UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-05569
Franklin Universal Trust
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Alison Baur
Franklin Templeton
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: August 31
Date of reporting period: August 31, 2025
| ITEM 1. |
REPORT TO STOCKHOLDERS. |
(a) The Report to Shareholders is filed herewith
Franklin
Universal
Trust
August
31,
2025
Not
FDIC
Insured
No
Bank
Guarantee
May
Lose
Value
Distribution
Policy
:
The
Fund’s
Board
of
Trustees
(the
“Board”)
has
authorized
a
distribution
policy
(the
“Distribution
Policy”).
Under
the
Distribution
Policy,
the
Fund
pays
monthly
distributions
and
seeks
to
maintain
a
relatively
stable
level
of
distributions
to
shareholders.
With
each
distribution,
the
Fund
will
issue
a
notice
to
its
shareholders
and
an
accompanying
press
release
that
provides
estimates
regarding
the
amount
and
composition
of
the
distribution.
The
Fund
will
send
a
Form
1099-DIV
to
shareholders
for
the
calendar
year
that
will
describe
how
to
report
the
Fund’s
distributions
for
federal
income
tax
purposes.
Shareholders
should
not
draw
any
conclusions
about
the
Fund’s
investment
performance
from
the
amount
of
distributions
or
from
the
terms
of
the
Fund’s
Distribution
Policy.
The
Board
may
amend
or
terminate
the
Distribution
Policy
at
any
time
without
prior
notice
to
shareholders;
however,
at
this
time
there
are
no
reasonably
foreseeable
circumstances
that
might
cause
the
termination
of
the
Distribution
Policy.
Contents
Fund
Overview
2
Performance
Summary
5
Financial
Highlights
and
Schedule
of
Investments
8
Financial
Statements
27
Notes
to
Financial
Statements
31
Report
of
Independent
Registered
Public
Accounting
Firm
41
Tax
Information
42
Important
Information
to
Shareholders
43
Annual
Meeting
of
Shareholders
46
Dividend
Reinvestment
and
Cash
Purchase
Plan
47
Board
Members
and
Officers
49
Shareholder
Information
53
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
Franklin
Universal
Trust
Dear
Shareholder,
This
annual
report
for
Franklin
Universal
Trust
covers
the
fiscal
year
ended
August
31,
2025.
Fund
Overview
Q.
What
is
the
Fund’s
investment
strategy?
A.
The
Fund’s
primary
investment
objective
is
to
provide
high,
current
income
consistent
with
preservation
of
capital.
Its
secondary
objective
is
growth
of
income
through
dividend
increases
and
capital
appreciation.
We
invest
primarily
in
two
asset
classes:
high-yield
bonds
and
utility
stocks.
Within
the
high-yield
portion
of
the
portfolio,
we
use
fundamental
research
to
invest
in
a
diversified
portfolio
of
bonds.
Within
the
utility
portion
of
the
portfolio,
we
focus
on
companies
with
attractive
dividend
yields
and
with
a
history
of
increasing
their
dividends.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
Over
the
course
of
the
period,
there
has
been
significant
turmoil
in
the
market
due
to
uncertainties
stemming
from
new
policies
emanating
from
the
current
U.S.
President’s
trade
and
economic
priorities.
Following
the
November
2024
election,
market
sentiment
moved
positive
in
anticipation
of
new
tax
and
regulation
policies
which
were
expected
to
benefit
corporations.
This
caused
high
yield
(HY)
bond
spreads
to
tighten
which
carried
through
the
presidential
inauguration
in
January
2025.
However,
large,
proposed
tariff
increases,
which
were
announced
on
“Liberation
Day”
in
April
2025,
caused
great
concern
from
investors
which
led
to
a
large
increase
in
HY
bond
spreads.
Spreads
worked
their
way
tighter,
returning
to
levels
seen
before
the
tariff
announcement,
as
most
of
the
increased
duties
were
paused
for
a
time
which
allowed
the
U.S.
to
negotiate
deals
with
many
of
the
country’s
leading
trading
partners.
However,
by
the
end
of
the
period
under
review,
permanent
deals
had
not
been
made
with
the
largest
three
partners—China,
Mexico
and
Canada—acting
as
an
overhang
to
the
market.
U.S.
Federal
Reserve
(Fed)
actions
over
the
course
of
the
period
were
another
focus
of
the
market.
The
Fed
continued
its
rate
cutting
cycle
through
the
end
of
2024
before
pausing
to
evaluate
the
impact
on
its
easing
cycle.
A
strong
U.S.
job
market
allowed
the
Fed
to
hold
its
target
fed
funds
to
4.25%
-
4.50%
through
August
2025
as
the
path
of
disinflation
had
slowed.
At
the
end
of
the
period,
rhetoric
from
the
Fed
changed
and
shifted
to
a
more
dovish
stance,
potentially
signaling
near-term
rate
cuts.
Spreads
on
HY
corporate
bonds
returned
to
near
multi-decade
tights
at
the
end
of
August
2025.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
Throughout
the
period,
fund
allocations
changed
as
volatility
in
market
conditions
provided
opportunities
to
manage
sector
rotations
and
duration
exposure.
Our
dedicated
credit
research
analysts
looked
to
find
value
across
industry
sectors
and
rating
classifications.
At
the
end
of
August
2025,
the
Fund
was
overweight
to
the
building
and
finance
sectors
while
underweight
to
technology
and
consumer
cyclical
segments.
Performance
Overview
For
the
12
months
under
review,
the
Fund’s
cumulative
total
returns
were
+9.71%
based
on
net
asset
value
and
+16.45%
based
on
market
price.
For
comparison,
the
ICE
BofA
US
High
Yield
Constrained
Index,
which
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-
grade
corporate
debt
publicly
issues
in
the
U.S.
domestic
market,
posted
a
+8.15%
cumulative
total
return
1
.
Utilities
stocks,
as
measured
by
the
Standard
&
Poor’s
®
(S&P
®
)
500
Utilities
Index,
which
consists
of
all
utility
stocks
in
the
S&P
500
®
Index,
posted
a
+13.81%
cumulative
total
return
for
the
same
period.
1
You
can
find
the
Fund’s
long-term
performance
data
in
the
Performance
Summary
on
page
5
.
The
Fund
has
a
policy
of
seeking
to
maintain
a
relatively
stable
level
of
distributions
to
shareholders.
This
policy
has
no
impact
on
the
Fund’s
investment
strategy
and
may
reduce
the
Fund’s
net
asset
value.
The
Fund’s
investment
manager
believes
the
policy
helps
maintain
the
Fund’s
competitiveness
and
may
benefit
the
Fund’s
market
price
and
premium/discount
to
the
Fund’s
net
asset
value.
For
the
fiscal
year
ended
August
31,
2025,
the
Fund
estimates
that
it
distributed
more
than
its
income
and
net
realized
capital
gains;
therefore,
a
portion
of
the
Fund
distribution
to
shareholders
may
be
a
return
of
capital.
A
return
of
capital
may
occur,
for
example,
when
some
or
all
of
the
money
that
a
shareholder
invested
in
a
Fund
is
paid
back
to
them.
A
return
of
capital
distribution
does
not
necessarily
reflect
the
Fund’s
investment
performance
and
should
not
be
confused
with
“yield”
or
“income”.
The
Fund
sends
a
Form
1099-DIV
to
shareholders
each
calendar
year
describing
how
to
report
the
Fund’s
distributions
for
federal
income
tax
purposes.
1.
Source:
Morningstar.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
9
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
Q.
What
were
the
leading
contributors
to
performance?
A.
Security
selection
was
a
leading
contributor
to
performance
within
the
portfolio.
In
particular,
our
fundamental
research
led
to
favorable
security
selection
in
the
utilities
sector.
Positioning
in
Talen
Energy
was
a
strong
driver
of
returns
as
the
company
entered
into
a
major
power
purchase
agreement
with
Amazon
Web
Services.
Additionally,
Talen
purchased
two
combined-cycle
gas
turbine
power
plants
that
boosted
free
cash
flow
for
the
company.
Financial
performance
of
the
company
improved
over
the
year
as
net
income
and
earnings
before
interest,
taxes,
depreciation,
and
amortization
(EBITDA)
beat
market
expectations.
Other
utility
companies,
such
as
Entergy
and
Constellation
Energy,
also
saw
strong
performance
due
to
similar
agreements
to
supply
energy
needs
of
data
centers.
The
Fund
also
saw
positive
performance
contributions
from
exposure
to
communication
infrastructure
companies,
including
CommScope
LLC
Holdings
of
MultiPlan,
a
healthcare
analytics
solutions
provider,
was
another
position
that
added
to
relative
results.
Overweight
exposure
to
Great
Canadian
Gaming
Corporate
was
accretive
to
results.
Despite
the
company
being
downgraded
by
Fitch
in
September
2024,
its
bonds
rose
in
value
as
the
company
underwent
a
series
of
sales
of
casinos
in
an
effort
to
manage
debt
and
streamline
operations.
Q.
What
were
the
leading
detractors
from
performance?
A.
In
contrast,
the
Fund’s
holdings
in
Nextera
Energy,
one
of
the
world’s
largest
generators
of
renewable
energy,
detracted
from
performance.
Over
the
period,
the
company
reduced
its
dividend
growth
forecast
from
12%
-
15%
to
just
5%
-
8%.
This
raised
concerns
about
the
company’s
ability
to
maintain
its
growth
trajectory.
The
Fund’s
exposure
to
DISH
networks,
a
satellite
television
company,
was
a
detractor
from
performance.
DISH
reported
a
significant
decline
in
its
subscriber
base.
Year-to-date
financial
results
have
seen
both
declining
revenue
and
operating
margins.
Exposure
to
Bausch
Health
was
another
detractor
from
results.
Over
the
course
of
the
period,
the
company
issued
new
debt
and
entered
into
new
credit
lines
in
order
to
meet
near-term
bond
payments.
Although
this
relieved
the
company’s
short-term
needs,
it
had
to
issue
longer-term-maturity
debt
at
higher
yields,
putting
pressure
on
its
margins.
This
pushed
the
price
of
bonds
lower,
hindering
the
Fund’s
performance.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
The
were
no
changes
to
the
portfolio
management
team
or
material
modifications
as
to
the
way
the
Fund
was
managed
during
the
period
under
review.
Effective
September
30,
2024,
Patricia
O’Connor
was
added
as
a
Portfolio
Manager
of
the
Fund.
Thank
you
for
your
continued
participation
in
Franklin
Universal
Trust.
We
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Glenn
Voyles,
CFA
Jonathan
G.
Belk,
CFA
Patricia
O’Connor,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2025,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
Portfolio
Composition
8/31/25
%
of
Total
Investments
Corporate
Bonds
59.8%
Common
Stocks
36.9%
Marketplace
Loans
0.7%
Other
*
0.4%
Short-Term
Investments
2.2%
*
Categories
within
the
Other
category
are
listed
in
full
in
the
Fund’s
Schedule
of
Investments
(SOI),
which
can
be
found
later
in
this
report.
Top
10
Holdings
8/31/25
Issuer
%
of
Total
Net
Assets
a
a
NextEra
Energy,
Inc.
3.9%
Sempra,
Inc.
3.5%
Entergy
Corp.
2.5%
Alliant
Energy
Corp.
2.4%
Evergy
,
Inc.
2.4%
Duke
Energy
Corp.
2.3%
CenterPoint
Energy,
Inc.
2.2%
Southern
Co.
(The)
2.2%
CMS
Energy
Corp.
2.0%
DTE
Energy
Co.
1.9%
CFA
®
is
a
trademark
owned
by
CFA
Institute.
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.
Performance
Summary
as
of
August
31,
2025
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Total
returns
do
not
reflect
any
sales
charges
paid
at
inception
or
brokerage
commissions
paid
on
secondary
market
purchases.
Total
return
also
does
not
reflect
brokerage
commissions
or
sales
charges
in
connection
with
the
purchase
or
sale
of
Fund
shares
at
the
opening
of
the
first
business
day
and
sale
on
the
closing
of
the
last
business
day
of
each
period.
The
performance
table
and
graph
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
8/31/25
1
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
Cumulative
Total
Return
2
Average
Annual
Total
Return
2
Based
on
NAV
3
Based
on
market
price
4
Based
on
NAV
3
Based
on
market
price
4
1-Year
+9.71%
+16.45%
+9.71%
+16.45%
5-Year
+43.00%
+60.27%
+7.41%
+9.89%
10-Year
+110.89%
+146.56%
+7.75%
+9.44%
See
page
7
for
Performance
Summary
footnotes.
Franklin
Universal
Trust
Performance
Summary
See
page
7
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
period
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
8/31/15–8/31/25
Franklin
Universal
Trust
Performance
Summary
Share
Prices
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund
is
actively
managed
but
there
is
no
guarantee
that
the
manager's
investment
decisions
will
produce
the
desired
results.
All
investments
involve
risks,
including
possible
loss
of
principal.
Fixed
income
securities
involve
interest
rate,
credit,
inflation
and
reinvestment
risks,
and
possible
loss
of
principal.
As
interest
rates
rise,
the
value
of
fixed
income
securities
falls.
Low-rated,
high-yield
bonds
are
subject
to
greater
price
volatility,
illiquidity
and
possibility
of
default.
Equity
securities
are
subject
to
price
fluctuation
and
possible
loss
of
principal.
To
the
extent
the
portfolio
invests
in
a
concentration
of
certain
securities,
regions
or
industries,
it
is
subject
to
increased
volatility.
Dividends
may
fluctuate
and
are
not
guaranteed,
and
a
company
may
reduce
or
eliminate
its
dividend
at
any
time.
The
manager
may
consider
environmental,
social
and
governance
(ESG)
criteria
in
the
research
or
investment
process;
however,
ESG
considerations
may
not
be
a
determi-
native
factor
in
security
selection.
In
addition,
the
manager
may
not
assess
every
investment
for
ESG
criteria,
and
not
every
ESG
factor
may
be
identified
or
evaluated.
1.
Gross
expenses
are
the
Fund’s
total
annual
operating
expenses
as
of
the
Fund's
annual
report
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
Net
expenses
reflect
voluntary
fee
waivers,
expense
caps
and/or
reimbursements.
Voluntary
waivers
may
be
modified
or
discontinued
at
any
time
without
notice.
2.
Total
return
calculations
represent
the
cumulative
and
average
annual
changes
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Assumes
reinvestment
of
distributions
based
on
net
asset
value.
4.
Assumes
reinvestment
of
distributions
based
on
the
dividend
reinvestment
and
cash
purchase
plan.
5.
Source:
Morningstar.
The
ICE
BofA
US
High
Yield
Constrained
Index
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-grade
corporate
debt
publicly
issued
in
the
U.S.
domestic
market.
The
CS
High
Yield
Index
is
designed
to
mirror
the
investable
universe
of
the
U.S.
dollar-denominated
high-yield
debt
traded
in
the
U.S.
credit
market.
The
S&P
®
500
Utilities
Index
is
market
capitalization
weighted
and
consists
of
all
utility
stocks
in
the
S&P
500
®
.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Symbol:
FT
8/31/25
8/31/24
Change
Net
Asset
Value
(NAV)
$8.46
$8.20
+$0.26
Market
Price
(NYSE)
$7.93
$7.28
+$0.65
Distributions
Per
Share
(9/1/24–8/31/25)
Net
Investment
Income
Tax
Return
of
Capital
Total
$0.4859
$0.0241
$0.5100
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
Year
Ended
August
31,
2025
2024
2023
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$8.20
$7.36
$8.08
$8.92
$8.12
Income
from
investment
operations:
Net
investment
income
a
.........................
0.36
0.33
0.43
0.41
0.38
Net
realized
and
unrealized
gains
(losses)
...........
0.41
1.02
(0.58)
(0.70)
0.85
Total
from
investment
operations
....................
0.77
1.35
(0.15)
(0.29)
1.23
Less
distributions
from:
Net
investment
income
..........................
(0.49)
(0.30)
(0.31)
(0.51)
(0.43)
Net
realized
gains
.............................
—
—
(0.05)
(0.04)
—
Tax
return
of
capital
............................
(0.02)
(0.21)
(0.21)
—
—
Total
distributions
...............................
(0.51)
(0.51)
(0.57)
(0.55)
(0.43)
Net
asset
value,
end
of
year
.......................
$8.46
$8.20
$7.36
$8.08
$8.92
Market
value,
end
of
year
b
.........................
$7.93
$7.28
$6.76
$8.00
$8.59
Total
return
(based
on
net
asset
value
per
share)
c
.......
9.71%
19.18%
(1.81)%
(3.41)%
15.33%
Total
return
(based
on
market
value
per
share)
c
.........
16.45%
16.20%
(8.24)%
(0.36)%
29.55%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
......
3.00%
3.32%
2.78%
2.57%
2.50%
Expenses
net
of
waiver
and
payments
by
affiliates
.......
2.99%
3.31%
2.77%
d
2.57%
d,e
2.50%
d,e
Net
investment
income
...........................
4.38%
4.36%
5.66%
4.85%
4.38%
Supplemental
data
Net
assets
,
end
of
year
(000’s)
.....................
$212,600
$206,193
$184,859
$203,053
$224,246
Portfolio
turnover
rate
............................
21.76%
21.79%
17.73%
22.29%
36.58%
Total
credit
facility
outstanding
at
end
of
year
(000’s)
.....
$60,000
$60,000
$—
$—
$—
Total
debt
outstanding
at
end
of
year
(000's)
...........
$—
$—
$65,000
$65,000
$65,000
Asset
coverage
per
$1,000
of
debt
..................
$4,543
$4,437
$3,844
$4,124
$4,450
Average
amount
of
senior
fixed
rate
Notes
per
share
during
the
year
......................................
$—
$0.11
$2.59
$2.59
$2.59
a
Based
on
average
daily
shares
outstanding.
b
Based
on
the
last
sale
on
the
New
York
Stock
Exchange.
c
The
Market
Value
Total
Return
is
calculated
assuming
a
purchase
of
common
shares
on
the
opening
of
the
first
business
day
and
a
sale
on
the
closing
of
the
last
business
day
of
each
period.
Dividends
and
distributions
are
assumed
for
the
purposes
of
this
calculation
to
be
reinvested
at
prices
obtained
under
the
Fund's
Dividend
Reinvestment
and
Cash
Purchase
Plan.
Net
Asset
Value
Total
Return
is
calculated
on
the
same
basis,
except
that
the
Fund's
net
asset
value
is
used
on
the
purchase,
sale
and
dividend
reinvestment
dates
instead
of
market
value.
Total
return
does
not
reflect
brokerage
commissions
or
sales
charges
in
connection
with
the
purchase
or
sale
of
Fund
shares.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Schedule
of
Investments,
August
31,
2025
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
46.5%
Electric
Utilities
25.5%
Alliant
Energy
Corp.
.................................
United
States
80,000
$
5,205,600
American
Electric
Power
Co.,
Inc.
.......................
United
States
36,000
3,996,720
Constellation
Energy
Corp.
............................
United
States
10,000
3,079,800
Duke
Energy
Corp.
..................................
United
States
40,000
4,899,600
Edison
International
.................................
United
States
36,000
2,020,680
Entergy
Corp.
......................................
United
States
60,000
5,285,400
Evergy,
Inc.
........................................
United
States
72,000
5,130,720
Exelon
Corp.
.......................................
United
States
65,000
2,839,200
FirstEnergy
Corp.
...................................
United
States
50,000
2,181,000
NextEra
Energy,
Inc.
.................................
United
States
115,000
8,285,750
Pinnacle
West
Capital
Corp.
...........................
United
States
20,000
1,787,200
PPL
Corp.
.........................................
United
States
24,500
893,515
Southern
Co.
(The)
..................................
United
States
50,000
4,615,000
Xcel
Energy,
Inc.
....................................
United
States
55,000
3,981,450
54,201,635
Metals
&
Mining
2.9%
BHP
Group
Ltd.,
ADR
................................
Australia
25,185
1,404,568
Freeport-McMoRan,
Inc.
..............................
United
States
40,380
1,792,872
Newmont
Corp.
.....................................
United
States
26,000
1,934,400
Rio
Tinto
plc,
ADR
...................................
Australia
15,000
940,800
South32
Ltd.,
ADR
..................................
Australia
10,074
88,953
6,161,593
Multi-Utilities
16.3%
CenterPoint
Energy,
Inc.
..............................
United
States
122,800
4,630,788
CMS
Energy
Corp.
..................................
United
States
60,000
4,294,200
Consolidated
Edison,
Inc.
.............................
United
States
20,000
1,964,600
Dominion
Energy,
Inc.
................................
United
States
65,000
3,893,500
DTE
Energy
Co.
....................................
United
States
30,000
4,099,500
NiSource,
Inc.
......................................
United
States
60,000
2,536,200
Public
Service
Enterprise
Group,
Inc.
....................
United
States
45,000
3,704,850
Sempra,
Inc.
.......................................
United
States
90,000
7,430,400
WEC
Energy
Group,
Inc.
..............................
United
States
20,000
2,130,200
34,684,238
Oil,
Gas
&
Consumable
Fuels
1.6%
a
Amplify
Energy
Corp.
................................
United
States
245
997
Birch
Permian
Holdings,
Inc.
...........................
United
States
32,490
165,423
California
Resources
Corp.
............................
United
States
47
2,335
DT
Midstream,
Inc.
..................................
United
States
10,000
1,041,800
Enbridge,
Inc.
......................................
Canada
39,360
1,902,663
Expand
Energy
Corp.
................................
United
States
1,985
192,108
Woodside
Energy
Group
Ltd.,
ADR
......................
Australia
9,101
156,355
3,461,681
Pharmaceuticals
0.2%
a,b
Mallinckrodt
ARD
LLC
................................
United
States
2,929
287,042
Software
0.0%
†
a,b
DSG
Topco,
Inc.
....................................
United
States
2,027
27,871
Total
Common
Stocks
(Cost
$34,688,961)
....................................
98,824,060
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
0.1%
Aerospace
&
Defense
0.1%
Boeing
Co.
(The),
6%
................................
United
States
3,000
$
223,260
Total
Convertible
Preferred
Stocks
(Cost
$150,000)
............................
223,260
Preferred
Stocks
0.2%
Electric
Utilities
0.2%
SCE
Trust
II,
5.1%
..................................
United
States
27,500
465,025
Total
Preferred
Stocks
(Cost
$598,125)
.......................................
465,025
Warrants
Warrants
0.0%
†
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a
Expand
Energy
Corp.,
2/09/26
.........................
United
States
215
19,079
Total
Warrants
(Cost
$18,168)
...............................................
19,079
Principal
Amount
*
Corporate
Bonds
75.4%
Aerospace
&
Defense
2.0%
c
ATI,
Inc.
,
Senior
Note
,
7.25
%
,
8/15/30
....................
United
States
700,000
737,918
d
Axon
Enterprise,
Inc.
,
Senior
Note,
144A,
6.125%,
3/15/30
...................
United
States
300,000
308,976
Senior
Note,
144A,
6.25%,
3/15/33
....................
United
States
250,000
259,053
c,d
Bombardier,
Inc.
,
Senior
Note
,
144A,
7
%
,
6/01/32
...........
Canada
675,000
705,660
d
Efesto
Bidco
SpA
Efesto
US
LLC
,
XR
,
Senior
Secured
Note
,
144A,
7.5
%
,
2/15/32
...............................
Italy
1,050,000
1,073,436
d
TransDigm,
Inc.
,
Senior
Secured
Note,
144A,
6%,
1/15/33
................
United
States
170,000
172,030
Senior
Sub.
Note,
144A,
6.75%,
1/31/34
................
United
States
1,020,000
1,053,652
4,310,725
Automobile
Components
2.0%
d
Adient
Global
Holdings
Ltd.
,
c
Senior
Note,
144A,
8.25%,
4/15/31
....................
United
States
300,000
316,115
Senior
Note,
144A,
7.5%,
2/15/33
.....................
United
States
150,000
156,295
Senior
Secured
Note,
144A,
7%,
4/15/28
................
United
States
150,000
154,657
d
Allison
Transmission,
Inc.
,
Senior
Bond,
144A,
3.75%,
1/30/31
....................
United
States
300,000
277,068
Senior
Note,
144A,
4.75%,
10/01/27
...................
United
States
600,000
595,248
d
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
........................................
United
States
1,550,000
1,347,146
d,e
IHO
Verwaltungs
GmbH
,
Senior
Secured
Note,
144A,
PIK,
7.75%,
11/15/30
.........
Germany
400,000
416,214
Senior
Secured
Note,
144A,
PIK,
8%,
11/15/32
...........
Germany
900,000
940,476
4,203,219
Automobiles
0.6%
c,d
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
.........................................
United
Kingdom
700,000
699,789
d
Nissan
Motor
Co.
Ltd.
,
Senior
Bond
,
144A,
8.125
%
,
7/17/35
...
Japan
565,000
598,974
1,298,763
Biotechnology
0.6%
d
Emergent
BioSolutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
8/15/28
United
States
900,000
754,426
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Biotechnology
(continued)
d
Grifols
SA
,
Senior
Note
,
144A,
4.75
%
,
10/15/28
............
Spain
600,000
$
581,936
1,336,362
Broadline
Retail
0.7%
c,d
Wayfair
LLC
,
Senior
Secured
Note,
144A,
7.25%,
10/31/29
............
United
States
700,000
715,491
Senior
Secured
Note,
144A,
7.75%,
9/15/30
.............
United
States
800,000
828,523
1,544,014
Building
Products
2.8%
c,d
Advanced
Drainage
Systems,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/30
.........................................
United
States
500,000
511,538
d
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
.........................................
United
States
300,000
231,977
c,d
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
........................
United
States
900,000
925,449
d
JH
North
America
Holdings,
Inc.
,
Senior
Secured
Note,
144A,
5.875%,
1/31/31
............
United
States
75,000
75,875
Senior
Secured
Note,
144A,
6.125%,
7/31/32
............
United
States
125,000
126,952
c,d
Miter
Brands
Acquisition
Holdco,
Inc.
/
MIWD
Borrower
LLC
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/01/32
..............
United
States
500,000
515,744
d
Quikrete
Holdings,
Inc.
,
Senior
Note,
144A,
6.75%,
3/01/33
....................
United
States
150,000
155,594
Senior
Secured
Note,
144A,
6.375%,
3/01/32
............
United
States
300,000
309,593
c,d
Smyrna
Ready
Mix
Concrete
LLC
,
Senior
Secured
Note
,
144A,
8.875
%
,
11/15/31
..................................
United
States
1,200,000
1,280,936
c,d
Standard
Building
Solutions,
Inc.
,
Senior
Note,
144A,
6.5%,
8/15/32
.....................
United
States
600,000
619,690
Senior
Note,
144A,
6.25%,
8/01/33
....................
United
States
495,000
505,569
d
Standard
Industries,
Inc.
,
c
Senior
Bond,
144A,
4.75%,
1/15/28
....................
United
States
500,000
495,655
Senior
Bond,
144A,
4.375%,
7/15/30
...................
United
States
100,000
95,891
5,850,463
Capital
Markets
1.1%
d
Jane
Street
Group
/
JSG
Finance,
Inc.
,
c
Senior
Secured
Note,
144A,
4.5%,
11/15/29
.............
United
States
500,000
483,251
Senior
Secured
Note,
144A,
6.125%,
11/01/32
...........
United
States
500,000
502,671
c
Senior
Secured
Note,
144A,
6.75%,
5/01/33
.............
United
States
600,000
620,392
d
Stonex
Escrow
Issuer
LLC
,
Secured
Note
,
144A,
6.875
%
,
7/15/32
United
States
285,000
293,145
c,d
StoneX
Group,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
3/01/31
United
States
500,000
528,893
2,428,352
Chemicals
2.7%
d,e
Advancion
Sciences,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
........................................
United
States
243,101
208,358
b,d,e,f
Anagram
Holdings
LLC
/
Anagram
International,
Inc.
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
........................
United
States
257,209
—
d
Avient
Corp.
,
Senior
Note
,
144A,
6.25
%
,
11/01/31
...........
United
States
300,000
305,788
d
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
.........................................
Mexico
300,000
207,632
c,d
Cerdia
Finanz
GmbH
,
Senior
Secured
Note
,
144A,
9.375
%
,
10/03/31
........................................
Germany
500,000
530,390
d
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
...
United
States
200,000
194,002
FMC
Corp.
,
Sub.
Bond
,
8.45%
to
10/31/30,
FRN
thereafter
,
11/01/55
........................................
United
States
300,000
314,186
d
GPD
Cos.,
Inc.
,
Senior
Note
,
144A,
12.5
%
,
12/31/29
.........
United
States
989,666
833,543
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
(continued)
d
Illuminate
Buyer
LLC
/
Illuminate
Holdings
IV,
Inc.
,
Senior
Note
,
144A,
9
%
,
7/01/28
.................................
United
States
1,000,000
$
1,002,498
d
Qnity
Electronics,
Inc.
,
Senior
Note,
144A,
6.25%,
8/15/33
....................
United
States
140,000
144,896
Senior
Secured
Note,
144A,
5.75%,
8/15/32
.............
United
States
240,000
244,279
c,d
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
United
States
1,200,000
1,289,832
d
Vibrantz
Technologies,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
...
United
States
1,000,000
531,015
5,806,419
Commercial
Services
&
Supplies
2.6%
c,d
Allied
Universal
Holdco
LLC
,
Senior
Secured
Note
,
144A,
7.875
%
,
2/15/31
...................................
United
States
1,200,000
1,261,986
c,d
Enviri
Corp.
,
Senior
Note
,
144A,
5.75
%
,
7/31/27
............
United
States
500,000
494,752
c,d
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
.............
United
States
600,000
581,795
c,d
RR
Donnelley
&
Sons
Co.
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/01/29
.........................................
United
States
1,125,000
1,142,399
d
Veritiv
Operating
Co.
,
Senior
Secured
Note
,
144A,
10.5
%
,
11/30/30
........................................
United
States
225,000
243,836
c,d
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.....
United
States
800,000
793,542
d
Waste
Pro
USA,
Inc.
,
Senior
Note
,
144A,
7
%
,
2/01/33
........
United
States
200,000
209,626
c,d
Wrangler
Holdco
Corp.
,
Senior
Note
,
144A,
6.625
%
,
4/01/32
...
Canada
700,000
730,197
5,458,133
Communications
Equipment
1.0%
d
CommScope
LLC
,
Senior
Note
,
144A,
7.125
%
,
7/01/28
.......
United
States
1,600,000
1,606,400
d
Viasat,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
5/30/31
..............
United
States
525,000
493,491
2,099,891
Construction
&
Engineering
0.2%
d
Arcosa,
Inc.
,
c
Senior
Note,
144A,
4.375%,
4/15/29
...................
United
States
300,000
291,508
Senior
Note,
144A,
6.875%,
8/15/32
...................
United
States
100,000
104,396
395,904
Consumer
Finance
1.8%
d
Encore
Capital
Group,
Inc.
,
Senior
Secured
Note,
144A,
9.25%,
4/01/29
.............
United
States
600,000
634,284
Senior
Secured
Note,
144A,
8.5%,
5/15/30
..............
United
States
400,000
423,001
c,d
FirstCash,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
3/01/32
.........
United
States
1,100,000
1,142,829
d
Macquarie
Airfinance
Holdings
Ltd.
,
Senior
Note
,
144A,
6.5
%
,
3/26/31
.........................................
United
Kingdom
200,000
214,410
OneMain
Finance
Corp.
,
Senior
Bond
,
5.375
%
,
11/15/29
......
United
States
500,000
494,695
c,d
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.......
United
States
900,000
874,827
3,784,046
Consumer
Staples
Distribution
&
Retail
0.3%
c,d
US
Foods,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
9/15/28
.........
United
States
700,000
722,090
Containers
&
Packaging
1.5%
c,d
Clydesdale
Acquisition
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/15/32
...............................
United
States
1,000,000
1,028,150
d
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note
,
144A,
9.25
%
,
4/15/27
...................................
United
States
1,500,000
1,494,586
c,d
Toucan
FinCo
Ltd.
/
Toucan
FinCo
Can,
Inc.
/
Toucan
FinCo
US
LLC
,
Senior
Secured
Note
,
144A,
9.5
%
,
5/15/30
...........
Canada
750,000
750,139
3,272,875
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Distributors
0.5%
d
Gates
Corp.
,
Senior
Note
,
144A,
6.875
%
,
7/01/29
...........
United
States
400,000
$
416,397
d
RB
Global
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
3/15/31
....................
Canada
425,000
446,524
Senior
Secured
Note,
144A,
6.75%,
3/15/28
.............
Canada
125,000
128,097
991,018
Diversified
Consumer
Services
0.4%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....
United
States
800,000
787,950
Diversified
REITs
1.1%
c,d
Global
Net
Lease,
Inc.
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
.....
United
States
900,000
875,474
c,d
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
.................
United
States
800,000
776,514
c,d
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...................................
United
States
700,000
692,017
2,344,005
Diversified
Telecommunication
Services
2.2%
d
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
c
Senior
Bond,
144A,
5.375%,
6/01/29
...................
United
States
500,000
496,429
c
Senior
Bond,
144A,
4.5%,
8/15/30
.....................
United
States
1,700,000
1,610,318
Senior
Bond,
144A,
4.25%,
2/01/31
....................
United
States
200,000
184,608
d
Maya
SAS
,
c
Senior
Secured
Note,
144A,
7%,
10/15/28
...............
France
800,000
814,681
Senior
Secured
Note,
144A,
7%,
4/15/32
................
France
425,000
437,639
c,d
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
....................................
United
Kingdom
1,100,000
1,033,360
4,577,035
Electric
Utilities
1.5%
c,d
California
Buyer
Ltd.
/
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
6.375
%
,
2/15/32
....................
United
Kingdom
1,500,000
1,522,317
c,d
NRG
Energy,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
........
United
States
800,000
803,690
d
Vistra
Operations
Co.
LLC
,
c
Senior
Note,
144A,
4.375%,
5/01/29
...................
United
States
400,000
391,213
Senior
Note,
144A,
7.75%,
10/15/31
...................
United
States
100,000
106,310
Senior
Note,
144A,
6.875%,
4/15/32
...................
United
States
400,000
420,053
3,243,583
Electrical
Equipment
0.4%
c,d
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
........................................
United
States
800,000
781,535
Electronic
Equipment,
Instruments
&
Components
0.4%
c,d
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
......
United
States
500,000
478,814
d
Zebra
Technologies
Corp.
,
Senior
Note
,
144A,
6.5
%
,
6/01/32
..
United
States
300,000
308,294
787,108
Energy
Equipment
&
Services
2.3%
c,d
Aris
Water
Holdings
LLC
,
Senior
Note
,
144A,
7.25
%
,
4/01/30
..
United
States
600,000
633,525
d
Enerflex
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
10/15/27
......
Canada
160,000
164,790
c,d
Kodiak
Gas
Services
LLC
,
Senior
Note
,
144A,
7.25
%
,
2/15/29
..
United
States
700,000
724,490
d
Nabors
Industries,
Inc.
,
Senior
Note,
144A,
9.125%,
1/31/30
...................
United
States
300,000
307,638
Senior
Note,
144A,
8.875%,
8/15/31
...................
United
States
1,000,000
901,427
Oceaneering
International,
Inc.
,
Senior
Note
,
6
%
,
2/01/28
.....
United
States
300,000
303,294
d
Transocean
Titan
Financing
Ltd.
,
Senior
Secured
Note
,
144A,
8.375
%
,
2/01/28
...................................
United
States
80,952
83,234
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Energy
Equipment
&
Services
(continued)
Transocean,
Inc.
,
Senior
Bond,
6.8%,
3/15/38
..........................
United
States
600,000
$
472,477
d
Senior
Note,
144A,
8.25%,
5/15/29
....................
United
States
100,000
96,828
d
Senior
Secured
Note,
144A,
8.75%,
2/15/30
.............
United
States
600,000
635,587
c,d
Weatherford
International
Ltd.
,
Senior
Note
,
144A,
8.625
%
,
4/30/30
.........................................
United
States
500,000
512,766
4,836,056
Entertainment
0.6%
c,d
Banijay
Entertainment
SAS
,
Senior
Secured
Note
,
144A,
8.125
%
,
5/01/29
.........................................
France
800,000
832,841
Warnermedia
Holdings,
Inc.
,
Senior
Note
,
4.054
%
,
3/15/29
....
United
States
520,000
494,408
1,327,249
Financial
Services
4.0%
d
Freedom
Mortgage
Holdings
LLC
,
Senior
Note,
144A,
9.25%,
2/01/29
....................
United
States
300,000
313,758
c
Senior
Note,
144A,
8.375%,
4/01/32
...................
United
States
650,000
670,844
Senior
Note,
144A,
7.875%,
4/01/33
...................
United
States
325,000
330,670
d
GGAM
Finance
Ltd.
,
Senior
Note,
144A,
8%,
2/15/27
......................
Ireland
200,000
205,298
Senior
Note,
144A,
8%,
6/15/28
......................
Ireland
700,000
743,207
d
Jefferson
Capital
Holdings
LLC
,
Senior
Note,
144A,
6%,
8/15/26
......................
United
States
500,000
500,605
Senior
Note,
144A,
9.5%,
2/15/29
.....................
United
States
1,400,000
1,488,410
d
Nationstar
Mortgage
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
11/15/31
........................................
United
States
640,000
648,071
d
Osaic
Holdings,
Inc.
,
Senior
Note,
144A,
8%,
8/01/33
......................
United
States
215,000
218,014
Senior
Secured
Note,
144A,
6.75%,
8/01/32
.............
United
States
230,000
234,534
d
PHH
Escrow
Issuer
LLC
/
PHH
Corp.
,
Senior
Note
,
144A,
9.875
%
,
11/01/29
..................................
United
States
1,500,000
1,505,964
d
PRA
Group,
Inc.
,
c
Senior
Note,
144A,
8.375%,
2/01/28
...................
United
States
600,000
618,474
Senior
Note,
144A,
5%,
10/01/29
.....................
United
States
300,000
282,158
Senior
Note,
144A,
8.875%,
1/31/30
...................
United
States
400,000
420,643
d
Rocket
Cos.,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
8/01/33
.......
United
States
400,000
415,590
8,596,240
Food
Products
1.1%
d,e
Chobani
Holdco
II
LLC
,
Senior
Note
,
144A,
PIK,
8.75
%
,
10/01/29
United
States
625,175
651,127
d
Chobani
LLC
/
Chobani
Finance
Corp.,
Inc.
,
Senior
Note,
144A,
7.625%,
7/01/29
...................
United
States
200,000
209,054
c
Senior
Secured
Note,
144A,
4.625%,
11/15/28
...........
United
States
800,000
789,393
d
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.....
United
States
200,000
202,336
d
Froneri
Lux
FinCo
SARL
,
Senior
Secured
Note
,
144A,
6
%
,
8/01/32
.........................................
United
Kingdom
200,000
201,260
c,d
Post
Holdings,
Inc.
,
Senior
Bond
,
144A,
4.625
%
,
4/15/30
.....
United
States
400,000
386,107
2,439,277
Ground
Transportation
0.8%
d
Beacon
Mobility
Corp.
,
Senior
Secured
Note
,
144A,
7.25
%
,
8/01/30
.........................................
United
States
260,000
269,676
c,d
First
Student
Bidco,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
.....................
United
States
900,000
854,569
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Ground
Transportation
(continued)
d
Watco
Cos.
LLC
/
Watco
Finance
Corp.
,
Senior
Note
,
144A,
7.125
%
,
8/01/32
...................................
United
States
500,000
$
523,161
1,647,406
Health
Care
Equipment
&
Supplies
0.7%
d
Bausch
+
Lomb
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
........................................
United
States
400,000
417,160
d
Insulet
Corp.
,
Senior
Note
,
144A,
6.5
%
,
4/01/33
............
United
States
100,000
103,759
c,d
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
....
United
States
500,000
495,472
c,d
Neogen
Food
Safety
Corp.
,
Senior
Note
,
144A,
8.625
%
,
7/20/30
United
States
400,000
419,357
1,435,748
Health
Care
Providers
&
Services
3.3%
c
Centene
Corp.
,
Senior
Bond
,
2.5
%
,
3/01/31
...............
United
States
500,000
426,366
d
CHS/Community
Health
Systems,
Inc.
,
144A,
10.75%,
6/15/33
.............................
United
States
500,000
509,505
Secured
Note,
144A,
6.125%,
4/01/30
..................
United
States
500,000
359,809
Senior
Secured
Note,
144A,
6%,
1/15/29
................
United
States
300,000
289,519
Senior
Secured
Note,
144A,
10.875%,
1/15/32
...........
United
States
500,000
529,741
d
DaVita,
Inc.
,
c
Senior
Note,
144A,
4.625%,
6/01/30
...................
United
States
1,200,000
1,156,169
Senior
Note,
144A,
6.875%,
9/01/32
...................
United
States
200,000
207,059
c,d
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
......
Italy
1,500,000
1,474,268
d
MPH
Acquisition
Holdings
LLC
,
Senior
Secured
Note,
144A,
5.75%,
12/31/30
............
United
States
90,027
78,826
e
Senior
Secured
Note,
144A,
PIK,
11.5%,
12/31/30
.........
United
States
141,230
143,646
e
Senior
Secured
Note,
144A,
PIK,
6.75%,
3/31/31
.........
United
States
775,080
622,930
c
Tenet
Healthcare
Corp.
,
Senior
Secured
Note,
6.125%,
6/15/30
.................
United
States
700,000
711,590
Senior
Secured
Note,
6.75%,
5/15/31
..................
United
States
500,000
520,019
7,029,447
Health
Care
REITs
0.4%
c,d
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Secured
Note
,
144A,
8.5
%
,
2/15/32
....................
United
States
750,000
786,907
Health
Care
Technology
0.5%
c,d
IQVIA,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
6/01/32
.............
United
States
925,000
954,662
Hotel
&
Resort
REITs
1.0%
c,d
Pebblebrook
Hotel
LP
/
PEB
Finance
Corp.
,
Senior
Note
,
144A,
6.375
%
,
10/15/29
..................................
United
States
700,000
709,686
d
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
c
Senior
Note,
144A,
7.25%,
7/15/28
....................
United
States
300,000
308,981
c
Senior
Note,
144A,
6.5%,
4/01/32
.....................
United
States
700,000
719,900
Senior
Note,
144A,
6.5%,
6/15/33
.....................
United
States
275,000
284,233
d
XHR
LP
,
Senior
Note
,
144A,
6.625
%
,
5/15/30
..............
United
States
200,000
205,535
2,228,335
Hotels,
Restaurants
&
Leisure
3.5%
b,d,f
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
United
States
1,800,000
—
d
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875
%
,
4/30/29
..............................
Czech
Republic
800,000
833,745
c,d
Carnival
Corp.
,
Senior
Note
,
144A,
5.75
%
,
8/01/32
..........
United
States
835,000
849,821
d
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.................
United
States
1,300,000
1,223,664
c,d
Great
Canadian
Gaming
Corp.
/
Raptor
LLC
,
Senior
Secured
Note
,
144A,
8.75
%
,
11/15/29
.........................
Canada
900,000
859,668
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
c,d
Mohegan
Tribal
Gaming
Authority
/
MS
Digital
Entertainment
Holdings
LLC
,
Senior
Secured
Note
,
144A,
8.25
%
,
4/15/30
..
United
States
650,000
$
672,162
d
NCL
Corp.
Ltd.
,
Senior
Note,
144A,
5.875%,
3/15/26
...................
United
States
46,000
46,224
c
Senior
Note,
144A,
6.75%,
2/01/32
....................
United
States
500,000
515,969
d
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note,
144A,
6.25%,
3/15/32
....................
United
States
300,000
309,811
Senior
Note,
144A,
6%,
2/01/33
......................
United
States
300,000
307,979
c,d
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
......
United
States
400,000
394,514
c,d
Viking
Cruises
Ltd.
,
Senior
Note
,
144A,
7
%
,
2/15/29
.........
United
States
600,000
604,466
c,d
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
.........................
United
States
800,000
861,634
7,479,657
Household
Durables
2.3%
d
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
c
Senior
Note,
144A,
4.625%,
8/01/29
...................
United
States
1,200,000
1,151,366
Senior
Note,
144A,
6.875%,
8/01/33
...................
United
States
70,000
70,191
c,d
Dream
Finders
Homes,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
8/15/28
United
States
500,000
519,603
c,d
LGI
Homes,
Inc.
,
Senior
Note
,
144A,
8.75
%
,
12/15/28
........
United
States
800,000
838,482
c
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
..............
United
States
600,000
564,795
Newell
Brands,
Inc.
,
Senior
Note,
6.375%,
5/15/30
........................
United
States
75,000
74,155
Senior
Note,
6.625%,
5/15/32
........................
United
States
50,000
48,932
d
Senior
Note,
144A,
8.5%,
6/01/28
.....................
United
States
300,000
317,467
c,d
Weekley
Homes
LLC
/
Weekley
Finance
Corp.
,
Senior
Note
,
144A,
4.875
%
,
9/15/28
..............................
United
States
1,300,000
1,270,158
4,855,149
Household
Products
0.1%
d
Energizer
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
3/31/29
..
United
States
200,000
191,670
Independent
Power
and
Renewable
Electricity
Producers
1.3%
c,d
Calpine
Corp.
,
Senior
Note
,
144A,
4.625
%
,
2/01/29
..........
United
States
700,000
692,100
d
Clearway
Energy
Operating
LLC
,
c
Senior
Bond,
144A,
3.75%,
1/15/32
....................
United
States
400,000
360,339
Senior
Note,
144A,
4.75%,
3/15/28
....................
United
States
400,000
395,793
Senior
Note,
144A,
3.75%,
2/15/31
....................
United
States
300,000
276,130
d
Leeward
Renewable
Energy
Operations
LLC
,
Senior
Note
,
144A,
4.25
%
,
7/01/29
...................................
United
States
1,000,000
943,466
2,667,828
Insurance
1.6%
d
Acrisure
LLC
/
Acrisure
Finance,
Inc.
,
Senior
Note,
144A,
8.5%,
6/15/29
.....................
United
States
400,000
420,894
Senior
Secured
Note,
144A,
7.5%,
11/06/30
.............
United
States
400,000
414,803
d
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note,
144A,
6.75%,
10/15/27
...................
United
States
800,000
802,419
c
Senior
Secured
Note,
144A,
7%,
1/15/31
................
United
States
500,000
517,531
Jones
Deslauriers
Insurance
Management,
Inc.
,
d
Senior
Note,
144A,
10.5%,
12/15/30
...................
Canada
1,200,000
1,275,149
3,430,796
Interactive
Media
&
Services
0.0%
†
d
Snap,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
3/01/33
............
United
States
75,000
75,859
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
1.2%
c,d
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
.........................................
United
States
500,000
$
493,726
d
Cogent
Communications
Group
LLC
/
Cogent
Finance,
Inc.
,
c
Senior
Note,
144A,
7%,
6/15/27
......................
United
States
700,000
697,453
Senior
Secured
Note,
144A,
6.5%,
7/01/32
..............
United
States
475,000
452,770
c,d
Fortress
Intermediate
3,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
6/01/31
.........................................
United
States
600,000
631,788
d
Gartner,
Inc.
,
Senior
Note
,
144A,
4.5
%
,
7/01/28
.............
United
States
200,000
197,765
2,473,502
Machinery
1.7%
c,d
ATS
Corp.
,
Senior
Note
,
144A,
4.125
%
,
12/15/28
...........
Canada
1,300,000
1,244,596
c,d
Calderys
Financing
LLC
,
Senior
Secured
Note
,
144A,
11.25
%
,
6/01/28
.........................................
France
800,000
847,684
c,d
ESAB
Corp.
,
Senior
Note
,
144A,
6.25
%
,
4/15/29
............
United
States
600,000
617,678
c
Hillenbrand,
Inc.
,
Senior
Note
,
6.25
%
,
2/15/29
..............
United
States
600,000
613,677
d
Terex
Corp.
,
Senior
Note
,
144A,
6.25
%
,
10/15/32
...........
United
States
300,000
303,887
3,627,522
Media
3.2%
d
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
....................
United
States
300,000
292,068
Senior
Note,
144A,
7.5%,
6/01/29
.....................
United
States
500,000
465,251
Senior
Secured
Note,
144A,
7.5%,
3/15/33
..............
United
States
700,000
712,966
d
CSC
Holdings
LLC
,
Senior
Bond,
144A,
3.375%,
2/15/31
...................
United
States
300,000
192,104
Senior
Note,
144A,
11.25%,
5/15/28
...................
United
States
700,000
700,225
Senior
Note,
144A,
11.75%,
1/31/29
...................
United
States
200,000
183,573
d
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
..................
United
States
200,000
199,154
d
EW
Scripps
Co.
(The)
,
Senior
Secured
Note
,
144A,
9.875
%
,
8/15/30
.........................................
United
States
750,000
705,756
d
Gray
Media,
Inc.
,
Secured
Note,
144A,
9.625%,
7/15/32
..................
United
States
390,000
392,298
Senior
Bond,
144A,
5.375%,
11/15/31
..................
United
States
300,000
221,407
Senior
Secured
Note,
144A,
7.25%,
8/15/33
.............
United
States
355,000
349,989
c,d
McGraw-Hill
Education,
Inc.
,
Senior
Secured
Note
,
144A,
7.375
%
,
9/01/31
...................................
United
States
800,000
840,538
d
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
...........
United
States
200,000
193,255
d
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Bond,
144A,
4.625%,
3/15/30
...................
United
States
75,000
71,627
Senior
Note,
144A,
5%,
8/15/27
......................
United
States
100,000
99,259
c,d
Sinclair
Television
Group,
Inc.
,
Senior
Secured
Note
,
144A,
8.125
%
,
2/15/33
...................................
United
States
800,000
820,300
d
Univision
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
9.375
%
,
8/01/32
...................................
United
States
275,000
289,772
6,729,542
Metals
&
Mining
1.7%
d
Cleveland-Cliffs,
Inc.
,
Senior
Note
,
144A,
7
%
,
3/15/32
........
United
States
340,000
338,435
c
Commercial
Metals
Co.
,
Senior
Bond
,
3.875
%
,
2/15/31
.......
United
States
700,000
652,647
d
Constellium
SE
,
c
Senior
Note,
144A,
3.75%
,
4/15/29
....................
United
States
600,000
569,238
Senior
Note,
144A,
6.375%,
8/15/32
...................
United
States
400,000
408,647
c,d
Fortescue
Treasury
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
.........................................
Australia
500,000
475,758
d
Novelis
Corp.
,
Senior
Bond,
144A,
3.875%,
8/15/31
...................
United
States
100,000
90,753
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Metals
&
Mining
(continued)
d
Novelis
Corp.,
(continued)
Senior
Note,
144A,
6.875%,
1/30/30
...................
United
States
300,000
$
311,476
Senior
Note,
144A,
6.375%,
8/15/33
...................
United
States
680,000
687,495
3,534,449
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.7%
c,d
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
.........................
United
States
1,500,000
1,443,293
Oil,
Gas
&
Consumable
Fuels
7.2%
d
Antero
Resources
Corp.
,
Senior
Note,
144A,
7.625%,
2/01/29
...................
United
States
166,000
169,421
c
Senior
Note,
144A,
5.375%,
3/01/30
...................
United
States
700,000
705,588
d
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note,
144A,
8.125%,
1/15/27
...................
United
States
900,000
898,449
c
Senior
Secured
Note,
144A,
9.25%,
7/15/29
.............
United
States
800,000
820,000
d
Coronado
Finance
Pty.
Ltd.
,
Senior
Secured
Note
,
144A,
9.25
%
,
10/01/29
........................................
Australia
950,000
784,239
d
Crescent
Energy
Finance
LLC
,
Senior
Note,
144A,
7.375%,
1/15/33
...................
United
States
295,000
288,423
c
Senior
Note,
144A,
8.375%,
1/15/34
...................
United
States
800,000
812,400
d
DT
Midstream,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
6/15/29
......
United
States
300,000
291,751
c,d
EQT
Corp.
,
Senior
Note
,
144A,
3.125
%
,
5/15/26
............
United
States
300,000
296,569
c,d
Expand
Energy
Corp.
,
Senior
Note
,
144A,
6.75
%
,
4/15/29
.....
United
States
500,000
506,738
c,d
Hess
Midstream
Operations
LP
,
Senior
Note
,
144A,
6.5
%
,
6/01/29
United
States
500,000
517,305
d
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
7.25%,
2/15/35
....................
United
States
200,000
195,282
c
Senior
Note,
144A,
6%,
4/15/30
......................
United
States
300,000
297,084
c
Senior
Note,
144A,
8.375%,
11/01/33
..................
United
States
700,000
731,490
d
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
......
United
States
400,000
403,676
d
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note
,
144A,
11.5
%
,
2/15/28
...................
United
States
1,700,000
1,799,535
b,d,f
Murray
Energy
Corp.
,
Secured
Note
,
144A,
12
%
,
4/15/24
.....
United
States
757,734
—
c,d
Northriver
Midstream
Finance
LP
,
Senior
Secured
Note
,
144A,
6.75
%
,
7/15/32
...................................
Canada
600,000
617,456
c,d
Sunoco
LP
,
Senior
Note
,
144A,
7.25
%
,
5/01/32
.............
United
States
500,000
529,252
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
6%,
4/15/27
...........................
United
States
500,000
500,715
Senior
Note,
4.5%,
5/15/29
..........................
United
States
200,000
195,074
c,d
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
............
United
States
300,000
281,864
Senior
Secured
Note,
144A,
3.875%,
8/15/29
............
United
States
300,000
287,795
d
Venture
Global
LNG,
Inc.
,
c
Senior
Secured
Note,
144A,
8.125%,
6/01/28
............
United
States
600,000
622,097
c
Senior
Secured
Note,
144A,
9.5%,
2/01/29
..............
United
States
500,000
550,019
c
Senior
Secured
Note,
144A,
8.375%,
6/01/31
............
United
States
500,000
524,901
Senior
Secured
Note,
144A,
9.875%,
2/01/32
............
United
States
400,000
435,802
d
Venture
Global
Plaquemines
LNG
LLC
,
Senior
Secured
Bond,
144A,
7.75%,
5/01/35
.............
United
States
200,000
222,815
c
Senior
Secured
Bond,
144A,
6.75%,
1/15/36
.............
United
States
490,000
514,537
Senior
Secured
Note,
144A,
7.5%,
5/01/33
..............
United
States
200,000
219,499
Senior
Secured
Note,
144A,
6.5%,
1/15/34
..............
United
States
295,000
308,155
15,327,931
Paper
&
Forest
Products
0.2%
d
Magnera
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
.........
United
States
400,000
353,553
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Passenger
Airlines
0.7%
d
American
Airlines,
Inc.
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note
,
144A,
5.5
%
,
4/20/26
....................
United
States
175,000
$
175,457
d
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
..............................
United
States
700,000
704,132
d
OneSky
Flight
LLC
,
Senior
Note
,
144A,
8.875
%
,
12/15/29
.....
United
States
250,000
262,896
d
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
............
United
States
100,000
99,735
c
Senior
Secured
Note,
144A,
4.625%,
4/15/29
............
United
States
300,000
295,420
1,537,640
Personal
Care
Products
0.7%
c,d
Coty,
Inc.
/
HFC
Prestige
Products,
Inc.
/
HFC
Prestige
International
US
LLC
,
Senior
Secured
Note
,
144A,
6.625
%
,
7/15/30
.........................................
United
States
600,000
614,255
c,d
Opal
Bidco
SAS
,
Senior
Secured
Note
,
144A,
6.5
%
,
3/31/32
...
France
950,000
967,336
1,581,591
Pharmaceuticals
0.5%
d
Endo
Finance
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/15/31
.........................................
United
States
200,000
213,171
c
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
4.75%,
5/09/27
.........................
Israel
600,000
596,977
Senior
Note,
8.125%,
9/15/31
........................
Israel
300,000
341,209
1,151,357
Professional
Services
0.2%
d
CACI
International,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/33
..
United
States
425,000
438,894
Real
Estate
Management
&
Development
0.5%
c,d
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
10.5
%
,
1/15/28
..........................
United
States
335,834
338,910
c,d
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
3/15/33
.......
United
States
700,000
714,069
1,052,979
Software
1.0%
c,d
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
United
States
86,000
85,041
d
Gen
Digital,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
4/01/33
.........
United
States
250,000
257,701
d
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
..........
United
States
800,000
739,700
d
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
......
United
States
1,100,000
1,059,302
2,141,744
Specialized
REITs
1.0%
c,d
Iron
Mountain,
Inc.
,
Senior
Bond,
144A,
5.625%,
7/15/32
...................
United
States
300,000
297,936
Senior
Note,
144A,
7%,
2/15/29
......................
United
States
700,000
721,493
d
Millrose
Properties,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
8/01/30
..
United
States
1,125,000
1,135,884
2,155,313
Specialty
Retail
0.6%
c,d
Evergreen
Acqco
1
LP
/
TVI,
Inc.
,
Senior
Secured
Note
,
144A,
9.75
%
,
4/26/28
...................................
United
States
584,000
609,045
c,d
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
........
United
States
700,000
657,108
1,266,153
Technology
Hardware,
Storage
&
Peripherals
0.3%
c,d
Seagate
Data
Storage
Technology
Pte.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
7/15/30
...................................
United
States
550,000
557,975
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Textiles,
Apparel
&
Luxury
Goods
0.8%
d,e
Beach
Acquisition
Bidco
LLC
,
Senior
Note
,
144A,
PIK,
10
%
,
7/15/33
.........................................
United
States
720,000
$
766,048
c,d
Hanesbrands,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/31
..........
United
States
700,000
744,883
d
Under
Armour,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
7/15/30
.......
United
States
250,000
250,237
1,761,168
Trading
Companies
&
Distributors
2.0%
c,d
EquipmentShare.com,
Inc.
,
Secured
Note,
144A,
9%,
5/15/28
.....................
United
States
800,000
848,277
Secured
Note,
144A,
8.625%,
5/15/32
..................
United
States
600,000
647,015
d
Herc
Holdings,
Inc.
,
c
Senior
Note,
144A,
6.625%,
6/15/29
...................
United
States
900,000
927,633
Senior
Note,
144A,
7%,
6/15/30
......................
United
States
150,000
156,213
Senior
Note,
144A,
7.25%,
6/15/33
....................
United
States
100,000
104,974
c,d
QXO
Building
Products,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/30/32
.........................................
United
States
700,000
724,714
d
WESCO
Distribution,
Inc.
,
Senior
Note,
144A,
6.375%,
3/15/29
...................
United
States
400,000
412,331
Senior
Note,
144A,
6.375%,
3/15/33
...................
United
States
450,000
467,028
4,288,185
Wireless
Telecommunication
Services
1.3%
d,f
Altice
France
Holding
SA
,
Senior
Secured
Note
,
144A,
10.5
%
,
5/15/27
.........................................
Luxembourg
1,500,000
541,057
c,d
Connect
Finco
SARL
/
Connect
US
Finco
LLC
,
Senior
Secured
Note
,
144A,
9
%
,
9/15/29
............................
United
Kingdom
1,300,000
1,356,003
b,g
Digicel
Group
Holdings
Ltd.
,
29.112%
,
11/17/33
.............
Bermuda
26,671
844
c,d
Zegona
Finance
plc
,
Senior
Secured
Note
,
144A,
8.625
%
,
7/15/29
.........................................
United
Kingdom
901,000
959,826
2,857,730
Total
Corporate
Bonds
(Cost
$163,276,393)
...................................
160,286,297
h
Senior
Floating
Rate
Interests
0.0%
†
IT
Services
0.0%
†
e
Diamond
Sports
Net
LLC,
First
Lien,
Exit
Term
Loan,
PIK,
15%,
1/03/28
.........................................
United
States
39,486
34,674
Total
Senior
Floating
Rate
Interests
(Cost
$39,284)
............................
34,674
i
Marketplace
Loans
1.0%
b
Financial
Services
1.0%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$2,277,402)
...................................
1,959,866
Asset-Backed
Securities
0.0%
†
Financial
Services
0.0%
†
d,j
Consumer
Loan
Underlying
Bond
Certificate
Issuer
Trust
I
,
2019-52,
PT,
144A,
FRN,
16.268%,
1/15/45
..............
United
States
714
376
2020-2,
PT,
144A,
FRN,
16.26%,
3/15/45
................
United
States
515
392
2020-7,
PT,
144A,
FRN,
16.119%,
4/17/45
...............
United
States
165
25
793
a
a
a
a
a
a
Total
Asset-Backed
Securities
(Cost
$1,086)
..................................
793
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Municipal
Bonds
0.2%
Arizona
0.2%
d
Maricopa
County
Industrial
Development
Authority
,
Grand
Canyon
University
Obligated
Group
,
Revenue
,
144A,
2024
,
7.375
%
,
10/01/29
........................................
United
States
430,000
$
451,641
Total
Municipal
Bonds
(Cost
$
432,318)
.......................................
451,641
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a,b
Endo
GUC
Trust,
Escrow
Account
.......................
United
States
51,454
—
a,b
Endo,
Inc.,
Escrow
Account
............................
United
States
725,000
—
a
Expand
Energy
Corp.,
Escrow
Account
...................
United
States
1,500,000
5,700
Total
Escrows
and
Litigation
Trusts
(Cost
$19,546)
............................
5,700
Total
Long
Term
Investments
(Cost
$201,501,283)
.............................
262,270,395
a
Short
Term
Investments
2.7%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
2.7%
k,l
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.25%
...
United
States
5,815,421
5,815,421
Total
Money
Market
Funds
(Cost
$5,815,421)
.................................
5,815,421
Total
Short
Term
Investments
(Cost
$5,815,421
)
...............................
5,815,421
a
Total
Investments
(Cost
$207,316,704)
126.1%
................................
$268,085,816
m
Credit
Facility
(28.2)%
......................................................
(60,000,000)
Other
Assets,
less
Liabilities
2.1%
...........................................
4,513,872
Net
Assets
100.0%
.........................................................
$212,599,688
a
a
a
See
Abbreviations
on
page
40
.
*
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
Fair
valued
using
significant
unobservable
inputs.
See
Note
8
regarding
fair
value
measurements.
c
A
portion
or
all
of
the
security
is
pledged
as
collateral
in
connection
with
the
Fund’s
credit
facility.
d
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
August
31,
2025,
the
aggregate
value
of
these
securities
was
$151,886,803,
representing
71.4%
of
net
assets.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
6.
g
The
rate
shown
represents
the
yield
at
period
end.
h
See
Note
1(c)
regarding
senior
floating
rate
interests.
i
See
Note
1(d)
regarding
Marketplace
Lending.
See
full
breakdown
of
marketplace
loans
holdings
in
the
table
at
the
end
of
this
schedule.
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
3(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
7
regarding
credit
facility.
Schedule
of
Investments,
August
31,
2025
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
At
August
31,
2025,
the
Fund
had
the
following
marketplace
loans
outstanding.
See
Note
1(d).
Description
Principal
Amount
Value
Marketplace
Loans
-
1.0%
Freedom
Financial
Asset
Management
LLC
APP-10111431.FP.FTS.B,
10.99%,
9/30/25
$
1,139
$
987
APP-10578403.FP.FTS.B,
15.99%,
10/30/25
1,265
1,271
APP-10561192.FP.FTS.B,
8.99%,
11/03/25
925
927
APP-11843242.FP.FTS.B,
12.24%,
12/15/25
1,833
1,842
APP-12378685.FP.FTS.B,
15.99%,
2/01/26
2,205
2,222
APP-10868780.FP.FTS.B,
14.49%,
2/27/26
5,679
5,814
APP-12281543.FP.FTS.B,
16.74%,
3/08/26
5,916
6,029
APP-12397373.FP.FTS.B,
15.99%,
3/15/26
2,346
2,371
APP-11799488.FP.FTS.B,
16.99%,
3/16/26
3,855
3,939
APP-12421465.FP.FTS.B,
17.99%,
3/23/26
872
873
APP-13511680.FP.FTS.B,
12.84%,
5/05/26
3,068
3,094
APP-13477482.FP.FTS.B,
10.34%,
5/18/26
8,080
8,158
APP-13527002.FP.FTS.B,
15.59%,
5/19/26
2,229
2,255
APP-14943761.FP.FTS.B,
15.99%,
6/01/26
5,273
5,335
a
APP-12270812.FP.FTS.B,
16.99%,
6/22/26
4,574
514
APP-15053141.FP.FTS.B,
18.99%,
7/15/26
5,522
5,707
APP-15054013.FP.FTS.B,
17.99%,
7/20/26
4,548
4,670
APP-15109634.FP.FTS.B,
19.49%,
7/21/26
2,838
2,916
APP-15073340.FP.FTS.B,
15.99%,
7/25/26
2,721
2,758
APP-14860724.FP.FTS.B,
20.99%,
7/26/26
5,618
5,886
APP-14956830.FP.FTS.B,
15.74%,
7/28/26
8,889
9,122
APP-10133595.FP.FTS.B,
11.99%,
8/11/26
5,001
5,052
APP-10145662.FP.FTS.B,
18.99%,
9/17/26
6,324
6,514
APP-13256383.FP.FTS.B,
7.99%,
9/18/26
.
11,032
11,168
APP-10460831.FP.FTS.B,
21.99%,
9/19/26
2,370
2,456
APP-10572421.FP.FTS.B,
10.49%,
9/20/26
771
771
APP-10845328.FP.FTS.B,
11.99%,
10/16/26
7,691
7,782
APP-10704368.FP.FTS.B,
14.99%,
10/16/26
5,802
5,896
APP-10745909.FP.FTS.B,
17.99%,
10/16/26
15,845
16,101
APP-10581131.FP.FTS.B,
22.49%,
10/22/26
3,206
3,338
APP-11119432.FP.FTS.B,
11.99%,
11/03/26
6,765
6,837
APP-11187454.FP.FTS.B,
22.49%,
11/10/26
975
974
a
APP-15107872.FP.FTS.B,
20.49%,
11/15/26
3,033
923
APP-10848002.FP.FTS.B,
17.99%,
11/19/26
7,944
8,173
APP-10671079.FP.FTS.B,
11.99%,
11/30/26
8,259
8,342
APP-11094577.FP.FTS.B,
19.49%,
12/08/26
4,350
4,522
APP-11021456.FP.FTS.B,
20.99%,
12/15/26
13,374
13,969
APP-11007668.FP.FTS.B,
19.99%,
12/19/26
6,564
6,821
APP-11111264.FP.FTS.B,
16.49%,
12/20/26
4,120
4,199
APP-11677084.FP.FTS.B,
15.49%,
12/26/26
15,262
15,488
APP-11799609.FP.FTS.B,
10.99%,
1/01/27
10,930
11,055
APP-11036570.FP.FTS.B,
22.99%,
1/20/27
1,920
1,922
APP-11844341.FP.FTS.B,
16.74%,
2/01/27
13,083
13,425
APP-11824892.FP.FTS.B,
16.99%,
2/03/27
6,337
6,436
APP-12397051.FP.FTS.B,
17.49%,
2/06/27
4,721
4,852
APP-11743079.FP.FTS.B,
16.24%,
2/07/27
16,164
9,668
APP-11838245.FP.FTS.B,
19.99%,
2/11/27
2,845
2,902
APP-11752200.FP.FTS.B,
21.49%,
2/23/27
3,488
3,516
APP-10128827.FP.FTS.B,
25.49%,
2/24/27
3,107
3,218
APP-11674918.FP.FTS.B,
20.49%,
2/25/27
10,442
10,890
APP-10848317.FP.FTS.B,
12.24%,
2/28/27
8,057
8,184
APP-12106158.FP.FTS.B,
11.24%,
3/07/27
6,281
6,359
APP-12407302.FP.FTS.B,
18.99%,
3/15/27
4,713
4,865
APP-12341500.FP.FTS.B,
20.49%,
3/20/27
7,060
7,390
APP-12396943.FP.FTS.B,
13.49%,
3/21/27
6,877
7,001
Description
Principal
Amount
Value
Freedom
Financial
Asset
Management
LLC
(continued)
APP-12270734.FP.FTS.B,
16.99%,
3/21/27
$
7,532
$
7,696
APP-13531026.FP.FTS.B,
11.59%,
3/28/27
9,899
10,077
APP-13513406.FP.FTS.B,
14.34%,
4/01/27
20,649
20,948
APP-11744634.FP.FTS.B,
19.99%,
4/01/27
8,678
8,996
a
APP-11872928.FP.FTS.B,
11.24%,
4/15/27
7,312
1,445
APP-11801830.FP.FTS.B,
16.49%,
4/30/27
9,144
9,311
APP-13478834.FP.FTS.B,
16.99%,
5/03/27
8,800
9,078
APP-13047632.FP.FTS.B,
11.49%,
5/05/27
3,723
3,761
APP-08710316.FP.FTS.B,
10.99%,
5/13/27
13,470
13,665
APP-13498730.FP.FTS.B,
11.34%,
5/15/27
8,095
8,219
APP-11845152.FP.FTS.B,
11.74%,
5/15/27
8,190
8,258
APP-13453359.FP.FTS.B,
18.24%,
5/15/27
12,123
9,499
APP-13227905.FP.FTS.B,
21.99%,
5/18/27
4,759
4,964
APP-13507352.FP.FTS.B,
20.49%,
5/19/27
4,185
4,331
APP-13485605.FP.FTS.B,
18.99%,
5/20/27
6,140
6,330
APP-12304720.FP.FTS.B,
18.74%,
7/06/27
14,300
14,511
APP-14906773.FP.FTS.B,
9.74%,
7/15/27
.
16,984
17,240
APP-15064429.FP.FTS.B,
14.49%,
7/15/27
12,237
12,446
APP-15057995.FP.FTS.B,
18.99%,
7/23/27
4,828
4,938
APP-15058449.FP.FTS.B,
11.99%,
7/25/27
5,361
5,454
APP-15078317.FP.FTS.B,
13.99%,
7/25/27
9,488
9,675
APP-13302186.FP.FTS.B,
20.49%,
7/25/27
7,598
7,955
APP-15053719.FP.FTS.B,
16.99%,
7/28/27
5,508
5,618
APP-15053776.FP.FTS.B,
17.49%,
7/30/27
5,902
6,090
APP-15048744.FP.FTS.B,
16.49%,
7/31/27
11,347
11,690
APP-15039962.FP.FTS.B,
12.49%,
8/28/27
24,800
25,196
APP-15070181.FP.FTS.B,
19.99%,
9/15/27
8,511
6,260
APP-14958373.FP.FTS.B,
12.24%,
9/16/27
9,121
9,303
APP-10224478.FP.FTS.B,
20.49%,
2/15/28
11,912
12,410
APP-15070551.FP.FTS.B,
24.74%,
4/27/28
10,934
11,527
594,590
LendingClub
Corp.
160809803.LC.FTS.B,
13.08%,
11/08/34
..
1,592
1,588
167747801.LC.FTS.B,
16.12%,
3/15/35
...
3,930
–
1,588
LendingClub
Corp.
-
LCX
PM
185030629.LC.FTS.B,
28.99%,
1/13/27
...
2,612
2,699
185203099.LC.FTS.B,
21.99%,
1/19/27
...
3,983
4,053
185257156.LC.FTS.B,
23.99%,
1/19/27
...
6,088
1,164
185208719.LC.FTS.B,
27.99%,
1/19/27
...
3,872
3,994
185284755.LC.FTS.B,
20.24%,
1/21/27
...
9,162
9,321
184608676.LC.FTS.B,
21.99%,
1/21/27
...
8,063
–
185280664.LC.FTS.B,
21.99%,
1/21/27
...
7,351
7,513
186073191.LC.FTS.B,
23.99%,
1/26/27
...
4,008
4,128
185465019.LC.FTS.B,
21.99%,
1/27/27
...
10,020
10,331
184862697.LC.FTS.B,
13.19%,
1/28/27
...
5,557
5,548
185102499.LC.FTS.B,
17.49%,
1/28/27
...
5,985
5,995
185625736.LC.FTS.B,
17.24%,
1/31/27
...
4,743
4,757
185553869.LC.FTS.B,
17.44%,
1/31/27
...
6,160
6,187
185801067.LC.FTS.B,
15.19%,
2/04/27
...
5,736
5,713
185785605.LC.FTS.B,
16.99%,
2/04/27
...
9,543
9,540
186105140.LC.FTS.B,
14.99%,
2/10/27
...
5,095
–
186037923.LC.FTS.B,
23.49%,
2/12/27
...
3,013
3,090
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
LendingClub
Corp.
-
LCX
PM
(continued)
185962334.LC.FTS.B,
16.49%,
2/14/27
...
$
16,237
$
–
186055580.LC.FTS.B,
19.49%,
2/14/27
...
11,396
–
186114907.LC.FTS.B,
24.99%,
2/14/27
...
2,512
–
185788975.LC.FTS.B,
20.44%,
2/15/27
...
16,612
16,782
185737435.LC.FTS.B,
19.74%,
2/16/27
...
8,294
–
188681928.LC.FTS.B,
22.99%,
4/25/27
...
4,645
–
188818650.LC.FTS.B,
20.99%,
4/26/27
...
2,900
2,955
188684882.LC.FTS.B,
23.99%,
4/26/27
...
2,963
3,007
188844587.LC.FTS.B,
20.99%,
4/27/27
...
4,531
4,619
188821742.LC.FTS.B,
23.99%,
4/27/27
...
9,395
9,727
188832786.LC.FTS.B,
27.99%,
4/27/27
...
2,465
2,565
188770586.LC.FTS.B,
21.49%,
4/28/27
...
8,208
8,317
188825826.LC.FTS.B,
23.49%,
4/28/27
...
4,675
4,833
188877761.LC.FTS.B,
25.99%,
4/28/27
...
3,438
3,566
188729615.LC.FTS.B,
28.99%,
4/28/27
...
12,473
12,935
188806927.LC.FTS.B,
23.99%,
4/30/27
...
7,436
7,586
188652977.LC.FTS.B,
23.99%,
5/24/27
...
1,732
1,770
185215933.LC.FTS.B,
28.99%,
6/25/27
...
11,634
–
185440062.LC.FTS.B,
17.49%,
9/25/27
...
11,730
11,620
186004411.LC.FTS.B,
21.99%,
11/28/27
..
8,605
1,694
185051135.LC.FTS.B,
15%,
12/28/27
....
14,097
11,633
a
188698368.LC.FTS.B,
20.99%,
4/27/28
...
15,061
1,975
184905245.LC.FTS.B,
15.99%,
1/19/35
...
5,143
–
185806351.LC.FTS.B,
18.99%,
2/07/35
...
3,381
–
189,617
Prosper
Funding
LLC
1606127.PS.FTS.B,
15.2%,
8/17/26
.....
2,428
2,447
1608617.PS.FTS.B,
13.7%,
8/20/26
.....
1,549
1,548
1609277.PS.FTS.B,
15.7%,
8/23/26
.....
3,761
3,796
1621428.PS.FTS.B,
20%,
8/26/26
.......
2,866
2,927
1611746.PS.FTS.B,
14.29%,
8/27/26
....
2,527
2,529
1610327.PS.FTS.B,
27.6%,
9/17/26
.....
2,880
3,005
1635897.PS.FTS.B,
12%,
9/23/26
.......
5,937
5,943
1627036.PS.FTS.B,
16.33%,
9/25/26
....
3,946
3,974
1637445.PS.FTS.B,
13.3%,
9/27/26
.....
2,975
2,976
1634247.PS.FTS.B,
16.7%,
10/05/26
....
7,518
7,568
1626046.PS.FTS.B,
15.18%,
10/16/26
...
3,076
3,069
1635735.PS.FTS.B,
14.68%,
10/22/26
...
4,621
4,616
1644875.PS.FTS.B,
11.6%,
10/26/26
....
2,157
2,156
1648324.PS.FTS.B,
12.2%,
10/26/26
....
5,809
5,807
1645337.PS.FTS.B,
18.48%,
10/27/26
...
6,849
7,003
1646123.PS.FTS.B,
13.32%,
10/28/26
...
2,364
2,417
1661010.PS.FTS.B,
12.5%,
11/05/26
....
8,081
8,048
1651868.PS.FTS.B,
9.45%,
11/08/26
....
3,859
3,841
1658185.PS.FTS.B,
10.5%,
11/08/26
....
2,707
2,698
1653323.PS.FTS.B,
16%,
11/09/26
......
3,941
3,956
1666362.PS.FTS.B,
19%,
11/09/26
......
2,406
2,445
1666911.PS.FTS.B,
10.62%,
11/10/26
....
3,919
3,908
1660066.PS.FTS.B,
12.6%,
11/10/26
....
10,896
10,864
1666890.PS.FTS.B,
17%,
11/10/26
......
5,433
5,515
1666359.PS.FTS.B,
21%,
11/15/26
......
2,180
2,255
1651871.PS.FTS.B,
20.66%,
11/20/26
....
1,989
2,016
1651913.PS.FTS.B,
25.67%,
11/22/26
....
2,814
2,907
1672316.PS.FTS.B,
10.44%,
12/14/26
...
4,153
4,135
1685634.PS.FTS.B,
12.5%,
12/14/26
....
2,946
697
1672730.PS.FTS.B,
13.8%,
12/14/26
....
11,827
11,839
Description
Principal
Amount
Value
Prosper
Funding
LLC
(continued)
1678372.PS.FTS.B,
22.8%,
12/14/26
....
$
4,247
$
4,408
1687344.PS.FTS.B,
19%,
12/17/26
......
1,793
1,829
1685997.PS.FTS.B,
12.87%,
12/18/26
...
3,002
2,989
1678354.PS.FTS.B,
11.07%,
12/20/26
....
4,863
4,842
1675010.PS.FTS.B,
12.5%,
12/20/26
....
3,362
3,354
1685637.PS.FTS.B,
11.7%,
12/28/26
....
10,503
10,567
1672718.PS.FTS.B,
14.38%,
1/07/27
....
2,963
2,946
1700808.PS.FTS.B,
11.4%,
1/12/27
.....
3,428
3,414
1701108.PS.FTS.B,
15.7%,
1/12/27
.....
12,804
12,824
1694491.PS.FTS.B,
12.62%,
1/13/27
....
5,239
5,218
1701537.PS.FTS.B,
19.3%,
1/13/27
.....
5,654
5,751
a
1689173.PS.FTS.B,
11.2%,
1/14/27
.....
8,871
–
1695787.PS.FTS.B,
11.7%,
1/14/27
.....
8,610
8,577
1694719.PS.FTS.B,
16.93%,
1/17/27
....
6,725
6,718
1694725.PS.FTS.B,
18.4%,
1/19/27
.....
5,663
5,771
1702455.PS.FTS.B,
15.18%,
1/20/27
....
5,908
5,875
1689251.PS.FTS.B,
19%,
1/21/27
.......
1,551
1,576
1707746.PS.FTS.B,
9.45%,
2/14/27
.....
2,516
2,505
1720917.PS.FTS.B,
13.7%,
2/15/27
.....
4,670
4,678
1714648.PS.FTS.B,
16.7%,
2/15/27
.....
2,925
2,928
1721346.PS.FTS.B,
16.7%,
2/15/27
.....
7,800
7,954
1714642.PS.FTS.B,
18.7%,
2/15/27
.....
4,005
4,083
1714627.PS.FTS.B,
11.4%,
2/17/27
.....
7,611
7,567
a
1703169.PS.FTS.B,
25.6%,
2/25/27
.....
9,121
1,386
1752624.PS.FTS.B,
17.23%,
4/05/27
....
8,646
8,577
1753011.PS.FTS.B,
12%,
4/06/27
.......
6,028
5,965
1754293.PS.FTS.B,
13.4%,
4/12/27
.....
206
204
1747163.PS.FTS.B,
16.2%,
4/12/27
.....
10,657
10,600
1744328.PS.FTS.B,
14.89%,
4/15/27
....
8,454
8,396
1752654.PS.FTS.B,
12.76%,
4/30/27
....
6,510
6,432
a
1750735.PS.FTS.B,
16%,
5/15/27
.......
3,319
447
1650328.PS.FTS.B,
11.2%,
7/29/27
.....
4,608
4,519
1705005.PS.FTS.B,
15%,
1/15/28
.......
14,847
14,601
a
1743776.PS.FTS.B,
20.4%,
4/06/35
.....
12,743
–
1752241.PS.FTS.B,
14.7%,
5/10/35
.....
11,875
11,722
a
1701129.PS.FTS.B,
16.4%,
7/17/35
.....
787
220
316,348
Upgrade,
Inc.
-
Card
992301470.UG.FTS.B,
28.98%,
12/02/25
.
68
70
992238906.UG.FTS.B,
22.97%,
4/03/28
..
2,660
1,705
992460328.UG.FTS.B,
29.49%,
8/01/30
..
8
2
1,777
Upstart
Network,
Inc.
FW1729657.UP.FTS.B,
9.44%,
9/17/26
...
1,822
1,324
L1729743.UP.FTS.B,
11.64%,
9/17/26
....
13,396
13,153
L1730112.UP.FTS.B,
15.91%,
9/17/26
....
863
853
FW1730043.UP.FTS.B,
21.14%,
9/17/26
..
1,469
1,446
L1730290.UP.FTS.B,
23.01%,
9/17/26
....
2,444
2,406
L1729627.UP.FTS.B,
24.42%,
9/17/26
....
3,279
3,230
FW1730150.UP.FTS.B,
30.64%,
9/17/26
..
202
199
FW1729390.UP.FTS.B,
32.18%,
9/17/26
..
914
690
FW1728926.UP.FTS.B,
32.35%,
9/17/26
..
902
889
FW1902353.UP.FTS.B,
5.71%,
10/22/26
..
3,633
3,529
FW1901571.UP.FTS.B,
16.95%,
10/22/26
.
3,920
3,881
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L1901212.UP.FTS.B,
19.55%,
10/22/26
...
$
1,984
$
1,955
L1902855.UP.FTS.B,
19.55%,
10/22/26
...
979
965
L1901067.UP.FTS.B,
23.17%,
10/22/26
...
5,480
4,035
L1902683.UP.FTS.B,
25.19%,
10/22/26
...
4,249
4,196
L1901951.UP.FTS.B,
25.24%,
10/22/26
...
851
840
FW1902836.UP.FTS.B,
25.41%,
10/22/26
.
16,427
16,214
a
L1902657.UP.FTS.B,
25.42%,
10/22/26
...
824
143
FW1902401.UP.FTS.B,
25.71%,
10/22/26
.
1,678
1,657
FW1902199.UP.FTS.B,
26.04%,
10/22/26
.
1,507
1,488
FW1901303.UP.FTS.B,
31.21%,
10/22/26
.
1,461
1,444
FW1900628.UP.FTS.B,
31.23%,
10/22/26
.
423
418
FW1902681.UP.FTS.B,
31.63%,
10/22/26
.
2,918
2,886
FW1902299.UP.FTS.B,
31.27%,
10/27/26
.
2,955
2,923
FW1901195.UP.FTS.B,
18.66%,
10/28/26
.
743
732
L1902840.UP.FTS.B,
22.56%,
11/06/26
...
4,760
4,695
L2032896.UP.FTS.B,
9.9%,
11/12/26
.....
2,081
2,032
L2032147.UP.FTS.B,
11.65%,
11/12/26
...
2,451
2,403
L2032600.UP.FTS.B,
12.19%,
11/12/26
...
2,232
2,189
L2032561.UP.FTS.B,
12.57%,
11/12/26
...
4,664
4,574
FW2032727.UP.FTS.B,
12.91%,
11/12/26
.
1,094
1,073
L2032226.UP.FTS.B,
14.31%,
11/12/26
...
7,654
7,510
L2031580.UP.FTS.B,
14.88%,
11/12/26
...
236
233
L2032373.UP.FTS.B,
14.92%,
11/12/26
...
3,491
1,931
FW2032722.UP.FTS.B,
14.98%,
11/12/26
.
1,259
1,240
FW2031845.UP.FTS.B,
15.93%,
11/12/26
.
5,531
3,084
L2033008.UP.FTS.B,
17.14%,
11/12/26
...
2,138
2,112
L2031479.UP.FTS.B,
17.32%,
11/12/26
...
5,276
5,211
L2030768.UP.FTS.B,
17.71%,
11/12/26
...
1,683
1,663
L2032284.UP.FTS.B,
17.94%,
11/12/26
...
1,700
1,670
L2032006.UP.FTS.B,
17.99%,
11/12/26
...
1,595
1,569
L2032849.UP.FTS.B,
19.14%,
11/12/26
...
4,127
4,078
L2030806.UP.FTS.B,
19.55%,
11/12/26
...
1,385
1,361
FW2032947.UP.FTS.B,
19.59%,
11/12/26
.
8,738
8,579
L2032060.UP.FTS.B,
20.25%,
11/12/26
...
2,098
2,063
L2032456.UP.FTS.B,
20.93%,
11/12/26
...
526
517
L2032183.UP.FTS.B,
24.12%,
11/12/26
...
3,694
3,629
FW2031174.UP.FTS.B,
25.25%,
11/12/26
.
3,555
3,495
FW2032753.UP.FTS.B,
27.55%,
11/12/26
.
536
527
FW2032946.UP.FTS.B,
27.87%,
11/12/26
.
9,673
9,516
FW2032799.UP.FTS.B,
29.91%,
11/12/26
.
957
941
FW2031644.UP.FTS.B,
30.67%,
11/12/26
.
725
714
FW2032325.UP.FTS.B,
31.07%,
11/12/26
.
486
478
FW2031715.UP.FTS.B,
31.33%,
11/12/26
.
1,948
1,918
L2031623.UP.FTS.B,
9.89%,
11/16/26
....
10,237
9,996
a
L2102006.UP.FTS.B,
8.84%,
11/23/26
....
17,550
1,467
L2102059.UP.FTS.B,
12.22%,
11/23/26
...
7,004
6,871
L2101522.UP.FTS.B,
12.34%,
11/23/26
...
10,377
10,191
L2103822.UP.FTS.B,
12.78%,
11/23/26
...
1,561
1,533
L2102939.UP.FTS.B,
13.35%,
11/23/26
...
1,102
1,082
L2076017.UP.FTS.B,
13.49%,
11/23/26
...
1,034
1,017
L2068146.UP.FTS.B,
16.06%,
11/23/26
...
1,277
1,265
L2102751.UP.FTS.B,
16.5%,
11/23/26
....
1,322
1,310
L2050778.UP.FTS.B,
18.01%,
11/23/26
...
3,044
3,016
L2102051.UP.FTS.B,
19.71%,
11/23/26
...
1,952
1,925
FW2102941.UP.FTS.B,
20.37%,
11/23/26
.
7,002
6,906
L2102313.UP.FTS.B,
20.5%,
11/23/26
....
512
505
L2102400.UP.FTS.B,
22.64%,
11/23/26
...
2,103
2,076
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
L2101750.UP.FTS.B,
24.17%,
11/23/26
...
$
2,796
$
2,756
FW2102727.UP.FTS.B,
24.84%,
11/23/26
.
1,493
1,475
L2103842.UP.FTS.B,
25.11%,
11/23/26
...
1,498
1,479
L2101880.UP.FTS.B,
25.39%,
11/23/26
...
1,232
368
L2102028.UP.FTS.B,
25.89%,
11/23/26
...
2,269
2,242
FW2101678.UP.FTS.B,
26.5%,
11/23/26
..
1,446
1,427
FW2103284.UP.FTS.B,
27.1%,
11/23/26
..
1,443
1,426
FW2103786.UP.FTS.B,
31.2%,
11/23/26
..
547
198
FW2031117.UP.FTS.B,
18.34%,
11/27/26
.
3,390
3,332
L2250662.UP.FTS.B,
8.88%,
12/14/26
....
3,424
3,340
L2249279.UP.FTS.B,
9.09%,
12/14/26
....
1,567
1,528
L2251398.UP.FTS.B,
9.28%,
12/14/26
....
2,506
2,445
FW2251249.UP.FTS.B,
10.34%,
12/14/26
.
6,057
5,932
a
L2248805.UP.FTS.B,
10.51%,
12/14/26
...
3,745
600
L2249903.UP.FTS.B,
11.03%,
12/14/26
...
966
947
L2250070.UP.FTS.B,
12.15%,
12/14/26
...
1,947
1,911
L2247235.UP.FTS.B,
13.18%,
12/14/26
...
1,333
1,307
L2249248.UP.FTS.B,
16.43%,
12/14/26
...
4,121
4,070
L2249629.UP.FTS.B,
17.8%,
12/14/26
....
2,211
2,170
L2249412.UP.FTS.B,
19.96%,
12/14/26
...
729
721
L2248975.UP.FTS.B,
19.98%,
12/14/26
...
2,743
2,711
L2250558.UP.FTS.B,
20.67%,
12/14/26
...
3,029
2,971
L2251409.UP.FTS.B,
20.71%,
12/14/26
...
4,479
4,402
L2251393.UP.FTS.B,
20.81%,
12/14/26
...
1,790
1,757
L2249780.UP.FTS.B,
21.14%,
12/14/26
...
3,002
2,947
L2250707.UP.FTS.B,
21.52%,
12/14/26
...
2,209
2,184
L2249149.UP.FTS.B,
21.87%,
12/14/26
...
3,791
3,728
FW2248314.UP.FTS.B,
21.92%,
12/14/26
.
1,328
1,304
L2249898.UP.FTS.B,
22.33%,
12/14/26
...
8,277
8,185
L2251333.UP.FTS.B,
22.77%,
12/14/26
...
6,229
4,521
L2250010.UP.FTS.B,
23.56%,
12/14/26
...
1,941
1,907
a
FW2248932.UP.FTS.B,
23.62%,
12/14/26
.
944
68
L2249765.UP.FTS.B,
23.67%,
12/14/26
...
1,555
1,528
L2250334.UP.FTS.B,
24.44%,
12/14/26
...
3,416
3,360
L2250314.UP.FTS.B,
24.91%,
12/14/26
...
1,394
1,370
L2249782.UP.FTS.B,
24.98%,
12/14/26
...
1,661
1,632
L2248144.UP.FTS.B,
25.08%,
12/14/26
...
1,839
1,806
L2249856.UP.FTS.B,
25.32%,
12/14/26
...
476
468
L2249823.UP.FTS.B,
25.41%,
12/14/26
...
1,496
1,479
L2250992.UP.FTS.B,
25.92%,
12/14/26
...
4,230
3,027
FW2248550.UP.FTS.B,
26.2%,
12/14/26
..
1
1
L2249257.UP.FTS.B,
26.38%,
12/14/26
...
3,703
3,640
FW2249976.UP.FTS.B,
28.77%,
12/14/26
.
546
537
FW2249951.UP.FTS.B,
30.44%,
12/14/26
.
827
814
FW2249983.UP.FTS.B,
30.63%,
12/14/26
.
825
812
FW2249049.UP.FTS.B,
30.95%,
12/14/26
.
2,750
2,707
FW2249041.UP.FTS.B,
31.12%,
12/14/26
.
473
465
FW2250974.UP.FTS.B,
31.12%,
12/14/26
.
1,462
1,055
FW2251410.UP.FTS.B,
31.25%,
12/14/26
.
2,336
654
L2141755.UP.FTS.B,
8.51%,
12/15/26
....
14,640
14,294
L2252339.UP.FTS.B,
8.65%,
12/15/26
....
8,202
5,535
L2252737.UP.FTS.B,
8.71%,
12/15/26
....
6,518
6,360
L2252298.UP.FTS.B,
8.83%,
12/15/26
....
295
291
L2252476.UP.FTS.B,
9.18%,
12/15/26
....
3,129
3,053
FW2253701.UP.FTS.B,
10.99%,
12/15/26
.
4,135
4,053
L2253738.UP.FTS.B,
11.28%,
12/15/26
...
9,708
9,516
L2247794.UP.FTS.B,
12.65%,
12/15/26
...
1,488
1,459
Franklin
Universal
Trust
Schedule
of
Investments
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2252976.UP.FTS.B,
16.75%,
12/15/26
...
$
2,196
$
2,170
L2253164.UP.FTS.B,
17.76%,
12/15/26
...
745
734
FW2251546.UP.FTS.B,
19.76%,
12/15/26
.
5,529
5,436
L2252318.UP.FTS.B,
20.43%,
12/15/26
...
1,114
1,096
L2251727.UP.FTS.B,
20.77%,
12/15/26
...
938
922
L2252135.UP.FTS.B,
22.59%,
12/15/26
...
1,149
1,130
L2250541.UP.FTS.B,
24.85%,
12/15/26
...
1,174
1,155
L2252209.UP.FTS.B,
25.21%,
12/15/26
...
499
166
L2252447.UP.FTS.B,
25.4%,
12/15/26
....
478
470
FW2253392.UP.FTS.B,
25.5%,
12/15/26
..
2,934
2,886
FW2248936.UP.FTS.B,
26.48%,
12/15/26
.
2,287
2,251
FW2252023.UP.FTS.B,
28.67%,
12/15/26
.
1,908
1,879
FW2253234.UP.FTS.B,
28.94%,
12/15/26
.
4,405
4,338
FW2252233.UP.FTS.B,
30.05%,
12/15/26
.
1,056
1,041
FW2252687.UP.FTS.B,
30.62%,
12/15/26
.
6,902
2,034
FW2253542.UP.FTS.B,
31.19%,
12/15/26
.
814
802
L2251912.UP.FTS.B,
13.91%,
12/19/26
...
1,182
1,159
L2252296.UP.FTS.B,
8.02%,
12/26/26
....
4,606
4,494
L2251043.UP.FTS.B,
12.11%,
12/28/26
...
10,540
10,331
L2499407.UP.FTS.B,
5.37%,
1/24/27
....
15,545
15,049
L2499766.UP.FTS.B,
6.26%,
1/24/27
....
1,843
1,786
L2500086.UP.FTS.B,
7.95%,
1/24/27
....
3,257
3,186
L2497458.UP.FTS.B,
8.44%,
1/24/27
....
11,337
11,058
L2497353.UP.FTS.B,
9.69%,
1/24/27
....
3,981
3,888
L2500305.UP.FTS.B,
11.35%,
1/24/27
....
342
336
FW2499235.UP.FTS.B,
11.45%,
1/24/27
..
2,219
2,176
L2497797.UP.FTS.B,
12.7%,
1/24/27
....
2,447
2,400
L2498730.UP.FTS.B,
14.35%,
1/24/27
....
2,159
2,118
L2500513.UP.FTS.B,
14.9%,
1/24/27
....
7,225
7,091
L2494019.UP.FTS.B,
16.44%,
1/24/27
....
2,216
2,194
L2497377.UP.FTS.B,
16.51%,
1/24/27
....
2,034
2,014
L2500130.UP.FTS.B,
18.16%,
1/24/27
....
2,650
2,612
L2500098.UP.FTS.B,
18.6%,
1/24/27
....
2,858
2,831
L2497754.UP.FTS.B,
19.19%,
1/24/27
....
1,191
1,174
a
L2498546.UP.FTS.B,
19.91%,
1/24/27
....
3,247
233
L2497528.UP.FTS.B,
19.93%,
1/24/27
....
1,941
1,913
L2499090.UP.FTS.B,
20.13%,
1/24/27
....
2,335
2,302
FW2499205.UP.FTS.B,
20.72%,
1/24/27
..
2,508
2,467
L2499153.UP.FTS.B,
21.13%,
1/24/27
....
428
422
L2497527.UP.FTS.B,
21.34%,
1/24/27
....
1,978
1,950
FW2494038.UP.FTS.B,
22.37%,
1/24/27
..
1,605
1,583
FW2497553.UP.FTS.B,
23.05%,
1/24/27
..
6,904
6,808
L2500427.UP.FTS.B,
23.85%,
1/24/27
....
4,179
4,144
L2500298.UP.FTS.B,
25.15%,
1/24/27
....
666
657
L2500230.UP.FTS.B,
25.4%,
1/24/27
....
2,171
2,143
L2500426.UP.FTS.B,
25.41%,
1/24/27
....
543
536
L2497705.UP.FTS.B,
25.44%,
1/24/27
....
1,750
1,724
L2500467.UP.FTS.B,
25.44%,
1/24/27
....
807
230
a
L2500357.UP.FTS.B,
26.3%,
1/24/27
....
5,013
361
FW2498744.UP.FTS.B,
26.78%,
1/24/27
..
4,249
4,196
FW2499403.UP.FTS.B,
30.76%,
1/24/27
..
1,248
1,234
FW2502639.UP.FTS.B,
4.89%,
1/25/27
...
4,146
4,014
L2443263.UP.FTS.B,
6.66%,
1/25/27
....
2,699
2,614
L2501608.UP.FTS.B,
7.8%,
1/25/27
.....
6,464
6,262
L2501547.UP.FTS.B,
8.21%,
1/25/27
....
2,066
2,014
L2502319.UP.FTS.B,
8.49%,
1/25/27
....
13,889
13,536
L2502134.UP.FTS.B,
9.38%,
1/25/27
....
10,437
10,183
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
FW2498378.UP.FTS.B,
11.81%,
1/25/27
..
$
10,341
$
10,143
L2501198.UP.FTS.B,
12.05%,
1/25/27
....
4,327
4,244
FW2502179.UP.FTS.B,
12.78%,
1/25/27
..
700
687
L2501977.UP.FTS.B,
12.89%,
1/25/27
....
13,786
13,526
L2502247.UP.FTS.B,
13.43%,
1/25/27
....
1,413
1,387
L2503471.UP.FTS.B,
13.93%,
1/25/27
....
1,786
1,752
L2500808.UP.FTS.B,
14.3%,
1/25/27
....
2,649
2,600
L2501876.UP.FTS.B,
14.91%,
1/25/27
....
1,446
1,419
L2499095.UP.FTS.B,
16.97%,
1/25/27
....
1,117
1,106
L2501997.UP.FTS.B,
17.77%,
1/25/27
....
1,883
1,866
FW2501148.UP.FTS.B,
17.78%,
1/25/27
..
752
745
FW2501125.UP.FTS.B,
17.82%,
1/25/27
..
565
557
L2502439.UP.FTS.B,
18.98%,
1/25/27
....
2,722
2,681
L2500727.UP.FTS.B,
19.88%,
1/25/27
....
3,190
3,144
FW2501295.UP.FTS.B,
20.14%,
1/25/27
..
389
384
FW2500961.UP.FTS.B,
20.28%,
1/25/27
..
2,147
2,117
FW2501561.UP.FTS.B,
21.33%,
1/25/27
..
2,078
2,049
L2503424.UP.FTS.B,
21.51%,
1/25/27
....
3,886
3,833
L2502058.UP.FTS.B,
21.83%,
1/25/27
....
4,007
3,950
FW2503468.UP.FTS.B,
24.6%,
1/25/27
...
1,388
1,371
FW2503375.UP.FTS.B,
24.71%,
1/25/27
..
1,286
1,269
FW2503209.UP.FTS.B,
25.12%,
1/25/27
..
2,842
2,806
L2500860.UP.FTS.B,
25.49%,
1/25/27
....
561
554
FW2501330.UP.FTS.B,
26.47%,
1/25/27
..
2,338
2,308
FW2502187.UP.FTS.B,
26.63%,
1/25/27
..
2,119
2,094
FW2501053.UP.FTS.B,
27.35%,
1/25/27
..
458
452
FW2502652.UP.FTS.B,
27.68%,
1/25/27
..
2,105
2,081
FW2503169.UP.FTS.B,
27.77%,
1/25/27
..
425
419
FW2500797.UP.FTS.B,
28.58%,
1/25/27
..
830
820
FW2502849.UP.FTS.B,
29.19%,
1/25/27
..
223
220
FW2501430.UP.FTS.B,
31.03%,
1/25/27
..
932
266
FW2500654.UP.FTS.B,
31.21%,
1/25/27
..
432
427
FW2502276.UP.FTS.B,
33.54%,
1/25/27
..
2,424
2,396
L2500341.UP.FTS.B,
18.83%,
1/28/27
....
959
945
FW2499482.UP.FTS.B,
28.65%,
1/28/27
..
7,165
7,080
FW2498422.UP.FTS.B,
31.2%,
2/01/27
...
474
468
FW1729970.UP.FTS.B,
18.27%,
2/17/27
..
12,272
12,058
a
L1729858.UP.FTS.B,
25.05%,
2/17/27
....
13,373
1,197
FW1729684.UP.FTS.B,
29.1%,
2/17/27
...
1,457
1,437
FW1729641.UP.FTS.B,
30.22%,
2/17/27
..
1,703
1,680
L2031108.UP.FTS.B,
11.34%,
4/12/27
....
20,178
5,030
a
L2032268.UP.FTS.B,
15.84%,
4/12/27
....
9,223
673
L2032266.UP.FTS.B,
21.24%,
4/12/27
....
2,586
2,536
L2032337.UP.FTS.B,
26.62%,
4/12/27
....
4,426
4,347
FW2003411.UP.FTS.B,
27.5%,
4/12/27
...
3,841
3,771
L2972334.UP.FTS.B,
6.17%,
4/19/27
....
18,406
17,842
L2971286.UP.FTS.B,
7.38%,
4/19/27
....
9,377
9,093
FW2972190.UP.FTS.B,
7.92%,
4/19/27
...
18,722
11,837
L2971527.UP.FTS.B,
13.17%,
4/19/27
....
4,288
4,209
L2967243.UP.FTS.B,
14.24%,
4/19/27
....
7,049
6,921
L2971759.UP.FTS.B,
16.29%,
4/19/27
....
3,216
3,190
L2971657.UP.FTS.B,
16.32%,
4/19/27
....
912
904
L2971776.UP.FTS.B,
19.69%,
4/19/27
....
2,947
2,923
L2972008.UP.FTS.B,
20.74%,
4/19/27
....
2,480
2,444
a
FW2971643.UP.FTS.B,
24.95%,
4/19/27
..
12,052
868
L2971841.UP.FTS.B,
25.2%,
4/19/27
....
415
409
Franklin
Universal
Trust
Schedule
of
Investments
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
a
L2030886.UP.FTS.B,
25.5%,
4/19/27
....
$
13,859
$
2,087
FW2972220.UP.FTS.B,
26.42%,
4/19/27
..
1,891
1,867
L2971662.UP.FTS.B,
26.49%,
4/19/27
....
487
480
a
FW2972102.UP.FTS.B,
26.72%,
4/19/27
..
1,927
139
FW2972305.UP.FTS.B,
27.33%,
4/19/27
..
2,940
2,904
a
L2100737.UP.FTS.B,
22.28%,
4/23/27
....
12,426
907
FW2102410.UP.FTS.B,
22.44%,
5/07/27
..
2,314
2,276
L2250820.UP.FTS.B,
13.59%,
5/14/27
....
1,129
1,106
L2247268.UP.FTS.B,
14.22%,
5/14/27
....
22,268
21,952
L2250559.UP.FTS.B,
14.84%,
5/14/27
....
3,027
2,956
FW2249414.UP.FTS.B,
19.5%,
5/14/27
...
3,356
3,292
L2251037.UP.FTS.B,
19.7%,
5/14/27
....
879
868
FW2248500.UP.FTS.B,
23.6%,
5/14/27
...
1,451
1,423
L2252566.UP.FTS.B,
19.55%,
5/15/27
....
2,674
1,720
L2252234.UP.FTS.B,
21.66%,
5/15/27
....
2,318
578
a
FW2252591.UP.FTS.B,
31.67%,
5/15/27
..
5,227
824
a
L2250389.UP.FTS.B,
13.11%,
5/28/27
....
11,173
811
L2497350.UP.FTS.B,
13.11%,
6/24/27
....
4,594
4,482
FW2497520.UP.FTS.B,
17.89%,
6/24/27
..
3,178
3,140
L2500224.UP.FTS.B,
25.04%,
6/24/27
....
3,117
3,069
L2501796.UP.FTS.B,
9.36%,
6/25/27
....
6,119
5,953
a
FW2502647.UP.FTS.B,
31.05%,
6/25/27
..
5,856
943
FW1729187.UP.FTS.B,
30.3%,
7/17/27
...
3,331
3,283
FW2972075.UP.FTS.B,
9.42%,
9/19/27
...
17,303
16,894
L2971880.UP.FTS.B,
24%,
9/19/27
......
22,369
22,224
FW2101751.UP.FTS.B,
16.63%,
9/23/27
..
8,641
8,540
FW2249158.UP.FTS.B,
11.8%,
10/28/27
..
6,214
6,066
FW2497574.UP.FTS.B,
12.62%,
11/24/27
.
13,939
13,630
a
FW2500185.UP.FTS.B,
30.96%,
11/24/27
.
6,139
432
L2498668.UP.FTS.B,
13.66%,
11/25/27
...
20,049
19,571
a
L2499062.UP.FTS.B,
17.84%,
12/08/27
...
916
66
a
FW2971973.UP.FTS.B,
20.05%,
9/19/35
..
1,009
59
855,946
Total
Marketplace
Loans
(Cost
$2,277,402
)
.......................
$1,959,866
a
Defaulted
security
or
security
for
which
income
has
been
deemed
uncollectible.
See
Note
6.
Franklin
Universal
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
August
31,
2025
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Franklin
Universal
Trust
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$201,501,283
Cost
-
Non-controlled
affiliates
(Note
3
c
)
........................................................
5,815,421
Value
-
Unaffiliated
issuers
..................................................................
$262,270,395
Value
-
Non-controlled
affiliates
(Note
3
c
)
.......................................................
5,815,421
Cash
....................................................................................
55,756
Receivables:
Investment
securities
sold
...................................................................
2,233,577
Dividends
and
interest
.....................................................................
3,100,257
Total
assets
..........................................................................
273,475,406
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
205,254
Credit
facility
(Note
7
)
......................................................................
60,000,000
Management
fees
.........................................................................
169,786
Trustees'
fees
and
expenses
.................................................................
475
Accrued
interest
(Note
7
)
...................................................................
307,417
Accrued
expenses
and
other
liabilities
...........................................................
192,786
Total
liabilities
.........................................................................
60,875,718
Net
assets,
at
value
.................................................................
$212,599,688
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$152,782,049
Total
distributable
earnings
(losses)
.............................................................
59,817,639
Net
assets,
at
value
.................................................................
$212,599,688
Shares
outstanding
.........................................................................
25,131,894
Net
asset
value
per
share
a
....................................................................
$8.46
a
Net
asset
value
per
share
may
not
recalculate
due
to
rounding.
Franklin
Universal
Trust
Financial
Statements
Statement
of
Operations
for
the
year
ended
August
31,
2025
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Universal
Trust
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$16,499)
Unaffiliated
issuers
........................................................................
$3,204,190
Non-controlled
affiliates
(Note
3
c
)
.............................................................
240,562
Interest:
Unaffiliated
issuers
........................................................................
11,817,658
Total
investment
income
...................................................................
15,262,410
Expenses:
Management
fees
(Note
3
a
)
...................................................................
2,004,982
Transfer
agent
fees
.........................................................................
46,043
Custodian
fees
.............................................................................
2,668
Reports
to
shareholders
fees
..................................................................
73,090
Professional
fees
...........................................................................
153,347
Trustees'
fees
and
expenses
..................................................................
2,555
Marketplace
lending
fees
(Note
1
d
)
.............................................................
299,577
Interest
expense
(Not
e
7)
.....................................................................
3,619,583
Other
....................................................................................
7,628
Total
expenses
.........................................................................
6,209,473
Expenses
waived/paid
by
affiliates
(Note
3
c
)
...................................................
(18,626)
Net
expenses
.........................................................................
6,190,847
Net
investment
income
................................................................
9,071,563
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
3,786,803
Foreign
currency
transactions
................................................................
490
Net
realized
gain
(loss)
..................................................................
3,787,293
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
6,365,059
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(295)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
6,364,764
Net
realized
and
unrealized
gain
(loss)
............................................................
10,152,057
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$19,223,620
Franklin
Universal
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
Franklin
Universal
Trust
Year
Ended
August
31,
2025
Year
Ended
August
31,
2024
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$9,071,563
$8,253,852
Net
realized
gain
(loss)
.................................................
3,787,293
604,969
Net
change
in
unrealized
appreciation
(depreciation)
...........................
6,364,764
25,292,499
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
19,223,620
34,151,320
Distributions
to
shareholders
..............................................
(12,211,739)
(7,460,217)
Distributions
to
shareholders
from
tax
return
of
capital
...........................
(605,527)
(5,357,049)
Total
distributions
to
shareholders
..........................................
(12,817,266)
(12,817,266)
Net
increase
(decrease)
in
net
assets
...................................
6,406,354
21,334,054
Net
assets:
Beginning
of
year
.......................................................
206,193,334
184,859,280
End
of
year
...........................................................
$212,599,688
$206,193,334
Franklin
Universal
Trust
Financial
Statements
Statement
of
Cash
Flows
for
the
year
ended
August
31,
2025
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Franklin
Universal
Trust
Cash
flow
from
operating
activities:
Dividends,
interest
and
other
income
received
.....................................................
$
14,795,559
Operating
expenses
paid
.....................................................................
(2,613,694)
Interest
expense
paid
........................................................................
(3,619,583)
Realized
gain
on
foreign
currency
transactions
.....................................................
490
Purchases
of
long-term
investments
.............................................................
(56,560,733)
Sales
and
maturities
of
long-term
investments
.....................................................
62,336,420
Net
purchases
of
short-term
investments
.........................................................
(1,520,237)
Cash
provided
-
operating
activities
..........................................................
12,818,222
Cash
flow
from
financing
activities:
Cash
distributions
to
shareholders
..............................................................
(12,817,266)
Cash
used
-
financing
activities
.............................................................
(12,817,266)
Net
increase
(decrease)
in
cash
.................................................................
956
Cash
at
beginning
of
year
......................................................................
54,800
Cash
at
end
of
year
...........................................................................
$55,756
Reconciliation
of
Net
Increase
(Decrease)
in
Net
Assets
resulting
from
Operating
Activities
to
Net
Cash
Provided
by
Operating
Activities
for
the
year
ended
August
31,
2025
Net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
....................................
$
19,223,620
Adjustments
to
reconcile
net
increase
(decrease)
in
net
assets
resulting
from
operating
activities
to
net
cash
provided
by
operating
activities:
Net
amortization
income
..................................................................
(168,421)
Reinvested
dividends
from
non-controlled
affiliates
...............................................
(240,562)
Interest
received
in
the
form
of
securities
......................................................
(84,518)
Decrease
in
dividends
and
interest
receivable
and
other
assets
.....................................
111,463
Decrease
in
payable
to
affiliates,
accrued
expenses,
and
other
liabilities
...............................
(42,430)
Increase
in
payable
for
investments
purchased
.................................................
184,172
Increase
in
receivable
for
investments
sold
.....................................................
(2,233,577)
Decrease
in
cost
of
investments
.............................................................
2,433,534
Decrease
in
unrealized
depreciation
on
investments.
.............................................
(6,365,059)
Net
cash
provided
by
operating
activities
...........................................................
$12,818,222
Notes
to
Financial
Statements
1.
Organization
and
Significant
Accounting
Policies
Franklin
Universal
Trust (Fund)
is
registered under
the
Investment
Company
Act
of
1940
(1940
Act)
as
a
closed-end
management
investment
company.
The
Fund
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
The
following
summarizes
the Fund's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The
Fund's
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The
Fund
calculates
the
net
asset
value
(NAV)
per
share
each business
day as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the Fund's
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Debt
securities
generally
trade
in
the OTC
market
rather
than
on
a
securities
exchange.
The
Fund's
pricing
services
use
multiple
valuation
techniques
to
determine
fair
value.
In
instances
where
sufficient
market
activity
exists,
the
pricing
services
may
utilize
a
market-based
approach
through
which
quotes
from
market
makers
are
used
to
determine
fair
value.
In
instances
where
sufficient
market
activity
may
not
exist
or
is
limited,
the
pricing
services
also
utilize
proprietary
valuation
models
which
may
consider
market
characteristics
such
as
benchmark
yield
curves,
credit
spreads,
estimated
default
rates,
anticipated
market
interest
rate
volatility,
coupon
rates,
anticipated
timing
of
principal
repayments,
underlying
collateral,
and
other
unique
security
features
in
order
to
estimate
the
relevant
cash
flows,
which
are
then
discounted
to
calculate
the
fair
value.
Securities
denominated
in
a
foreign
currency
are
converted
into
their
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
date
that
the
values
of
the
foreign
debt
securities
are
determined.
Investments
in open-end mutual
funds
are
valued
at
the
closing
NAV.
The
Fund
has
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the Fund
primarily
employs
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
Franklin
Universal
Trust
Notes
to
Financial
Statements
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Senior
Floating
Rate
Interests
The
Fund
invests
in
senior
secured
corporate
loans
that
pay
interest
at
rates
which
are
periodically
reset
by
reference
to
a
base
lending
rate
plus
a
spread.
These
base
lending
rates
are
generally
the
prime
rate
offered
by
a
designated
U.S.
bank
or
the
Secured
Overnight
Financing
Rate
(SOFR).
Senior
secured
corporate
loans
often
require
prepayment
of
principal
from
excess
cash
flows
or
at
the
discretion
of
the
borrower.
As
a
result,
actual
maturity
may
be
substantially
less
than
the
stated
maturity.
Senior
secured
corporate
loans
in
which
the Fund
invests
are
generally
readily
marketable,
but
may
be
subject
to
certain
restrictions
on
resale.
d.
Marketplace
Lending
The
Fund
invests
in
loans
obtained
through
marketplace
lending.
Marketplace
lending,
sometimes
referred
to
as
peer-to-peer
lending,
is
a
method
of
financing
in
which
a
platform
facilitates
the
borrowing
and
lending
of
money.
It
is
considered
an
alternative
to
more
traditional
forms
of
debt
financing.
Prospective
borrowers
are
required
to
provide
certain
financial
information
to
the
platform,
including,
but
not
limited
to,
the
intended
purpose
of
the
loan,
income,
employment
information,
credit
score,
debt-to-income
ratio,
credit
history
(including
defaults
and
delinquencies)
and
home
ownership
status.
Based
on
this
and
other
information,
the
platform
assigns
its
own
credit
rating
to
the
borrower
and
sets
the
interest
rate
for
the
requested
loan.
The
platform
then
posts
the
borrowing
requests
online,
giving
investors
the
opportunity
to
purchase
the
loans
based
on
factors
such
as
the
interest
rates
and
expected
yields
of
the
loans,
the
borrower
background
data,
and
the
credit
rating
assigned
by
the
platform.
When
the
Fund
invests
in
these
loans,
it
usually
purchases
all
rights,
title
and
interest
in
the
loans
pursuant
to
a
loan
purchase
agreement
directly
from
the
platform.
The
platform
or
a
third-party
servicer
typically
continues
to
service
the
loans,
collecting
payments
and
distributing
them
to
the
Fund,
less
any
servicing
fees
assessed.
The
servicer
is
typically
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
responsible
for
taking
actions
against
a
borrower
in
the
event
of
a
default
on
the
loan.
Servicing
fees,
along
with
other
administration
fees,
are
included
in
marketplace
lending
fees
in
the
Statement
of
Operations.
The Fund,
as
an
investor
in
a
loan,
would
be
entitled
to
receive
payment
only
from
the
borrower
and
would
not
be
able
to
recover
any
deficiency
from
the
platform,
except
under
very
narrow
circumstances.
The
loans
in
which
the
Fund
may
invest
are
unsecured.
e.
Income
and
Deferred
Taxes
It
is the Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
The Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
August
31,
2025, the Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the Fund
invests.
f.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
(including
interest
income
from
payment-in-kind
securities,
if
any)
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
interest
income.
The
Fund
may
receive
other
income
from
investments
in
senior
secured
corporate
loans
or
unfunded
commitments,
including
amendment
fees,
consent
fees
or
commitment
fees.
These
fees
are
recorded
as
income
when
received
by
the
Fund.
Facility
fees
are
recognized
as
income
over
the
expected
term
of
the
loan.
Dividend
income
is
recorded
on
the
ex-
dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
g.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Marketplace
Lending
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
h.
Guarantees
and
Indemnifications
Under
the Fund's
organizational
documents,
its
officers
and trustees
are
indemnified
by
the
Fund against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Fund.
Additionally,
in
the
normal
course
of
business,
the
Fund
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The Fund's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the Fund
that
have
not
yet
occurred.
Currently,
the Fund
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
August
31,
2025,
there
were
an
unlimited
number
of
shares
authorized
($0.01
par
value).
During
the years
ended
August
31,
2025 and
August
31,
2024,
there
were
no
shares
issued;
all
reinvested
distributions
were
satisfied
with
previously
issued
shares
purchased
in
the
open
market.
Under
the
Board
approved
open-market
share
repurchase
program,
the
Fund
may
purchase,
from
time
to
time,
Fund
shares
in
open-market
transactions,
at
the
discretion
of
management.
During
the
years ended
August
31,
2025
and
2024,
there
were
no
shares
repurchased.
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and trustees
of
the Fund are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee,
calculated weekly
and
paid
monthly,
to Advisers
of
0.75%
per
year
of
the
average weekly
managed
assets.
Managed
assets
are
defined
as
the
Fund’s
gross
asset
value
minus
the
sum
of
accrued
liabilities,
other
than
the
principal
amount
of
the
Credit
Facility.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by Advisers
based
on
the Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees,
if
applicable, paid
directly
or
indirectly
by
each
affiliate.
During
the
year
ended
August
31,
2025,
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
During
the
year
ended
August
31,
2025,
the
Fund
utilized
$816,586
of
capital
loss
carryforwards.
The
tax
character
of
distributions
paid
during
the
years
ended
August
31,
2025
and
2024,
was
as
follows:
At
August
31,
2025,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation) for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
defaulted
securities,
bond
discounts
and
premiums
and
corporate
actions.
5.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
August
31,
2025,
aggregated
$56,744,905 and
$65,249,820,
respectively.
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Universal
Trust
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.25%
.
$4,054,622
$50,104,807
$(48,344,008)
$—
$—
$5,815,421
5,815,421
$240,562
Total
Affiliated
Securities
...
$4,054,622
$50,104,807
$(48,344,008)
$—
$—
$5,815,421
$240,562
2025
2024
Distributions
paid
from:
Ordinary
income
..........................................................
$8,557,992
$7,460,217
Long
term
capital
gain
......................................................
3,653,747
—
Return
of
capital
...........................................................
605,527
5,357,049
$12,817,266
$12,817,266
Cost
of
investments
..........................................................................
$208,268,311
Unrealized
appreciation
........................................................................
$71,728,148
Unrealized
depreciation
........................................................................
(11,910,643)
Net
unrealized
appreciation
(depreciation)
..........................................................
$59,817,505
3.
Transactions
with
Affiliates
(continued)
c.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
6.
Credit
Risk
and
Defaulted
Securities
At
August
31,
2025,
the
Fund
had 55.1% of
its
portfolio
invested
in
high
yield
securities,
senior
secured
floating
rate
loans,
or
other
securities rated
below
investment
grade
and
unrated
securities.
These
securities
may
be
more
sensitive
to
economic
conditions
causing
greater
price
volatility
and
are
potentially
subject
to
a
greater
risk
of
loss
due
to
default
than
higher
rated
securities.
The
Fund held
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
August
31,
2025,
the
aggregate
value
of
these
securities was
$559,845, representing 0.3%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying Schedule
of
Investments.
7.
Credit
Facility
On
September
15,
2023,
the
Fund
entered
into
a
senior
secured
margin
loan
and
security
agreement
(Credit
Facility)
with
Bank
of
America,
N.A.
(BofA)
pursuant
to
which
the
Fund
borrowed
the
maximum
commitment
amount
of
$60
million
for
a
3-year
term,
which
matures
on
September
15,
2026.
The
Credit
Facility
provides
a
source
of
funds
to
the
Fund
to
purchase
additional
investments
as
part
of
its
investment
strategy.
Under
the
terms
of
the
Credit
Facility,
the
Fund
pays
interest
on
outstanding
borrowings
at
a
fixed
rate
of
5.95%.
Collateral
pledged
by
the
Fund
associated
with
outstanding
borrowings
is
held
in
a
segregated
account
with
the
Fund’s
custodian
and
the
securities
are
indicated
in
the
Schedule
of
Investments.
At
August
31,
2025,
the
Fund
had
outstanding
borrowings
of
$60,000,000,
which
approximates
fair
value.
The
borrowings
are
categorized
as
Level
2
within
the
fair
value
hierarchy.
The
average
borrowings
and
the
average
interest
rate
for
the
days
with
outstanding
borrowings
during
the year
ended
August
31,
2025,
were
$60,000,000
and
5.95%,
respectively.
8.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
August
31,
2025,
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
........................
$
54,201,635
$
—
$
—
$
54,201,635
Metals
&
Mining
.......................
6,161,593
—
—
6,161,593
Multi-Utilities
..........................
34,684,238
—
—
34,684,238
Franklin
Universal
Trust
Notes
to
Financial
Statements
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Common
Stocks:
(continued)
Oil,
Gas
&
Consumable
Fuels
.............
$
3,296,258
$
165,423
$
—
$
3,461,681
Pharmaceuticals
.......................
—
—
287,042
287,042
Software
.............................
—
—
27,871
27,871
Convertible
Preferred
Stocks
................
223,260
—
—
223,260
Preferred
Stocks
.........................
465,025
—
—
465,025
Warrants
...............................
19,079
—
—
19,079
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
4,310,725
—
4,310,725
Automobile
Components
.................
—
4,203,219
—
4,203,219
Automobiles
..........................
—
1,298,763
—
1,298,763
Biotechnology
.........................
—
1,336,362
—
1,336,362
Broadline
Retail
.......................
—
1,544,014
—
1,544,014
Building
Products
......................
—
5,850,463
—
5,850,463
Capital
Markets
........................
—
2,428,352
—
2,428,352
Chemicals
...........................
—
5,806,419
—
a
5,806,419
Commercial
Services
&
Supplies
...........
—
5,458,133
—
5,458,133
Communications
Equipment
..............
—
2,099,891
—
2,099,891
Construction
&
Engineering
...............
—
395,904
—
395,904
Consumer
Finance
.....................
—
3,784,046
—
3,784,046
Consumer
Staples
Distribution
&
Retail
......
—
722,090
—
722,090
Containers
&
Packaging
.................
—
3,272,875
—
3,272,875
Distributors
...........................
—
991,018
—
991,018
Diversified
Consumer
Services
............
—
787,950
—
787,950
Diversified
REITs
......................
—
2,344,005
—
2,344,005
Diversified
Telecommunication
Services
.....
—
4,577,035
—
4,577,035
Electric
Utilities
........................
—
3,243,583
—
3,243,583
Electrical
Equipment
....................
—
781,535
—
781,535
Electronic
Equipment,
Instruments
&
Components
........................
—
787,108
—
787,108
Energy
Equipment
&
Services
.............
—
4,836,056
—
4,836,056
Entertainment
.........................
—
1,327,249
—
1,327,249
Financial
Services
......................
—
8,596,240
—
8,596,240
Food
Products
........................
—
2,439,277
—
2,439,277
Ground
Transportation
..................
—
1,647,406
—
1,647,406
Health
Care
Equipment
&
Supplies
.........
—
1,435,748
—
1,435,748
Health
Care
Providers
&
Services
..........
—
7,029,447
—
7,029,447
Health
Care
REITs
.....................
—
786,907
—
786,907
Health
Care
Technology
.................
—
954,662
—
954,662
Hotel
&
Resort
REITs
...................
—
2,228,335
—
2,228,335
Hotels,
Restaurants
&
Leisure
.............
—
7,479,657
—
a
7,479,657
Household
Durables
....................
—
4,855,149
—
4,855,149
Household
Products
....................
—
191,670
—
191,670
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
2,667,828
—
2,667,828
Insurance
............................
—
3,430,796
—
3,430,796
Interactive
Media
&
Services
..............
—
75,859
—
75,859
IT
Services
...........................
—
2,473,502
—
2,473,502
Machinery
............................
—
3,627,522
—
3,627,522
Media
...............................
—
6,729,542
—
6,729,542
Metals
&
Mining
.......................
—
3,534,449
—
3,534,449
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
1,443,293
—
1,443,293
Oil,
Gas
&
Consumable
Fuels
.............
—
15,327,931
—
a
15,327,931
Paper
&
Forest
Products
.................
—
353,553
—
353,553
8.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the
year.
At
August
31,
2025,
the
reconciliation
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Corporate
Bonds:
(continued)
Passenger
Airlines
.....................
$
—
$
1,537,640
$
—
$
1,537,640
Personal
Care
Products
.................
—
1,581,591
—
1,581,591
Pharmaceuticals
.......................
—
1,151,357
—
1,151,357
Professional
Services
...................
—
438,894
—
438,894
Real
Estate
Management
&
Development
....
—
1,052,979
—
1,052,979
Software
.............................
—
2,141,744
—
2,141,744
Specialized
REITs
......................
—
2,155,313
—
2,155,313
Specialty
Retail
........................
—
1,266,153
—
1,266,153
Technology
Hardware,
Storage
&
Peripherals
.
—
557,975
—
557,975
Textiles,
Apparel
&
Luxury
Goods
..........
—
1,761,168
—
1,761,168
Trading
Companies
&
Distributors
..........
—
4,288,185
—
4,288,185
Wireless
Telecommunication
Services
.......
—
2,856,886
844
2,857,730
Senior
Floating
Rate
Interests
...............
—
34,674
—
34,674
Marketplace
Loans
.......................
—
—
1,959,866
1,959,866
Asset-Backed
Securities
...................
—
793
—
793
Municipal
Bonds
.........................
—
451,641
—
451,641
Escrows
and
Litigation
Trusts
...............
—
5,700
—
a
5,700
Short
Term
Investments
...................
5,815,421
—
—
5,815,421
Total
Investments
in
Securities
...........
$104,866,509
$160,943,684
$2,275,623
$268,085,816
a
Includes
financial
instruments
determined
to
have
no
value.
Balance
at
Beginning
of
Year
Purchases
a
Sales
b
Transfer
Into
Level
3
c
Transfer
Out
of
Level
3
Net
Accretion
(Amortiza-
tion)
Net
Realized
Gain
(Loss)
Net
Unr
ealized
Appreciatio
n
(
Depreciation
)
Balance
at
End
of
Year
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on
Assets
Held
at
Year
End
a
a
a
a
a
a
a
a
a
a
a
Franklin
Universal
Trust
Assets:
Investments
in
Securities:
Common
Stocks
:
Pharmaceuticals
....
$
—
$
253,358
$
—
$
—
$
—
$
—
$
—
$
33,684
$
287,042
$
33,684
Software
..........
—
1,299,500
—
—
—
—
—
(1,271,629)
27,871
(1,271,629)
Corporate
Bonds
:
Chemicals
........
—
—
—
3,851
—
—
—
(3,851)
—
d
(3,851)
Hotels,
Restaurants
&
Leisure
.........
—
d
—
—
—
—
—
—
—
—
d
—
Oil,
Gas
&
Consumable
Fuels
..........
—
d
—
—
—
—
—
—
—
—
d
—
Wireless
Telecommunication
Services
........
893
—
(316)
—
—
612
292
(637)
844
97
Marketplace
Loans
:
Financial
Services
...
5,201,571
37,700
(3,513,118)
—
—
—
(116,187)
349,900
1,959,866
(63,397)
Escrows
and
Litigation
Trusts
:
—
d
—
d
(7,052)
—
—
—
7,052
—
—
d
—
Total
Investments
in
Securities
............
$5,202,464
$1,590,558
$(3,520,486)
$3,851
$—
$612
$(108,843)
$(892,533)
$2,275,623
$(1,305,096)
8.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
Significant
unobservable
valuation
inputs
for
material
Level
3 assets
and/or
liabilities and
impact
to
fair
value
as
a
result
of
changes
in
unobservable
valuation
inputs
as
of
August
31,
2025,
are
as
follows:
9.
Operating
Segments
The
Fund has adopted
the
FASB
Accounting
Standards
Update
(ASU)
2023-07,
Segment
Reporting
(Topic
280)
-
Improvements
to
Reportable
Segment
Disclosures.
The
update
is
limited
to
disclosure
requirements
and
does
not
impact
the Fund's
financial
position
or
results
of
operations.
The Fund operates
as
a
single
operating
segment,
which
is
an
investment
portfolio.
The
portfolio
managers
assigned
to
the
Fund
within
the
Fund’s
Investment
manager serve
as
the
Chief
Operating
Decision
Maker
(“CODM”)
and
are
responsible
for
evaluating
the
Fund's
operating
results
and
allocating
resources
in
accordance
with
the
Fund’s
investment
strategy.
Internal
reporting
provided
to
the
CODM
aligns
with
the
accounting
policies
and
measurement
principles
used
in
the financial
statements.
For
information
regarding
segment
assets,
segment
profit
or
loss,
and
significant
expenses,
refer
to
the Statement
of
Assets
and
Liabilities
and
the Statement
of
Operations,
along
with
the
related
notes
to
the financial
statements.
The Schedule
of
Investments
provides
details
of
the Fund's investments
that
generate
returns
such
as
interest,
dividends,
and
realized
and
unrealized
gains
or
losses.
Performance
metrics,
including
portfolio
turnover
and
expense
ratios,
are
disclosed
in
the Financial
Highlights.
a
Purchases
include
all
purchases
of
securities
and
securities
received
in
corporate
actions.
b
Sales
include
all
sales
of
securities,
maturities,
paydowns
and
securities
tendered
in
corporate
actions.
c
Transferred
into
Level
3
as
a
result
of
the
unavailability
of
a
quoted
market
price
in
an
active
market
for
identical
securities
and
other
significant
observable
valuation
inputs.
May
include
amounts
related
to
a
corporate
action.
d
Includes
financial
instruments
determined
to
have
no
value.
Description
Fair
Value
at
End
of
Year
Valuation
Technique
Unobservable
Inputs
Amount
(Weighted
Average)
a
Impact
to
Fair
Value
if
Input
Increases
b
Franklin
Universal
Trust
Assets:
Investments
in
Securities:
Marketplace
Loans:
Financial
Services
..............
$1,959,866
Discounted
cash
flow
Loss-adjusted
discount
rate
2.6%
-
13.8%
(7.8%)
Decrease
Projected
loss
rate
1.8%
-
49.5%
(15.7%)
Decrease
All
Other
Investments
.............
315,757
c,d
Total
$2,275,623
a
Weighted
based
on
the
relative
fair
value
of
the
financial
instruments.
b
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
financial
instruments
that
would
result
from
a
significant
and
reasonable
increase
in
the
corresponding
input.
A
significant
and
reasonable
decrease
in
the
input
would
have
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
c
Includes
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
d
Includes
financial
instruments
determined
to
have
no
value.
8.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
10.
New
Accounting
Pronouncements
In
December
2023,
the
FASB
issued
ASU
No.
2023-09,
Income
Taxes
(Topic
740)
–
Improvements
to
Income
Tax
Disclosures.
The
amendments
enhance
income
tax
disclosures
by
requiring
greater
disaggregation
in
the
rate
reconciliation
and
income
taxes
paid
by
jurisdiction,
while
removing
certain
disclosure
requirements.
The
ASU
is
effective
for
annual
periods
beginning
after
December
15,
2024,
with
early
adoption
permitted.
Management
is
currently
evaluating
the
impact
and
believes
that
the
adoption
of
the
ASU
will
not
have
a
material
impact
on
the
financial
statements.
11.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
FRN
Floating
Rate
Note
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Board
of
Trustees
and
Shareholders
of
Franklin
Universal
Trust
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
Universal
Trust
(the
"Fund")
as
of
August
31,
2025,
the
related
statements
of
operations
and
cash
flows
for
the
year
ended
August
31,
2025,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
August
31,
2025,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2025
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
August
31,
2025,
the
results
of
its
operations
and
its
cash
flows
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
ended
August
31,
2025
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2025
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
August
31,
2025
by
correspondence
with
the
custodians,
transfer
agent,
private
placement
agents,
agent
banks
and
broker.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/PricewaterhouseCoopers
LLP
San
Francisco,
California
October
20,
2025
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Tax
Information
(unaudited)
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
August
31,
2025:
Pursuant
to:
Amount
Reported
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
$3,653,747
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$2,973,293
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$3,214,389
Qualified
Net
Interest
Income
(QII)
§871(k)(1)(C)
$5,360,093
Section
163(j)
Interest
Earned
§163(j)
$6,646,085
Important
Information
to
Shareholders
(unaudited)
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.
Portfolio
Management
Changes
Effective
September
30,
2024,
Patricia
O'Connor
was
added
as
a
Portfolio
Manager
of
the
Fund.
Information
About
the
Fund’s
Goal
and
Main
Investments,
Principal
Investment
Strategy,
and
Principal
Risks
Your
Fund’s
Goal
and
Main
Investments
The
Fund’s
primary
investment
objective
is
to
provide
high,
current
income
consistent
with
preservation
of
capital.
Its
secondary
objective
is
growth
of
income
through
dividend
increases
and
capital
appreciation.
Principal
Investment
Strategy
We
invest
primarily
in
two
asset
classes:
high-yield
bonds
and
utility
stocks.
Within
the
high-yield
portion
of
the
portfolio,
we
use
fundamental
research
to
invest
in
a
diversified
portfolio
of
bonds.
Within
the
utility
portion
of
the
portfolio,
we
focus
on
companies
with
attractive
dividend
yields
and
with
a
history
of
increasing
their
dividends.
In
seeking
to
obtain
higher
income,
the
Fund
may
invest
in
a
significant
portion
of
its
portfolio
in
lower-rated
U.S.
debt
securities
that
have
high
income
producing
characteristics,
including
obligations
of
corporations
and
other
business
organizations.
Lower-rated
securities
generally
pay
higher
yields
than
more
highly
rated
securities
to
compensate
investors
for
the
higher
risk.
The
Fund
may
also
invest
in
income
producing
debt
obligations
of
the
U.S.
Government,
its
agencies
and
instrumentalities,
and
foreign
governments
and
supranational
organizations.
Under
normal
market
conditions,
the
Fund
generally
will
invest
between
60%
and
80%
of
its
total
assets
in
high
income
producing
debt
securities
of
U.S.
and
foreign
issuers,
allocated
among
issuers,
geographic
regions,
and
currency
denominations
in
a
manner
that
is
consistent
with
its
objectives
based
upon
relative
interest
rates
among
various
instruments
denominated
in
different
currencies,
the
outlook
for
changes
in
these
interest
rates,
and
anticipated
changes
in
currency
exchange
rates.
Under
normal
market
conditions,
the
Fund
will
invest
approximately
20%
to
40%
of
its
assets
in
dividend-paying
common
and
preferred
stocks.
The
Fund
will
emphasize
investment
in
common
stocks
paying
high
current
dividends
with
a
focus
on
public
utility
companies.
The
Fund
may
also
invest
a
small
portion
of
its
total
assets
in
loans
originated
through
on-line
marketplace
lending
platforms
that
provide
a
marketplace
for
lending
through
the
purchase
of
loans
(either
individually
or
in
aggregations)
and
other
types
of
marketplace
lending
instruments
(See
the
Notes
to
Financial
Statements
for
further
information).
Securities
may
be
purchased
by
the
Fund
on
a
“when
issued”
or
on
a
“forward
delivery”
basis,
which
means
that
the
obligations
will
be
delivered
at
a
future
date
beyond
customary
settlement
time.
The
Fund
employs
leverage
through
the
use
of
a
senior
secured
revolving
credit
facility
which
provided
the
Fund
with
the
opportunity
to
retire
and
refinance
prior
leverage.
(See
the
Notes
to
Financial
Statements
for
further
information).
The
Fund
may
also
invest
in
short-term
U.S.
government
securities
and
other
money
market
instruments
(including
certificates
of
deposit,
commercial
paper,
bankers’
acceptances,
short-term
foreign
government
securities,
and
repurchase
agreements)
although
it
typically
will
not
invest
more
than
5%
of
its
total
assets
in
such
securities
except
for
temporary
defensive
purposes.
Principal
Investment
Risks
You
could
lose
money
by
investing
in
the
Fund.
Closed-end
fund
shares
are
not
deposits
or
obligations
of,
or
guaranteed
or
endorsed
by,
any
bank,
and
are
not
insured
by
the
Federal
Deposit
Insurance
Corporation,
the
Federal
Reserve
Board,
or
any
other
agency
of
the
U.S.
government.
High-Yield
Debt
Instruments
Issuers
of
lower-rated
or
“high-yield”
debt
instruments
(also
known
as
“junk
bonds”)
and
lower-rated
or
high
yield
loans
are
not
as
strong
financially
as
those
issuing
higher
credit
quality
debt
instruments.
High-yield
debt
instruments
are
generally
considered
predominantly
speculative
by
the
applicable
rating
agencies
as
their
issuers
are
more
likely
to
encounter
financial
difficulties
because
they
may
be
more
Franklin
Universal
Trust
Important
Information
to
Shareholders
(unaudited)
highly
leveraged,
or
because
of
other
considerations.
In
addition,
high
yield
debt
instruments
generally
are
more
vulnerable
to
changes
in
the
relevant
economy,
such
as
a
recession
or
a
sustained
period
of
rising
interest
rates,
that
could
affect
their
ability
to
make
interest
and
principal
payments
when
due.
The
prices
of
high-yield
debt
instruments
generally
fluctuate
more
than
those
of
higher
credit
quality.
High-yield
debt
instruments
are
generally
more
illiquid
(harder
to
sell)
and
harder
to
value.
Interest
Rate
When
interest
rates
rise,
debt
security
prices
generally
fall.
The
opposite
is
also
generally
true:
debt
security
prices
rise
when
interest
rates
fall.
Interest
rate
changes
are
influenced
by
a
number
of
factors,
including
government
policy,
monetary
policy,
inflation
expectations,
perceptions
of
risk,
and
supply
of
and
demand
for
bonds.
In
general,
securities
with
longer
maturities
or
durations
are
more
sensitive
to
interest
rate
changes.
Credit
An
issuer
of
debt
securities
may
fail
to
make
interest
payments
or
repay
principal
when
due,
in
whole
or
in
part.
Changes
in
an
issuer’s
financial
strength
or
in
a
security’s
or
government’s
credit
rating
may
affect
a
security’s
value.
Utilities
Industry
Utility
company
equity
securities,
to
the
extent
they
are
purchased
for
their
dividend
yield,
historically
have
been
sensitive
to
interest
rate
movements:
when
interest
rates
have
risen,
the
stock
prices
of
these
companies
have
tended
to
fall.
In
some
states,
utility
companies
and
their
rates
are
regulated;
other
states
have
moved
to
deregulate
such
companies
thereby
causing
non-regulated
companies’
returns
to
generally
be
more
volatile
and
more
sensitive
to
changes
in
revenue
and
earnings
Certain
utilities
companies
face
risks
associated
with
the
operation
of
nuclear
facilities
for
electric
generation,
including,
among
other
considerations,
litigation,
the
problems
associated
with
the
use
of
radioactive
materials
and
the
effects
of
natural
or
man-made
disasters.
In
general,
all
utility
companies
may
face
additional
regulation
and
litigation
regarding
their
power
plant
operations;
increased
costs
from
new
or
greater
regulation
of
these
operations;
the
need
to
purchase
expensive
emissions
control
equipment
or
new
operations
due
to
regulations;
and
the
availability
and
cost
of
fuel,
all
of
which
may
lower
their
earnings.
The
distribution
side
of
the
utilities
industry
also
faces
increased
operational
costs
related
to
the
natural
aging
of
equipment
and
the
related
costs
required
to
provide
maintenance,
upgrades
or
replacements
to
such
equipment
to
ensure
safe
and
reliable
utility
operations.
Market
The
market
values
of
securities
or
other
investments
owned
by
the
Fund
will
go
up
or
down,
sometimes
rapidly
or
unpredictably.
The
market
value
of
a
security
or
other
investment
may
be
reduced
by
market
activity
or
other
results
of
supply
and
demand
unrelated
to
the
issuer.
This
is
a
basic
risk
associated
with
all
investments.
When
there
are
more
sellers
than
buyers,
prices
tend
to
fall.
Likewise,
when
there
are
more
buyers
than
sellers,
prices
tend
to
rise.
In
addition,
the
value
of
the
Fund’s
investments
may
go
up
or
down
due
to
general
market
or
other
conditions
that
are
not
specifically
related
to
a
particular
issuer,
such
as:
real
or
perceived
adverse
economic
changes,
including
widespread
liquidity
issues
and
defaults
in
one
or
more
industries;
changes
in
interest,
inflation
or
exchange
rates;
unexpected
natural
and
man-made
world
events,
such
as
diseases
or
disasters;
financial,
political
or
social
disruptions,
including
terrorism
and
war;
and
U.S.
trade
disputes
or
other
disputes
with
specific
countries
that
could
result
in
additional
tariffs,
trade
barriers
and/or
investment
restrictions
in
certain
securities
in
those
countries.
Any
of
these
conditions
can
adversely
affect
the
economic
prospects
of
many
companies,
sectors,
nations,
regions
and
the
market
in
general,
in
ways
that
cannot
necessarily
be
foreseen
Leverage
The
Fund
employs
leverage
through
a
senior
secured
revolving
credit
facility
which
provides
the
Fund
with
a
source
to
refinance
and
retire
other
leverage.
The
Fund’s
use
of
leverage
creates
an
opportunity
for
increased
returns,
but
it
also
creates
special
risks.
The
cost
of
leverage
rises
and
falls
with
changes
in
short-term
interest
rates.
The
costs
of
using
leverage
may
be
greater
than
the
proceeds
of
the
leverage.
The
Fund’s
leveraging
strategy
may
not
be
successful.
Foreign
Securities
(non-U.S.)
Investing
in
foreign
securities
typically
involves
different
risks
than
investing
in
U.S.
securities,
and
includes
risks
associated
with:
(i)
internal
and
external
political
and
economic
developments
–
e.g.,
the
political,
economic
and
Franklin
Universal
Trust
Important
Information
to
Shareholders
(unaudited)
social
policies
and
structures
of
some
foreign
countries
may
be
less
stable
and
more
volatile
than
those
in
the
U.S.
or
some
foreign
countries
may
be
subject
to
trading
restrictions
or
economic
sanctions;
diplomatic
and
political
developments
could
affect
the
economies,
industries,
and
securities
and
currency
markets
of
the
countries
in
which
the
Fund
is
invested,
which
can
include
rapid
and
adverse
political
changes;
social
instability;
regional
conflicts;
sanctions
imposed
by
the
United
States,
other
nations
or
other
governmental
entities,
including
supranational
entities;
terrorism;
and
war;
(ii)
trading
practices
–
e.g.,
government
supervision
and
regulation
of
foreign
securities
and
currency
markets,
trading
systems
and
brokers
may
be
less
than
in
the
U.S.;
(iii)
availability
of
information
–
e.g.,
foreign
issuers
may
not
be
subject
to
the
same
disclosure,
accounting
and
financial
reporting
standards
and
practices
as
U.S.
issuers;
(iv)
limited
markets
–
e.g.,
the
securities
of
certain
foreign
issuers
may
be
less
liquid
(harder
to
sell)
and
more
volatile;
and
(v)
currency
exchange
rate
fluctuations
and
policies
–
e.g.,
fluctuations
may
negatively
affect
investments
denominated
in
foreign
currencies
and
any
income
received
or
expenses
paid
by
the
Fund
in
that
foreign
currency.
The
risks
of
foreign
investments
may
be
greater
in
developing
or
emerging
market
countries.
Management
The
Fund
is
subject
to
management
risk
because
it
is
an
actively
managed
investment
portfolio.
The
Fund’s
investment
manager
applies
investment
techniques
and
risk
analyses
in
making
investment
decisions
for
the
Fund,
but
there
can
be
no
guarantee
that
these
decisions
will
produce
the
desired
results.
Prepayment
Prepayment
risk
occurs
when
a
debt
security
can
be
repaid
in
whole
or
in
part
prior
to
the
security’s
maturity
and
the
Fund
must
reinvest
the
proceeds
it
receives,
during
periods
of
declining
interest
rates,
in
securities
that
pay
a
lower
rate
of
interest.
Also,
if
a
security
has
been
purchased
at
a
premium,
the
value
of
the
premium
would
be
lost
in
the
event
of
prepayment.
Prepayments
generally
increase
when
interest
rates
fall.
Cybersecurity
Cybersecurity
incidents,
both
intentional
and
unintentional,
may
allow
an
unauthorized
party
to
gain
access
to
Fund
assets,
Fund
or
customer
data
(including
private
shareholder
information),
or
proprietary
information,
cause
the
Fund,
the
investment
manager,
the
sub-advisor,
and/or
their
service
providers
(including,
but
not
limited
to,
Fund
accountants,
custodians,
sub-custodians,
transfer
agents
and
financial
intermediaries)
to
suffer
data
breaches,
data
corruption
or
loss
of
operational
functionality
or
prevent
Fund
investors
from
purchasing
redeeming
or
exchanging
or
receiving
distributions.
The
investment
manager
has
limited
ability
to
prevent
or
mitigate
cybersecurity
incidents.
Issuers
of
securities
in
which
the
Fund
invests
are
also
subject
to
cybersecurity
risks,
and
the
value
of
these
securities
could
decline
if
the
issuers
experience
cybersecurity
incidents.
Because
technology
is
frequently
changing,
new
ways
to
carry
out
cyber
attacks
are
always
developing.
Therefore,
there
is
a
chance
that
some
risks
have
not
been
identified
or
prepared
for,
or
that
an
attack
may
not
be
detected,
which
puts
limitations
on
the
Fund’s
ability
to
plan
for
or
respond
to
a
cyber
attack.
Like
other
funds
and
business
enterprises,
the
Fund,
the
investment
manager,
the
sub-advisor,
and
their
service
providers
are
subject
to
the
risk
of
cyber
incidents
occurring
from
time
to
time.
The
following
information
is
a
summary
of
certain
changes
since
the
last
fiscal
year.
This
information
may
not
reflect
all
of
the
changes
that
have
occurred
since
you
purchased
the
Fund.
There
have
not
been
any
material
changes
during
the
last
fiscal
year.
Annual
Meeting
of
Shareholders:
March
6,
2025
(unaudited)
The
Annual
Meeting
of
Shareholders
of
Franklin
Universal
Trust
(the
“Fund”)
was
held
at
the
Fund’s
offices,
300
S.E.
2nd
Street,
Fort
Lauderdale,
Florida,
on
March
6,
2025.
The
purpose
of
the
meeting
was
to
elect
three
Trustees
of
the
Fund.
At
the
meeting,
the
following
persons
were
elected
by
the
shareholders
to
serve
as
Trustees
of
the
Fund:
Gregory
E.
Johnson,
J.
Michael
Luttig
and
Valerie
M.
Williams.*
No
other
business
was
transacted
at
the
meeting
with
respect
to
the
Fund.
The
results
of
the
voting
at
the
Annual
Meeting
are
as
follows:
Election
of
three
Trustees:
The
Fund
is
not
aware
of
broker
non-votes
received
with
respect
to
this
item.
*
Harris
J.
Ashton,
Terrence
J.
Checki,
Mary
C.
Choksi,
Edith
E.
Holiday,
Rupert
H.
Johnson,
Jr.,
and
Larry
D.
Thompson
are
Trustees
of
the
Fund
who
are
currently
serving
and
whose
terms
of
office
continued
after
the
Annual
Meeting
of
Shareholders.
Term
Expiring
2028
For
%
of
Outstanding
Shares
%
of
Shares
Present
Withheld
%
of
Outstanding
Shares
%
of
Shares
Present
Gregory
E.
Johnson
16,932,888
67.38%
95.40%
816,600
3.25%
4.60%
J.
Michael
Luttig
16,928,844
67.36%
95.38%
820,644
3.27%
4.62%
Valerie
M.
Williams
16,929,438
67.36%
95.38%
820,050
3.26%
4.62%
Dividend
Reinvestment
and
Cash
Purchase
Plan
(unaudited)
The
Fund’s
Dividend
Reinvestment
and
Cash
Purchase
Plan
(Plan)
offers
you
a
prompt
and
simple
way
to
reinvest
dividends
and
capital
gain
distributions
in
shares
of
the
Fund.
The
Plan
also
allows
you
to
purchase
additional
shares
of
the
Fund
by
making
voluntary
cash
payments.
Equiniti
Trust
Company,
LLC
(Plan
Agent),
P.O.
Box
922,
Wall
Street
Station,
New
York,
NY
10269-0560,
acts
as
your
Plan
Agent
in
administering
the
Plan.
You
are
automatically
enrolled
in
the
Plan
unless
you
elect
to
receive
dividends
or
distributions
in
cash.
If
you
own
shares
in
your
own
name,
you
should
notify
the
Plan
Agent,
in
writing,
if
you
wish
to
receive
dividends
or
distributions
in
cash.
If
the
Fund
declares
a
dividend
or
capital
gain
distribution
payable
either
in
cash
or
in
stock
of
the
Fund
and
the
market
price
of
shares
on
the
valuation
date
equals
or
exceeds
the
net
asset
value,
the
Fund
will
issue
new
shares
to
you
at
the
higher
of
net
asset
value
or
95%
of
the
then
current
market
price.
Whenever
the
Fund
declares
a
distribution
from
capital
gains
or
an
income
dividend
payable
in
either
cash
or
shares,
if
the
net
asset
value
per
share
of
the
Fund’s
common
stock
exceeds
the
market
price
per
share
on
the
valuation
date,
the
Plan
Agent
shall
apply
the
amount
of
such
dividend
or
distribution
payable
to
participants
to
the
purchase
of
shares
(less
their
pro
rata
share
of
brokerage
commissions
incurred
with
respect
to
open
market
purchases
in
connection
with
the
reinvestment
of
such
dividend
or
distribution).
If
the
price
exceeds
the
net
asset
value
before
the
Plan
Agent
has
completed
its
purchases,
the
average
purchase
price
may
exceed
the
net
asset
value,
resulting
in
fewer
shares
being
acquired
than
if
the
Fund
had
issued
new
shares.
All
reinvestments
are
in
full
and
fractional
shares,
carried
to
three
decimal
places.
The
Fund
will
not
issue
shares
under
the
Plan
at
a
price
below
net
asset
value.
The
Plan
permits
you
on
a
voluntary
basis
to
submit
in
cash
payments
of
not
less
than
$100
each
up
to
a
total
of
$5,000
per
month
to
purchase
additional
shares
of
the
Fund.
It
is
entirely
up
to
you
whether
you
wish
to
buy
additional
shares
with
voluntary
cash
payments,
and
you
do
not
have
to
send
in
the
same
amount
each
time
if
you
do.
These
payments
should
be
made
by
check
or
money
order
payable
to
Equiniti
Trust
Company,
LLC
and
sent
to
Equiniti
Trust
Company,
LLC,
P.O.
Box
922,
Wall
Street
Station,
New
York,
NY
10269-0560,
Attn:
Franklin
Universal
Trust.
Your
cash
payment
will
be
aggregated
with
the
payments
of
other
participants
and
invested
on
your
behalf
by
the
Plan
Agent
in
shares
of
the
Fund
that
are
purchased
in
the
open
market.
The
Plan
Agent
will
invest
cash
payments
on
approximately
the
5th
of
each
month
in
which
no
dividend
or
distribution
is
payable
and,
during
each
month
in
which
a
dividend
or
distribution
is
payable,
will
invest
cash
payments
beginning
on
the
dividend
payment
date.
Under
no
circumstances
will
interest
be
paid
on
your
funds
held
by
the
Plan
Agent.
Accordingly,
you
should
send
any
voluntary
cash
payments
you
wish
to
make
shortly
before
an
investment
date
but
in
sufficient
time
to
ensure
that
your
payment
will
reach
the
Plan
Agent
not
less
than
two
business
days
before
an
investment
date.
Payments
received
less
than
two
business
days
before
an
investment
date
will
be
invested
during
the
next
month
or,
if
there
are
more
than
30
days
until
the
next
investment
date,
will
be
returned
to
you.
You
may
obtain
a
refund
of
any
cash
payment
by
written
notice,
if
the
Plan
Agent
receives
the
written
notice
not
less
than
48
hours
before
an
investment
date.
There
is
no
direct
charge
to
participants
for
reinvesting
dividends
and
capital
gain
distributions,
since
the
Plan
Agent’s
fees
are
paid
by
the
Fund.
However,
when
shares
are
purchased
in
the
open
market,
each
participant
will
pay
a
pro
rata
portion
of
any
brokerage
commissions
incurred.
The
Plan
Agent
will
deduct
a
$5.00
service
fee
from
each
of
your
voluntary
cash
payments.
The
automatic
reinvestment
of
dividends
and
capital
gain
distributions
does
not
relieve
you
of
any
taxes
which
may
be
payable
on
dividends
or
distributions.
In
connection
with
the
reinvestment
of
dividends
and
capital
gain
distributions,
if
the
Fund
issues
new
shares,
shareholders
receiving
such
shares
generally
will
be
treated
as
having
a
distribution
equal
to
the
market
value
of
the
shares
received,
and
if
shares
are
purchased
on
the
open
market,
shareholders
generally
will
be
treated
as
having
received
a
distribution
equal
to
the
cash
distribution
that
would
have
been
paid.
The
Fund
does
not
issue
new
shares
in
connection
with
voluntary
cash
payments.
All
investments
are
in
full
and
fractional
shares,
carried
to
three
decimal
places.
If
the
market
price
exceeds
the
net
asset
value
at
the
time
the
Plan
Agent
purchases
the
additional
shares,
you
will
receive
shares
at
a
price
greater
than
the
net
asset
value.
Franklin
Universal
Trust
Dividend
Reinvestment
and
Cash
Purchase
Plan
(unaudited)
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.
Board
Members
and
Officers
(unaudited)
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1988
115
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2018
115
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
115
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2004
and
Lead
Independent
Trustee
since
2019
115
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-2023),
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
115
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
The
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
115
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
107
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016)
and
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Gregory
E.
Johnson
2
(1961)
Chairman
of
the
Board,
Senior
Vice
President
and
Trustee
Chairman
of
the
Board
and
Senior
Vice
President
since
2023
and
Trustee
since
2013
124
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
Rupert
H.
Johnson,
Jr.
3
(1940)
Trustee
Since
1988
115
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Bjorn
A.
Davis
(1965)
Chief
Compliance
Officer
Since
October
2024
Not
Applicable
Not
Applicable
100
First
Stamford
Place
Stamford,
CT
06902
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Franklin
Templeton
Global
Regulatory
Compliance
US
Advisory
Services;
Chief
Compliance
Officer,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers
LLC,
Franklin
Templeton
Institutional
LLC,
Templeton
Investment
Counsel
LLC
and
Templeton
Global
Advisors
Limited
(since
2023);
formerly
,
Director,
Franklin
Templeton
Global
Regulatory
Compliance;
Chief
Compliance
Officer,
K2
Advisors,
LLC
and
K2/D&S
Management
Co.,
LLC
(2011
-
2023).
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
-
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Independent
Board
Members
(continued)
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
1.
Information
is
for
the
calendar
year
ended
December
31,
2024,
unless
otherwise
noted.
We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
2.
Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
3.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
a
major
shareholder
of
Resources,
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Susan
Kerr
(1949)
Vice
President
-
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
One
Madison
Avenue
New
York,
NY
10010
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Christopher
Kings
(1974)
Chief
Executive
Officer
-
Finance
and
Administration
Since
2024
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
2023
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Jeffrey
W.
White
(1971)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
2024
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Financial
Officer,
Chief
Accounting
Officer
&
Treasurer
and
officer
of
certain
funds
in
the
Franklin
Templeton
fund
complex;
and
formerly
,
Director
and
Assistant
Treasurer
within
Franklin
Templeton
Global
Fund
Tax
and
Fund
Administration
and
Financial
Reporting
(2017-2023).
Interested
Board
Members
and
Officers
(continued)
Board
Approval
of
Investment
Management
Agreements
(unaudited)
FRANKLIN
UNIVERSAL
TRUST
(Fund)
At
an
in-person
meeting
held
on
April
15,
2025
(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
to
consider
the
renewal
of
the
Management
Agreement.
In
considering
the
continuance
of
the
Management
Agreement,
the
Board
reviewed
and
considered
information
provided
by
the
Manager
at
the
Meeting
and
throughout
the
year
at
meetings
of
the
Board
and
its
committees.
The
Board
also
reviewed
and
considered
information
provided
in
response
to
a
detailed
set
of
requests
for
information
submitted
to
the
Manager
by
Independent
Trustee
counsel
on
behalf
of
the
Independent
Trustees
in
connection
with
the
annual
contract
renewal
process.
In
addition,
prior
to
the
Meeting,
the
Independent
Trustees
held
a
virtual
contract
renewal
meeting
at
which
the
Independent
Trustees
first
conferred
amongst
themselves
and
Independent
Trustee
counsel
about
contract
renewal
matters,
and
then
met
with
management
to
request
additional
information
that
the
Independent
Trustees
also
considered
prior
to
and
at
the
Meeting.
The
Board
further
considered
all
of
the
factors
it
deemed
relevant
in
approving
the
continuance
of
the
Management
Agreement,
including,
but
not
limited
to:
(i)
the
nature,
extent
and
quality
of
the
services
provided
by
the
Manager;
(ii)
the
investment
performance
of
the
Fund;
(iii)
the
costs
of
the
services
provided
and
profits
realized
by
the
Manager
and
its
affiliates
from
the
relationship
with
the
Fund;
(iv)
the
extent
to
which
economies
of
scale
are
realized
as
the
Fund
grows;
and
(v)
whether
fee
levels
reflect
these
economies
of
scale
for
the
benefit
of
Fund
investors.
In
approving
the
continuance
of
the
Management
Agreement,
the
Board,
including
a
majority
of
the
Independent
Trustees,
determined,
through
the
exercise
of
its
business
judgment,
that
the
terms
of
the
Management
Agreement
are
fair
and
reasonable
and
that
the
continuance
of
the
Management
Agreement
is
in
the
best
interests
of
the
Fund
and
its
shareholders.
While
attention
was
given
to
all
information
furnished,
the
following
discusses
some
primary
factors
relevant
to
the
Board’s
determination.
Nature,
Extent
and
Quality
of
Services
The
Board
reviewed
the
information
it
received
regarding
the
nature,
extent
and
quality
of
investment
management
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
This
information
included,
among
other
things,
the
qualifications,
background
and
experience
of
the
senior
management
and
investment
personnel
of
the
Manager,
as
well
as
information
on
succession
planning
where
appropriate;
the
structure
of
investment
personnel
compensation;
oversight
of
third-party
service
providers;
investment
performance
reports
and
related
financial
information
for
the
Fund
(including
its
share
price
discount
to
net
asset
value);
reports
on
expenses
and
shareholder
services;
legal
and
compliance
matters;
risk
controls;
pricing
and
other
services
provided
by
the
Manager
and
its
affiliates;
and
management
fees
charged
by
the
Manager
and
its
affiliates
to
US
funds
and
other
accounts,
including
management’s
explanation
of
differences
among
accounts
where
relevant.
The
Board
acknowledged
the
ongoing
integration
of
acquired
third-party
fund
families
into
the
Franklin
Templeton
(FT)
family
of
funds
and
management’s
continued
development
of
strategies
to
address
evolving
changes
in
domestic
policy
and
continuing
geopolitical
concerns.
The
Board
also
reviewed
and
considered
the
benefits
provided
to
Fund
shareholders
of
investing
in
a
fund
that
is
part
of
the
FT
family
of
funds.
The
Board
noted
the
financial
position
of
Franklin
Resources,
Inc.
(FRI),
the
Manager’s
parent,
and
its
commitment
to
the
mutual
fund
business
as
evidenced
by
its
continued
reassessment
of
the
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
as
well
as
its
evaluation
of
ways
to
incorporate
private
assets
into
more
traditional
investment
vehicles.
The
Board
specifically
noted
FT’s
commitment
to
technological
innovation
and
advancement,
including
its
continued
focus
on
developing
potential
use
cases
for
tokenization
and
the
blockchain
and
the
use
of
artificial
intelligence
tools
to
help
streamline
day-to-day
tasks.
Following
consideration
of
such
information,
the
Board
was
satisfied
with
the
nature,
extent
and
quality
of
services
provided
by
the
Manager
and
its
affiliates
to
the
Fund
and
its
shareholders.
Franklin
Universal
Trust
Shareholder
Information
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2024.
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
total
return
for
the
one-,
three-,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
reviewed
and
considered
information
regarding
the
Fund’s
actual
total
expense
ratio
and
its
various
components,
including,
as
applicable,
management
fees;
underlying
fund
expenses;
investment-related
expenses;
and
other
non-management
fees.
The
Board
considered
the
actual
total
expense
ratio
and,
separately,
the
contractual
management
fee
rate,
without
the
effect
of
fee
waivers,
if
any
(Management
Rate)
of
the
Fund
in
comparison
to
the
median
expense
ratio
and
median
Management
Rate,
respectively,
of
other
mutual
funds
deemed
comparable
to
and
with
a
similar
expense
structure
to
the
Fund
selected
by
Broadridge
(Expense
Group).
Broadridge
fee
and
expense
data
is
based
upon
information
taken
from
each
fund’s
most
recent
annual
or
semi-annual
report,
which
reflects
historical
asset
levels
that
may
be
quite
different
from
those
currently
existing,
particularly
in
a
period
of
market
volatility.
While
recognizing
such
inherent
limitation
and
the
fact
that
expense
ratios
and
Management
Rates
generally
increase
as
assets
decline
and
decrease
as
assets
grow,
the
Board
believed
the
independent
analysis
conducted
by
Broadridge
to
be
an
appropriate
measure
of
comparative
fees
and
expenses.
The
Broadridge
Management
Rate
includes
administrative
charges.
The
Board
received
a
description
of
the
methodology
used
by
Broadridge
to
select
the
mutual
funds
included
in
the
Expense
Group.
The
Expense
Group
for
the
Fund
included
the
Fund
and
11
other
high
yield
(leveraged)
funds.
The
Board
noted
that
the
Management
Rate
and
annual
total
expense
ratio
for
the
Fund
were
below
the
medians
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,
2024,
being
the
most
recent
fiscal
year-
end
for
FRI.
The
Board
noted
that
although
management
continually
makes
refinements
to
its
methodologies
used
in
calculating
profitability
in
response
to
organizational
and
product-related
changes,
the
overall
methodology
has
remained
consistent
with
that
used
in
the
Fund’s
profitability
report
presentations
from
prior
years.
The
Board
also
noted
that
an
independent
registered
public
accounting
firm
has
been
engaged
by
the
Manager
to
periodically
review
and
assess
the
allocation
methodologies
to
be
used
solely
by
the
Fund’s
Board
with
respect
to
the
profitability
analysis.
The
Board
noted
management’s
belief
that
costs
incurred
in
establishing
the
infrastructure
necessary
for
the
type
of
mutual
fund
operations
conducted
by
the
Manager
and
its
affiliates
may
not
be
fully
reflected
in
the
expenses
allocated
to
the
Fund
in
determining
its
profitability,
as
well
as
the
fact
that
the
level
of
profits,
to
a
certain
extent,
reflected
operational
cost
savings
and
efficiencies
initiated
by
management.
As
part
of
this
evaluation,
the
Board
considered
management’s
outsourcing
of
certain
operations,
which
effort
has
required
considerable
up-front
expenditures
by
the
Manager,
but
over
the
long
run
is
expected
to
result
in
greater
efficiencies.
The
Board
also
noted
management’s
expenditures
in
improving
shareholder
services
provided
to
the
Fund,
as
well
as
the
need
to
implement
systems
and
meet
additional
regulatory
and
compliance
requirements
resulting
from
recent
US
Securities
and
Exchange
Commission
and
other
regulatory
requirements.
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
Franklin
Universal
Trust
Shareholder
Information
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
The
Board
believes
that
the
Manager’s
ability
to
realize
economies
of
scale
and
the
sharing
of
such
benefit
is
a
more
relevant
consideration
in
the
case
of
an
open-end
fund
whose
size
increases
as
a
result
of
the
continuous
sale
of
its
shares.
A
closed-end
fund,
such
as
the
Fund,
does
not
continuously
offer
shares,
and
growth
following
its
initial
public
offering
will
primarily
result
from
market
appreciation,
which
benefits
its
shareholders.
While
believing
economies
of
scale
to
be
less
of
a
factor
in
the
context
of
a
closed-end
fund,
the
Board
believes
at
some
point
an
increase
in
size
may
lead
to
economies
of
scale
that
would
be
shared
with
the
Fund
and
its
shareholders
and
intends
to
monitor
future
growth
of
the
Fund
accordingly.
The
Board
recognized
that
there
would
not
likely
be
any
economies
of
scale
for
the
Fund
until
the
Fund’s
assets
grow.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
continuance
of
the
Management
Agreement
for
an
additional
one-year
period.
Proxy
Voting
Policies
and
Procedures
The
Trust’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Trust
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Trust’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Trust’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
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2025
Franklin
Templeton
Investments.
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reserved.
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Franklin
Universal
Trust
Investment
Manager
Transfer
Agent
Franklin
Advisers,
Inc.
(800)
DIAL
BEN
®
/
342-5236
Equiniti
Trust
Company,
LLC
6201
15th
Avenue
Brooklyn,
NY
11219
www.equiniti.com
(b) Not applicable
(a) The Registrant has adopted a code of ethics that applies
to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 19(a) (1), the Registrant is attaching
as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
| ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT. |
The Board of Trustees of the Registrant has determined that
Mary C. Choksi possesses the technical attributes identified in Item 3 to Form N-CSR to qualify as “audit committee financial expert,”
and has designated Mary C. Choksi as the Audit Committee’s financial expert. Mary C. Choksi is an “independent” Trustee
pursuant to paragraph (a)(2) of Item 3 to Form N-CSR.
Under applicable securities laws, a person determined to
be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the
purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert.
The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations,
or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board
of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee
financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.
|
ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
(a) Audit Fees. The aggregate fees billed in the last
two fiscal years ending August 31, 2024 and August 31, 2025 (the “Reporting Periods”) for professional services rendered by
the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements,
or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting
Periods, were $92,823 in August 31, 2024 and $96,837 in August 31, 2025.
(b) Audit-Related Fees. The aggregate fees billed
in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the Registrant’s
financial statements were $0 in August 31, 2024 and $0 in August 31, 2025.
(c) Tax Fees. The aggregate fees billed in the Reporting
Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”)
were $0 in August 31, 2024 and $11,000 in August 31, 2025. These services consisted of (i) review or preparation of U.S. federal, state,
local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or
administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments
held or proposed to be acquired or held.
The aggregate fees billed for tax services by the Auditors
to the Registrant’s investment manager and any entity controlling, controlled by, or under common control with the investment manager
that provides ongoing services to the Registrant (“Service Affiliates”) during the Reporting Periods that required pre-approval
by the Audit Committee were $140,000 in August 31, 2024 and $0 in August 31, 2025. The services for which these fees were paid included
global access to tax platform International Tax View.
(d) All Other Fees. The aggregate fees billed in the
Reporting Periods for products and services provided by the Auditor to the Registrant, other than the services reported in paragraphs
(a) through (c) of this item, were $0 in August 31, 2024 and
$0 in August 31, 2025.
The aggregate fees billed in the Reporting Periods for products
and services provided by the Auditor to the Service Affiliates, other than the services reported in paragraphs (a) through (c) of this
item, were $115,834 in August 31, 2024 and $0 in August 31, 2025. The services for which these fees were paid included professional fees
relating to security counts.
(e) Audit Committee’s pre–approval policies and
procedures described in paragraph (c) (7) of Rule 2-01 of Regulation S-X.
(1) The Registrant’s Audit Committee is directly responsible
for approving the services to be provided by the Auditors, including:
(i) pre-approval
of all audit and audit related services;
(ii) pre-approval
of all non-audit related services to be provided to the Registrant by the Auditors;
(iii) pre-approval
of all non-audit related services to be provided by the Auditors to the Registrant and the Service Affiliates where the non-audit services
relate directly to the operations or financial reporting of the Registrant; and
(iv) establishment
by the Audit Committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by
the Auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by
other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the
policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and
procedures do not include delegation of Audit Committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to
management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable
law or rules.
(2) None of the services described in paragraphs (b) through
(d) of this Item were performed in reliance on paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) Non-audit fees billed by the Auditor for services rendered
to the Registrant and the Service Affiliates during the reporting period were $255,834 in August 31, 2024 and $359,647 in August 31, 2025.
(h) Yes. The Registrant’s Audit Committee has considered
whether the provision of non-audit services that were rendered to Service Affiliates, which were not pre-approved (not requiring pre-approval),
is compatible with maintaining the Auditor’s independence. All services provided by the Auditor to the Registrant or to the Service
Affiliates, which were required to be pre-approved, were pre-approved as required.
(i) Not applicable.
(j) Not applicable
| ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS. |
(a) The independent board members are acting as the registrant’s
audit committee as specified in Section 3(a)(58)(B) of the Exchange Act. The Audit Committee consists of the following Board members:
Terrence J. Checki
Mary C. Choksi
Edith E. Holiday
J. Michael Luttig
Larry D. Thompson
(b) Not applicable
| ITEM 6. |
SCHEDULE OF INVESTMENTS. |
|
(a) |
Please see schedule of investments contained in the Financial Statements and Financial Highlights included under Item 1 of this Form N-CSR. |
|
ITEM 7. |
FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
|
ITEM 8. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
|
ITEM 9. |
PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
|
ITEM 10. |
REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES. |
Not applicable.
|
ITEM 11. |
STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT. |
The information is disclosed as part of the Financial Statements
included in Item 1 of this Form N-CSR, as applicable.
|
ITEM 12. |
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
FRANKLIN EQUITY GROUP
Proxy Voting Policies & Procedures
An SEC Compliance Rule Policy and Procedures*
RESPONSIBILITY OF THE INVESTMENT MANAGERS
TO VOTE PROXIES
Franklin Equity Group, a separate investment group within Franklin Templeton,
comprised of investment personnel from the SEC registered investment advisers listed on Appendix A (hereinafter individually an “Investment
Manager” and collectively the “Investment Managers”) have delegated the administrative duties with respect to voting
proxies for securities to the Franklin Templeton Proxy Group. Proxy duties consist of disseminating proxy materials and analyses of issuers
whose stock is owned by any client (including both investment companies and any separate accounts managed by the Investment Managers)
that has either delegated proxy voting administrative responsibility to the Investment Managers or has asked for information and/or recommendations
on the issues to be voted. The Investment Managers will inform advisory clients that have not delegated the voting responsibility but
that have requested voting advice about the Investment Managers’ views on such proxy votes. The Proxy Group also provides these
services to other advisory affiliates of the Investment Managers.
The Proxy Group will process proxy votes on behalf of, and the Investment
Managers vote proxies solely in the best interests of, separate account clients, the Investment Managers’-managed investment company
shareholders, or shareholders of funds that have appointed Franklin Templeton International Services S.à.r.l. (“FTIS S.à.r.l.”)
as the Management Company, provided such funds or clients have properly delegated such responsibility in writing, or, where employee benefit
plan assets subject to the Employee Retirement Income Security Act of 1974, as amended, are involved (“ERISA accounts”), in
the best interests of the plan participants and beneficiaries (collectively, “Advisory Clients”), unless (i) the power to
vote has been specifically retained by the named fiduciary in the documents in which the named fiduciary appointed the Investment Managers
or (ii) the documents otherwise expressly prohibit the Investment Managers from voting proxies. The Investment Managers recognize that
the exercise of voting rights on securities held by ERISA plans for which the Investment Managers have voting responsibility is a fiduciary
duty that must be exercised with care, skill, prudence and diligence.
In certain circumstances, Advisory Clients are permitted to direct their
votes in a solicitation pursuant to the Investment Management Agreement. An Advisory Client that wishes to direct its vote shall give
reasonable prior written notice to the Investment Managers indicating such intention and provide written instructions directing the Investment
Managers or the Proxy Group to vote regarding the solicitation. Where such prior written notice is received, the Proxy Group will vote
proxies in accordance with such written notification received from the Advisory Client.
The Investment Managers have adopted and implemented Proxy Voting Policies
and Procedures (“Proxy Policies”) that they believe are reasonably designed to ensure that proxies are voted in the best interest
of Advisory Clients in accordance with their fiduciary duties and rule 206(4)-6 under the Investment Advisers Act of 1940. To the extent
that the Investment Managers have a subadvisory agreement with an affiliated investment manager (the “Affiliated Subadviser”)
with respect to a particular Advisory Client, the Investment Managers may delegate proxy voting responsibility to the Affiliated Subadviser.
The Investment Managers may also delegate proxy voting responsibility to a subadviser that is not an Affiliated Subadviser in certain
limited situations as disclosed to fund shareholders (e.g., where an Investment Manager to a pooled investment vehicle has engaged a subadviser
that is not an Affiliated Subadviser to manage all or a portion of the assets).
* Rule 38a-1 under the Investment
Company Act of 1940 (“1940 Act”) and Rule 206(4)-7 under the Investment Advisers Act of 1940 (“Advisers Act”)
(together the “Compliance Rule”) require registered investment companies and registered investment advisers to, among other
things, adopt and implement written policies and procedures reasonably designed to prevent violations of the federal securities laws (“Compliance
Rule Policies and Procedures”).
HOW THE INVESTMENT MANAGERS VOTE PROXIES
Proxy Services
All proxies received by the Proxy Group will be voted based upon the Investment
Managers’ instructions and/or policies. To assist it in analyzing proxies of equity securities, the Investment Managers subscribe
to Institutional Shareholder Services Inc. (“ISS”), an unaffiliated third-party corporate governance research service that
provides in-depth analyses of shareholder meeting agendas and vote recommendations. In addition, the Investment Managers subscribe to
ISS’s Proxy Voting Service and Vote Disclosure Service. These services include receipt of proxy ballots, custodian bank relations,
account maintenance, vote execution, ballot reconciliation, vote record maintenance, comprehensive reporting capabilities, and vote disclosure
services. Also, the Investment Managers subscribe to Glass, Lewis & Co., LLC (“Glass Lewis”), an unaffiliated third-party
analytical research firm, to receive analyses and vote recommendations on the shareholder meetings of publicly held U.S. companies, as
well as a limited subscription to its international research.
In addition, the Investment Manager may request in-house voting research
from Franklin Templeton’s Stewardship Team (FT Stewardship). FT Stewardship provides customized research on specific corporate governance
issues that is tailored to the investment manager and corporate engagement undertaken. This research may include opinions on voting decisions;
however, there is no obligation or inference for the Investment Manager to formally vote in line with these opinions. This research supports
the independent vote decision making process and may reduce reliance on third-party advice for certain votes.
Although analyses provided by ISS, Glass Lewis, and/or another independent
third-party proxy service provider (each a “Proxy Service”) are thoroughly reviewed and considered in making a final voting
decision, the Investment Managers do not consider recommendations from a Proxy Service or any third-party to be determinative of the Investment
Managers’ ultimate decision. Rather, the Investment Managers exercise their independent judgment in making voting decisions. As
a matter of policy, the officers, directors and employees of the Investment Managers and the Proxy Group will not be influenced by outside
sources whose interests conflict with the interests of Advisory Clients.
For ease of reference, the Proxy Policies often refer to all Advisory Clients.
However, our processes and practices seek to ensure that proxy voting decisions are suitable for individual Advisory Clients. In some
cases, the Investment Managers’ evaluation may result in an individual Advisory Client or Investment Manager voting differently,
depending upon the nature and objective of the fund or account, the composition of its portfolio, whether the Investment Manager has adopted
a specialty or custom voting policy, and other factors.
Conflicts of Interest
All conflicts of interest will be resolved in the best
interests of the Advisory Clients. The Investment Managers are affiliates of a large, diverse financial services firm with many affiliates
and make their best efforts to mitigate conflicts of interest. However, as a general matter, the Investment Managers take the position
that relationships between certain affiliates that do not use the “Franklin Templeton” name (“Independent Affiliates”)
and an issuer (e.g., an investment management relationship between an issuer and an Independent Affiliate) do not present a conflict of
interest for an Investment Manager in voting proxies with respect to such issuer because: (i) the Investment Managers operate as an independent
business unit from the Independent Affiliate business units, and (ii) informational barriers exist between the Investment Managers and
the Independent Affiliate business units.
Material conflicts of interest could arise in a variety
of situations, including as a result of the Investment Managers’ or an affiliate’s (other than an Independent Affiliate as
described above): (i) material business relationship with an issuer or proponent, (ii) direct or indirect pecuniary interest in an issuer
or proponent; or (iii) significant personal or family relationship with an issuer or proponent. Material conflicts of interest are identified
by the Proxy Group based upon analyses of client, distributor, broker dealer, and vendor lists, information periodically gathered from
directors and officers, and information derived from other sources, including public filings. The Proxy Group gathers and analyzes this
information on a best-efforts basis, as much of this information is provided
directly by individuals and groups other than the Proxy
Group, and the Proxy Group relies on the accuracy of the information it receives from such parties.
Nonetheless, even though a potential conflict of interest between the Investment
Managers or an affiliate (other than an Independent Affiliate as described above) and an issuer may exist: (1) the Investment Managers
may vote in opposition to the recommendations of an issuer’s management even if contrary to the recommendations of a third-party
proxy voting research provider; (2) if management has made no recommendations, the Proxy Group may defer to the voting instructions of
the Investment Managers; and (3) with respect to shares held by Franklin Resources, Inc. or its affiliates for their own corporate accounts,
such shares may be voted without regard to these conflict procedures.
Otherwise, in situations where a material conflict of interest is identified
between the Investment Managers or one of its affiliates (other than Independent Affiliates) and an issuer, the Proxy Group may vote consistent
with the voting recommendation of a Proxy Service or send the proxy directly to the relevant Advisory Clients with the Investment Managers’
recommendation regarding the vote for approval. To address certain affiliate conflict situations, the Investment Managers will employ
pass-through voting or mirror voting when required pursuant to a fund’s governing documents or applicable law.
Where the Proxy Group refers a matter to an Advisory Client, it may rely
upon the instructions of a representative of the Advisory Client, such as the board of directors or trustees, a committee of the board,
or an appointed delegate in the case of a U.S. registered investment company, a conducting officer in the case of a fund that has appointed
FTIS S.à.r.l as its Management Company, the Independent Review Committee for Canadian investment funds, or a plan administrator
in the case of an employee benefit plan. A quorum of the board of directors or trustees or of a committee of the board can be reached
by a majority of members, or a majority of non-recused members. The Proxy Group may determine to vote all shares held by Advisory Clients
of the Investment Managers and affiliated Investment Managers (other than Independent Affiliates) in accordance with the instructions
of one or more of the Advisory Clients.
The Investment Managers may also decide whether to vote proxies for securities
deemed to present conflicts of interest that are sold following a record date, but before a shareholder meeting date. The Investment Managers
may consider various factors in deciding whether to vote such proxies, including the Investment Managers’ long-term view of the
issuer’s securities for investment, or it may defer the decision to vote to the applicable Advisory Client. The Investment Managers
also may be unable to vote, or choose not to vote, a proxy for securities deemed to present a conflict of interest for any of the reasons
outlined in the first paragraph of the section of these policies entitled “Proxy Procedures.”
Weight Given Management Recommendations
One of the primary factors the Investment Managers consider when determining
the desirability of investing in a particular company is the quality and depth of that company’s management. Accordingly, the recommendation
of management on any issue is a factor that the Investment Managers consider in determining how proxies should be voted. However, the
Investment Managers do not consider recommendations from management to be determinative of the Investment Managers’ ultimate decision.
Each issue is considered on its own merits, and the Investment Managers will not support the position of a company’s management
in any situation where it determines that the ratification of management’s position would adversely affect the investment merits
of owning that company’s shares.
Engagement with Issuers
The Investment Managers believe that engagement with issuers is important
to good corporate governance and to assist in making proxy voting decisions. The Investment Managers may engage with issuers to discuss
specific ballot items to be voted on in advance of an annual or special meeting to obtain further information or clarification on the
proposals. The Investment Managers may also engage with management on a range of issues throughout the year.
THE PROXY GROUP
The Proxy Group’s ‘full-time staff members and support staff
are devoted to proxy voting administration and oversight and providing support and assistance where needed. On a daily basis, the Proxy
Group will review each proxy upon receipt as well as any agendas, materials and recommendations that they receive from a Proxy Service
or other sources. The Proxy Group maintains a record of all shareholder meetings that are scheduled for companies whose securities are
held by the Investment Managers’ managed funds and accounts. For each shareholder meeting, a member of the Proxy Group will consult
with the research analyst that follows the security and provide the analyst with the agenda, analyses of one or more Proxy Services, recommendations
and any other information provided to the Proxy Group. Except in situations identified as presenting material conflicts of interest, the
Investment Managers’ research analyst and relevant portfolio manager(s) are responsible for making the final voting decision based
on their review of the agenda, analyses of one or more Proxy Services, proxy statements, their knowledge of the company and any other
information publicly available.
In situations where the Investment Managers have not responded with vote
recommendations to the Proxy Group by the deadline date, the Proxy Group may vote consistent with the vote recommendations of a Proxy
Service. Except in cases where the Proxy Group is voting consistent with the voting recommendation of a Proxy Service, the Proxy Group
must obtain voting instructions from the Investment Managers’ research analysts, relevant portfolio manager(s), legal counsel and/or
the Advisory Client prior to submitting the vote. In the event that an account holds a security that an Investment Manager did not purchase
on its behalf, and the Investment Manager does not normally consider the security as a potential investment for other accounts, the Proxy
Group may vote consistent with the voting recommendations of a Proxy Service or take no action on the meeting.
PROXY ADMINISTRATION PROCEDURES
Situations Where Proxies Are Not Voted
The Proxy Group is fully cognizant of its responsibility to process proxies
and maintain proxy records as may be required by relevant rules and regulations. In addition, the Investment Managers understand their
fiduciary duty to vote proxies and that proxy voting decisions may affect the value of shareholdings. Therefore, the Investment Managers
will generally attempt to process every proxy they receive for all domestic and foreign securities.
However, there may be situations in which the Investment Managers may be
unable to successfully vote a proxy, or may choose not to vote a proxy, such as where: (i) a proxy ballot was not received from the custodian
bank; (ii) a meeting notice was received too late; (iii) there are fees imposed upon the exercise of a vote and it is determined that
such fees outweigh the benefit of voting; (iv) there are legal encumbrances to voting, including blocking restrictions in certain markets
that preclude the ability to dispose of a security if an Investment Manager votes a proxy or where the Investment Manager is prohibited
from voting by applicable law, economic or other sanctions, or other regulatory or market requirements, including but not limited to,
effective Powers of Attorney; (v) additional documentation or the disclosure of beneficial owner details is required; (vi) the Investment
Managers held shares on the record date but has sold them prior to the meeting date; (vii) the Advisory Client held shares on the record
date, but the Advisory Client closed the account prior to the meeting date; (viii) a proxy voting service is not offered by the custodian
in the market; (ix) due to either system error or human error, the Investment Managers’ intended vote is not correctly submitted;
(x) the Investment Managers believe it is not in the best interest of the Advisory Client to vote the proxy for any other reason not enumerated
herein; or (xi) a security is subject to a securities lending or similar program that has transferred legal title to the security to another
person.
Rejected Votes
Even if the Investment Managers use reasonable efforts to vote a proxy on
behalf of their Advisory Clients, such vote or proxy may be rejected because of (a) operational or procedural issues experienced by one
or more third parties involved in voting proxies in such jurisdictions; (b) changes in the process or agenda for the meeting by the issuer
for which the Investment Managers do not have sufficient notice; or (c) the exercise by the issuer of its discretion to reject the vote
of the Investment Managers. In addition, despite the best efforts of the Proxy Group and its agents, there may be situations where the
Investment Managers’ votes are not received, or properly tabulated, by an issuer or the issuer’s agent.
Securities on Loan
The Investment Managers or their affiliates may, on behalf of one or more
of the proprietary registered investment companies advised by the Investment Managers or their affiliates, make efforts to recall any
security on loan where the Investment Manager or its affiliates (a) learn of a vote on an event that may materially affect a security
on loan and (b) determine that it is in the best interests of such proprietary registered investment companies to recall the security
for voting purposes. The ability to timely recall shares is not entirely within the control of the Investment Managers. Under certain
circumstances, the recall of shares in time for such shares to be voted may not be possible due to applicable proxy voting record dates
or other administrative considerations.
Split Voting
There may be instances in certain non-U.S. markets where split voting is
not allowed. Split voting occurs when a position held within an account is voted in accordance with two differing instructions. Some markets
and/or issuers only allow voting on an entire position and do not accept split voting. In certain cases, when more than one Franklin Templeton
investment manager has accounts holding shares of an issuer that are held in an omnibus structure, the Proxy Group will seek direction
from an appropriate representative of the Advisory Client with multiple Investment Managers (such as a conducting officer of the Management
Company in the case of a SICAV), or the Proxy Group will submit the vote based on the voting instructions provided by the Investment Manager
with accounts holding the greatest number of shares of the security within the omnibus structure.
Bundled Items
If several issues are bundled together in a single voting item, the Investment
Managers will assess the total benefit to shareholders and the extent that such issues should be subject to separate voting proposals.
PROCEDURES FOR MEETINGS INVOLVING FIXED INCOME SECURITIES & PRIVATELY
HELD ISSUERS
From time to time, certain custodians may process events for fixed income
securities through their proxy voting channels rather than corporate action channels for administrative convenience. In such cases, the
Proxy Group will receive ballots for such events on the ISS voting platform. The Proxy Group will solicit voting instructions from the
Investment Managers for each account or fund involved. If the Proxy Group does not receive voting instructions from the Investment Managers,
the Proxy Group will take no action on the event. The Investment Managers may be unable to vote a proxy for a fixed income security, or
may choose not to vote a proxy, for the reasons described under the section entitled “Proxy Procedures.”
In the rare instance where there is a vote for a privately held issuer,
the decision will generally be made by the relevant portfolio managers or research analysts.
The Proxy Group will monitor such meetings involving fixed income securities
or privately held issuers for conflicts of interest in accordance with these procedures. If a fixed income or privately held issuer is
flagged as a potential conflict of interest, the Investment Managers may nonetheless vote as it deems in the best interests of its Advisory
Clients. The Investment Managers will report such decisions on an annual basis to Advisory Clients as may be required.
Appendix A
These Proxy Policies apply to accounts managed by personnel within Franklin
Equity Group, which includes the following Investment Managers:
Franklin Advisers, Inc. (FAV)
Franklin Templeton Institutional, LLC
The following Proxy Policies apply to FAV only:
HOW THE INVESTMENT MANAGERS VOTE PROXIES
Proxy Services
Certain of the Investment Managers’ separate accounts or funds (or
a portion thereof) are included under Franklin Templeton Investment Solutions (“FTIS”), a separate investment group within
Franklin Templeton, and employ a quantitative strategy.
For such accounts, FTIS’s proprietary methodologies rely on a combination
of quantitative, qualitative, and behavioral analysis rather than fundamental security research and analyst coverage that an actively-managed
portfolio would ordinarily employ. Accordingly, absent client direction, in light of the high number of positions held by such accounts
and the considerable time and effort that would be required to review proxy statements and ISS or Glass Lewis recommendations, the Investment
Manager may review ISS’s guidelines’’ or Glass Lewis’s US guidelines (the “ISS and Glass Lewis Proxy Voting
Guidelines”) and determine, consistent with the best interest of its clients, to provide standing instructions to the Proxy Group
to vote proxies according to the recommendations of ISS or Glass Lewis.
The Investment Manager, however, retains the ability to vote a proxy differently
than ISS or Glass Lewis recommends if the Investment Manager determines that it would be in the best interests of Advisory Clients.
|
ITEM 13. |
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. |
(a)(1) As of August 31, 2025, the portfolio managers of the Fund are as
follows:
GLENN I. VOYLES CFA, Senior Vice President of Advisers
Mr. Voyles has been a manager of the Fund since 1999, providing research
and advice on the purchases and sales of individual securities, and portfolio risk assessment for the global income component of the Fund.
He joined Franklin Templeton Investments in 1993.
JONATHAN G. BELK CFA, Portfolio Manager of Advisers
Mr. Belk has been a portfolio manager of the Fund since August 2020. He
joined Franklin Templeton in 2004.
PATRICIA O’CONNOR, CFA, Vice President of Advisers
Ms. O’Connor has been a portfolio manager of the Fund since September
30, 2025. She joined Franklin Templeton in 1997.
CFA and Chartered Financial Analyst are trademarks owned by CFA Institute.
(a)(2) This section reflects information about the portfolio managers as
of the fiscal year ended August 31, 2025.
The following table shows the number of other accounts managed by each portfolio
manager and the total assets in the accounts managed within each category:
| Name |
Number
of Other Registered Investment Companies Managed1 |
Assets
of Other Registered Investment Companies Managed
(x $1 million)1 |
Number
of Other Pooled
Investment Vehicles Managed1 |
Assets
of Other Pooled Investment Vehicles Managed
(x $1 million)1 |
Number
of Other
Accounts Managed1 |
Assets
of Other
Accounts Managed
(x $1 million)1 |
| Glenn
I. Voyles |
8 |
6,827.0 |
11 |
3,211.9 |
3 |
46.6 |
| Jonathan
G. Belk |
4 |
1,689.7 |
4 |
1.134.2 |
1 |
46.9 |
| Patricia
O’Connor |
6 |
7,032.0 |
5 |
2,647.3 |
4 |
86.2 |
1The various pooled investment vehicles
and accounts listed are managed by a team of investment professionals. Accordingly, the individual managers listed would not be solely
responsible for managing such listed amounts.
Portfolio managers that provide investment services to the Fund may also
provide services to a variety of other investment products, including other funds, institutional accounts and private accounts. The advisory
fees for some of such other products and accounts may be different than that charged to the Fund and may include performance based compensation
(as noted, in the chart above, if any). This may result in fees that are higher (or lower) than the advisory fees paid by the Fund. As
a matter of policy, each fund or account is managed solely for the benefit of the beneficial owners thereof. As discussed below, the separation
of the trading execution function from the portfolio management function and the application of objectively based trade allocation procedures
help to mitigate potential conflicts of interest that may arise as a result of the portfolio managers managing accounts with different
advisory fees.
Conflicts. The management of multiple funds, including the Fund,
and accounts may also give rise to potential conflicts of interest if the funds and other accounts have different objectives, benchmarks,
time horizons, and fees as the portfolio manager must allocate his or her time and investment ideas across multiple funds and accounts.
The investment manager seeks to manage such competing interests for the time and attention of portfolio managers by having portfolio managers
focus on a particular investment discipline. Most other accounts managed by a portfolio manager are managed using the same investment
strategies that are used in connection with the management of the Fund. Accordingly, portfolio holdings, position sizes, and industry
and sector exposures tend to be similar across similar portfolios, which may minimize the potential for conflicts of interest. As noted
above, the separate management of the trade execution and valuation functions from the portfolio management process also helps to reduce
potential conflicts of interest. However, securities selected for funds or accounts other than the Fund may outperform the securities
selected for the Fund. Moreover, if a portfolio manager identifies a limited investment opportunity that may be suitable for more than
one fund or other account, the Fund may not be able to take full advantage of that opportunity due to an allocation of that opportunity
across all eligible funds and other accounts. The investment manager seeks to manage such potential conflicts by using procedures intended
to provide a fair allocation of buy and sell opportunities among funds and other accounts.
The structure of a portfolio manager’s compensation may give rise
to potential conflicts of interest. A portfolio manager’s base pay and bonus tend to increase with additional and more complex responsibilities
that include increased assets under management. As such, there may be an indirect relationship between a portfolio manager’s marketing
or sales efforts and his or her bonus.
Finally, the management of personal accounts by a portfolio manager may
give rise to potential conflicts of interest. While the funds and the manager have adopted a code of ethics which they believe contains
provisions reasonably necessary to prevent a wide range of prohibited activities by portfolio managers and others with respect to their
personal trading activities, there can be no assurance that the code of ethics addresses all individual conduct that could result in conflicts
of interest.
The manager and the Fund have adopted certain compliance procedures that
are designed to address these, and other, types of conflicts. However, there is no guarantee that such procedures will detect each and
every situation where a conflict arises.
Compensation. The investment manager seeks to maintain a compensation
program that is competitively positioned to attract, retain and motivate top-quality investment professionals. Portfolio managers receive
a base salary, a cash incentive bonus opportunity, an equity compensation opportunity, and a benefits package. Portfolio manager compensation
is reviewed annually and the level of compensation is based on individual performance, the salary range for a portfolio manager’s
level of responsibility and Franklin Templeton guidelines. Portfolio managers are provided no financial incentive to favor one fund or
account over another. Each portfolio manager’s compensation consists of the following three elements:
Base salary Each portfolio manager is paid a base salary.
Annual bonus Annual bonuses are structured to align the interests
of the portfolio manager with those of the Fund’s shareholders. Each portfolio manager is eligible to receive an annual bonus. Bonuses
generally are split between cash (50% to 65%) and restricted shares of Resources stock (17.5% to 25%) and mutual fund shares (17.5% to
25%). The deferred equity-based compensation is intended to build a vested interest of the portfolio manager in the financial performance
of both Resources and mutual funds advised by the investment manager. The bonus plan is intended to provide a competitive level of annual
bonus compensation that is tied to the portfolio manager achieving consistently strong investment performance, which aligns the financial
incentives of the portfolio manager and Fund shareholders. The Chief Investment Officer of the investment manager and/or other officers
of the investment manager, with responsibility for the Fund, have discretion in the granting of annual bonuses to portfolio managers in
accordance with Franklin Templeton guidelines. The following factors are generally used in determining bonuses under the plan:
|
· |
Investment performance. Primary consideration is given to the historic
investment performance over the 1, 3 and 5 preceding years of all accounts managed by the portfolio manager. The pre-tax performance of
each fund managed is measured relative to a relevant peer group and/or applicable benchmark as appropriate. |
|
· |
Non-investment performance. The more qualitative contributions of the portfolio
manager to the investment manager’s business and the investment management team, including professional knowledge, productivity,
responsiveness to client needs and communication, are evaluated in determining the amount of any bonus award. |
|
· |
Responsibilities. The characteristics and complexity of funds managed by
the portfolio manager are factored in the investment manager’s appraisal. |
Additional long-term equity-based compensation Portfolio managers
may also be awarded restricted shares or units of Resources stock or restricted shares or units of one or more mutual funds. Awards of
such deferred equity-based compensation typically vest over time, so as to create incentives to retain key talent.
Benefits Portfolio managers also participate in benefit plans and
programs available generally to all employees of the investment manager.
Ownership of Fund shares. The investment manager has a policy of
encouraging portfolio managers to invest in the funds they manage. Exceptions arise when, for example, a fund is closed to new investors
or when tax considerations or jurisdictional constraints cause such an investment to be inappropriate for the portfolio manager. The following
is the dollar range of Fund shares beneficially owned by the portfolio manager (such amounts may change from time to time):
| Portfolio
Manager |
Dollar
Range of Fund
Shares Beneficially
Owned |
| Glenn
I. Voyles |
None |
| Johnathan
G. Belk |
None |
| Patricia
O’Connor |
None |
|
Item 14. |
Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable.
|
ITEM 15. |
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. |
There have been no changes to the procedures by which shareholders
may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
|
ITEM 16. |
CONTROLS AND PROCEDURES. |
|
(a) |
The Registrant’s chief executive officer and principal financial officer have concluded that the Registrant’s disclosure controls
and procedures (as defined in Rule 30a- 3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective
as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their
evaluation of the disclosure controls and procedures required by Rule 30a-3(b) under the 1940 Act and 15d-15(b) under the Securities Exchange
Act of 1934. |
|
(b) |
During the period covered by this report, the Registrant transitioned to a new third-party service provider who performs certain accounting
and administrative services for the Registrant that are subject to Franklin Templeton’s oversight. |
|
Item 17. |
Disclosure of Securities Lending Activities for Closed-End Management Investment Company. |
Not applicable.
|
ITEM 18. |
RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION. |
(a) (1) Code of Ethics attached hereto.
Exhibit 99.CODE ETH
(a) (3) Certifications pursuant to section 302 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.CERT
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto.
Exhibit 99.906CERT
(c) Pursuant to the Securities and Exchange Commission’s Order granting relief from Section 19(b) of the Investment Company Act of 1940, the 19(a) Notices to Beneficial Owners are attached hereto as Exhibit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this Report to be signed on its behalf by the undersigned, there unto
duly authorized.
Franklin Universal Trust
| By: |
/s/
Christopher Kings |
|
| |
Christopher
Kings |
|
| |
Chief
Executive Officer – Finance and Administration |
|
| |
|
|
| Date: |
October 29, 2025 |
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the
capacities and on the dates indicated.
| By: |
/s/
Christopher Kings |
|
| |
Christopher
Kings |
|
| |
Chief
Executive Officer – Finance and Administration |
|
| |
|
|
| Date: |
October 29, 2025 |
|
| By: |
/s/
Jeffrey White |
|
| |
Jeffrey White |
|
| |
Chief Financial Officer, Chief
Accounting Officer and Treasurer |
|
| |
|
|
| Date: |
October 29, 2025 |
|