Franklin Universal Trust (FT) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

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)

Craig S. Tyle, 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: 2/28/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.

Semiannual

Report

Franklin

Universal

Trust

February

28,

2021

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

Contents

Semiannual

Report

Franklin

Universal

Trust

2

Performance

Summary

5

Financial

Highlights

and

Statement

of

Investments

6

Financial

Statements

19

Notes

to

Financial

Statements

23

Important

Information

to

Shareholders

33

Dividend

Reinvestment

and

Cash

Purchase

Plan

34

Shareholder

Information

36

Visit

@

franklintempleton.com

@

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

financial

planning

tools.

2

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

Universal

Trust

Dear

Shareholder:

This

semi

annual

report

for

Franklin

Universal

Trust

covers

the

period

ended

February

28,

2021

.

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.

Performance

Overview

For

the

six

months

under

review,

the

Fund’s

cumulative

total

returns

were

+5.18%

based

on

net

asset

value

and

+7.34%

based

on

market

price,

as

shown

in

the

Performance

Summary

on

page

5

.

For

comparison,

the

Credit

Suisse

(CS)

High

Yield

Index,

which

is

designed

to

mirror

the

investable

universe

of

the

U.S.

dollar-denominated

high-yield

debt

market,

posted

a

+6.31%

total

return,

1

and

utilities

stocks,

as

measured

by

the

Standard

&

Poor’s

®

(S&P

®

)

500

Utilities

Index,

which

tracks

all

electric

utility

stocks

in

the

broad

S&P

500

®

Index,

posted

a

+0.22%

total

return

for

the

same

period.

2

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.

Economic

and

Market

Overview

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index,

posted

modestly

negative

total

returns

during

the

six

months

ended

February

28,

2021,

as

continued

economic

recovery

and

additional

government

stimulus

led

to

higher

yields

(which

move

inversely

to

prices)

for

most

bonds.

As

the

period

began,

investors

were

adjusting

to

the

disruption

caused

by

the

novel

coronavirus

(COVID-19)

pandemic.

Before

the

period,

investor

flight

to

perceived

safety

had

driven

the

10-year

U.S.

Treasury

yield

to

near

record

lows.

During

the

period,

however,

the

implementation

of

mass

vaccination

programs

alongside

improving

economic

indicators

prompted

investors

to

anticipate

that

increased

inflation

would

lead

to

higher

interest

rates.

The

U.S.

Federal

Reserve

(Fed)

maintained

the

federal

funds

target

rate

at

a

range

of

0.00%–0.25%

and

continued

its

program

of

open-ended

purchasing

of

government-

backed

and

corporate

bonds

as

necessary

to

provide

liquidity

to

bond

markets.

Furthermore,

the

Fed

signaled

that

interest

rates

would

potentially

remain

low,

even

if

inflation

moderately

exceeded

the

Fed’s

2%

target

for

some

time.

U.S.

Treasury

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Treasury

Index,

posted

negative

total

returns

for

the

period.

The

10-year

U.S.

Treasury

yield

rose

from

near-record

lows

at

the

beginning

of

the

reporting

period

amid

a

significant

U.S.

federal

budget

deficit

and

high

levels

of

issuance.

The

Fed’s

new

inflation

policy

also

pressured

Treasuries,

as

renewed

strength

in

the

economy

prompted

investors

to

increase

their

inflation

expectations.

Mortgage-

backed

securities

(MBS),

as

measured

by

the

Bloomberg

Barclays

MBS

Index,

posted

marginally

negative

total

returns

for

the

period

despite

Fed

support,

as

low

interest

rates

led

to

accelerated

prepayments

from

mortgage

refinancing.

U.S.

corporate

bond

performance

varied

based

on

credit

rating,

reflecting

the

recovery

of

credit

markets

following

the

onset

of

the

pandemic.

While

the

strengthening

economy

pressured

corporate

bonds

generally,

it

also

had

the

effect

of

tempering

concerns

about

credit

quality,

which

benefited

lower-quality

bonds.

Consequently,

high-yield

corporate

bonds,

as

represented

by

the

Bloomberg

Barclays

U.S.

Corporate

High

Yield

Bond

Index,

posted

a

solid

advance,

while

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

Barclays

U.S.

Corporate

Bond

Index,

were

down

slightly.

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

1.

Source:

Credit

Suisse

Group.

2.

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.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

7

.

Franklin

Universal

Trust

3

franklintempleton.com

Semiannual

Report

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.

Manager’s

Discussion

The

Fund

posted

cumulative

total

returns

of

+7.34%

in

market

price

terms

and

+5.18%

in

net

asset

value

terms

for

six-month

period

under

review.

High-yield

(HY)

corporate

bonds,

as

measured

by

the

CS

High

Yield

Index,

posted

a

+6.31%

cumulative

total

return,

1

and

utility

stocks,

as

measured

by

the

S&P

500

Utilities

Index,

posted

a

+0.22%

cumulative

total

return

for

the

same

period.

2

*

Percentage

of

total

investments

of

the

Fund.

Total

investments

of

the

fund

include

long-term

and

short

-term

investments,

excluding

long-term

debt

issued

by

the

Fund.

**

Includes

convertible

bonds,

escrows

and

litigation

trusts,

preferred

stocks,

and

warrants.

As

financial

market

recovery

started

in

April

2020

amid

unprecedented

fiscal

and

monetary

measures

by

global

governments

and

central

banks,

continued

low

yields

across

the

U.S.

Treasury

yield

curve,

along

with

low

or

negative

government

bond

yields

globally,

supported

demand

for

both

HY

corporate

bonds

and

dividend-paying

stocks

throughout

much

of

2020.

While

the

Fed’s

support

for

the

HY

market,

in

the

form

of

direct

and

indirect

purchases

of

HY

corporate

securities

by

the

Fed’s

secondary

market

corporate

facility

were

modest,

the

perceived

support

had

buoyed

the

HY

market

in

general,

leading

to

a

persistent

tailwind

for

HY

corporate

bonds.

Despite

bouts

of

risk-off

sentiment

driven

largely

by

factors

such

as

a

surge

in

global

COVID-19

cases

and

the

political

impasse

regarding

additional

fiscal

stimulus

in

the

months

leading

up

to

the

U.S.

presidential

election,

HY

performance

held

firm.

Following

the

U.S.

presidential

election,

strong

HY

market

performance

persisted,

and

market

sentiment

remained

generally

positive

until

the

end

of

2020.

As

financial

markets

settled

into

the

new

year,

amid

a

stronger-than-expected

U.S.

economic

recovery

along

with

surging

longer-term

U.S.

Treasury

yields,

concerns

surrounding

potential

inflationary

pressures

have

resurfaced.

Investors

have

consequently

begun

to

assess

more

closely

the

implications

of

unprecedented

fiscal

stimulus,

an

accommodative

Fed

and

an

economy

poised

to

rebound

as

vaccination

programs

pave

the

way

for

reopening

businesses.

High-Yield

Corporate

Bonds

For

the

six-month

period

under

review,

the

CS

High

Yield

Index

posted

a

+6.31%

cumulative

total

return

as

lower-

rated

HY

bonds

generally

outperformed

their

higher-rated

counterparts.

1

From

a

sector/industry

standpoint,

issuers

in

the

energy,

aerospace

and

retail

industries

were

notable

outperformers.

From

September

2020

through

period-end,

the

technical

environment

remained

generally

supportive

amid

the

Fed’s

unprecedented,

albeit

limited,

involvement

in

the

HY

market.

Demand

has

been

buoyed

by

many

investors’

continuing

reach

for

yield,

which

has

helped

to

maintain

sizable

inflows

into

the

HY

market

through

the

end

of

2020.

Beginning

in

2021,

however,

the

market

saw

a

reversal

in

retail

fund

inflows

amid

increasing

U.S.

Treasury

yield

volatility.

HY

supply

had

remained

generally

robust

during

most

of

the

six-month

performance

period

under

review

as

many

issuers

continued

to

take

advantage

of

historically

low

yields

that

persisted

until

the

beginning

of

2021.

In

general,

our

preference

is

to

seek

out

the

best

individual

credit

opportunities,

without

specific

targeting

of

particular

industries

or

ratings

buckets.

We

have

continued

to

explore

targeted

investments

in

what

we

consider

financially

healthy

cyclical

companies,

as

well

as

issuers

that

have

been

heavily

impacted

by

the

COVID-19

pandemic

and

have

much

to

gain

from

an

eventual

economic

recovery.

Utility

Stocks

The

utilities

sector’s

+0.22%

cumulative

total

return,

as

measured

by

the

S&P

500

Utilities

Index,

underperformed

the

broader

market’s

+9.74%

cumulative

total

return,

as

Portfolio

Composition

2/28/21

%

of

Total

Investments*

Corporate

Bonds

65.6%

Common

Stocks

29.3%

Asset-Backed

Securities

2.7%

Marketplace

Loans

1.2%

Other**

0.3%

Short-Term

Investments

0.9%

Top

10

Holdings

2/28/21

Issuer

%

of

Total

Net

Assets

a

a

NextEra

Energy

Inc.

4.2%

Sempra

Energy

2.5%

CMS

Energy

Corp.

2.3%

American

Electric

Power

Co.

Inc.

2.3%

Dominion

Energy

Inc.

2.2%

Cheniere

Energy

Partners

LP

2.1%

Evergy

Inc.

2.0%

Duke

Energy

Corp.

1.9%

Alliant

Energy

Corp.

1.8%

DTE

Energy

Co.

1.7%

Franklin

Universal

Trust

4

franklintempleton.com

Semiannual

Report

measured

by

the

S&P

500

Index,

for

the

six

months

under

review.

2

Utilities

were

negatively

impacted

by

unfavorable

secular

rotation

and

catastrophic

winter

weather

events.

Fundamentally,

most

utilities

were

able

to

successfully

mitigate

COVID-19

headwinds

in

2020,

using

cost

levers

to

achieve

earnings

that

were

better

than

expected.

Some

utilities

expect

COVID-19

impacts

to

linger

in

2021,

but

as

a

group,

utilities

provided

strong

forward-looking

corporate

guidance.

Still,

utilities

underperformed

the

broader

market,

as

investors

seek

sectors

outside

of

the

group

that

benefit

from

the

economic

reopening.

Xcel

Energy,

WEC

Energy

Group

and

Dominion

Energy

were

relative

underperformers,

after

giving

up

earlier

gains.

NextEra

Energy

continued

to

be

the

bellwether

performer,

propping

up

the

utility

sector,

while

CMS

Energy

underperformed

due

to

the

loss

of

its

long-tenured

chief

executive

officer.

A

few

utilities

divested

non-core

assets,

with

DTE

Energy

divesting

its

midstream

segment

to

unlock

the

full

potential

of

its

regulated

utility.

Additional

relative

underperformance

from

the

group

stemmed

from

the

February

2021

winter

storms,

which

heavily

impacted

the

southern

U.S.

Energy

infrastructure

failed,

leading

to

increased

costs

for

utilities.

Evergy

and

Sempra

Energy

have

exposure

to

Texas,

but

were

not

materially

impacted

by

the

weather

event.

We

believe

the

sector

will

rebound,

as

relative

valuations

appear

attractive

and

fundamentals

remain

intact.

Furthermore,

the

long-term

investment

horizon

for

utilities

is

robust,

in

our

view,

driven

by

decarbonization

investment

opportunities.

Thank

you

for

your

continued

participation

in

Franklin

Universal

Trust.

We

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Glenn

I.

Voyles,

CFA

Jonathan

G.

Belk,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

February

28,

2021,

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

February

28,

2021

Franklin

Universal

Trust

5

franklintempleton.com

Semiannual

Report

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Total

returns

do

not

reflect

any

sales

charges

paid

at

inception

or

brokerage

commissions

paid

on

secondary

market

purchases.

The

performance

table

does

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

2/28/21

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.

Shares

Prices

1

All

investments

involve

risks,

including

possible

loss

of

principal.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

As

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

the

fund’s

share

price

may

decline.

Investments

in

lower-rated

bonds

include

higher

risk

of

default

and

loss

of

principal.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

In

addition

to

having

sensitivity

to

other

factors,

securities

issued

by

utility

companies

have

historically

been

sensitive

to

interest

rate

changes.

When

interest

rates

fall,

utility

securities

prices,

and

thus

a

utilities

fund’s

share

price,

tend

to

rise;

when

interest

rates

rise,

their

prices

generally

fall.

For

stocks

paying

dividends,

dividends

are

not

guaranteed,

and

can

increase,

decrease

or

be

totally

eliminated

without

notice.

Events

such

as

the

spread

of

deadly

diseases,

disas-

ters,

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

desire

results.

1.

The

Fund

has

a

fee

waiver

associated

with

any

investment

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

10/31/21.

Fund

investment

results

reflect

the

fee

waiver;

without

this

waiver,

the

results

would

have

been

lower.

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.

Cumulative

Total

Return

1

Average

Annual

Total

Return

1

Based

on

NAV

2

Based

on

market

price

3

Based

on

NAV

2

Based

on

market

price

3

6-Month

+5.18%

+7.34%

+5.18%

+7.34%

1-Year

+4.57%

+7.79%

+4.57%

+7.79%

5-Year

+59.90%

+62.33%

+9.84%

+10.17%

10-Year

+104.33%

+110.31%

+7.41%

+7.72%

Symbol:

FT

2/28/21

8/31/20

Change

Net

Asset

Value

(NAV)

$8.35

$8.12

+$0.23

Market

Price

(NYSE)

$7.32

$7.00

+$0.32

Distributions

(9/1/20–2/28/21)

Net

Investment

Income

$0.1920

Franklin

Universal

Trust

Financial

Highlights

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

a

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

2019

2018

2017

2016

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$8.12

$8.57

$7.99

$8.24

$7.67

$7.11

Income

from

investment

operations:

Net

investment

income

a

.............

0.21

0.41

0.38

0.39

0.38

0.39

Net

realized

and

unrealized

gains

(losses)

0.21

(0.48)

0.58

(0.26)

0.57

0.64

Total

from

investment

operations

........

0.42

(0.07)

0.96

0.13

0.95

1.03

Less

distributions

from:

Net

investment

income

..............

(0.19)

(0.38)

(0.38)

(0.38)

(0.38)

(0.47)

Net

realized

gains

.................

—

(—)

b

—

—

—

—

Total

distributions

...................

(0.19)

(0.38)

(0.38)

(0.38)

(0.38)

(0.47)

Net

asset

value,

end

of

period

..........

$8.35

$8.12

$8.57

$7.99

$8.24

$7.67

Market

value,

end

of

period

c

...........

$7.32

$7.00

$7.37

$6.77

$7.24

$6.84

Total

return

(based

on

market

value

per

share)

d

...........................

7.34%

0.25%

15.02%

(1.18)%

11.81%

20.76%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

2.54%

2.49%

2.45%

1.98%

2.00%

2.13%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

2.54%

g

2.49%

g

2.44%

1.98%

g

1.99%

2.12%

Net

investment

income

...............

5.12%

5.01%

4.69%

4.91%

4.81%

5.48%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$209,771

$204,094

$215,292

$200,796

$206,965

$192,682

Portfolio

turnover

rate

................

16.54%

35.26%

21.70%

22.96%

23.25%

21.13%

Total

debt

outstanding

at

end

of

period

(000's)

...........................

$65,000

$65,000

$65,000

$65,000

$60,000

$60,000

Asset

coverage

per

$1,000

of

debt

......

$4,227

$4,140

$4,312

$4,089

$4,449

$4,211

Average

amount

of

senior

rate

fixed

Notes

per

share

during

the

period

............

$2.59

$2.59

$2.59

$2.39

$2.39

$2.39

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

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

ye

ar.

f

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Universal

Trust

Statement

of

Investments,

February

28,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

7

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

38.6%

Electric

Utilities

21.1%

Alliant

Energy

Corp.

...................................

United

States

80,000

$

3,692,800

American

Electric

Power

Co.,

Inc.

.........................

United

States

65,000

4,865,250

Duke

Energy

Corp.

....................................

United

States

46,060

3,942,275

Edison

International

...................................

United

States

36,000

1,943,640

Entergy

Corp.

........................................

United

States

30,000

2,604,300

Evergy

,

Inc.

..........................................

United

States

80,000

4,290,400

Exelon

Corp.

.........................................

United

States

80,000

3,088,000

FirstEnergy

Corp.

.....................................

United

States

40,000

1,325,600

NextEra

Energy,

Inc.

...................................

United

States

120,000

8,817,600

Pinnacle

West

Capital

Corp.

.............................

United

States

30,000

2,097,900

PPL

Corp.

...........................................

United

States

24,500

641,655

Southern

Co.

(The)

....................................

United

States

60,000

3,403,200

Xcel

Energy,

Inc.

......................................

United

States

60,000

3,515,400

44,228,020

Energy

Equipment

&

Services

0.1%

a

Weatherford

International

plc

.............................

United

States

16,874

197,426

Machinery

0.2%

a

Birch

Permian

Holdings,

Inc.

.............................

United

States

3,694

44,328

a

Birch

Permian

Holdings,

Inc.

.............................

United

States

28,796

341,952

386,280

Metals

&

Mining

2.1%

BHP

Group

plc,

ADR

...................................

Australia

25,185

1,592,447

a

Freeport-McMoRan,

Inc.

................................

United

States

80,380

2,725,686

South32

Ltd.,

ADR

....................................

Australia

10,074

107,792

4,425,925

Multi-Utilities

14.2%

CenterPoint

Energy,

Inc.

................................

United

States

122,800

2,387,232

CMS

Energy

Corp.

....................................

United

States

90,000

4,869,900

Consolidated

Edison,

Inc.

...............................

United

States

40,000

2,626,000

Dominion

Energy,

Inc.

..................................

United

States

67,200

4,591,104

DTE

Energy

Co.

......................................

United

States

30,000

3,531,600

NiSource,

Inc.

........................................

United

States

60,000

1,296,000

Public

Service

Enterprise

Group,

Inc.

......................

United

States

45,000

2,422,350

Sempra

Energy

.......................................

United

States

45,000

5,219,100

WEC

Energy

Group,

Inc.

................................

United

States

35,000

2,822,400

29,765,686

Oil,

Gas

&

Consumable

Fuels

0.8%

b

Amplify

Energy

Corp.

..................................

United

States

245

715

a,b

California

Resources

Corp.

..............................

United

States

27

710

a

Chesapeake

Energy

Corp.

..............................

United

States

588

25,978

Enbridge,

Inc.

........................................

Canada

39,360

1,330,762

a

Goodrich

Petroleum

Corp.

...............................

United

States

19,379

188,170

a,c

Riviera

Resources,

Inc.

.................................

United

States

5,042

1,302

1,547,637

Paper

&

Forest

Products

0.0%

†

Verso

Corp.,

A

........................................

United

States

3,330

41,625

Specialty

Retail

0.1%

a

Party

City

Holdco,

Inc.

..................................

United

States

37,652

288,413

Total

Common

Stocks

(Cost

$38,181,301)

......................................

80,881,012

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Preferred

Stocks

0.3%

Electric

Utilities

0.3%

SCE

Trust

II,

5.1%

....................................

United

States

27,500

$

662,750

Total

Preferred

Stocks

(Cost

$598,125)

.........................................

662,750

Warrants

Warrants

0.0%

†

Oil,

Gas

&

Consumable

Fuels

0.0%

†

a,c

Battalion

Oil

Corp.,

A,

10/08/22

...........................

United

States

583

806

a,c

Battalion

Oil

Corp.,

B,

10/08/22

...........................

United

States

728

800

a,c

Battalion

Oil

Corp.,

C,

10/08/22

...........................

United

States

937

759

a

California

Resources

Corp.,

10/27/24

......................

United

States

64

316

a

Chesapeake

Energy

Corp.,

2/09/26

........................

United

States

1,109

19,352

22,033

Paper

&

Forest

Products

0.0%

†

a

Verso

Corp.,

7/25/23

...................................

United

States

350

403

Total

Warrants

(Cost

$602,518)

................................................

22,436

Principal

Amount

*

Convertible

Bonds

0.0%

†

Wireless

Telecommunication

Services

0.0%

†

d,e,f

Digicel

Group

0.5

Ltd.

,

Sub.

Bond

,

144A,

PIK,

7

%

,

Perpetual

.....

Bermuda

23,602

14,943

Total

Convertible

Bonds

(Cost

$4,272)

.........................................

14,943

Corporate

Bonds

86.4%

Aerospace

&

Defense

0.5%

f

BWX

Technologies,

Inc.

,

Senior

Note

,

144A,

5.375

%

,

7/15/26

....

United

States

600,000

623,136

f

Signature

Aviation

US

Holdings,

Inc.

,

Senior

Note

,

144A,

5.375

%

,

5/01/26

...........................................

United

States

500,000

512,500

1,135,636

Air

Freight

&

Logistics

0.7%

f

DAE

Funding

LLC

,

Senior

Note,

144A,

4.5%,

8/01/22

.......................

United

Arab

Emirates

700,000

705,250

Senior

Note,

144A,

5%,

8/01/24

........................

United

Arab

Emirates

700,000

724,062

1,429,312

Airlines

0.8%

f

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.

,

Senior

Secured

Note

,

144A,

4.75

%

,

10/20/28

.....................................

United

States

1,000,000

1,111,042

f

Mileage

Plus

Holdings

LLC

/

Mileage

Plus

Intellectual

Property

Assets

Ltd.

,

Senior

Secured

Note

,

144A,

6.5

%

,

6/20/27

.......

United

States

500,000

546,875

1,657,917

Auto

Components

3.3%

f

Adient

US

LLC

,

Senior

Secured

Note

,

144A,

7

%

,

5/15/26

.......

United

States

1,900,000

2,048,200

f

Allison

Transmission,

Inc.

,

Senior

Bond,

144A,

3.75%,

1/30/31

......................

United

States

700,000

670,687

Senior

Note,

144A,

4.75%,

10/01/27

.....................

United

States

600,000

621,000

Dana,

Inc.

,

Senior

Note

,

5.625

%

,

6/15/28

...................

United

States

1,400,000

1,488,039

Goodyear

Tire

&

Rubber

Co.

(The)

,

Senior

Note

,

9.5

%

,

5/31/25

...

United

States

1,000,000

1,121,880

f

Real

Hero

Merger

Sub

2,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

2/01/29

.

United

States

1,000,000

1,031,250

6,981,056

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Banks

0.5%

e

JPMorgan

Chase

&

Co.

,

R

,

Junior

Sub.

Bond

,

6%

to

8/01/23,

FRN

thereafter

,

Perpetual

.................................

United

States

900,000

$

953,224

Biotechnology

0.4%

f

Emergent

BioSolutions

,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

8/15/28

.

United

States

900,000

914,341

Building

Products

1.5%

f

Cornerstone

Building

Brands,

Inc.

,

Senior

Note,

144A,

8%,

4/15/26

........................

United

States

900,000

935,442

Senior

Note,

144A,

6.125%,

1/15/29

.....................

United

States

500,000

513,437

f

JELD-WEN,

Inc.

,

Senior

Note,

144A,

4.625%,

12/15/25

....................

United

States

300,000

304,093

Senior

Note,

144A,

4.875%,

12/15/27

....................

United

States

300,000

312,180

f

Standard

Industries,

Inc.

,

Senior

Note

,

144A,

5

%

,

2/15/27

.......

United

States

300,000

310,313

f

Summit

Materials

LLC

/

Summit

Materials

Finance

Corp.

,

Senior

Note

,

144A,

5.25

%

,

1/15/29

............................

United

States

800,000

850,000

3,225,465

Chemicals

2.4%

f

Axalta

Coating

Systems

LLC

,

Senior

Note

,

144A,

3.375

%

,

2/15/29

United

States

600,000

583,125

f

Element

Solutions,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

.....

United

States

700,000

700,507

f

GPD

Cos.,

Inc.

,

Senior

Secured

Note

,

144A,

10.125

%

,

4/01/26

...

United

States

1,500,000

1,663,125

f

Illuminate

Buyer

LLC

/

Illuminate

Holdings

IV,

Inc.

,

Senior

Note

,

144A,

9

%

,

7/01/28

...................................

United

States

1,000,000

1,113,750

f

Ingevity

Corp.

,

Senior

Note

,

144A,

3.875

%

,

11/01/28

...........

United

States

400,000

396,752

f

Rain

CII

Carbon

LLC

/

CII

Carbon

Corp.

,

Secured

Note

,

144A,

7.25

%

,

4/01/25

.....................................

United

States

600,000

615,897

5,073,156

Commercial

Services

&

Supplies

1.6%

f

Harsco

Corp.

,

Senior

Note

,

144A,

5.75

%

,

7/31/27

.............

United

States

1,500,000

1,566,563

f

Prime

Security

Services

Borrower

LLC

/

Prime

Finance,

Inc.

,

Senior

Secured

Note

,

144A,

3.375

%

,

8/31/27

....................

United

States

600,000

585,678

f

Stericycle,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

1/15/29

...........

United

States

1,200,000

1,210,080

3,362,321

Communications

Equipment

0.8%

f

CommScope

,

Inc.

,

Senior

Note

,

144A,

7.125

%

,

7/01/28

.........

United

States

1,600,000

1,680,112

Construction

&

Engineering

1.1%

f

New

Enterprise

Stone

&

Lime

Co.,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

3/15/26

.....................................

United

States

900,000

928,688

f

Weekley

Homes

LLC

/

Weekley

Finance

Corp.

,

Senior

Note

,

144A,

4.875

%

,

9/15/28

.....................................

United

States

1,300,000

1,361,750

2,290,438

Construction

Materials

0.6%

f

Cemex

SAB

de

CV

,

Senior

Secured

Note

,

144A,

5.2

%

,

9/17/30

...

Mexico

1,100,000

1,195,975

Consumer

Finance

1.8%

f

FirstCash

,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

9/01/28

...........

United

States

400,000

416,318

Navient

Corp.

,

Senior

Note,

6.625%,

7/26/21

..........................

United

States

400,000

406,750

Senior

Note,

6.5%,

6/15/22

............................

United

States

500,000

520,065

Senior

Note,

7.25%,

9/25/23

...........................

United

States

600,000

652,125

OneMain

Finance

Corp.

,

Senior

Bond,

5.375%,

11/15/29

.........................

United

States

1,000,000

1,057,500

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

(continued)

OneMain

Finance

Corp.,

(continued)

Senior

Note,

6.625%,

1/15/28

..........................

United

States

700,000

$

797,223

3,849,981

Containers

&

Packaging

4.6%

f

Ardagh

Packaging

Finance

plc

/

Ardagh

Holdings

USA,

Inc.

,

Senior

Note,

144A,

5.25%,

8/15/27

......................

United

States

600,000

622,170

Senior

Secured

Note,

144A,

5.25%,

4/30/25

...............

United

States

800,000

845,076

f

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

......................

United

States

1,800,000

1,780,897

Senior

Secured

Note,

144A,

8.5%,

4/15/24

................

United

States

1,000,000

1,035,000

f

Owens-Brockway

Glass

Container,

Inc.

,

Senior

Note,

144A,

5.875%,

8/15/23

.....................

United

States

500,000

538,437

Senior

Note,

144A,

6.625%,

5/13/27

.....................

United

States

500,000

537,188

f

Plastipak

Holdings,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

10/15/25

....

United

States

1,700,000

1,749,938

f

Reynolds

Group

Issuer,

Inc.

/

Reynolds

Group

Issuer

LLC

/

Reynolds

Group

Issuer

Luxembourg

SA

,

Senior

Secured

Note

,

144A,

4

%

,

10/15/27

..........................................

United

States

1,200,000

1,197,744

f

Sealed

Air

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

9/15/25

...........

United

States

200,000

222,625

f

Trivium

Packaging

Finance

BV

,

Senior

Note

,

144A,

8.5

%

,

8/15/27

.

Netherlands

1,000,000

1,074,275

9,603,350

Diversified

Financial

Services

0.7%

f

MPH

Acquisition

Holdings

LLC

,

Senior

Note

,

144A,

5.75

%

,

11/01/28

United

States

1,500,000

1,490,625

Diversified

Telecommunication

Services

4.0%

f

Altice

France

Holding

SA

,

Senior

Secured

Note

,

144A,

10.5

%

,

5/15/27

...........................................

Luxembourg

2,000,000

2,252,350

f

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond,

144A,

5.75%,

2/15/26

......................

United

States

700,000

724,360

Senior

Bond,

144A,

5.375%,

6/01/29

.....................

United

States

500,000

539,430

Senior

Bond,

144A,

4.5%,

8/15/30

.......................

United

States

1,700,000

1,762,483

Senior

Bond,

144A,

4.25%,

2/01/31

......................

United

States

200,000

202,750

f

DKT

Finance

ApS

,

Senior

Secured

Note

,

144A,

9.375

%

,

6/17/23

..

Denmark

1,500,000

1,559,250

f

Virgin

Media

Secured

Finance

plc

,

Senior

Secured

Bond,

144A,

5.5%,

8/15/26

................

United

Kingdom

200,000

208,600

Senior

Secured

Bond,

144A,

4.5%,

8/15/30

................

United

Kingdom

1,100,000

1,125,850

8,375,073

Electric

Utilities

0.8%

f

Vistra

Operations

Co.

LLC

,

Senior

Note

,

144A,

5.625

%

,

2/15/27

..

United

States

1,500,000

1,569,690

Electronic

Equipment,

Instruments

&

Components

0.2%

f

TTM

Technologies,

Inc.

,

Senior

Note

,

144A,

4

%

,

3/01/29

........

United

States

500,000

506,250

Energy

Equipment

&

Services

1.6%

f

CSI

Compressco

LP

/

CSI

Compressco

Finance,

Inc.

,

d

Secured

Note,

144A,

PIK,

10%,

4/01/26

..................

United

States

948,950

797,421

Senior

Secured

Note,

144A,

7.5%,

4/01/25

................

United

States

402,000

404,261

f

Nabors

Industries

Ltd.

,

Senior

Note,

144A,

7.25%,

1/15/26

......................

United

States

600,000

533,820

Senior

Note,

144A,

7.5%,

1/15/28

.......................

United

States

400,000

346,498

Nabors

Industries,

Inc.

,

Senior

Note

,

5.75

%

,

2/01/25

...........

United

States

500,000

397,813

f

Weatherford

International

Ltd.

,

Senior

Note

,

144A,

11

%

,

12/01/24

.

United

States

917,000

902,970

3,382,783

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Entertainment

1.8%

f

Banijay

Entertainment

SASU

,

Senior

Secured

Note

,

144A,

5.375

%

,

3/01/25

...........................................

France

1,000,000

$

1,023,125

f

Live

Nation

Entertainment,

Inc.

,

Senior

Secured

Note

,

144A,

3.75

%

,

1/15/28

...........................................

United

States

200,000

200,815

Netflix,

Inc.

,

Senior

Bond,

5.875%,

2/15/25

..........................

United

States

800,000

918,936

f

Senior

Note,

144A,

3.625%,

6/15/25

.....................

United

States

300,000

320,062

f

WMG

Acquisition

Corp.

,

Senior

Secured

Bond

,

144A,

3

%

,

2/15/31

.

United

States

1,400,000

1,349,250

3,812,188

Equity

Real

Estate

Investment

Trusts

(REITs)

1.8%

f

Global

Net

Lease,

Inc.

/

Global

Net

Lease

Operating

Partnership

LP

,

Senior

Note

,

144A,

3.75

%

,

12/15/27

......................

United

States

800,000

800,317

f

HAT

Holdings

I

LLC

/

HAT

Holdings

II

LLC

,

Senior

Note,

144A,

5.25%,

7/15/24

......................

United

States

800,000

828,408

Senior

Note,

144A,

6%,

4/15/25

........................

United

States

600,000

630,750

MPT

Operating

Partnership

LP

/

MPT

Finance

Corp.

,

Senior

Bond

,

5.25

%

,

8/01/26

.....................................

United

States

300,000

311,490

f

Park

Intermediate

Holdings

LLC

/

PK

Domestic

Property

LLC

/

PK

Finance

Co-Issuer

,

Senior

Secured

Note

,

144A,

5.875

%

,

10/01/28

United

States

500,000

527,650

f

VICI

Properties

LP

/

VICI

Note

Co.,

Inc.

,

Senior

Note

,

144A,

3.75

%

,

2/15/27

...........................................

United

States

700,000

711,704

3,810,319

Food

Products

2.0%

f

Chobani

LLC

/

Chobani

Finance

Corp.,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

11/15/28

...............................

United

States

800,000

828,000

Kraft

Heinz

Foods

Co.

,

Senior

Bond

,

4.25

%

,

3/01/31

...........

United

States

800,000

899,268

f

Post

Holdings,

Inc.

,

Senior

Bond,

144A,

5%,

8/15/26

........................

United

States

700,000

730,887

Senior

Bond,

144A,

5.625%,

1/15/28

.....................

United

States

300,000

315,480

Senior

Bond,

144A,

4.625%,

4/15/30

.....................

United

States

500,000

508,125

Senior

Bond,

144A,

4.5%,

9/15/31

.......................

United

States

900,000

898,313

4,180,073

Health

Care

Equipment

&

Supplies

0.1%

f

Ortho-Clinical

Diagnostics,

Inc.

/

Ortho-Clinical

Diagnostics

SA

,

Senior

Note

,

144A,

7.375

%

,

6/01/25

......................

United

States

180,000

193,163

Health

Care

Providers

&

Services

4.2%

Centene

Corp.

,

Senior

Bond,

2.5%,

3/01/31

............................

United

States

500,000

484,225

f

Senior

Note,

144A,

5.375%,

8/15/26

.....................

United

States

500,000

527,500

f

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

8.125%,

6/30/24

....................

United

States

718,000

750,310

Senior

Secured

Note,

144A,

6.625%,

2/15/25

..............

United

States

500,000

526,751

Senior

Secured

Note,

144A,

6%,

1/15/29

..................

United

States

300,000

318,375

f

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

700,000

712,687

HCA,

Inc.

,

Senior

Bond,

5.875%,

2/15/26

..........................

United

States

1,400,000

1,620,080

Senior

Bond,

3.5%,

9/01/30

............................

United

States

700,000

729,174

f

MEDNAX,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

1/15/27

............

United

States

400,000

422,992

f

ModivCare

,

Inc.

,

Senior

Note

,

144A,

5.875

%

,

11/15/25

.........

United

States

1,500,000

1,592,813

f

Tenet

Healthcare

Corp.

,

Senior

Note

,

144A,

6.125

%

,

10/01/28

....

United

States

1,000,000

1,053,950

8,738,857

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Hotels,

Restaurants

&

Leisure

6.9%

f

1011778

BC

ULC

/

New

Red

Finance,

Inc.

,

Secured

Bond

,

144A,

4

%

,

10/15/30

.......................................

Canada

1,000,000

$

976,450

f,g

24

Hour

Fitness

Worldwide,

Inc.

,

Senior

Note

,

144A,

8

%

,

6/01/22

.

United

States

1,800,000

540

f

Boyd

Gaming

Corp.

,

Senior

Note

,

144A,

8.625

%

,

6/01/25

.......

United

States

1,300,000

1,431,625

f

Boyne

USA,

Inc.

,

Secured

Note

,

144A,

7.25

%

,

5/01/25

.........

United

States

1,500,000

1,565,017

f

Caesars

Entertainment,

Inc.

,

Senior

Secured

Note

,

144A,

6.25

%

,

7/01/25

...........................................

United

States

900,000

954,000

f

Caesars

Resort

Collection

LLC

/

CRC

Finco

,

Inc.

,

Senior

Secured

Note

,

144A,

5.75

%

,

7/01/25

............................

United

States

400,000

420,500

f

Carnival

Corp.

,

Senior

Note,

144A,

7.625%,

3/01/26

.....................

United

States

400,000

421,000

Senior

Note,

144A,

5.75%,

3/01/27

......................

United

States

1,500,000

1,524,600

f

Downstream

Development

Authority

of

the

Quapaw

Tribe

of

Oklahoma

,

Senior

Secured

Note

,

144A,

10.5

%

,

2/15/23

.......

United

States

1,500,000

1,535,467

f

Genting

New

York

LLC

/

GENNY

Capital,

Inc.

,

Senior

Note

,

144A,

3.3

%

,

2/15/26

......................................

United

States

400,000

402,048

f

Golden

Nugget,

Inc.

,

Senior

Note

,

144A,

6.75

%

,

10/15/24

.......

United

States

1,300,000

1,323,569

f

International

Game

Technology

plc

,

Senior

Secured

Note

,

144A,

5.25

%

,

1/15/29

.....................................

United

States

400,000

424,142

f

NCL

Corp.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

3/15/26

...........

United

States

300,000

302,003

f

Six

Flags

Theme

Parks,

Inc.

,

Senior

Secured

Note

,

144A,

7

%

,

7/01/25

...........................................

United

States

400,000

431,962

f

Studio

City

Finance

Ltd.

,

Senior

Note

,

144A,

5

%

,

1/15/29

.......

Macau

600,000

608,250

f

Vail

Resorts,

Inc.

,

Senior

Note

,

144A,

6.25

%

,

5/15/25

..........

United

States

300,000

320,745

f

Wynn

Macau

Ltd.

,

Senior

Note

,

144A,

5.625

%

,

8/26/28

.........

Macau

500,000

520,938

f

Wynn

Resorts

Finance

LLC

/

Wynn

Resorts

Capital

Corp.

,

Senior

Note

,

144A,

7.75

%

,

4/15/25

............................

United

States

1,200,000

1,303,698

14,466,554

Household

Durables

1.5%

f

Ashton

Woods

USA

LLC

/

Ashton

Woods

Finance

Co.

,

Senior

Note

,

144A,

6.75

%

,

8/01/25

.................................

United

States

1,500,000

1,554,217

f

Taylor

Morrison

Communities,

Inc.

/

Taylor

Morrison

Holdings

II,

Inc.

,

Senior

Note

,

144A,

5.625

%

,

3/01/24

......................

United

States

400,000

433,204

Toll

Brothers

Finance

Corp.

,

Senior

Bond

,

5.625

%

,

1/15/24

......

United

States

700,000

789,390

f

Williams

Scotsman

International,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

8/15/28

.....................................

United

States

300,000

308,813

3,085,624

Household

Products

0.3%

f

Spectrum

Brands,

Inc.

,

Senior

Bond

,

144A,

3.875

%

,

3/15/31

.....

United

States

600,000

594,594

Independent

Power

and

Renewable

Electricity

Producers

3.4%

f

Calpine

Corp.

,

Senior

Bond,

144A,

5%,

2/01/31

........................

United

States

900,000

892,098

Senior

Note,

144A,

4.625%,

2/01/29

.....................

United

States

700,000

692,300

Clearway

Energy

Operating

LLC

,

Senior

Note,

5.75%,

10/15/25

..........................

United

States

400,000

418,970

Senior

Note,

5%,

9/15/26

.............................

United

States

700,000

722,312

f

Senior

Note,

144A,

4.75%,

3/15/28

......................

United

States

600,000

641,814

f

InterGen

NV

,

Senior

Secured

Bond

,

144A,

7

%

,

6/30/23

.........

Netherlands

1,900,000

1,850,125

Talen

Energy

Supply

LLC

,

Senior

Note

,

6.5

%

,

6/01/25

..........

United

States

2,100,000

1,841,438

7,059,057

Insurance

0.5%

f

Alliant

Holdings

Intermediate

LLC

/

Alliant

Holdings

Co-Issuer

,

Senior

Note

,

144A,

6.75

%

,

10/15/27

...........................

United

States

1,100,000

1,143,802

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Internet

&

Direct

Marketing

Retail

0.2%

f

Match

Group

Holdings

II

LLC

,

Senior

Note

,

144A,

4.625

%

,

6/01/28

United

States

500,000

$

520,028

IT

Services

2.4%

f

Cablevision

Lightpath

LLC

,

Senior

Secured

Note

,

144A,

3.875

%

,

9/15/27

...........................................

United

States

700,000

695,625

f

Gartner,

Inc.

,

Senior

Note,

144A,

4.5%,

7/01/28

.......................

United

States

500,000

525,625

Senior

Note,

144A,

3.75%,

10/01/30

.....................

United

States

300,000

304,125

f

Northwest

Fiber

LLC

/

Northwest

Fiber

Finance

Sub,

Inc.

,

Senior

Note

,

144A,

6

%

,

2/15/28

..............................

United

States

1,100,000

1,109,625

f

Presidio

Holdings,

Inc.

,

Senior

Note

,

144A,

8.25

%

,

2/01/28

......

United

States

900,000

996,754

f

Tempo

Acquisition

LLC

/

Tempo

Acquisition

Finance

Corp.

,

Senior

Note

,

144A,

6.75

%

,

6/01/25

............................

United

States

1,300,000

1,335,750

4,967,504

Machinery

2.6%

f

ATS

Automation

Tooling

Systems,

Inc.

,

Senior

Note

,

144A,

4.125

%

,

12/15/28

..........................................

Canada

1,300,000

1,317,127

f

Manitowoc

Co.,

Inc.

(The)

,

Secured

Note

,

144A,

9

%

,

4/01/26

....

United

States

1,000,000

1,080,675

f

Navistar

International

Corp.

,

Senior

Note

,

144A,

6.625

%

,

11/01/25

United

States

400,000

416,172

Tennant

Co.

,

Senior

Note

,

5.625

%

,

5/01/25

..................

United

States

1,600,000

1,656,000

f

Vertical

Holdco

GmbH

,

Senior

Note

,

144A,

7.625

%

,

7/15/28

.....

Germany

300,000

324,785

f

Vertical

US

Newco,

Inc.

,

Senior

Secured

Note

,

144A,

5.25

%

,

7/15/27

Germany

600,000

626,625

5,421,384

Media

5.4%

f

Clear

Channel

International

BV

,

Senior

Secured

Note

,

144A,

6.625

%

,

8/01/25

.....................................

United

States

400,000

422,500

f

Clear

Channel

Outdoor

Holdings,

Inc.

,

Senior

Note

,

144A,

7.75

%

,

4/15/28

...........................................

United

States

300,000

305,062

Clear

Channel

Worldwide

Holdings,

Inc.

,

Senior

Note,

9.25%,

2/15/24

...........................

United

States

510,000

531,994

f

Senior

Secured

Note,

144A,

5.125%,

8/15/27

..............

United

States

500,000

508,625

CSC

Holdings

LLC

,

Senior

Bond,

5.25%,

6/01/24

...........................

United

States

700,000

754,687

Senior

Note,

6.75%,

11/15/21

..........................

United

States

700,000

724,062

f

Senior

Note,

144A,

7.5%,

4/01/28

.......................

United

States

300,000

330,854

f

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.

,

Senior

Note,

144A,

6.625%,

8/15/27

.....................

United

States

700,000

361,375

Senior

Secured

Note,

144A,

5.375%,

8/15/26

..............

United

States

400,000

283,380

DISH

DBS

Corp.

,

Senior

Note

,

5.875

%

,

7/15/22

..............

United

States

400,000

417,472

f

Gray

Television,

Inc.

,

Senior

Note,

144A,

7%,

5/15/27

........................

United

States

500,000

546,875

Senior

Note,

144A,

4.75%,

10/15/30

.....................

United

States

500,000

500,938

f

LCPR

Senior

Secured

Financing

DAC

,

Senior

Secured

Note

,

144A,

6.75

%

,

10/15/27

.....................................

United

States

700,000

750,645

f

Nexstar

Broadcasting,

Inc.

,

Senior

Note,

144A,

5.625%,

7/15/27

.....................

United

States

1,000,000

1,057,815

Senior

Note,

144A,

4.75%,

11/01/28

.....................

United

States

200,000

204,625

f

Outfront

Media

Capital

LLC

/

Outfront

Media

Capital

Corp.

,

Senior

Note

,

144A,

4.25

%

,

1/15/29

............................

United

States

400,000

389,500

f

Scripps

Escrow,

Inc.

,

Senior

Note

,

144A,

5.875

%

,

7/15/27

.......

United

States

600,000

625,950

f

Sinclair

Television

Group,

Inc.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/30

.

United

States

700,000

703,955

f

Sirius

XM

Radio,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

7/15/24

......

United

States

600,000

618,684

f

Univision

Communications,

Inc.

,

Senior

Secured

Note,

144A,

9.5%,

5/01/25

................

United

States

800,000

875,760

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Media

(continued)

f

Univision

Communications,

Inc.,

(continued)

Senior

Secured

Note,

144A,

6.625%,

6/01/27

..............

United

States

400,000

$

417,750

11,332,508

Metals

&

Mining

2.0%

Commercial

Metals

Co.

,

Senior

Bond

,

3.875

%

,

2/15/31

.........

United

States

1,200,000

1,201,500

f

Constellium

SE

,

Senior

Note

,

144A,

3.75

%

,

4/15/29

...........

United

States

600,000

594,870

f

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Note

,

144A,

4.75

%

,

5/15/22

...........................................

Australia

800,000

822,500

f

Joseph

T

Ryerson

&

Son,

Inc.

,

Senior

Secured

Note

,

144A,

8.5

%

,

8/01/28

...........................................

United

States

880,000

965,250

f

Novelis

Corp.

,

Senior

Bond

,

144A,

5.875

%

,

9/30/26

...........

United

States

500,000

521,565

4,105,685

Oil,

Gas

&

Consumable

Fuels

9.8%

f

Aker

BP

ASA

,

Senior

Note

,

144A,

5.875

%

,

3/31/25

............

Norway

500,000

515,246

f

Antero

Resources

Corp.

,

Senior

Note,

144A,

8.375%,

7/15/26

.....................

United

States

200,000

219,125

Senior

Note,

144A,

7.625%,

2/01/29

.....................

United

States

200,000

213,625

Apache

Corp.

,

Senior

Note

,

4.875

%

,

11/15/27

................

United

States

300,000

314,907

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note

,

7.75

%

,

4/15/23

...........................

United

States

800,000

778,916

Cenovus

Energy,

Inc.

,

Senior

Bond,

6.75%,

11/15/39

..........................

Canada

400,000

520,760

Senior

Bond,

5.4%,

6/15/47

............................

Canada

300,000

346,684

Senior

Note,

5.375%,

7/15/25

..........................

Canada

700,000

793,018

Cheniere

Energy

Partners

LP

,

Senior

Note,

5.625%,

10/01/26

.........................

United

States

700,000

728,560

Senior

Note,

4.5%,

10/01/29

...........................

United

States

1,200,000

1,264,788

f

Senior

Note,

144A,

4%,

3/01/31

........................

United

States

1,200,000

1,210,896

Senior

Secured

Note,

5.25%,

10/01/25

...................

United

States

1,200,000

1,234,860

f

Cheniere

Energy,

Inc.

,

Senior

Secured

Note

,

144A,

4.625

%

,

10/15/28

..........................................

United

States

700,000

728,665

Chesapeake

Energy

Corp.

,

f

Senior

Note,

144A,

5.5%,

2/01/26

.......................

United

States

500,000

522,197

c

Senior

Note,

7.5%,

10/01/26

...........................

United

States

1,500,000

33,750

f

Continental

Resources,

Inc.

,

Senior

Bond

,

144A,

5.75

%

,

1/15/31

..

United

States

700,000

790,097

Crestwood

Midstream

Partners

LP

/

Crestwood

Midstream

Finance

Corp.

,

Senior

Note,

5.75%,

4/01/25

...........................

United

States

800,000

806,440

f

Senior

Note,

144A,

6%,

2/01/29

........................

United

States

700,000

693,879

f

Endeavor

Energy

Resources

LP

/

EER

Finance,

Inc.

,

Senior

Bond,

144A,

5.75%,

1/30/28

......................

United

States

300,000

317,550

Senior

Note,

144A,

6.625%,

7/15/25

.....................

United

States

500,000

526,320

d,f

EnQuest

plc

,

Senior

Note

,

144A,

Reg

S,

PIK,

7

%

,

10/15/23

......

United

Kingdom

630,593

525,512

HighPoint

Operating

Corp.

,

Senior

Note

,

8.75

%

,

6/15/25

........

United

States

1,253,000

657,825

f

Hilcorp

Energy

I

LP

/

Hilcorp

Finance

Co.

,

Senior

Bond,

144A,

6%,

2/01/31

........................

United

States

200,000

203,631

Senior

Note,

144A,

5.75%,

2/01/29

......................

United

States

200,000

204,125

f

Martin

Midstream

Partners

LP

/

Martin

Midstream

Finance

Corp.

,

Secured

Note

,

144A,

11.5

%

,

2/28/25

.....................

United

States

776,232

787,875

d,f,g

Murray

Energy

Corp.

,

Secured

Note

,

144A,

PIK,

12

%

,

4/15/24

...

United

States

757,734

3,864

Occidental

Petroleum

Corp.

,

Senior

Bond,

6.45%,

9/15/36

...........................

United

States

700,000

799,050

h

Senior

Note,

FRN,

1.644%,

(3-month

USD

LIBOR

+

1.45%),

8/15/22

...........................................

United

States

400,000

391,140

Senior

Note,

8.875%,

7/15/30

..........................

United

States

1,100,000

1,407,593

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

(continued)

Occidental

Petroleum

Corp.,

(continued)

Senior

Note,

6.625%,

9/01/30

..........................

United

States

200,000

$

227,800

Senior

Note,

6.125%,

1/01/31

..........................

United

States

300,000

335,723

QEP

Resources,

Inc.

,

Senior

Bond

,

5.25

%

,

5/01/23

............

United

States

700,000

743,575

Sunoco

LP

/

Sunoco

Finance

Corp.

,

Senior

Note,

6%,

4/15/27

.............................

United

States

1,000,000

1,042,200

f

Senior

Note,

144A,

4.5%,

5/15/29

.......................

United

States

200,000

200,375

f

Viper

Energy

Partners

LP

,

Senior

Note

,

144A,

5.375

%

,

11/01/27

..

United

States

400,000

421,750

20,512,321

Personal

Products

0.1%

f

Prestige

Brands,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

4/01/31

.......

United

States

300,000

293,310

Pharmaceuticals

2.0%

f

Bausch

Health

Americas,

Inc.

,

Senior

Note

,

144A,

9.25

%

,

4/01/26

.

United

States

1,400,000

1,553,650

f

Bausch

Health

Cos.,

Inc.

,

Senior

Bond,

144A,

6.125%,

4/15/25

.....................

United

States

400,000

409,984

Senior

Secured

Note,

144A,

7%,

3/15/24

..................

United

States

200,000

204,540

f

Endo

Dac

/

Endo

Finance

LLC

/

Endo

Finco

,

Inc.

,

Secured

Note,

144A,

9.5%,

7/31/27

......................

United

States

502,000

566,319

Senior

Note,

144A,

6%,

6/30/28

........................

United

States

689,000

605,631

f

Par

Pharmaceutical,

Inc.

,

Senior

Secured

Note

,

144A,

7.5

%

,

4/01/27

United

States

225,000

242,170

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

7.125

%

,

1/31/25

.....................................

Israel

500,000

542,185

4,124,479

Real

Estate

Management

&

Development

0.5%

f

Five

Point

Operating

Co.

LP

/

Five

Point

Capital

Corp.

,

Senior

Note

,

144A,

7.875

%

,

11/15/25

...............................

United

States

1,000,000

1,057,085

Semiconductors

&

Semiconductor

Equipment

0.7%

f

Amkor

Technology,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

9/15/27

.....

United

States

1,000,000

1,086,250

f

ON

Semiconductor

Corp.

,

Senior

Note

,

144A,

3.875

%

,

9/01/28

...

United

States

300,000

313,875

1,400,125

Software

2.3%

d,f

Anagram

International,

Inc.

/

Anagram

Holdings

LLC

,

Secured

Note

,

144A,

PIK,

10

%

,

8/15/26

..............................

United

States

205,421

208,502

f

Blackboard,

Inc.

,

Secured

Note

,

144A,

10.375

%

,

11/15/24

.......

United

States

1,600,000

1,685,000

f

Camelot

Finance

SA

,

Senior

Secured

Note

,

144A,

4.5

%

,

11/01/26

.

United

States

900,000

935,438

f

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

800,000

797,500

f

ZoomInfo

Technologies

LLC/

ZoomInfo

Finance

Corp.

,

Senior

Note

,

144A,

3.875

%

,

2/01/29

................................

United

States

1,200,000

1,194,000

4,820,440

Specialty

Retail

1.6%

f

L

Brands,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/01/30

...........

United

States

500,000

561,042

f

Lithia

Motors,

Inc.

,

Senior

Bond,

144A,

4.375%,

1/15/31

.....................

United

States

300,000

315,562

Senior

Note,

144A,

4.625%,

12/15/27

....................

United

States

400,000

420,750

Murphy

Oil

USA,

Inc.

,

Senior

Note

,

4.75

%

,

9/15/29

............

United

States

700,000

752,371

f,h

Party

City

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

FRN

,

5.75

%

,

(

6-month

USD

LIBOR

+

5

%

),

7/15/25

.....................

United

States

370,005

341,330

f

Rent-A-Center,

Inc.

,

Senior

Note

,

144A,

6.375

%

,

2/15/29

.......

United

States

1,000,000

1,042,610

3,433,665

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Corporate

Bonds

(continued)

Technology

Hardware,

Storage

&

Peripherals

0.2%

f

Dell

International

LLC

/

EMC

Corp.

,

Senior

Note,

144A,

5.875%,

6/15/21

.....................

United

States

132,000

$

132,165

Senior

Note,

144A,

7.125%,

6/15/24

.....................

United

States

200,000

207,160

339,325

Textiles,

Apparel

&

Luxury

Goods

0.5%

f

Hanesbrands,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

5/15/24

........

United

States

1,000,000

1,049,375

Thrifts

&

Mortgage

Finance

2.5%

MGIC

Investment

Corp.

,

Senior

Note

,

5.25

%

,

8/15/28

..........

United

States

500,000

526,512

f

NMI

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

7.375

%

,

6/01/25

.

United

States

1,200,000

1,357,734

f

PennyMac

Financial

Services,

Inc.

,

Senior

Note

,

144A,

5.375

%

,

10/15/25

..........................................

United

States

1,000,000

1,046,250

f

Quicken

Loans

LLC

/

Quicken

Loans

Co-Issuer,

Inc.

,

Senior

Bond,

144A,

3.875%,

3/01/31

.....................

United

States

800,000

796,000

Senior

Note,

144A,

3.625%,

3/01/29

.....................

United

States

500,000

495,938

Radian

Group,

Inc.

,

Senior

Note

,

6.625

%

,

3/15/25

.............

United

States

900,000

1,006,043

5,228,477

Trading

Companies

&

Distributors

1.2%

f

Beacon

Roofing

Supply,

Inc.

,

Senior

Note

,

144A,

4.875

%

,

11/01/25

United

States

1,000,000

1,010,685

f

H&E

Equipment

Services,

Inc.

,

Senior

Note

,

144A,

3.875

%

,

12/15/28

United

States

600,000

578,250

f

WESCO

Distribution,

Inc.

,

Senior

Note,

144A,

7.125%,

6/15/25

.....................

United

States

500,000

541,725

Senior

Note,

144A,

7.25%,

6/15/28

......................

United

States

400,000

445,062

2,575,722

Wireless

Telecommunication

Services

2.0%

d

Digicel

Group

0.5

Ltd.

,

f

Senior

Note,

144A,

PIK,

8%,

4/01/25

.....................

Bermuda

142,885

112,103

Senior

Secured

Note,

PIK,

10%,

4/01/24

..................

Bermuda

457,588

432,103

Hughes

Satellite

Systems

Corp.

,

Senior

Note

,

6.625

%

,

8/01/26

...

United

States

1,300,000

1,454,570

Sprint

Corp.

,

Senior

Note

,

7.125

%

,

6/15/24

..................

United

States

500,000

576,355

T-Mobile

USA,

Inc.

,

Senior

Bond,

2.875%,

2/15/31

..........................

United

States

300,000

294,750

Senior

Note,

4.75%,

2/01/28

...........................

United

States

600,000

635,295

Senior

Note,

2.625%,

2/15/29

..........................

United

States

300,000

292,875

f

Vmed

O2

UK

Financing

I

plc

,

Senior

Secured

Bond

,

144A,

4.25

%

,

1/31/31

...........................................

United

Kingdom

500,000

490,000

4,288,051

Total

Corporate

Bonds

(Cost

$178,424,725)

.....................................

181,230,420

i

Marketplace

Loans

1.5%

Diversified

Financial

Services

1.5%

c

Lending

Club

-

LCX

PM,

8.46%

-

23.99%,

10/30/23

-

1/14/26

.....

United

States

196,329

188,392

c

Lending

Club

-

LCX,

13.08%

-

25.65%,

8/26/22

-

2/07/25

........

United

States

218,562

205,322

c

Lending

Club,

5%

-

25.65%,

6/14/22

-

3/16/25

................

United

States

2,965,972

2,718,124

c

Upgrade,

16.89%

-

30.17%,

11/14/22

-

1/07/25

...............

United

States

80,220

75,667

3,187,505

a

a

a

a

a

a

Total

Marketplace

Loans

(Cost

$3,583,127)

.....................................

3,187,505

Asset-Backed

Securities

3.6%

Diversified

Financial

Services

3.6%

f,j

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I

,

2019-26,

PT,

144A,

FRN,

17.205%,

8/15/44

................

United

States

555,111

543,634

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Asset-Backed

Securities

(continued)

Diversified

Financial

Services

(continued)

f,j

Consumer

Loan

Underlying

Bond

Certificate

Issuer

Trust

I,

(continued)

2019-31,

PT,

144A,

FRN,

16.353%,

9/15/44

................

United

States

495,954

$

480,582

2019-37,

PT,

144A,

FRN,

17.579%,

10/17/44

...............

United

States

525,467

508,558

2019-42,

PT,

144A,

FRN,

16.152%,

11/15/44

...............

United

States

523,833

511,278

2019-51,

PT,

144A,

FRN,

15.399%,

1/15/45

................

United

States

653,476

637,753

2019-52,

PT,

144A,

FRN,

16.04%,

1/15/45

.................

United

States

562,096

552,169

2019-S3,

PT,

144A,

FRN,

12.304%,

6/15/44

................

United

States

145,960

142,283

2019-S4,

PT,

144A,

FRN,

9.665%,

8/15/44

.................

United

States

471,462

459,777

2019-S5,

PT,

144A,

FRN,

12.581%,

9/15/44

................

United

States

475,745

463,799

2019-S6,

PT,

144A,

FRN,

10.682%,

10/17/44

...............

United

States

465,044

446,156

2019-S7,

PT,

144A,

FRN,

11.136%,

12/15/44

...............

United

States

411,777

396,821

2019-S8,

PT,

144A,

FRN,

9.871%,

1/15/45

.................

United

States

471,994

452,350

2020-2,

PT,

144A,

FRN,

15.724%,

3/15/45

.................

United

States

526,603

515,239

2020-7,

PT,

144A,

FRN,

16.08%,

4/17/45

..................

United

States

314,111

304,149

f,j

Prosper

Pass-Thru

Trust

III

,

2020-PT1,

A,

144A,

FRN,

8.796%,

3/15/26

.................

United

States

321,653

316,618

2020-PT2,

A,

144A,

FRN,

9.444%,

4/15/26

.................

United

States

378,640

372,005

2020-PT3,

A,

144A,

FRN,

7.183%,

5/15/26

.................

United

States

70,370

70,897

f,j

Upgrade

Master

Pass-Thru

Trust

,

2019-PT2

,

A

,

144A,

FRN

,

12.961

%

,

2/15/26

....................................

United

States

362,637

359,884

7,533,952

a

a

a

a

a

a

Total

Asset-Backed

Securities

(Cost

$7,485,453)

................................

7,533,952

Shares

Escrows

and

Litigation

Trusts

0.0%

†

a,c

Vistra

Energy

Corp.,

Escrow

Account

......................

United

States

700,000

1,050

Total

Escrows

and

Litigation

Trusts

(Cost

$18,346)

..............................

1,050

Total

Long

Term

Investments

(Cost

$228,897,867)

...............................

273,534,068

a

Short

Term

Investments

1.2%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

1.2%

k,l

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

2,582,411

2,582,411

Total

Money

Market

Funds

(Cost

$2,582,411)

...................................

2,582,411

m

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

0.0%

†

a

a

a

a

a

Money

Market

Funds

0.0%

†

k,l

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

1,000

1,000

Franklin

Universal

Trust

Statement

of

Investments

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

See

Abbreviations

on

page

32

.

Short

Term

Investments

(continued)

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Repurchase

Agreements

0.0%

†

n

Joint

Repurchase

Agreement,

BNP

Paribas

SA,

0.01%,

3/01/21

(Maturity

Value

$359)

Collateralized

by

U.S.

Treasury

Bonds,

Strip,

11/15/22

-

11/15/25;

U.S

Treasury

Note,

1.25%,

4/30/21;

and

U.S.

Treasury

Bills,

Discount

Notes,

4/22/21

-

8/26/21

(valued

at

$366)

...........

359

$

359

Total

Investments

from

Cash

Collateral

Received

for

Loaned

Securities

(Cost

$1,359)

................................................................

1,359

Total

Short

Term

Investments

(Cost

$2,583,770

)

.................................

2,583,770

a

Total

Investments

(Cost

$231,481,637)

131.6%

..................................

$276,117,838

Notes

Payable

(31.0)%

.......................................................

(64,939,708)

Other

Assets,

less

Liabilities

(0.6)%

...........................................

(1,407,093)

Net

Assets

100.0%

...........................................................

$209,771,037

*

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

A

portion

or

all

of

the

security

is

on

loan

at

February

28,

2021.

See

Note

1(d).

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

10

regarding

fair

value

measurements.

d

Income

may

be

received

in

additional

securities

and/or

cash.

e

Perpetual

security

with

no

stated

maturity

date.

f

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

February

28,

2021,

the

aggregate

value

of

these

securities

was

$148,423,050,

representing

70.8%

of

net

assets.

g

See

Note

8

regarding

defaulted

securities.

h

The

coupon

rate

shown

represents

the

rate

at

period

end.

i

See

Note

1(e)

regarding

Marketplace

Lending.

j

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.

k

See

Note

4(c)

regarding

investments

in

affiliated

management

investment

companies.

l

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

m

See

Note

1(d)

regarding

securities

on

loan.

n

See

Note

1(c)

regarding

joint

repurchase

agreement.

Franklin

Universal

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

February

28,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

Franklin

Universal

Trust

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$228,897,867

Cost

-

Non-controlled

affiliates

(Note

4c)

........................................................

2,583,411

Cost

-

Unaffiliated

repurchase

agreements

......................................................

359

Value

-

Unaffiliated

issuers

(Includes

securities

loaned

of

$1,296)

.....................................

$273,534,068

Value

-

Non-controlled

affiliates

(Note

4c)

.......................................................

2,583,411

Value

-

Unaffiliated

repurchase

agreements

......................................................

359

Cash

....................................................................................

991,400

Receivables:

Investment

securities

sold

...................................................................

307,875

Dividends

and

interest

.....................................................................

3,124,543

Total

assets

..........................................................................

280,541,656

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

3,500,000

Management

fees

.........................................................................

176,019

Distributions

to

shareholders

.................................................................

804,221

Accrued

interest

(Note

3)

...................................................................

1,155,860

Payable

upon

return

of

securities

loaned

(Note

1d)

..................................................

1,359

Senior

fixed

rate

Notes,

at

par

value

of

$65,000,000

less

unamortized

No

te

issuance

costs

of

$60,292

(Note

3)

....

64,939,708

Accrued

expenses

and

other

liabilities

...........................................................

193,452

Total

liabilities

.........................................................................

70,770,619

Net

assets,

at

value

.................................................................

$209,771,037

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$164,245,962

Total

distributable

earnings

(losses)

.............................................................

45,525,075

Net

assets,

at

value

.................................................................

$209,771,037

Shares

outstanding

.........................................................................

25,131,894

Net

asset

value

per

share

....................................................................

$8.35

Franklin

Universal

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

February

28,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Franklin

Universal

Trust

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$7,523)

Unaffiliated

issuers

........................................................................

$1,403,669

Interest:

Unaffiliated

issuers

........................................................................

6,618,086

Income

from

securities

loaned:

Unaffiliated

entities

(net

of

fees

and

rebates)

.....................................................

67

Total

investment

income

...................................................................

8,021,822

Expenses:

Management

fees

(Note

4a)

...................................................................

1,035,334

Interest

expense

(Note

3)

.....................................................................

1,253,343

Transfer

agent

fees

.........................................................................

29,969

Custodian

fees

(Note

5)

......................................................................

749

Reports

to

shareholders

......................................................................

11,741

Professional

fees

...........................................................................

134,882

Trustees'

fees

and

expenses

..................................................................

3,763

Amortization

of

note

issuance

costs

(Note

3)

......................................................

11,300

Marketplace

lending

fees

(Note

1e)

.............................................................

127,447

Other

....................................................................................

52,403

Total

expenses

.........................................................................

2,660,931

Expense

reductions

(Note

5)

...............................................................

(2)

Expenses

waived/paid

by

affiliates

(Note

4c)

...................................................

(3,035)

Net

expenses

.........................................................................

2,657,894

Net

investment

income

................................................................

5,363,928

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

1,069,505

Foreign

currency

transactions

................................................................

535

Net

realized

gain

(loss)

..................................................................

1,070,040

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

4,068,591

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(330)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

4,068,261

Net

realized

and

unrealized

gain

(loss)

............................................................

5,138,301

Net

increase

(decrease)

in

ne

t

assets

resulting

from

operations

..........................................

$10,502,229

Franklin

Universal

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

Franklin

Universal

Trust

Six

Months

Ended

February

28,

2021

(unaudited)

Year

Ended

August

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$5,363,928

$10,341,077

Net

realized

gain

(loss)

.................................................

1,070,040

(1,265,255)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

4,068,261

(10,590,299)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

10,502,229

(1,514,477)

Distributions

to

shareholders

..............................................

(4,825,325)

(9,683,318)

Net

increase

(decrease)

in

net

assets

...................................

5,676,904

(11,197,795)

Net

assets:

Beginning

of

period

.....................................................

204,094,133

215,291,928

End

of

period

..........................................................

$209,771,037

$204,094,133

Franklin

Universal

Trust

Financial

Statements

Statement

of

Cash

Flows

for

the

six

months

ended

February

28,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Franklin

Universal

Trust

Cash

flow

from

operating

activities:

Dividends,

interest

and

other

income

received

.....................................................

$

7,666,650

Operating

expenses

paid

.....................................................................

(1,372,468)

Interest

expense

paid

........................................................................

(1,270,749)

Cash

collateral

received

for

securities

loaned

......................................................

1,027

Realized

gain

on

foreign

currency

transactions

.....................................................

535

Purchases

of

long-term

investments

.............................................................

(47,783,546)

Sales

and

maturities

of

long-term

investments

.....................................................

44,889,240

Net

sales

of

short-term

investments

.............................................................

2,652,513

Cash

provided

-

operating

activities

..........................................................

4,783,202

Cash

flow

from

financing

activities:

Cash

distributions

to

shareholders

..............................................................

(4,825,325)

Cash

used

-

financing

activities

.............................................................

(4,825,325)

Net

increase

(decrease)

in

cash

.................................................................

(42,123)

Cash

at

beginning

of

period

.....................................................................

1,033,523

Cash

at

end

of

period

.........................................................................

$991,400

Reconciliation

of

Net

Increase

(Decrease)

in

Net

Assets

resulting

from

Operating

Activities

to

Net

Cash

Provided

by

Operating

Activities

for

the

period

ended

February

28,

2021

Net

increase

(decrease)

in

net

assets

resulting

from

operating

activities

....................................

$

10,502,229

Adjustments

to

reconcile

net

increase

(decrease)

in

net

assets

resulting

from

operating

activities

to

net

cash

provided

by

operating

activities:

Net

amortization

income

..................................................................

(420,325)

Amortization

of

Note

iss

uance

costs

..........................................................

11,300

Interest

received

in

the

form

of

securities

......................................................

(99,877)

Decrease

in

dividends

and

interest

receivable

and

other

assets

.....................................

264,909

Decrease

in

interest

payable

...............................................................

(17,406)

Increase

in

payable

to

affiliates,

accrued

expenses,

and

other

liabilities

...............................

20,781

Increase

in

payable

for

investments

purchased

.................................................

3,290,250

Decrease

in

receivable

for

investments

sold

....................................................

530,750

Increase

in

collateral

for

securities

loaned

.....................................................

1,027

Increase

in

cost

of

investments

.............................................................

(5,232,175)

Decrease

in

unrealized

depreciation

on

investments.

.............................................

(4,068,261)

Net

cash

provided

by

operating

activities

...........................................................

$4,783,202

Franklin

Universal

Trust

23

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

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

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

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 Fund's

administrator

has

responsibility

for

oversight

of

valuation,

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.

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

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

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.

At

February

28,

2021,

certain

securities

may

have

been

fair

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

24

franklintempleton.com

Semiannual

Report

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

referred

to

as

“market

level

fair

value”.

See

the

Fair

Value

Measurements

note

for

more

information.

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.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Statement

of

Investments,

had

been

entered

into

on

February

26,

2021.

d.

Securities

Lending

The

Fund

participates

in

an

agency

based

securities

lending

program

to

earn

additional

income.

The

Fund

receives

collateral

in

the

form

of

cash

and/or

U.S.

Government

and

Agency

securities

against

the

loaned

securities

in

an

amount

equal

to

at

least

102%

of

the

fair

value

of

the

loaned

securities.

Collateral

is

maintained

over

the

life

of

the

loan

in

an

amount

not

less

than

100%

of

the

fair

value

of

loaned

securities,

as

determined

at

the

close

of

Fund

business

each

day;

any

additional

collateral

required

due

to

changes

in

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

25

franklintempleton.com

Semiannual

Report

security

values

is

delivered

to

the

Fund

on

the

next

business

day.

Any

cash

collateral

received

is

deposited

into

a

joint

cash

account

with

other

funds

and

is

used

to

invest

in

a

money

market

fund

managed

by

Franklin

Advisers,

Inc.,

an

affiliate

of

the Fund,

and/or

a

joint

repurchase

agreement

in

the

Statement

of

Assets

and

Liabilities.

The

Fund

may

receive

income

from

the

investment

of

cash

collateral,

in

addition

to

lending

fees

and

rebates

paid

by

the

borrower.

Income

from

securities

loaned,

net

of

fees

paid

to

the

securities

lending

agent

and/or

third-party

vendor,

is

reported

separately

in

the

Statement

of

Operations.

The

Fund

bears

the

market

risk

with

respect

to any

cash collateral

investment,

securities

loaned,

and

the

risk

that

the

agent

may

default

on

its

obligations

to

the

Fund.

If

the

borrower

defaults

on

its

obligation

to

return

the

securities

loaned,

the

Fund

has

the

right

to

repurchase

the

securities

in

the

open

market

using

the

collateral

received.

The

securities

lending

agent

has

agreed

to

indemnify

the

Fund

in

the

event

of

default

by

a

third

party

borrower.

e.

Marketplace

Lending

The

Fund

invests

in

loans

obtained

through

marketplace

lending.

Marketplace

lending,

sometimes

referred

to

as

peer-to-peer

lending,

is

a

method

of

financing

in

which

a

platform

facilitates

the

borrowing

and

lending

of

money.

It

is

considered

an

alternative

to

more

traditional

forms

of

debt

financing.

Prospective

borrowers

are

required

to

provide

certain

financial

information

to

the

platform,

including,

but

not

limited

to,

the

intended

purpose

of

the

loan,

income,

employment

information,

credit

score,

debt-to-income

ratio,

credit

history

(including

defaults

and

delinquencies)

and

home

ownership

status.

Based

on

this

and

other

information,

the

platform

assigns

its

own

credit

rating

to

the

borrower

and

sets

the

interest

rate

for

the

requested

loan.

The

platform

then

posts

the

borrowing

requests

online,

giving

investors

the

opportunity

to

purchase

the

loans

based

on

factors

such

as

the

interest

rates

and

expected

yields

of

the

loans,

the

borrower

background

data,

and

the

credit

rating

assigned

by

the

platform.

 When

the

Fund

invests

in

these

loans,

it

usually

purchases

all

rights,

title

and

interest

in

the

loans

pursuant

to

a

loan

purchase

agreement

directly

from

the

platform.

The

platform

or

a

third-party

servicer

typically

continues

to

service

the

loans,

collecting

payments

and

distributing

them

to

the

Fund,

less

any

servicing

fees

assessed.

The

servicer

is

typically

responsible

for

taking

actions

against

a

borrower

in

the

event

of

a

default

on

the

loan.

Servicing

fees,

along

with

other

administration

fees,

are

included

in

marketplace

lending

fees

in

the

Statement

of

Operations.

The Fund,

as

an

investor

in

a

loan,

would

be

entitled

to

receive

payment

only

from

the

borrower

and

would

not

be

able

to

recover

any

deficiency

from

the

platform,

except

under

very

narrow

circumstances.

The

loans

in

which

the

Fund

may

invest

are

unsecured.

f.

Income

and

Deferred

Taxes

It

is the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

February

28,

2021,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Securities

Lending

(continued)

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

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.

h.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

i.

Guarantees

and

Indemnifications

Under

the

Fund’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Fund

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Fund.

Additionally,

in

the

normal

course

of

business,

the

Fund

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund

that

have

not

yet

occurred.

Currently,

the

Fund

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

February

28,

2021,

there

were

an

unlimited

number

of

shares

authorized

($0.01

par

value).

During

the

periods ended

February

28,

2021

and

August

31,

2020

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

periods ended

February

28,

2021

and

August

31,

2020,

there

were

no

shares

repurchased.

3.

Senior

Fixed

Rate

Notes

 On

August

28,

2018,

the

Fund

issued

$65

million

principal

amount

of

a

new

class

of

five-year

senior

fixed

rate

notes

(Notes).

The

Notes

bear

interest,

payable

semi-annually,

at

a

rate

of

3.91%

per

year,

to

maturity

on

September

15,

2023.

The

Notes

are

general

unsecured

obligations

of

the

Fund

and

rank

senior

to

trust

shares

and

all

existing

or

future

unsecured

indebtedness

of

the

Fund.

For

the

period

ended

February

28,

2021,

total

interest

paid

by

the

Fund

on

the

Notes

was

$1,270,749.

The

Fund

is

required

to

maintain

on

a

monthly

basis

a

specified

discounted

asset

value

for

its

portfolio

in

compliance

with

guidelines

established

in

the

Notes

Agreement,

and

is

required

under

the

1940

Act

to

maintain

asset

coverage

for

the

Notes

of

at

least

300%.

The

Fund

has

met

these

requirements

during

the

period

ended

February

28,

2021.

The

issuance

costs

of

$114,819

incurred

by

the

Fund

are

deferred

and

amortized

on

an

interest

method

basis

over

the

term

of

the

Notes.

For

the

period

ended

February

28,

2021,

the

Fund

amortized

$11,300

of

Notes

issuance

costs.

Subject

to

certain

restrictions

and

make

whole

premiums,

the

Fund

may

prepay

the

Notes

at

any

time.

At

February

28,

2021,

if

the

Notes

were

fully

prepaid,

the

make

whole

premium

related

to

the

current

balance

of

the

Notes

would

have

been

approximately

$5,197,510.

1.

Organization

and

Significant

Accounting

Policies

(continued)

g.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

The

Fund

employs

an

income-based

approach

to

determine

the

fair

value

of

the

Notes,

which

uses

the

Notes’

current

credit

rating,

remaining

time

to

maturity,

stated

coupon

rates,

the

current

yield

of

a

comparable

asset,

and

a

liquidity

premium.

At

February

28,

2021,

the

estimated

fair

value

of

the

Notes

was

approximately

$69,640,000.

The

inputs

used

in

determining

the

fair

value

of

the

Notes

represent

Level

3

in

the

fair

value

hierarchy.

See

Note 10

regarding

fair

value

measurements

for

additional

information

about

fair

value

hierarchy

and

Level

3

inputs.

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

to

Advisers

of

0.75%

per

year

of

the

average

weekly

managed

assets.

Managed

assets

are

defined

as

the

Fund’s

gross

asset

value

minus

the

sum

of

accrued

liabilities,

other

than

the

principal

amount

of

the

Notes.

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies

for

purposes

other

than

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

period

ended

February

28,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Universal

Trust

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$5,235,951

$31,993,068

$(34,646,608)

$—

$—

$2,582,411

2,582,411

$—

Non-Controlled

Affiliates

Income

from

securities

loaned

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$—

$20,000

$(19,000)

$

—

$

—

$1,000

1,000

$—

Total

Affiliated

Securities

....

$5,235,951

$32,013,068

$(34,665,608)

$—

$—

$2,583,411

$—

3.

Senior

Fixed

Rate

Notes

(continued)

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

5.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

February

28,

2021,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

6.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

August

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

February

28,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

s

of

defaulted

securities,

bond

discounts

and

premiums

and

corporate

actions

.

7.

Investment

Transactions

Purchases

and

sales

(excluding

short

term

securities

for

the

period

ended

February

28,

2021,

aggregated

$51,073,796

and

$44,336,161,

respectively.

At

February

28,

2021,

in

connection

with

securities

lending

transactions,

the

Fund

loaned

equity

investments

and

received

$1,359

of

cash

collateral.

The

gross

amount

of

recognized

liability

for

such

transactions

is

included

in

payable

upon

return

of

securities

loaned

in

the

Statement

of

Assets

and

Liabilities.

The

agreements

can

be

terminated

at

any

time.

8.

Credit Risk

and

Defaulted

Securities

At

February

28,

2021,

the

Fund

had

66.5%

of

its

portfolio

invested

in

high

yield

or

other

securities

rated

below

investment

grade

and

unrated

securities.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities. 

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

February

28,

2021,

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

Statement

of

Investments.

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$1,888,428

Cost

of

investments

..........................................................................

$231,951,391

Unrealized

appreciation

........................................................................

$53,863,757

Unrealized

depreciation

........................................................................

(9,697,310)

Net

unrealized

appreciation

(depreciation)

..........................................................

$44,166,447

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

9. Novel

Coronavirus

Pandemic

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

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

February

28,

2021,

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

........................

$

44,228,020

$

—

$

—

$

44,228,020

Energy

Equipment

&

Services

.............

197,426

—

—

197,426

Machinery

............................

—

386,280

—

386,280

Metals

&

Mining

.......................

4,425,925

—

—

4,425,925

Multi-Utilities

..........................

29,765,686

—

—

29,765,686

Oil,

Gas

&

Consumable

Fuels

.............

1,546,335

—

1,302

1,547,637

Paper

&

Forest

Products

.................

41,625

—

—

41,625

Specialty

Retail

........................

288,413

—

—

288,413

Preferred

Stocks

........................

662,750

—

—

662,750

Warrants

:

Oil,

Gas

&

Consumable

Fuels

.............

19,668

—

2,365

22,033

Paper

&

Forest

Products

.................

403

—

—

403

Convertible

Bonds

.......................

—

14,943

—

14,943

Corporate

Bonds

:

Aerospace

&

Defense

...................

—

1,135,636

—

1,135,636

Air

Freight

&

Logistics

...................

—

1,429,312

—

1,429,312

Airlines

..............................

—

1,657,917

—

1,657,917

Auto

Components

......................

—

6,981,056

—

6,981,056

Banks

...............................

—

953,224

—

953,224

Biotechnology

.........................

—

914,341

—

914,341

Building

Products

......................

—

3,225,465

—

3,225,465

Chemicals

...........................

—

5,073,156

—

5,073,156

Commercial

Services

&

Supplies

...........

—

3,362,321

—

3,362,321

Communications

Equipment

..............

—

1,680,112

—

1,680,112

Construction

&

Engineering

...............

—

2,290,438

—

2,290,438

Construction

Materials

..................

—

1,195,975

—

1,195,975

Consumer

Finance

.....................

—

3,849,981

—

3,849,981

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period.

At

February

28,

2021,

the

reconciliation is

as follows: 

Level

1

Level

2

Level

3

Total

Franklin

Universal

Trust

(continued)

Assets:

(continued)

Investments

in

Securities:

Corporate

Bonds:

Containers

&

Packaging

.................

$

—

$

9,603,350

$

—

$

9,603,350

Diversified

Financial

Services

.............

—

1,490,625

—

1,490,625

Diversified

Telecommunication

Services

.....

—

8,375,073

—

8,375,073

Electric

Utilities

........................

—

1,569,690

—

1,569,690

Electronic

Equipment,

Instruments

&

Components

........................

—

506,250

—

506,250

Energy

Equipment

&

Services

.............

—

3,382,783

—

3,382,783

Entertainment

.........................

—

3,812,188

—

3,812,188

Equity

Real

Estate

Investment

Trusts

(REITs)

.

—

3,810,319

—

3,810,319

Food

Products

........................

—

4,180,073

—

4,180,073

Health

Care

Equipment

&

Supplies

.........

—

193,163

—

193,163

Health

Care

Providers

&

Services

..........

—

8,738,857

—

8,738,857

Hotels,

Restaurants

&

Leisure

.............

—

14,466,554

—

14,466,554

Household

Durables

....................

—

3,085,624

—

3,085,624

Household

Products

....................

—

594,594

—

594,594

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

7,059,057

—

7,059,057

Insurance

............................

—

1,143,802

—

1,143,802

Internet

&

Direct

Marketing

Retail

..........

—

520,028

—

520,028

IT

Services

...........................

—

4,967,504

—

4,967,504

Machinery

............................

—

5,421,384

—

5,421,384

Media

...............................

—

11,332,508

—

11,332,508

Metals

&

Mining

.......................

—

4,105,685

—

4,105,685

Oil,

Gas

&

Consumable

Fuels

.............

—

20,478,571

33,750

20,512,321

Personal

Products

.....................

—

293,310

—

293,310

Pharmaceuticals

.......................

—

4,124,479

—

4,124,479

Real

Estate

Management

&

Development

....

—

1,057,085

—

1,057,085

Semiconductors

&

Semiconductor

Equipment

.

—

1,400,125

—

1,400,125

Software

.............................

—

4,820,440

—

4,820,440

Specialty

Retail

........................

—

3,433,665

—

3,433,665

Technology

Hardware,

Storage

&

Peripherals

.

—

339,325

—

339,325

Textiles,

Apparel

&

Luxury

Goods

..........

—

1,049,375

—

1,049,375

Thrifts

&

Mortgage

Finance

...............

—

5,228,477

—

5,228,477

Trading

Companies

&

Distributors

..........

—

2,575,722

—

2,575,722

Wireless

Telecommunication

Services

.......

—

4,288,051

—

4,288,051

Marketplace

Loans

......................

—

—

3,187,505

3,187,505

Asset-Backed

Securities

..................

—

7,533,952

—

7,533,952

Escrows

and

Litigation

Trusts

...............

—

—

1,050

1,050

Short

Term

Investments

...................

2,583,411

359

—

2,583,770

Total

Investments

in

Securities

...........

$83,759,662

$189,132,204

a

$3,225,972

$276,117,838

a

Includes

for

eign

securities

valued

at

$21,208,450,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

31

franklintempleton.com

Semiannual

Report

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

February

28,

2021,

are

as

follows:

Balance

at

Beginning

of

Period

Purchases

Sales

Transfer

Into

Level

3

a

Transfer

Out

of

Level

3

b

Cost

Basis

Adjust-

ments

c

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Universal

Trust

Assets:

Investments

in

Securities:

Common

Stocks

:

Machinery

.........

$

158,851

$

—

$

—

$

—

$

(158,851)

$

—

$

—

$

—

$

—

$

—

Oil,

Gas

&

Consumable

Fuels

..........

—

—

—

1,302

—

—

—

—

1,302

—

Warrants

:

Oil,

Gas

&

Consumable

Fuels

..........

90

—

—

—

—

—

—

2,275

2,365

2,275

Corporate

Bonds

:

Hotels,

Restaurants

&

Leisure

.........

5,625

—

—

—

(540)

(1,893)

—

(3,192)

—

—

Oil,

Gas

&

Consumable

Fuels

..........

481

—

—

33,750

(3,864)

—

—

3,383

33,750

—

Marketplace

Loans

:

Diversified

Financial

Services

........

4,023,963

227,775

(1,111,971)

—

—

—

(201,722)

249,460

3,187,505

249,460

Escrows

and

Litigation

Trusts

...........

14

—

—

—

—

—

—

1,036

1,050

1,036

Total

Investments

in

Securities

.

$4,189,024

$227,775

$(1,111,971)

$35,052

$(163,255)

$(1,893)

$(201,722)

$252,962

$3,225,972

$252,771

a

Transferred

into

level

3

as

a

result

of

the

unavailability

of

a

quoted

market

price

in

an

active

market

for

identical

securities

or

as

a

result

of

the

unreliability

of

the

foreign

exchange

rate

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

b

Transferred

out

of

Level

3

as

a

result

of

the

availability

of

a

quoted

price

in

an

active

market

for

identical

securities/

and

other

significant

observable

valuation

inputs.

May

include

amounts

related

to

a

corporate

action.

c

May

include

accretion,

amortization,

partnership

adjustments,

and/or

other

cost

basis

adjustments.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Universal

Trust

Assets:

Investments

in

Securities:

Marketplace

Loans:

Lending

Club

...............

$2,718,124

Discounted

cash

flow

Loss-adjusted

discount

rate

7.4%

Decrease

b

Projected

loss

rate

18.8%

Decrease

b

All

Other

....................

507,848

c 

Total

$3,225,972

10.

Fair

Value

Measurements

(continued)

Franklin

Universal

Trust

Notes

to

Financial

Statements

(unaudited)

32

franklintempleton.com

Semiannual

Report

11.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-

04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

12.

Subsequent

Events

The

Fund

has

evaluated

subsequent

even

ts

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

.

Abbreviations

a

Represents

the

directional

change

in

the

fair

value

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

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

b

Represents

a

significant

impact

to

fair

value

and

net

assets.

c

Includes

financial

instruments

with

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

May

also

include

fair

value

of

immaterial

financial

instruments

and

developed

using

various

valuation

techniques

and

unobservable

inputs.

Currency

USD

United

States

Dollar

Selected

Portfolio

ADR

American

Depositary

Receipt

FRN

Floating

Rate

Note

LIBOR

London

Inter-Bank

Offered

Rate

PIK

Payment-In-Kind

10.

Fair

Value

Measurements

(continued)

Franklin

Universal

Trust

33

franklintempleton.com

Semiannual

Report

Important

Information

to

Shareholders

Share

Repurchase

Program

The

Fund’s

Board

previously

authorized

an

open-market

share

repurchase

program,

pursuant

to

which

the

Fund

may

purchase

Fund

shares,

from

time

to

time,

up

to

10%

of

the

Fund’s

common

shares

in

open-market

transactions,

at

the

discretion

of

management.

This

authorization

remains

in

effect.

Franklin

Universal

Trust

Dividend

Reinvestment

and

Cash

Purchase

Plan

34

franklintempleton.com

Semiannual

Report

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.

American

Stock

Transfer

&

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

American

Stock

Transfer

&

Trust

Company,

LLC

and

sent

to

American

Stock

Transfer

&

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

35

franklintempleton.com

Semiannual

Report

You

will

receive

a

monthly

account

statement

from

the

Plan

Agent

showing

total

dividends

and

capital

gain

distributions,

date

of

investment,

shares

acquired

and

price

per

share,

and

total

shares

of

record

held

by

you

and

by

the

Plan

Agent

for

you.

You

are

entitled

to

vote

all

shares

of

record,

including

shares

purchased

for

you

by

the

Plan

Agent,

and,

if

you

vote

by

proxy,

your

proxy

will

include

all

such

shares.

As

long

as

you

participate

in

the

Plan,

the

Plan

Agent

will

hold

the

shares

it

has

acquired

for

you

in

safekeeping,

in

its

name

or

in

the

name

of

its

nominee.

This

convenience

provides

added

protection

against

loss,

theft

or

inadvertent

destruction

of

certificates.

However,

you

may

request

that

a

certificate

representing

your

Plan

shares

be

issued

to

you.

You

may

withdraw

from

the

Plan

without

penalty

at

any

time

by

notifying

the

Plan

Agent,

in

writing,

at

the

address

above.

If

you

withdraw,

you

will

receive,

without

charge,

stock

certificates

issued

in

your

name

for

all

full

shares.

The

Plan

Agent

will

convert

any

fractional

shares

you

hold

at

the

time

of

your

withdrawal

to

cash

at

current

market

price

and

send

you

a

check

for

the

proceeds.

If

you

hold

shares

in

your

own

name,

please

address

all

notices,

correspondence,

questions,

or

other

communications

regarding

the

Plan

to

the

Plan

Agent

at

the

address

noted

above.

If

your

shares

are

not

held

in

your

name,

you

should

contact

your

brokerage

firm,

bank,

or

other

nominee

for

more

information

and

to

determine

if

our

nominee

will

participate

in

the

Plan

on

your

behalf.

The

Fund

or

the

Plan

Agent

may

amend

or

terminate

the

Plan.

You

will

receive

written

notice

at

least

90

days

before

the

effective

date

of

termination

or

of

any

amendment.

In

the

case

of

termination,

you

will

receive

written

notice

at

least

90

days

before

the

record

date

of

any

dividend

or

capital

gain

distribution

by

the

Fund.

Franklin

Universal

Trust

Shareholder

Information

36

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

UNIVERSAL

TRUST

(Fund)

At

a

meeting

held

on

February

23,

2021

(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

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

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

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

Franklin

Templeton

(FT)

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

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

37

franklintempleton.com

Semiannual

Report

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2020.

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

of

its

Performance

Universe,

but

for

the

one-year

period

was

0.17%

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that

the

Fund’s

annualized

total

return

for

each

of

the

one-,

three-,

five-

and

10-year

periods,

while

below

the

median,

was

4.01%,

5.27%,

9.65%

and

8.16%,

respectively.

The

Board

concluded

that

the

Fund’s

performance

was

acceptable.

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

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

eleven

other

high

yield

(leveraged)

closed-end

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

equal

to

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

annual

total

expense

ratio

for

the

Fund

was

less

than

three

basis

points

above

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

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

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

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

Franklin

Universal

Trust

Shareholder

Information

38

franklintempleton.com

Semiannual

Report

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

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

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’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

Fund’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

Statement

of

Investments

The

Fund

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

FUT

S

04/21

©

2021

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.

Semiannual

Report

Franklin

Universal

Trust

Investment

Manager

Transfer

Agent

Franklin

Advisers,

Inc.

(800)

DIAL

BEN

®

/

342-5236

American

Stock

Transfer

&

Trust

Co.,

LLC

6201

15th

Avenue

Brooklyn,

NY

11219

www.astfinancial.com

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4.

Principal Accountant Fees and Services.      

N/A

Item 5. Audit Committee

of Listed Registrants.

Members of the Audit Committee are: Mary C. Choksi, J. Michael Luttig and Larry D. Thompson.

Item 6. Schedule of Investments.                      N/A

Item 7

. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.               N/A

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

                             N/A

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers.        N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a)

 Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) Changes in Internal Controls.

There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.               

Securities lending agent

The board of trustees has approved the Fund’s participation in a securities lending program. Under the securities lending program, Bank of New York Mellon serves as the Fund’s securities lending agent.

For the six months ended February 28, 2021, 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	$73
Fees and/or compensation paid by the Fund for securities lending activities and related services
Fees paid to Securities Lending Agent from revenue split	$6
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	$6
Net income from securities lending activities	$67

Item 13. Exhibits.

(a)(1)

Code of Ethics

codeofethics

(a) (2)

Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section302

(b)

Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN

UNIVERSAL TRUST

By _S\Matthew T. Hinkle   ________

      Matthew T. Hinkle   

   Chief Executive Officer - Finance and Administration

Date:  April 23, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By _S\Matthew T. Hinkle   ________

      Matthew T. Hinkle  

   Chief Executive Officer - Finance and Administration

Date:  April 23, 2021

By _S\Robert G. Kubilis ______________

      Robert G. Kubilis

   Chief Financial Officer

and

Chief Accounting Officer

Date:  April 23, 2021