19
.8
%
,
4/05/25
...
173
12
992256001.UG.FTS.B
,
19
.97
%
,
4/05/25
..
203
70
992346135.UG.FTS.B
,
19
.99
%
,
4/05/25
..
154
158
992431381.UG.FTS.B
,
19
.99
%
,
4/05/25
..
30
30
992433537.UG.FTS.B
,
19
.99
%
,
4/05/25
..
118
118
992296469.UG.FTS.B
,
21
.98
%
,
4/05/25
..
74
75
992265045.UG.FTS.B
,
25
.95
%
,
4/05/25
..
90
6
992249070.UG.FTS.B
,
28
.98
%
,
4/05/25
..
15
15
992271131.UG.FTS.B
,
28
.98
%
,
4/05/25
..
201
27
992271316.UG.FTS.B
,
28
.98
%
,
4/05/25
..
62
64
992281862.UG.FTS.B
,
28
.98
%
,
4/05/25
..
134
135
992290941.UG.FTS.B
,
28
.98
%
,
4/05/25
..
45
46
992305223.UG.FTS.B
,
28
.98
%
,
4/05/25
..
65
66
992314088.UG.FTS.B
,
28
.98
%
,
4/05/25
..
7
7
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
(continued)
992350450.UG.FTS.B
,
28
.98
%
,
4/05/25
..
$
346
$
347
992404668.UG.FTS.B
,
28
.98
%
,
4/05/25
..
54
25
992426381.UG.FTS.B
,
28
.98
%
,
4/05/25
..
45
46
992430529.UG.FTS.B
,
28
.98
%
,
4/05/25
..
12
12
992452945.UG.FTS.B
,
28
.98
%
,
4/05/25
..
8
8
992456750.UG.FTS.B
,
28
.98
%
,
4/05/25
..
74
76
992376094.UG.FTS.B
,
29
.48
%
,
4/05/25
..
71
10
992239162.UG.FTS.B
,
29
.49
%
,
4/05/25
..
57
58
992240128.UG.FTS.B
,
29
.49
%
,
4/05/25
..
241
245
992241600.UG.FTS.B
,
29
.49
%
,
4/05/25
..
66
5
992243368.UG.FTS.B
,
29
.49
%
,
4/05/25
..
120
122
992247116.UG.FTS.B
,
29
.49
%
,
4/05/25
..
111
43
992255844.UG.FTS.B
,
29
.49
%
,
4/05/25
..
26
26
992268866.UG.FTS.B
,
29
.49
%
,
4/05/25
..
13
13
992268980.UG.FTS.B
,
29
.49
%
,
4/05/25
..
35
36
992271586.UG.FTS.B
,
29
.49
%
,
4/05/25
..
63
65
992275962.UG.FTS.B
,
29
.49
%
,
4/05/25
..
91
93
992276049.UG.FTS.B
,
29
.49
%
,
4/05/25
..
74
76
992291806.UG.FTS.B
,
29
.49
%
,
4/05/25
..
212
220
992293542.UG.FTS.B
,
29
.49
%
,
4/05/25
..
21
21
992301441.UG.FTS.B
,
29
.49
%
,
4/05/25
..
84
86
992326966.UG.FTS.B
,
29
.49
%
,
4/05/25
..
42
42
992341543.UG.FTS.B
,
29
.49
%
,
4/05/25
..
18
18
992341758.UG.FTS.B
,
29
.49
%
,
4/05/25
..
94
96
992344325.UG.FTS.B
,
29
.49
%
,
4/05/25
..
3
3
992355380.UG.FTS.B
,
29
.49
%
,
4/05/25
..
17
17
992359643.UG.FTS.B
,
29
.49
%
,
4/05/25
..
155
159
992359656.UG.FTS.B
,
29
.49
%
,
4/05/25
..
283
293
992368911.UG.FTS.B
,
29
.49
%
,
4/05/25
..
121
124
992369632.UG.FTS.B
,
29
.49
%
,
4/05/25
..
85
87
992371487.UG.FTS.B
,
29
.49
%
,
4/05/25
..
101
1
992371951.UG.FTS.B
,
29
.49
%
,
4/05/25
..
61
62
992391427.UG.FTS.B
,
29
.49
%
,
4/05/25
..
61
63
992394239.UG.FTS.B
,
29
.49
%
,
4/05/25
..
41
41
992401130.UG.FTS.B
,
29
.49
%
,
4/05/25
..
77
27
992403505.UG.FTS.B
,
29
.49
%
,
4/05/25
..
98
–
992419811.UG.FTS.B
,
29
.49
%
,
4/05/25
..
48
49
992424526.UG.FTS.B
,
29
.49
%
,
4/05/25
..
136
–
992425789.UG.FTS.B
,
29
.49
%
,
4/05/25
..
132
136
992427607.UG.FTS.B
,
29
.49
%
,
4/05/25
..
16
16
992444707.UG.FTS.B
,
29
.49
%
,
4/05/25
..
45
46
992452371.UG.FTS.B
,
29
.49
%
,
4/05/25
..
51
53
992455102.UG.FTS.B
,
29
.49
%
,
4/05/25
..
140
144
992401571.UG.FTS.B
,
29
.49
%
,
5/03/25
..
41
42
992460328.UG.FTS.B
,
29
.49
%
,
8/01/25
..
63
65
992301470.UG.FTS.B
,
28
.98
%
,
9/02/25
..
115
15
992421379.UG.FTS.B
,
28
.98
%
,
9/03/25
..
97
81
992286064.UG.FTS.B
,
29
.49
%
,
12/03/25
.
416
–
992238906.UG.FTS.B
,
22
.97
%
,
4/03/26
..
2,730
546
992332109.UG.FTS.B
,
28
.48
%
,
4/03/29
..
1
–
6,695
Upstart
Network,
Inc.
L1902385.UP.FTS.B
,
8
.05
%
,
10/22/24
....
311
309
L1902094.UP.FTS.B
,
9
.69
%
,
10/22/24
....
64
63
L1902354.UP.FTS.B
,
12
.7
%
,
10/22/24
....
331
330
FW1900872.UP.FTS.B
,
18
.12
%
,
10/22/24
.
426
426
L1902710.UP.FTS.B
,
18
.85
%
,
10/22/24
...
393
393
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1900998.UP.FTS.B
,
21
.32
%
,
10/22/24
...
$
39
$
39
L1875546.UP.FTS.B
,
21
.84
%
,
10/22/24
...
134
134
L2031380.UP.FTS.B
,
6
.17
%
,
11/12/24
....
678
673
L2032548.UP.FTS.B
,
7
.85
%
,
11/12/24
....
1,009
1,004
L2031918.UP.FTS.B
,
8
.28
%
,
11/12/24
....
279
277
L2031630.UP.FTS.B
,
9
.03
%
,
11/12/24
....
657
654
L2032627.UP.FTS.B
,
14
.45
%
,
11/12/24
...
201
201
L2031497.UP.FTS.B
,
23
.3
%
,
11/12/24
....
223
223
L2102014.UP.FTS.B
,
8
.1
%
,
11/23/24
.....
315
314
L2102773.UP.FTS.B
,
10
.25
%
,
11/23/24
...
114
114
L2102080.UP.FTS.B
,
12
.09
%
,
11/23/24
...
340
331
L2102263.UP.FTS.B
,
17
.21
%
,
11/23/24
...
205
206
L2099426.UP.FTS.B
,
18
.86
%
,
11/23/24
...
355
349
L2103709.UP.FTS.B
,
20
.75
%
,
11/23/24
...
238
239
L2102185.UP.FTS.B
,
21
.19
%
,
11/23/24
...
817
821
L2103127.UP.FTS.B
,
21
.34
%
,
11/23/24
...
1,090
1,096
FW2103254.UP.FTS.B
,
28
.98
%
,
11/23/24
.
380
383
L2249474.UP.FTS.B
,
9
.8
%
,
12/14/24
....
305
304
L2249818.UP.FTS.B
,
9
.92
%
,
12/14/24
....
128
127
L2248588.UP.FTS.B
,
10
.67
%
,
12/14/24
...
1,305
1,299
L2249713.UP.FTS.B
,
11
.85
%
,
12/14/24
...
518
517
L2249391.UP.FTS.B
,
12
.58
%
,
12/14/24
...
232
231
L2251228.UP.FTS.B
,
12
.94
%
,
12/14/24
...
199
198
L2251099.UP.FTS.B
,
15
.99
%
,
12/14/24
...
114
114
L2249946.UP.FTS.B
,
17
.98
%
,
12/14/24
...
556
559
L2250240.UP.FTS.B
,
20
.48
%
,
12/14/24
...
92
92
L2250459.UP.FTS.B
,
21
.22
%
,
12/14/24
...
636
640
FW2250657.UP.FTS.B
,
22
.04
%
,
12/14/24
.
146
147
FW2251405.UP.FTS.B
,
24
.46
%
,
12/14/24
.
300
302
FW2250656.UP.FTS.B
,
26
.59
%
,
12/14/24
.
171
172
FW2250011.UP.FTS.B
,
27
.44
%
,
12/14/24
.
399
399
FW2248284.UP.FTS.B
,
29
.12
%
,
12/14/24
.
788
2
L2251006.UP.FTS.B
,
6
.59
%
,
12/15/24
....
302
300
L2253130.UP.FTS.B
,
10
.71
%
,
12/15/24
...
752
750
L2253233.UP.FTS.B
,
17
.76
%
,
12/15/24
...
773
776
L2251602.UP.FTS.B
,
18
.36
%
,
12/15/24
...
493
494
L2252717.UP.FTS.B
,
19
.17
%
,
12/15/24
...
705
709
L2249377.UP.FTS.B
,
20
.67
%
,
12/15/24
...
2,172
157
L2240893.UP.FTS.B
,
21
.21
%
,
12/15/24
...
3,613
3,632
FW2252326.UP.FTS.B
,
21
.53
%
,
12/15/24
.
1,154
1,159
FW2249426.UP.FTS.B
,
22
.47
%
,
12/15/24
.
1,217
1,189
L2253201.UP.FTS.B
,
23
.48
%
,
12/15/24
...
445
448
L2248952.UP.FTS.B
,
12
.98
%
,
12/21/24
...
920
918
L2491823.UP.FTS.B
,
6
.34
%
,
1/24/25
....
752
747
L2499551.UP.FTS.B
,
8
.93
%
,
1/24/25
....
1,551
1,548
L2498779.UP.FTS.B
,
11
.48
%
,
1/24/25
....
160
160
L2497791.UP.FTS.B
,
11
.97
%
,
1/24/25
....
644
645
L2499082.UP.FTS.B
,
12
.89
%
,
1/24/25
....
2,276
2,278
L2499336.UP.FTS.B
,
15
.49
%
,
1/24/25
....
442
28
L2497587.UP.FTS.B
,
16
.78
%
,
1/24/25
....
189
190
L2499854.UP.FTS.B
,
22
.79
%
,
1/24/25
....
1,272
1,283
FW2499886.UP.FTS.B
,
26
.23
%
,
1/24/25
..
222
221
FW2498195.UP.FTS.B
,
26
.98
%
,
1/24/25
..
1,542
1,556
FW2496668.UP.FTS.B
,
5
.04
%
,
1/25/25
...
2,141
2,125
L2501009.UP.FTS.B
,
5
.3
%
,
1/25/25
.....
1,286
1,277
L2501544.UP.FTS.B
,
6
.11
%
,
1/25/25
.....
525
521
L2477274.UP.FTS.B
,
6
.54
%
,
1/25/25
....
861
856
L2502696.UP.FTS.B
,
7
.45
%
,
1/25/25
....
735
734
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2502837.UP.FTS.B
,
8
.49
%
,
1/25/25
...
$
154
$
154
L2502709.UP.FTS.B
,
10
.64
%
,
1/25/25
....
2,361
2,355
FW2502461.UP.FTS.B
,
10
.75
%
,
1/25/25
..
99
98
L2503015.UP.FTS.B
,
11
.17
%
,
1/25/25
....
157
157
FW2503345.UP.FTS.B
,
13
.6
%
,
1/25/25
...
632
224
FW2501793.UP.FTS.B
,
17
.35
%
,
1/25/25
..
137
10
FW2503051.UP.FTS.B
,
29
.1
%
,
1/25/25
...
110
111
L1729059.UP.FTS.B
,
7
.36
%
,
2/17/25
....
239
237
L1730069.UP.FTS.B
,
14
.07
%
,
2/17/25
....
3,582
3,603
FW2031299.UP.FTS.B
,
21
.82
%
,
4/12/25
..
2,068
2,081
FW2032694.UP.FTS.B
,
22
.49
%
,
4/12/25
..
2,140
1,415
L2971722.UP.FTS.B
,
8
.62
%
,
4/19/25
....
4,682
4,669
L2972108.UP.FTS.B
,
15
.03
%
,
4/19/25
....
868
873
L2970836.UP.FTS.B
,
15
.68
%
,
4/19/25
....
1,643
500
FW2250596.UP.FTS.B
,
22
.87
%
,
5/14/25
..
1,122
1,126
FW2971973.UP.FTS.B
,
20
.05
%
,
9/19/25
..
1,694
1,629
L2250196.UP.FTS.B
,
14
.38
%
,
10/15/25
...
1,881
272
FW2503195.UP.FTS.B
,
11
.21
%
,
11/25/25
.
3,463
3,462
FW2972173.UP.FTS.B
,
22
.89
%
,
2/19/26
..
4,985
357
FW1729657.UP.FTS.B
,
9
.44
%
,
9/17/26
...
3,319
3,306
L1729743.UP.FTS.B
,
11
.64
%
,
9/17/26
....
24,373
24,370
L1730112.UP.FTS.B
,
15
.91
%
,
9/17/26
....
1,540
1,549
FW1730043.UP.FTS.B
,
21
.14
%
,
9/17/26
..
2,531
2,573
L1730077.UP.FTS.B
,
21
.62
%
,
9/17/26
....
1,844
1,833
L1730290.UP.FTS.B
,
23
.01
%
,
9/17/26
....
4,224
4,300
L1730120.UP.FTS.B
,
23
.06
%
,
9/17/26
....
6,206
6,309
L1729627.UP.FTS.B
,
24
.42
%
,
9/17/26
....
5,637
5,739
L1729392.UP.FTS.B
,
25
.28
%
,
9/17/26
....
617
177
FW1730388.UP.FTS.B
,
28
.64
%
,
9/17/26
..
9,051
9,216
FW1729744.UP.FTS.B
,
29
.63
%
,
9/17/26
..
5,788
404
FW1729641.UP.FTS.B
,
30
.22
%
,
9/17/26
..
2,864
2,917
FW1728143.UP.FTS.B
,
30
.44
%
,
9/17/26
..
3,129
3,185
FW1730150.UP.FTS.B
,
30
.64
%
,
9/17/26
..
585
589
FW1729390.UP.FTS.B
,
32
.18
%
,
9/17/26
..
1,480
1,436
FW1728926.UP.FTS.B
,
32
.35
%
,
9/17/26
..
1,615
1,640
FW1902353.UP.FTS.B
,
5
.71
%
,
10/22/26
..
6,560
6,514
L1902219.UP.FTS.B
,
10
.65
%
,
10/22/26
...
4,989
4,985
L1901059.UP.FTS.B
,
11
.8
%
,
10/22/26
....
2,007
2,007
FW1902782.UP.FTS.B
,
14
.11
%
,
10/22/26
.
10,345
10,350
FW1901571.UP.FTS.B
,
16
.95
%
,
10/22/26
.
6,717
6,749
FW1901195.UP.FTS.B
,
18
.66
%
,
10/22/26
.
1,259
1,269
L1901212.UP.FTS.B
,
19
.55
%
,
10/22/26
...
3,338
3,396
L1902855.UP.FTS.B
,
19
.55
%
,
10/22/26
...
1,658
1,671
L1901936.UP.FTS.B
,
21
.29
%
,
10/22/26
...
6,194
6,299
L1901067.UP.FTS.B
,
23
.17
%
,
10/22/26
...
8,613
8,759
L1901771.UP.FTS.B
,
24
.44
%
,
10/22/26
...
2,292
2,298
L1902683.UP.FTS.B
,
25
.19
%
,
10/22/26
...
7,029
7,150
L1901951.UP.FTS.B
,
25
.24
%
,
10/22/26
...
1,407
1,431
FW1902836.UP.FTS.B
,
25
.41
%
,
10/22/26
.
28,315
28,806
L1902657.UP.FTS.B
,
25
.42
%
,
10/22/26
...
1,161
1,178
FW1902401.UP.FTS.B
,
25
.71
%
,
10/22/26
.
2,768
2,816
FW1902199.UP.FTS.B
,
26
.04
%
,
10/22/26
.
2,483
2,525
FW1886406.UP.FTS.B
,
27
.97
%
,
10/22/26
.
8,897
607
FW1902391.UP.FTS.B
,
31
.19
%
,
10/22/26
.
2,211
2,253
FW1901303.UP.FTS.B
,
31
.21
%
,
10/22/26
.
2,356
2,397
FW1900628.UP.FTS.B
,
31
.23
%
,
10/22/26
.
682
695
FW1902681.UP.FTS.B
,
31
.63
%
,
10/22/26
.
4,979
5,066
FW1902299.UP.FTS.B
,
31
.27
%
,
10/27/26
.
4,895
4,990
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L1902840.UP.FTS.B
,
22
.56
%
,
11/01/26
...
$
7,741
$
7,806
L1901748.UP.FTS.B
,
12
.93
%
,
11/05/26
...
4,779
4,774
L2032896.UP.FTS.B
,
9
.9
%
,
11/12/26
.....
3,575
3,559
L2032147.UP.FTS.B
,
11
.65
%
,
11/12/26
...
4,174
4,169
L2032600.UP.FTS.B
,
12
.19
%
,
11/12/26
...
3,858
3,852
L2032561.UP.FTS.B
,
12
.57
%
,
11/12/26
...
7,917
7,899
FW2032979.UP.FTS.B
,
12
.77
%
,
11/12/26
.
4,228
4,223
L2032884.UP.FTS.B
,
12
.78
%
,
11/12/26
...
4,229
4,223
FW2032727.UP.FTS.B
,
12
.91
%
,
11/12/26
.
1,853
1,850
L2032885.UP.FTS.B
,
12
.92
%
,
11/12/26
...
2,513
2,508
FW2032278.UP.FTS.B
,
13
.85
%
,
11/12/26
.
2,721
1,504
L2032791.UP.FTS.B
,
14
.03
%
,
11/12/26
...
1,568
1,566
L2032226.UP.FTS.B
,
14
.31
%
,
11/12/26
...
13,024
13,005
L2031580.UP.FTS.B
,
14
.88
%
,
11/12/26
...
731
727
L2032373.UP.FTS.B
,
14
.92
%
,
11/12/26
...
5,415
5,409
FW2032722.UP.FTS.B
,
14
.98
%
,
11/12/26
.
3,943
3,933
L2032268.UP.FTS.B
,
15
.84
%
,
11/12/26
...
10,782
10,795
L2033071.UP.FTS.B
,
15
.91
%
,
11/12/26
...
2,328
166
FW2031845.UP.FTS.B
,
15
.93
%
,
11/12/26
.
8,380
8,400
FW2032502.UP.FTS.B
,
16
.77
%
,
11/12/26
.
4,429
4,420
L2033008.UP.FTS.B
,
17
.14
%
,
11/12/26
...
3,552
3,564
L2031479.UP.FTS.B
,
17
.32
%
,
11/12/26
...
8,579
8,600
L2030768.UP.FTS.B
,
17
.71
%
,
11/12/26
...
2,791
2,801
L2032284.UP.FTS.B
,
17
.94
%
,
11/12/26
...
2,806
2,817
L2032006.UP.FTS.B
,
17
.99
%
,
11/12/26
...
3,331
3,338
FW2031117.UP.FTS.B
,
18
.34
%
,
11/12/26
.
5,786
3,350
L2032837.UP.FTS.B
,
18
.39
%
,
11/12/26
...
280
20
L2032849.UP.FTS.B
,
19
.14
%
,
11/12/26
...
6,800
6,824
L2030806.UP.FTS.B
,
19
.55
%
,
11/12/26
...
2,277
2,290
FW2032947.UP.FTS.B
,
19
.59
%
,
11/12/26
.
14,301
14,277
L2031425.UP.FTS.B
,
19
.77
%
,
11/12/26
...
3,534
3,553
L2032060.UP.FTS.B
,
20
.25
%
,
11/12/26
...
3,440
3,460
L2032456.UP.FTS.B
,
20
.93
%
,
11/12/26
...
863
868
FW2033134.UP.FTS.B
,
22
.19
%
,
11/12/26
.
5,171
371
L2032183.UP.FTS.B
,
24
.12
%
,
11/12/26
...
5,958
6,048
FW2033202.UP.FTS.B
,
25
.01
%
,
11/12/26
.
9,460
9,595
L2032689.UP.FTS.B
,
25
.21
%
,
11/12/26
...
4,133
295
FW2031174.UP.FTS.B
,
25
.25
%
,
11/12/26
.
5,590
5,669
L2032525.UP.FTS.B
,
25
.33
%
,
11/12/26
...
599
602
L2031934.UP.FTS.B
,
25
.51
%
,
11/12/26
...
1,860
1,100
FW2031600.UP.FTS.B
,
26
.6
%
,
11/12/26
..
3,032
1,800
L2032677.UP.FTS.B
,
26
.71
%
,
11/12/26
...
4,884
4,958
FW2003411.UP.FTS.B
,
27
.5
%
,
11/12/26
..
4,636
4,698
FW2032753.UP.FTS.B
,
27
.55
%
,
11/12/26
.
857
870
FW2032946.UP.FTS.B
,
27
.87
%
,
11/12/26
.
15,476
15,682
FW2032799.UP.FTS.B
,
29
.91
%
,
11/12/26
.
1,508
1,531
FW2030797.UP.FTS.B
,
30
%
,
11/12/26
...
15,492
–
FW2031644.UP.FTS.B
,
30
.67
%
,
11/12/26
.
1,139
1,156
FW2031985.UP.FTS.B
,
31
%
,
11/12/26
...
391
387
FW2031873.UP.FTS.B
,
31
.05
%
,
11/12/26
.
652
386
FW2032325.UP.FTS.B
,
31
.07
%
,
11/12/26
.
761
773
FW2031596.UP.FTS.B
,
31
.1
%
,
11/12/26
..
3,465
3,513
FW2032994.UP.FTS.B
,
31
.15
%
,
11/12/26
.
2,529
185
FW2031715.UP.FTS.B
,
31
.33
%
,
11/12/26
.
3,053
3,099
L2031623.UP.FTS.B
,
9
.89
%
,
11/16/26
....
17,568
17,475
FW2101958.UP.FTS.B
,
6
.23
%
,
11/23/26
..
19,053
18,931
L2101736.UP.FTS.B
,
8
.06
%
,
11/23/26
....
527
33
L2103598.UP.FTS.B
,
8
.71
%
,
11/23/26
....
8,061
8,033
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2102006.UP.FTS.B
,
8
.84
%
,
11/23/26
....
$
25,228
$
25,142
L2102059.UP.FTS.B
,
12
.22
%
,
11/23/26
...
11,125
11,129
L2101522.UP.FTS.B
,
12
.34
%
,
11/23/26
...
17,617
17,624
L2103822.UP.FTS.B
,
12
.78
%
,
11/23/26
...
2,643
2,645
L2102939.UP.FTS.B
,
13
.35
%
,
11/23/26
...
1,862
1,863
L2076017.UP.FTS.B
,
13
.49
%
,
11/23/26
...
1,932
1,930
L2095249.UP.FTS.B
,
14
.31
%
,
11/23/26
...
8,607
8,612
L2068146.UP.FTS.B
,
16
.06
%
,
11/23/26
...
3,773
3,767
L2102751.UP.FTS.B
,
16
.5
%
,
11/23/26
....
2,204
2,218
L2103150.UP.FTS.B
,
16
.57
%
,
11/23/26
...
3,373
3,207
FW2101751.UP.FTS.B
,
16
.63
%
,
11/23/26
.
11,382
10,881
L2099233.UP.FTS.B
,
17
.83
%
,
11/23/26
...
9,189
8,798
L2050778.UP.FTS.B
,
18
.01
%
,
11/23/26
...
5,040
5,072
L2102051.UP.FTS.B
,
19
.71
%
,
11/23/26
...
3,199
3,223
FW2102941.UP.FTS.B
,
20
.37
%
,
11/23/26
.
11,477
11,695
L2102313.UP.FTS.B
,
20
.5
%
,
11/23/26
....
850
866
L2102703.UP.FTS.B
,
20
.89
%
,
11/23/26
...
2,781
2,829
L2102400.UP.FTS.B
,
22
.64
%
,
11/23/26
...
3,469
3,533
L2101750.UP.FTS.B
,
24
.17
%
,
11/23/26
...
4,358
4,229
FW2102727.UP.FTS.B
,
24
.84
%
,
11/23/26
.
2,400
2,446
L2103842.UP.FTS.B
,
25
.11
%
,
11/23/26
...
2,406
2,429
L2101935.UP.FTS.B
,
25
.31
%
,
11/23/26
...
783
798
L2103945.UP.FTS.B
,
25
.34
%
,
11/23/26
...
1,382
1,396
L2101880.UP.FTS.B
,
25
.39
%
,
11/23/26
...
1,875
1,819
L2103491.UP.FTS.B
,
25
.4
%
,
11/23/26
....
423
423
L2102028.UP.FTS.B
,
25
.89
%
,
11/23/26
...
3,635
3,705
FW2101678.UP.FTS.B
,
26
.5
%
,
11/23/26
..
2,162
2,200
FW2103284.UP.FTS.B
,
27
.1
%
,
11/23/26
..
2,378
2,420
FW2103532.UP.FTS.B
,
28
.75
%
,
11/23/26
.
6,378
6,196
FW2103786.UP.FTS.B
,
31
.2
%
,
11/23/26
..
960
972
FW2103069.UP.FTS.B
,
31
.22
%
,
11/23/26
.
1,398
1,425
FW2032877.UP.FTS.B
,
27
.2
%
,
11/27/26
..
3,174
–
L2250662.UP.FTS.B
,
8
.88
%
,
12/14/26
....
5,740
5,710
L2249279.UP.FTS.B
,
9
.09
%
,
12/14/26
....
2,619
2,606
L2251398.UP.FTS.B
,
9
.28
%
,
12/14/26
....
4,194
4,173
L2247842.UP.FTS.B
,
9
.8
%
,
12/14/26
....
4,310
584
FW2251249.UP.FTS.B
,
10
.34
%
,
12/14/26
.
10,085
10,058
L2248805.UP.FTS.B
,
10
.51
%
,
12/14/26
...
5,813
810
L2249903.UP.FTS.B
,
11
.03
%
,
12/14/26
...
1,605
1,602
L2251043.UP.FTS.B
,
12
.11
%
,
12/14/26
...
17,328
17,301
L2250070.UP.FTS.B
,
12
.15
%
,
12/14/26
...
3,694
3,687
L2251230.UP.FTS.B
,
12
.48
%
,
12/14/26
...
936
932
L2247235.UP.FTS.B
,
13
.18
%
,
12/14/26
...
2,192
2,188
L2250820.UP.FTS.B
,
13
.59
%
,
12/14/26
...
1,761
1,759
FW2250025.UP.FTS.B
,
13
.65
%
,
12/14/26
.
4,303
4,078
L2251440.UP.FTS.B
,
16
.23
%
,
12/14/26
...
749
749
L2249248.UP.FTS.B
,
16
.43
%
,
12/14/26
...
6,740
6,758
L2249629.UP.FTS.B
,
17
.8
%
,
12/14/26
....
3,620
3,613
L2249002.UP.FTS.B
,
18
.13
%
,
12/14/26
...
2,022
2,033
FW2249113.UP.FTS.B
,
18
.58
%
,
12/14/26
.
14,511
14,586
L2251037.UP.FTS.B
,
19
.7
%
,
12/14/26
....
1,110
300
L2249412.UP.FTS.B
,
19
.96
%
,
12/14/26
...
1,145
1,146
L2248975.UP.FTS.B
,
19
.98
%
,
12/14/26
...
6,266
6,127
L2250558.UP.FTS.B
,
20
.67
%
,
12/14/26
...
4,829
4,889
L2251409.UP.FTS.B
,
20
.71
%
,
12/14/26
...
7,119
7,141
L2251393.UP.FTS.B
,
20
.81
%
,
12/14/26
...
2,905
2,943
L2249780.UP.FTS.B
,
21
.14
%
,
12/14/26
...
4,765
4,834
L2250707.UP.FTS.B
,
21
.52
%
,
12/14/26
...
3,561
3,570
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2249149.UP.FTS.B
,
21
.87
%
,
12/14/26
...
$
5,999
$
6,029
FW2248314.UP.FTS.B
,
21
.92
%
,
12/14/26
.
2,101
2,126
L2249898.UP.FTS.B
,
22
.33
%
,
12/14/26
...
13,180
13,217
L2251333.UP.FTS.B
,
22
.77
%
,
12/14/26
...
9,570
9,697
L2249183.UP.FTS.B
,
22
.87
%
,
12/14/26
...
2,120
2,146
FW2251497.UP.FTS.B
,
23
.11
%
,
12/14/26
.
2,953
2,945
L2250010.UP.FTS.B
,
23
.56
%
,
12/14/26
...
3,049
3,086
FW2248932.UP.FTS.B
,
23
.62
%
,
12/14/26
.
1,279
1,235
L2249765.UP.FTS.B
,
23
.67
%
,
12/14/26
...
2,441
2,471
L2250948.UP.FTS.B
,
23
.7
%
,
12/14/26
....
30,303
512
L2250334.UP.FTS.B
,
24
.44
%
,
12/14/26
...
5,347
5,375
L2250314.UP.FTS.B
,
24
.91
%
,
12/14/26
...
2,101
2,130
L2249782.UP.FTS.B
,
24
.98
%
,
12/14/26
...
2,594
2,632
L2248144.UP.FTS.B
,
25
.08
%
,
12/14/26
...
3,018
2,910
L2250779.UP.FTS.B
,
25
.12
%
,
12/14/26
...
1,051
1,039
L2248450.UP.FTS.B
,
25
.14
%
,
12/14/26
...
3,857
3,676
L2248417.UP.FTS.B
,
25
.23
%
,
12/14/26
...
1,532
109
L2249856.UP.FTS.B
,
25
.32
%
,
12/14/26
...
740
751
L2249823.UP.FTS.B
,
25
.41
%
,
12/14/26
...
2,619
2,620
L2251395.UP.FTS.B
,
25
.45
%
,
12/14/26
...
1,365
1,385
L2250992.UP.FTS.B
,
25
.92
%
,
12/14/26
...
6,245
6,322
FW2248550.UP.FTS.B
,
26
.2
%
,
12/14/26
..
2,671
2,704
L2249257.UP.FTS.B
,
26
.38
%
,
12/14/26
...
5,626
5,702
FW2249342.UP.FTS.B
,
27
.92
%
,
12/14/26
.
3,118
3,137
FW2251120.UP.FTS.B
,
28
.37
%
,
12/14/26
.
8,279
8,380
FW2249976.UP.FTS.B
,
28
.77
%
,
12/14/26
.
1,076
1,083
FW2249951.UP.FTS.B
,
30
.44
%
,
12/14/26
.
1,281
1,299
FW2249983.UP.FTS.B
,
30
.63
%
,
12/14/26
.
1,206
1,222
FW2250251.UP.FTS.B
,
30
.69
%
,
12/14/26
.
4,040
3,892
FW2249049.UP.FTS.B
,
30
.95
%
,
12/14/26
.
4,146
4,199
FW2249041.UP.FTS.B
,
31
.12
%
,
12/14/26
.
719
727
FW2250974.UP.FTS.B
,
31
.12
%
,
12/14/26
.
2,237
2,159
FW2248893.UP.FTS.B
,
31
.17
%
,
12/14/26
.
1,174
1,188
FW2249653.UP.FTS.B
,
31
.19
%
,
12/14/26
.
2,480
2,510
FW2251410.UP.FTS.B
,
31
.25
%
,
12/14/26
.
3,030
3,068
L2251963.UP.FTS.B
,
7
.31
%
,
12/15/26
....
6,366
6,338
L2141755.UP.FTS.B
,
8
.51
%
,
12/15/26
....
25,199
25,086
L2252339.UP.FTS.B
,
8
.65
%
,
12/15/26
....
13,006
12,951
L2252737.UP.FTS.B
,
8
.71
%
,
12/15/26
....
10,935
10,883
L2252298.UP.FTS.B
,
8
.83
%
,
12/15/26
....
1,277
1,248
L2252476.UP.FTS.B
,
9
.18
%
,
12/15/26
....
5,237
5,212
FW2253701.UP.FTS.B
,
10
.99
%
,
12/15/26
.
6,903
6,893
L2253738.UP.FTS.B
,
11
.28
%
,
12/15/26
...
16,095
16,059
L2247794.UP.FTS.B
,
12
.65
%
,
12/15/26
...
2,452
2,449
L2253650.UP.FTS.B
,
13
.61
%
,
12/15/26
...
3,579
3,575
L2253384.UP.FTS.B
,
13
.79
%
,
12/15/26
...
6,621
6,615
L2252920.UP.FTS.B
,
14
.66
%
,
12/15/26
...
1,914
137
L2252931.UP.FTS.B
,
15
.49
%
,
12/15/26
...
1,891
1,896
L2252976.UP.FTS.B
,
16
.75
%
,
12/15/26
...
3,603
3,614
L2252199.UP.FTS.B
,
17
.21
%
,
12/15/26
...
5,379
5,375
L2253164.UP.FTS.B
,
17
.76
%
,
12/15/26
...
2,910
2,912
L2252566.UP.FTS.B
,
19
.55
%
,
12/15/26
...
3,487
3,484
FW2251546.UP.FTS.B
,
19
.76
%
,
12/15/26
.
8,852
8,889
L2252318.UP.FTS.B
,
20
.43
%
,
12/15/26
...
1,774
1,785
L2251727.UP.FTS.B
,
20
.77
%
,
12/15/26
...
1,487
1,493
L2253118.UP.FTS.B
,
21
.32
%
,
12/15/26
...
11,932
12,116
L2251670.UP.FTS.B
,
22
.36
%
,
12/15/26
...
3,014
3,054
L2252135.UP.FTS.B
,
22
.59
%
,
12/15/26
...
1,812
1,836
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2250541.UP.FTS.B
,
24
.85
%
,
12/15/26
...
$
1,855
$
1,880
L2252209.UP.FTS.B
,
25
.21
%
,
12/15/26
...
809
816
L2252447.UP.FTS.B
,
25
.4
%
,
12/15/26
....
744
754
FW2253392.UP.FTS.B
,
25
.5
%
,
12/15/26
..
4,459
4,524
FW2248936.UP.FTS.B
,
26
.48
%
,
12/15/26
.
3,655
3,706
FW2252023.UP.FTS.B
,
28
.67
%
,
12/15/26
.
2,936
2,982
FW2253234.UP.FTS.B
,
28
.94
%
,
12/15/26
.
6,918
7,020
FW2252233.UP.FTS.B
,
30
.05
%
,
12/15/26
.
1,616
1,637
FW2252687.UP.FTS.B
,
30
.62
%
,
12/15/26
.
9,735
9,888
FW2251570.UP.FTS.B
,
31
.17
%
,
12/15/26
.
7,941
8,057
FW2253542.UP.FTS.B
,
31
.19
%
,
12/15/26
.
1,239
1,259
FW2251389.UP.FTS.B
,
31
.46
%
,
12/15/26
.
12,157
12,319
L2251912.UP.FTS.B
,
13
.91
%
,
12/19/26
...
1,937
1,933
L2252296.UP.FTS.B
,
8
.02
%
,
12/26/26
....
7,756
7,724
L2249483.UP.FTS.B
,
20
.19
%
,
12/28/26
...
6,575
231
FW2250801.UP.FTS.B
,
31
.11
%
,
12/28/26
.
1,867
1,890
L2499407.UP.FTS.B
,
5
.37
%
,
1/24/27
....
25,834
25,666
L2499766.UP.FTS.B
,
6
.26
%
,
1/24/27
....
3,132
3,112
L2498743.UP.FTS.B
,
7
.47
%
,
1/24/27
....
5,825
5,802
L2492277.UP.FTS.B
,
7
.6
%
,
1/24/27
.....
3,607
3,593
L2500086.UP.FTS.B
,
7
.95
%
,
1/24/27
....
6,227
6,198
L2497458.UP.FTS.B
,
8
.44
%
,
1/24/27
....
18,652
18,579
L2497353.UP.FTS.B
,
9
.69
%
,
1/24/27
....
7,258
7,226
L2500305.UP.FTS.B
,
11
.35
%
,
1/24/27
....
553
553
FW2499235.UP.FTS.B
,
11
.45
%
,
1/24/27
..
3,592
3,590
L2498623.UP.FTS.B
,
12
.18
%
,
1/24/27
....
1,228
1,228
FW2497574.UP.FTS.B
,
12
.62
%
,
1/24/27
..
19,610
19,567
L2497797.UP.FTS.B
,
12
.7
%
,
1/24/27
....
3,931
3,928
L2500282.UP.FTS.B
,
13
.29
%
,
1/24/27
....
5,674
5,665
L2498730.UP.FTS.B
,
14
.35
%
,
1/24/27
....
3,436
3,431
FW2499948.UP.FTS.B
,
14
.6
%
,
1/24/27
...
4,010
4,008
L2500513.UP.FTS.B
,
14
.9
%
,
1/24/27
....
11,495
11,488
L2494019.UP.FTS.B
,
16
.44
%
,
1/24/27
....
3,503
3,518
L2497377.UP.FTS.B
,
16
.51
%
,
1/24/27
....
3,214
3,228
L2500130.UP.FTS.B
,
18
.16
%
,
1/24/27
....
4,158
4,187
L2500098.UP.FTS.B
,
18
.6
%
,
1/24/27
....
4,475
4,494
L2497754.UP.FTS.B
,
19
.19
%
,
1/24/27
....
1,860
1,873
L2498546.UP.FTS.B
,
19
.91
%
,
1/24/27
....
3,970
3,997
L2497528.UP.FTS.B
,
19
.93
%
,
1/24/27
....
3,022
3,043
L2499090.UP.FTS.B
,
20
.13
%
,
1/24/27
....
3,633
3,658
FW2499205.UP.FTS.B
,
20
.72
%
,
1/24/27
..
3,782
3,833
L2499153.UP.FTS.B
,
21
.13
%
,
1/24/27
....
694
698
L2497527.UP.FTS.B
,
21
.34
%
,
1/24/27
....
3,062
3,114
FW2494038.UP.FTS.B
,
22
.37
%
,
1/24/27
..
2,474
2,491
FW2497553.UP.FTS.B
,
23
.05
%
,
1/24/27
..
10,779
10,956
L2500427.UP.FTS.B
,
23
.85
%
,
1/24/27
....
6,500
6,521
L2500224.UP.FTS.B
,
25
.04
%
,
1/24/27
....
3,818
3,872
L2500298.UP.FTS.B
,
25
.15
%
,
1/24/27
....
1,015
1,022
FW2497649.UP.FTS.B
,
25
.29
%
,
1/24/27
..
25,395
25,822
L2500230.UP.FTS.B
,
25
.4
%
,
1/24/27
....
3,305
3,360
L2500426.UP.FTS.B
,
25
.41
%
,
1/24/27
....
826
840
L2497705.UP.FTS.B
,
25
.44
%
,
1/24/27
....
2,573
2,608
L2500467.UP.FTS.B
,
25
.44
%
,
1/24/27
....
1,081
1,099
L2497190.UP.FTS.B
,
26
.04
%
,
1/24/27
....
2,031
28
L2500357.UP.FTS.B
,
26
.3
%
,
1/24/27
....
5,957
6,057
FW2498744.UP.FTS.B
,
26
.78
%
,
1/24/27
..
6,431
6,539
L2497724.UP.FTS.B
,
27
.87
%
,
1/24/27
....
3,384
3,401
FW2497801.UP.FTS.B
,
28
.11
%
,
1/24/27
..
5,277
374
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2498534.UP.FTS.B
,
28
.67
%
,
1/24/27
..
$
1,216
$
1,233
FW2499784.UP.FTS.B
,
29
.61
%
,
1/24/27
..
4,598
320
FW2498768.UP.FTS.B
,
30
.06
%
,
1/24/27
..
1,013
1,028
FW2499403.UP.FTS.B
,
30
.76
%
,
1/24/27
..
1,861
1,892
FW2498894.UP.FTS.B
,
31
.13
%
,
1/24/27
..
2,400
2,440
FW2497608.UP.FTS.B
,
31
.43
%
,
1/24/27
..
1,134
1,153
FW2497327.UP.FTS.B
,
33
.75
%
,
1/24/27
..
1,294
1,316
FW2502639.UP.FTS.B
,
4
.89
%
,
1/25/27
...
6,918
6,872
L2443263.UP.FTS.B
,
6
.66
%
,
1/25/27
....
4,459
4,430
L2501608.UP.FTS.B
,
7
.8
%
,
1/25/27
.....
10,634
10,566
L2501547.UP.FTS.B
,
8
.21
%
,
1/25/27
....
3,304
3,290
L2502319.UP.FTS.B
,
8
.49
%
,
1/25/27
....
22,206
22,099
L2502134.UP.FTS.B
,
9
.38
%
,
1/25/27
....
17,156
17,088
L2502174.UP.FTS.B
,
9
.86
%
,
1/25/27
....
8,615
8,601
FW2498378.UP.FTS.B
,
11
.81
%
,
1/25/27
..
16,682
16,674
L2501198.UP.FTS.B
,
12
.05
%
,
1/25/27
....
6,971
6,967
L2500626.UP.FTS.B
,
12
.15
%
,
1/25/27
....
2,526
2,519
FW2502179.UP.FTS.B
,
12
.78
%
,
1/25/27
..
1,124
1,123
L2501977.UP.FTS.B
,
12
.89
%
,
1/25/27
....
22,300
22,284
L2502247.UP.FTS.B
,
13
.43
%
,
1/25/27
....
2,263
2,262
L2503471.UP.FTS.B
,
13
.93
%
,
1/25/27
....
2,838
2,836
L2500808.UP.FTS.B
,
14
.3
%
,
1/25/27
....
4,226
4,224
L2500633.UP.FTS.B
,
14
.62
%
,
1/25/27
....
2,596
2,594
L2501876.UP.FTS.B
,
14
.91
%
,
1/25/27
....
2,299
2,299
L2501591.UP.FTS.B
,
16
.26
%
,
1/25/27
....
11,079
798
L2499095.UP.FTS.B
,
16
.97
%
,
1/25/27
....
1,761
1,769
L2500943.UP.FTS.B
,
17
.28
%
,
1/25/27
....
4,620
4,637
L2501997.UP.FTS.B
,
17
.77
%
,
1/25/27
....
2,959
2,972
FW2501148.UP.FTS.B
,
17
.78
%
,
1/25/27
..
1,183
1,188
FW2501125.UP.FTS.B
,
17
.82
%
,
1/25/27
..
888
895
L2502439.UP.FTS.B
,
18
.98
%
,
1/25/27
....
4,268
4,292
L2495525.UP.FTS.B
,
19
.03
%
,
1/25/27
....
4,833
347
L2500727.UP.FTS.B
,
19
.88
%
,
1/25/27
....
4,901
4,926
FW2501295.UP.FTS.B
,
20
.14
%
,
1/25/27
..
606
610
FW2500961.UP.FTS.B
,
20
.28
%
,
1/25/27
..
3,926
3,981
L2500557.UP.FTS.B
,
21
.25
%
,
1/25/27
....
1,600
114
FW2501561.UP.FTS.B
,
21
.33
%
,
1/25/27
..
3,398
3,444
L2503424.UP.FTS.B
,
21
.51
%
,
1/25/27
....
6,011
6,054
L2501728.UP.FTS.B
,
21
.52
%
,
1/25/27
....
3,072
3,087
L2502058.UP.FTS.B
,
21
.83
%
,
1/25/27
....
6,333
6,418
L2500977.UP.FTS.B
,
22
.64
%
,
1/25/27
....
4,339
4,413
L2502763.UP.FTS.B
,
23
.93
%
,
1/25/27
....
2,638
764
FW2503468.UP.FTS.B
,
24
.6
%
,
1/25/27
...
2,128
2,164
FW2503375.UP.FTS.B
,
24
.71
%
,
1/25/27
..
1,930
1,960
FW2503209.UP.FTS.B
,
25
.12
%
,
1/25/27
..
4,389
4,462
L2503342.UP.FTS.B
,
25
.48
%
,
1/25/27
....
4,541
287
L2500860.UP.FTS.B
,
25
.49
%
,
1/25/27
....
872
886
L2502995.UP.FTS.B
,
25
.82
%
,
1/25/27
....
1,923
1,948
FW2501330.UP.FTS.B
,
26
.47
%
,
1/25/27
..
3,533
3,586
FW2502187.UP.FTS.B
,
26
.63
%
,
1/25/27
..
3,211
3,266
FW2501053.UP.FTS.B
,
27
.35
%
,
1/25/27
..
5,356
5,441
FW2474863.UP.FTS.B
,
27
.63
%
,
1/25/27
..
2,027
2,057
FW2502652.UP.FTS.B
,
27
.68
%
,
1/25/27
..
3,176
3,230
FW2503169.UP.FTS.B
,
27
.77
%
,
1/25/27
..
648
659
FW2501180.UP.FTS.B
,
28
.56
%
,
1/25/27
..
1,960
1,993
FW2500797.UP.FTS.B
,
28
.58
%
,
1/25/27
..
1,277
1,297
FW2502849.UP.FTS.B
,
29
.19
%
,
1/25/27
..
708
711
FW2501203.UP.FTS.B
,
30
.73
%
,
1/25/27
..
930
946
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2503502.UP.FTS.B
,
31
.01
%
,
1/25/27
..
$
1,680
$
1,706
FW2501430.UP.FTS.B
,
31
.03
%
,
1/25/27
..
1,203
1,221
FW2502879.UP.FTS.B
,
31
.04
%
,
1/25/27
..
20,252
20,505
FW2500654.UP.FTS.B
,
31
.21
%
,
1/25/27
..
655
666
FW2502276.UP.FTS.B
,
33
.54
%
,
1/25/27
..
3,408
3,459
L2500341.UP.FTS.B
,
18
.83
%
,
1/28/27
....
1,499
1,506
FW2499482.UP.FTS.B
,
28
.65
%
,
1/28/27
..
10,748
10,906
FW2498422.UP.FTS.B
,
31
.2
%
,
2/01/27
...
688
697
FW2500954.UP.FTS.B
,
23
.81
%
,
2/07/27
..
5,183
5,254
L2500786.UP.FTS.B
,
26
.35
%
,
2/09/27
....
1,823
1,832
FW1729970.UP.FTS.B
,
18
.27
%
,
2/17/27
..
16,043
16,052
L1729858.UP.FTS.B
,
25
.05
%
,
2/17/27
....
15,953
15,463
FW1729684.UP.FTS.B
,
29
.1
%
,
2/17/27
...
8,455
8,576
L1902477.UP.FTS.B
,
13
.65
%
,
3/22/27
....
5,746
5,725
L1901660.UP.FTS.B
,
25
.23
%
,
3/22/27
....
1,396
99
FW1901509.UP.FTS.B
,
31
.16
%
,
3/22/27
..
6,151
956
L2031108.UP.FTS.B
,
11
.34
%
,
4/12/27
....
29,960
7,846
L2030962.UP.FTS.B
,
13
.54
%
,
4/12/27
....
5,389
2,902
L2030776.UP.FTS.B
,
18
.15
%
,
4/12/27
....
4,001
167
L2032266.UP.FTS.B
,
21
.24
%
,
4/12/27
....
3,515
520
L2032168.UP.FTS.B
,
21
.6
%
,
4/12/27
....
8,516
1,207
FW2032681.UP.FTS.B
,
22
.41
%
,
4/12/27
..
1,688
1,688
L2032337.UP.FTS.B
,
26
.62
%
,
4/12/27
....
6,450
3,812
L2972334.UP.FTS.B
,
6
.17
%
,
4/19/27
....
28,576
28,385
L2971979.UP.FTS.B
,
6
.84
%
,
4/19/27
....
15,427
15,325
L2971286.UP.FTS.B
,
7
.38
%
,
4/19/27
....
14,474
14,379
L2972081.UP.FTS.B
,
7
.8
%
,
4/19/27
.....
3,033
3,013
FW2972190.UP.FTS.B
,
7
.92
%
,
4/19/27
...
27,543
27,363
L2971728.UP.FTS.B
,
11
.46
%
,
4/19/27
....
6,459
6,437
L2971948.UP.FTS.B
,
12
.78
%
,
4/19/27
....
5,152
372
L2971527.UP.FTS.B
,
13
.17
%
,
4/19/27
....
6,445
6,423
L2967243.UP.FTS.B
,
14
.24
%
,
4/19/27
....
10,543
10,508
L2971759.UP.FTS.B
,
16
.29
%
,
4/19/27
....
4,822
4,820
L2971657.UP.FTS.B
,
16
.32
%
,
4/19/27
....
1,368
1,369
L2971854.UP.FTS.B
,
16
.46
%
,
4/19/27
....
1,935
1,936
FW2968818.UP.FTS.B
,
17
.01
%
,
4/19/27
..
10,373
10,367
FW2971812.UP.FTS.B
,
18
.16
%
,
4/19/27
..
15,172
15,068
L2972316.UP.FTS.B
,
18
.63
%
,
4/19/27
....
32,125
32,156
L2971776.UP.FTS.B
,
19
.69
%
,
4/19/27
....
4,303
4,300
L2972008.UP.FTS.B
,
20
.74
%
,
4/19/27
....
3,615
3,652
FW2971982.UP.FTS.B
,
21
.48
%
,
4/19/27
..
1,201
173
L2970145.UP.FTS.B
,
22
.58
%
,
4/19/27
....
6,498
461
FW2971643.UP.FTS.B
,
24
.95
%
,
4/19/27
..
14,512
14,687
L2971841.UP.FTS.B
,
25
.2
%
,
4/19/27
....
961
971
L2030886.UP.FTS.B
,
25
.5
%
,
4/19/27
....
15,234
15,384
FW2972220.UP.FTS.B
,
26
.42
%
,
4/19/27
..
2,686
2,714
L2971662.UP.FTS.B
,
26
.49
%
,
4/19/27
....
689
690
FW2972102.UP.FTS.B
,
26
.72
%
,
4/19/27
..
2,244
2,270
FW2972305.UP.FTS.B
,
27
.33
%
,
4/19/27
..
4,162
4,205
FW2972030.UP.FTS.B
,
28
.07
%
,
4/19/27
..
3,700
556
L2102253.UP.FTS.B
,
20
.85
%
,
4/23/27
....
5,136
5,206
L2100737.UP.FTS.B
,
22
.28
%
,
4/23/27
....
13,974
14,196
FW2101765.UP.FTS.B
,
29
.07
%
,
4/23/27
..
3,070
906
FW2102410.UP.FTS.B
,
22
.44
%
,
5/07/27
..
3,236
3,282
L2250389.UP.FTS.B
,
13
.11
%
,
5/14/27
....
13,163
13,095
L2247268.UP.FTS.B
,
14
.22
%
,
5/14/27
....
31,021
29,413
L2250559.UP.FTS.B
,
14
.84
%
,
5/14/27
....
4,302
4,293
FW2248341.UP.FTS.B
,
18
.43
%
,
5/14/27
..
19,096
305
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2248252.UP.FTS.B
,
18
.48
%
,
5/14/27
....
$
2,032
$
2,026
FW2249414.UP.FTS.B
,
19
.5
%
,
5/14/27
...
4,836
4,841
FW2250365.UP.FTS.B
,
20
.49
%
,
5/14/27
..
20,396
19,351
L2249288.UP.FTS.B
,
21
.82
%
,
5/14/27
....
3,825
277
FW2248500.UP.FTS.B
,
23
.6
%
,
5/14/27
...
2,069
2,086
L2250245.UP.FTS.B
,
24
.75
%
,
5/14/27
....
1,294
1,302
L2251286.UP.FTS.B
,
25
.89
%
,
5/14/27
....
1,537
1,547
FW2249682.UP.FTS.B
,
30
.35
%
,
5/14/27
..
1,283
371
L2252226.UP.FTS.B
,
14
.86
%
,
5/15/27
....
40,219
2,909
L2252234.UP.FTS.B
,
21
.66
%
,
5/15/27
....
3,138
876
FW2251714.UP.FTS.B
,
28
.54
%
,
5/15/27
..
4,763
334
FW2252591.UP.FTS.B
,
31
.67
%
,
5/15/27
..
6,504
6,278
L2250436.UP.FTS.B
,
22
.79
%
,
5/27/27
....
14,870
15,025
L2248430.UP.FTS.B
,
21
.51
%
,
5/28/27
....
1,126
155
L2253562.UP.FTS.B
,
23
.61
%
,
5/28/27
....
3,418
971
L2497350.UP.FTS.B
,
13
.11
%
,
6/24/27
....
6,459
6,423
FW2497520.UP.FTS.B
,
17
.89
%
,
6/24/27
..
4,355
4,350
L2497796.UP.FTS.B
,
18
.8
%
,
6/24/27
....
4,491
4,503
FW2498266.UP.FTS.B
,
27
.06
%
,
6/24/27
..
3,334
102
FW2499989.UP.FTS.B
,
28
.3
%
,
6/24/27
...
6,133
6,204
FW2463420.UP.FTS.B
,
28
.55
%
,
6/24/27
..
785
55
L2472114.UP.FTS.B
,
7
.63
%
,
6/25/27
.....
12,241
12,152
L2501796.UP.FTS.B
,
9
.36
%
,
6/25/27
....
9,042
8,982
L2500638.UP.FTS.B
,
25
.31
%
,
6/25/27
....
721
729
FW2503491.UP.FTS.B
,
26
.41
%
,
6/25/27
..
1,719
494
FW2502647.UP.FTS.B
,
31
.05
%
,
6/25/27
..
6,672
6,776
L2503404.UP.FTS.B
,
16
.88
%
,
7/01/27
....
5,831
5,812
FW1729187.UP.FTS.B
,
30
.3
%
,
7/17/27
...
4,626
4,704
L1900981.UP.FTS.B
,
20
.57
%
,
8/22/27
....
2,260
635
FW2972075.UP.FTS.B
,
9
.42
%
,
9/19/27
...
25,169
23,689
L2971880.UP.FTS.B
,
24
%
,
9/19/27
......
25,726
25,641
L2101315.UP.FTS.B
,
12
.86
%
,
9/23/27
....
2,911
2,856
L2250624.UP.FTS.B
,
16
.92
%
,
10/14/27
...
4,112
4,070
FW2249158.UP.FTS.B
,
11
.8
%
,
10/28/27
..
8,338
8,321
FW2500185.UP.FTS.B
,
30
.96
%
,
11/24/27
.
6,704
6,745
L2498668.UP.FTS.B
,
13
.66
%
,
11/25/27
...
27,120
27,023
FW2502838.UP.FTS.B
,
16
.27
%
,
11/25/27
.
25,640
25,651
L2499062.UP.FTS.B
,
17
.84
%
,
12/08/27
...
977
977
L2971929.UP.FTS.B
,
24
.66
%
,
2/19/28
....
15,770
15,716
L1901406.UP.FTS.B
,
27
.3
%
,
10/22/28
....
4,137
4,232
L1729715.UP.FTS.B
,
8
.39
%
,
9/17/34
....
188
186
L1729539.UP.FTS.B
,
18
.67
%
,
9/17/34
....
108
8
FW1730336.UP.FTS.B
,
30
.16
%
,
9/17/34
..
203
202
2,240,093
Total
Marketplace
Loans
(Cost
$
5,869,008
)
......
$5,201,571
Franklin
Universal
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
August
31,
2024
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Franklin
Universal
Trust
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$205,286,633
Cost
-
Non-controlled
affiliates
(Note
4
c
)
........................................................
4,054,622
Value
-
Unaffiliated
issuers
..................................................................
$259,690,686
Value
-
Non-controlled
affiliates
(Note
4
c
)
.......................................................
4,054,622
Cash
....................................................................................
54,800
Receivables:
Dividends
and
interest
.....................................................................
3,127,202
Total
assets
..........................................................................
266,927,310
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
21,082
Credit
facility
(Note
9
)
......................................................................
60,000,000
Management
fees
.........................................................................
162,814
Trustees'
fees
and
expenses
.................................................................
187
Accrued
interest
(Note
9)
...................................................................
307,417
Accrued
expenses
and
other
liabilities
...........................................................
242,476
Total
liabilities
.........................................................................
60,733,976
Net
assets,
at
value
.................................................................
$206,193,334
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$153,387,576
Total
distributable
earnings
(losses)
.............................................................
52,805,758
Net
assets,
at
value
.................................................................
$206,193,334
Shares
outstanding
.........................................................................
25,131,894
Net
asset
value
per
share
a
....................................................................
$8.20
a
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Universal
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
August
31,
2024
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Universal
Trust
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$12,648)
Unaffiliated
issuers
........................................................................
$2,547,579
Non-controlled
affiliates
(Note
4
c
)
.............................................................
264,611
Interest:
Unaffiliated
issuers
........................................................................
11,707,388
Total
investment
income
...................................................................
14,519,578
Expenses:
Management
fees
(Note
4
a
)
...................................................................
1,869,024
Transfer
agent
fees
.........................................................................
82,060
Custodian
fees
.............................................................................
2,130
Reports
to
shareholders
fees
..................................................................
81,241
Professional
fees
...........................................................................
176,293
Trustees'
fees
and
expenses
..................................................................
2,410
Amortization
of
note
issuance
costs
(Note
3
)
......................................................
984
Marketplace
lending
fees
(Note
1
d
)
.............................................................
371,837
Interest
expense
(Not
e
3
and
9)
................................................................
3,577,869
Other
....................................................................................
120,506
Total
expenses
.........................................................................
6,284,354
Expenses
waived/paid
by
affiliates
(Note
4c)
...................................................
(18,628)
Net
expenses
.........................................................................
6,265,726
Net
investment
income
................................................................
8,253,852
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
604,734
Foreign
currency
transactions
................................................................
235
Net
realized
gain
(loss)
..................................................................
604,969
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
25,291,988
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
511
Net
change
in
unrealized
appreciation
(depreciation)
............................................
25,292,499
Net
realized
and
unrealized
gain
(loss)
............................................................
25,897,468
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$34,151,320
Franklin
Universal
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Franklin
Universal
Trust
Year
Ended
August
31,
2024
Year
Ended
August
31,
2023
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$8,253,852
$10,839,636
Net
realized
gain
(loss)
.................................................
604,969
(6,179,649)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
25,292,499
(8,498,271)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
34,151,320
(3,838,284)
Distributions
to
shareholders
..............................................
(7,460,217)
(9,130,871)
Distributions
to
shareholders
from
tax
return
of
capital
...........................
(5,357,049)
(5,224,467)
Total
distributions
to
shareholders
..........................................
(12,817,266)
(14,355,338)
Net
increase
(decrease)
in
net
assets
...................................
21,334,054
(18,193,622)
Net
assets:
Beginning
of
year
.......................................................
184,859,280
203,052,902
End
of
year
...........................................................
$206,193,334
$184,859,280
Franklin
Universal
Trust
Financial
Statements
Statement
of
Cash
Flows
for
the
year
ended
August
31,
2024
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Universal
Trust
Cash
flow
from
operating
activities:
Dividends,
interest
and
other
income
received
.....................................................
$
13,726,114
Operating
expenses
paid
.....................................................................
(2,726,632)
Interest
expense
paid
........................................................................
(4,444,083)
Realized
gain
on
foreign
currency
transactions
.....................................................
235
Purchases
of
long-term
investments
.............................................................
(53,008,912)
Sales
and
maturities
of
long-term
investments
.....................................................
60,852,427
Net
sales
of
short-term
investments
.............................................................
3,443,835
Cash
provided
-
operating
activities
..........................................................
17,842,984
Cash
flow
from
financing
activities:
Proceeds
from
credit
facility
...................................................................
60,000,000
Repayment
of
senior
fixed
rate
Notes
............................................................
(65,000,000)
Cash
distributions
to
shareholders
..............................................................
(12,817,266)
Cash
used
-
financing
activities
.............................................................
(17,817,266)
Net
increase
(decrease)
in
cash
.................................................................
25,718
Cash
at
beginning
of
year
......................................................................
29,082
Cash
at
end
of
year
...........................................................................
$54,800
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,
2024
Net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
....................................
$
34,151,320
Adjustments
to
reconcile
net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
to
net
cash
provided
by
operating
activities:
Net
amortization
income
..................................................................
(392,400)
Amortization
of
Note
issuance
costs
..........................................................
984
Reinvested
dividends
from
non-controlled
affiliates
...............................................
(264,611)
Interest
received
in
the
form
of
securities
......................................................
(26,250)
Increase
in
dividends
and
interest
receivable
and
other
ass
ets
......................................
(84,464)
Decrease
in
interest
payable
...............................................................
(866,214)
Decrease
in
payable
to
affiliates,
accrued
expenses,
and
other
liabilities
...............................
(39,759)
Increase
in
payable
for
investments
purchased
.................................................
21,082
Decrease
in
receivable
for
investments
sold
....................................................
199,250
Decrease
in
cost
of
investments
.............................................................
10,436,034
Decrease
in
unrealized
depreciation
on
investments.
.............................................
(25,291,988)
Net
cash
provided
by
operating
activities
...........................................................
$17,842,984
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.
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
question
the
reliability
of
the
value
of
a
portfolio
security
held
Franklin
Universal
Trust
Notes
to
Financial
Statements
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.
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
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.
d.
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
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.
e.
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,
2024, 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.
f.
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
(including
interest
income
from
payment-in-kind
securities,
if
any)
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.
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
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.
g.
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Marketplace
Lending
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
h.
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,
2024,
there
were
an
unlimited
number
of
shares
authorized
($0.01
par
value).
During
the years
ended
August
31,
2024 and
August
31,
2023,
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,
2024
and
2023,
there
were
no
shares
repurchased.
3.
Senior
Fixed
Rate
Notes
During
the
year ended
August
31,
2024,
the
Fund had
$65
million
five-year
senior
fixed
rate
notes outstanding,
bearing
interest
at 3.91%
per
year.
For
the year
ended
August
31,
2024,
total
interest
paid
by
the
Fund
was
$1,270,750.
The
issuance
costs
of
$114,819
incurred
by
the
Fund
were
deferred
and
amortized
on
an
interest
method
basis
over
the
term
of
the
Notes.
For
the
year ended
August
31,
2024,
the
Fund
amortized
$984
of
Notes
issuance
costs.
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
Credit
Facility.
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
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
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,
2024,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
August
31,
2024,
the
capital
loss
carryforwards
were
as
follows:
During
the
year
ended
August
31,
2024,
the
Fund
utilized
$2,328,875
of
capital
loss
carryforwards.
The
tax
character
of
distributions
paid
during
the
years
ended
August
31,
2024
and
2023,
was
as
follows:
At
August
31,
2024,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
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,
4.982%
$7,233,846
$53,680,285
$(56,859,509)
$—
$—
$4,054,622
4,054,622
$264,611
Total
Affiliated
Securities
...
$7,233,846
$53,680,285
$(56,859,509)
$—
$—
$4,054,622
$264,611
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
................................................................................
816,615
2024
2023
Distributions
paid
from:
Ordinary
income
..........................................................
$7,460,217
$7,777,366
Long
term
capital
gain
......................................................
—
1,353,505
Return
of
capital
...........................................................
5,357,049
5,224,467
$12,817,266
$14,355,338
Cost
of
investments
..........................................................................
$210,123,362
Unrealized
appreciation
........................................................................
$68,160,061
Unrealized
depreciation
........................................................................
(14,538,115)
Net
unrealized
appreciation
(depreciation)
..........................................................
$53,621,946
4.
Transactions
with
Affiliates
(continued)
c.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
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,
bond
discounts
and
premiums
and
corporate
actions.
6.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
August
31,
2024,
aggregated
$53,029,994 and
$61,804,087,
respectively.
7.
Credit
Risk
and
Defaulted
Securities
At
August
31,
2024,
the
Fund
had 55.0%
of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
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,
2024,
the
aggregate
value
of
these
securities
represents
less
than
0.1%
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.
8.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The Fund
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
August
31,
2024,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
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.
Principal
Amount
*
Issuer
Acquisition
Date
Cost
Value
Franklin
Universal
Trust
757,734
Murray
Energy
Corp.,
Secured
Note,
144A,
PIK,
12%,
4/15/24
..................................
4/09/15
-
4/15/19
$
790,481
$
—
Total
Restricted
Securities
(Value
is
—%
of
Net
Assets)
..............
$790,481
$—
*
In
U.S.
dollars
unless
otherwise
indicated.
Franklin
Universal
Trust
Notes
to
Financial
Statements
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
and
the
securities
are
indicated
in
the
Schedule
of
Investments.
At
August
31,
2024,
the
Fund
had
outstanding
borrowings
of
$60,000,000,
which
approximates
fair
value.
The
borrowings
are
categorized
as
Level
2
within
the
fair
value
hierarchy.
The
average
borrowings
and
the
average
interest
rate
for
the
days
with
outstanding
borrowings
during
the year
ended
August
31,
2024,
were
$60,000,000
and
5.95%,
respectively.
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,
2024,
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
........................
$
53,433,508
$
—
$
—
$
53,433,508
Metals
&
Mining
.......................
5,619,946
—
—
5,619,946
Multi-Utilities
..........................
35,202,610
—
—
35,202,610
Oil,
Gas
&
Consumable
Fuels
.............
3,069,691
244,698
—
3,314,389
Pharmaceuticals
.......................
306,693
—
—
306,693
Preferred
Stocks
.........................
566,500
—
—
566,500
Warrants
...............................
1,091
—
—
1,091
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
938,017
—
938,017
Automobile
Components
.................
—
5,766,626
—
5,766,626
Automobiles
..........................
—
1,098,133
—
1,098,133
Beverages
...........................
—
665,260
—
665,260
Biotechnology
.........................
—
1,239,742
—
1,239,742
Building
Products
......................
—
4,985,278
—
4,985,278
Capital
Markets
........................
—
1,003,791
—
1,003,791
Chemicals
...........................
—
5,644,554
—
5,644,554
Commercial
Services
&
Supplies
...........
—
6,047,116
—
6,047,116
Communications
Equipment
..............
—
1,180,467
—
1,180,467
Construction
&
Engineering
...............
—
389,020
—
389,020
Consumer
Finance
.....................
—
4,874,128
—
4,874,128
Consumer
Staples
Distribution
&
Retail
......
—
729,034
—
729,034
Containers
&
Packaging
.................
—
6,042,047
—
6,042,047
Distributors
...........................
—
1,251,922
—
1,251,922
9.
Credit
Facility
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Diversified
Consumer
Services
............
$
—
$
741,059
$
—
$
741,059
Diversified
REITs
......................
—
2,236,940
—
2,236,940
Diversified
Telecommunication
Services
.....
—
3,951,138
—
3,951,138
Electric
Utilities
........................
—
1,405,021
—
1,405,021
Electrical
Equipment
....................
—
1,721,493
—
1,721,493
Electronic
Equipment,
Instruments
&
Components
........................
—
782,520
—
782,520
Energy
Equipment
&
Services
.............
—
4,423,558
—
4,423,558
Entertainment
.........................
—
832,741
—
832,741
Financial
Services
......................
—
5,626,250
—
5,626,250
Food
Products
........................
—
2,897,057
—
2,897,057
Ground
Transportation
..................
—
2,089,549
—
2,089,549
Health
Care
Equipment
&
Supplies
.........
—
1,348,864
—
1,348,864
Health
Care
Providers
&
Services
..........
—
6,557,056
—
6,557,056
Health
Care
REITs
.....................
—
188,325
—
188,325
Hotel
&
Resort
REITs
...................
—
1,445,927
—
1,445,927
Hotels,
Restaurants
&
Leisure
.............
—
10,440,850
—
a
10,440,850
Household
Durables
....................
—
4,625,382
—
4,625,382
Household
Products
....................
—
376,460
—
376,460
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
3,493,287
—
3,493,287
Insurance
............................
—
2,948,037
—
2,948,037
IT
Services
...........................
—
2,761,320
—
2,761,320
Life
Sciences
Tools
&
Services
............
—
1,020,787
—
1,020,787
Machinery
............................
—
3,311,679
—
3,311,679
Media
...............................
—
5,691,772
—
5,691,772
Metals
&
Mining
.......................
—
3,590,759
—
3,590,759
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
1,620,703
—
1,620,703
Oil,
Gas
&
Consumable
Fuels
.............
—
21,020,592
—
a
21,020,592
Paper
&
Forest
Products
.................
—
348,320
—
348,320
Passenger
Airlines
.....................
—
1,483,452
—
1,483,452
Personal
Care
Products
.................
—
622,004
—
622,004
Pharmaceuticals
.......................
—
2,365,646
—
2,365,646
Real
Estate
Management
&
Development
....
—
1,367,325
—
1,367,325
Software
.............................
—
2,361,324
—
2,361,324
Specialized
REITs
......................
—
1,023,333
—
1,023,333
Specialty
Retail
........................
—
1,312,102
—
1,312,102
Textiles,
Apparel
&
Luxury
Goods
..........
—
753,260
—
753,260
Trading
Companies
&
Distributors
..........
—
3,354,523
—
3,354,523
Wireless
Telecommunication
Services
.......
—
1,739,856
893
1,740,749
Senior
Floating
Rate
Interests
...............
—
175,267
—
175,267
Marketplace
Loans
.......................
—
—
5,201,571
5,201,571
Asset-Backed
Securities
...................
—
104,687
—
104,687
Escrows
and
Litigation
Trusts
...............
—
28,125
—
a
28,125
Short
Term
Investments
...................
4,054,622
—
—
4,054,622
Total
Investments
in
Securities
...........
$102,254,661
$156,288,183
$5,202,464
$263,745,308
a
Includes
financial
instruments
determined
to
have
no
value.
10.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
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,
2024,
the
reconciliation
is
as
follows:
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,
2024,
are
as
follows:
Balanc
e
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
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:
Corporate
Bonds
:
Hotels,
Restaurants
&
Leisure
.........
$
—
c
$
—
$
—
$
—
$
—
$
—
$
—
$
—
$
—
c
$
—
Oil,
Gas
&
Consumable
Fuels
..........
—
c
—
—
—
—
—
—
—
—
c
—
Wireless
Telecommunication
Services
........
—
1,448
(372)
—
—
379
351
(913)
893
(913)
Marketplace
Loans
:
Financial
Services
...
11,122,540
c
24,006
(6,314,409)
—
—
—
(
357,285)
726,719
5,201,571
(27,377)
Escrows
and
Litigation
Trusts
:
—
—
c
(8,865)
—
—
—
8,865
—
—
c
—
Total
Investments
in
Securities
............
$11,122,540
$25,454
$(6,323,646)
$—
$—
$379
$(348,069)
$725,806
$5,202,464
$(28,290)
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.
c
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
...........
$5,201,571
Discounted
cash
flow
Loss-adjusted
discount
rate
0.8%
-
18.2%
(8.2%)
Decrease
Projected
loss
rate
0.2%
-
92.8%
(16.8%)
Decrease
All
Other
Investments
..........
893
c,d
Total
$5,202,464
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.
10.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
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.
Abbreviations
c
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
May
also
include
values
derived
using
recent
transactions,
private
transaction
prices
or
non-public
third-party
pricing
information
which
is
unobservable.
d
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)
Report
of
Independent
Registered
Public
Accounting
Firm
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,
2024,
the
related
statements
of
operations
and
cash
flows
for
the
year
ended
August
31,
2024,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
August
31,
2024,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2024
(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,
2024,
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,
2024
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2024
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,
2024
by
correspondence
with
the
custodians,
transfer
agent,
and
private
placement
agent.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/PricewaterhouseCoopers
LLP
San
Francisco,
California
October
22,
2024
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Tax
Information
(unaudited)
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,
2024:
Pursuant
to:
Amount
Reported
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$3,197,363
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$3,411,375
Qualified
Net
Interest
Income
(QII)
§871(k)(1)(C)
$4,384,704
Section
163(j)
Interest
Earned
§163(j)
$5,766,505
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
10
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
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.
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.
Franklin
Universal
Trust
Important
Information
to
Shareholders
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.
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
Franklin
Universal
Trust
Important
Information
to
Shareholders
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;
diplomatic
and
political
developments
could
affect
the
economies,
industries,
and
securities
and
currency
markets
of
the
countries
in
which
the
Fund
is
invested,
which
can
include
rapid
and
adverse
political
changes;
social
instability;
regional
conflicts;
sanctions
imposed
by
the
United
States,
other
nations
or
other
governmental
entities,
including
supranational
entities;
terrorism;
and
war;
(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.
Annual
Meeting
of
Shareholders
The
Annual
Meeting
of
Shareholders
(the
“Meeting”)
for
Franklin
Universal
Trust
(Fund)
was
held
on
March
7,
2024.
At
the
Meeting,
shareholders
elected
Terrence
J.
Checki,
Mary
C.
Choksi
and
Larry
D.
Thompson
as
Trustees
of
the
Fund
to
hold
office
for
a
three
year
term,
set
to
expire
at
the
2027
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:
Harris
J.
Ashton,
Edith
E.
Holiday,
Gregory
E.
Johnson,
Rupert
H.
Johnson,
Jr.,
J.
Michael
Luttig
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
Terrence
J.
Checki
14,055,756
3,730,520
Mary
C.
Choksi
14,047,910
3,738,366
Larry
D.
Thompson
14,056,130
3,730,146
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
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.
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
1988
118
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
118
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
118
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).
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
118
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-2023),
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
118
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
118
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)
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
109
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
2023
and
Trustee
since
2013
128
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
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
(1940)
Trustee
Since
1988
118
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
fund
complex.
Ted
P.
Becker
(1951)
Chief
Compliance
Officer
Since
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
Franklin
Templeton
Fund
Adviser,
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
(2006-2020);
Managing
Director
of
Compliance
of
Legg
Mason
&
Co.
(2005-2020).
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
fund
complex.
Independent
Board
Members
(continued)
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.
Information
is
for
the
calendar
year
ended
December
31,
2023,
unless
otherwise
noted.
We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton
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
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,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Christopher
Kings
(1974)
Chief
Executive
Officer
-
Finance
and
Administration
Since
January
2024
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;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
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
fund
complex.
Jeffrey
W.
White
(1971)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2024
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Financial
Officer,
Chief
Accounting
Officer
&
Treasurer
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex;
and
formerly
,
Director
and
Assistant
Treasurer
within
Franklin
Templeton
Global
Fund
Tax
and
Fund
Administration
and
Financial
Reporting
(2017-2023).
Interested
Board
Members
and
Officers
(continued)
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
UNIVERSAL
TRUST
(Fund)
At
an
in-person
meeting
held
on
April
16,
2024
(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,
through
the
exercise
of
its
business
judgment,
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
the
ongoing
integration
of
the
Putnam
family
of
funds
into
the
Franklin
Templeton
(FT)
family
of
funds
and
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
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
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
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,
including
its
initiative
to
create
a
new
enterprise-wide
artificial
intelligence
platform.
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
Shareholder
Information
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2023.
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
three-,
five-
and
10-year
periods
was
above
the
median
and
in
the
first
(best)
or
second
quintile
of
its
Performance
Universe,
but
for
the
one-year
period
was
below
the
median
and
in
the
fifth
quintile
(worst)
of
its
Performance
Universe.
The
Board
further
noted
management’s
view
regarding
the
income-related
attributes
of
the
Fund
(e.g.,
a
fund’s
investment
objective)
as
set
forth
in
the
Fund’s
registration
statement
and
that
the
evaluation
of
the
Fund’s
performance
relative
to
its
peers
on
an
income
return
basis
was
appropriate
given
these
attributes.
The
Board
also
noted
that
the
Fund’s
annualized
income
return
for
each
of
the
one-,
three-,
five-,
and
10
year
periods,
although
below
the
median,
was
7.04%,
6.34%,
5.71%
and
5.70%,
respectively.
The
Board
discussed
this
performance
with
management
and
management
explained
that,
the
Fund
invests
in
multiple
asset
classes,
which
include
investments
in
high
yield
corporate
bonds
and
utility
stocks.
Management
further
explained
that,
unlike
the
Fund,
peers
in
the
Fund’s
Performance
Universe
focus
solely
on
investments
in
high
yield
bonds,
which
outperformed
the
Fund’s
investments
in
utility
stocks
in
2023.
Management
noted
that
the
Fund’s
portfolio
is
comprised
of
approximately
one-third
utility
stocks,
and
discussed
with
the
Board
management’s
views
on
the
benefits
of
investing
in
such
stocks
and
its
continued
focus
on
security
selection
in
both
high
yield
corporate
bonds
and
utility
stocks
for
portions
of
the
Fund’s
portfolio.
Management
also
explained
that
the
Fund’s
relative
below
median
income
return
was
due
to
the
Fund’s
investments
in
utility
stocks
which
pay
dividends
that
are
lower
than
the
interest
rate
for
high
yield
bonds.
Management
discussed
with
the
Board
the
actions
that
are
being
taken/have
been
taken
in
an
effort
to
improve
the
overall
performance
of
the
Fund,
including
management’s
focus
on
security
selection.
The
Board
concluded
that
the
Fund’s
Management
Agreement
should
be
continued
for
an
additional
one-year
period,
while
management’s
efforts
continue
to
be
closely
monitored.
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
12
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
equal
to
the
median
of
its
Expense
Group.
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
Franklin
Universal
Trust
Shareholder
Information
the
individual
funds
during
the
12-month
period
ended
September
30,
2023,
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
an
independent
registered
public
accounting
firm
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
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.
©
2024
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 19(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 $92,823 for the fiscal year ended August 31, 2024, and $80,090 for the fiscal year ended August 31, 2023.
(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 $140,000 for the fiscal year ended August 31, 2024, and $70,000 for the fiscal year ended August 31, 2023. The services for which these fees were paid included global access to tax platform International Tax View.
(d) All Other Fees
The aggregate 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 were $0 for the fiscal year ended August 31, 2024, and $89 for the fiscal year ended August 31, 2023. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.
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 $115,834 for the fiscal year ended August 31, 2024 and $63,000 for the fiscal year ended August 31, 2023. The services for which these fees were paid included, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, professional fees relating to security counts and fees in connection with license for accounting and business knowledge platform Viewpoint.
(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 $255,834 for the fiscal year ended August 31, 2024, and $133,089 for the fiscal year ended August 31, 2023.
(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. Financial Statements and Financial Highlights for Open-End Management Investment Companies. N/A
Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies. N/A
Item 9. Proxy Disclosures for Open-End Management Investment Companies. N/A
Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies. N/A
Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.
The information is disclosed as part of the Financial Statements included in Item 1 of this Form N-CSR, as applicable.
Item 12. 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, Templeton Asset Management Ltd. (Asset Management)in accordance with the Proxy Voting Policies and Procedures (Policies) adopted by the investment manager.
RESPONSIBILITY OF THE INVESTMENT MANAGERS TO VOTE PROXIES
Franklin Equity Group, 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,
* 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”).
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.
In addition, the Investment Manager receives in-house voting research from Franklin Templeton’s Stewardship Team (FT Stewardship). FT Stewardship provides customized research on specific corporate governance issues that is tailored to the investment manager and corporate engagement undertaken. This research may include opinions on voting decisions, however there is no obligation or inference for the Investment Manager to formally vote in line with these opinions. This research supports the independent vote decision making process and may reduce reliance on third-party advice for certain votes.
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 Franklin Templeton’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 Equity Group, which includes the following Investment Managers:
Franklin Advisers, Inc. (FAV)
Franklin Templeton Institutional, LLC
The following Proxy Policies apply to FAV 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.
Item 13. Portfolio Managers of Closed-End Management Investment Companies.
(a)(1) As of October 31, 2024, the portfolio managers of the Fund are 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.
PATRICIA O’CONNOR, CFA, Vice President of Advisers
Ms. O’Connor has been a portfolio manager of the Fund since September 30, 2024. She joined Franklin Templeton in 1997.
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, 2024.
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 | 3,620.8 | 4 | 1,611.0 | 3 | 45.1 |
| Jonathan G. Belk | 2 | 575.1 | 1 | 173.7 | 0 | N/A |
| Patricia O’Connor | 4 | 6,040.7 | 5 | 2,348.5 | 3 | 45.1 |
| 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 |
| Patricia O’Connor | None |
Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. N/A
Item 15. 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 16. 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 17. 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, 2024, 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 | - |
| Fees and/or compensation paid by the Fund for securities lending activities and related services | |
| Fees paid to Securities Lending Agent from revenue split | - |
| 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) | - |
| Other fees not included above | - |
| Aggregate fees/compensation paid by the Fund for securities lending activities | - |
| Net income from securities lending activities | - |
Item 18. Recovery of Erroneously Awarded Compensation.
(a) N/A
(b) N/A
Item 19. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Christopher Kings, Chief Executive Officer - Finance and Administration, and Jeffrey White, Chief Financial Officer, Chief Accounting Officer and Treasurer
(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
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/ CHRISTOPHER KINGS | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date | October 31, 2024 | |
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/ CHRISTOPHER KINGS | |
| | Christopher Kings | |
| | Chief Executive Officer - Finance and Administration | |
| | | |
| Date | October 31, 2024 | |
| By | /s/ JEFFREY WHITE | |
| | Jeffrey White | |
| | Chief Financial Officer, Chief Accounting Officer and Treasurer | |
| | | |
| Date | October 31, 2024 | |
