Annual
Report
Franklin
Universal
Trust
August
31,
2026
Not
FDIC
Insured
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Bank
Guarantee
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Value
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Distribution
Policy
:
The
Fund’s
Board
of
Trustees
(the
“Board”)
has
authorized
a
distribution
policy
(the
“Distribution
Policy”).
Under
the
Distribution
Policy,
the
Fund
pays
monthly
distributions
and
seeks
to
maintain
a
relatively
stable
level
of
distributions
to
shareholders.
With
each
distribution,
the
Fund
will
issue
a
notice
to
its
shareholders
and
an
accompanying
press
release
that
provides
estimates
regarding
the
amount
and
composition
of
the
distribution.
The
Fund
will
send
a
Form
1099-DIV
to
shareholders
for
the
calendar
year
that
will
describe
how
to
report
the
Fund’s
distributions
for
federal
income
tax
purposes.
Shareholders
should
not
draw
any
conclusions
about
the
Fund’s
investment
performance
from
the
amount
of
distributions
or
from
the
terms
of
the
Fund’s
Distribution
Policy.
The
Board
may
amend
or
terminate
the
Distribution
Policy
at
any
time
without
prior
notice
to
shareholders;
however,
at
this
time
there
are
no
reasonably
foreseeable
circumstances
that
might
cause
the
termination
of
the
Distribution
Policy.
franklintempleton.com
Annual
Report
1
Contents
Fund
Overview
2
Performance
Summary
5
Financial
Highlights
and
Schedule
of
Investments
8
Financial
Statements
26
Notes
to
Financial
Statements
30
Report
of
Independent
Registered
Public
Accounting
Firm
40
Tax
Information
41
Important
Information
to
Shareholders
42
Annual
Meeting
of
Shareholders
46
Dividend
Reinvestment
and
Cash
Purchase
Plan
47
Board
Members
and
Officers
49
Shareholder
Information
54
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
2
franklintempleton.com
Annual
Report
Franklin
Universal
Trust
Dear
Shareholder,
This
annual
report
for
Franklin
Universal
Trust
covers
the
fiscal
year
ended
August
31,
2026.
Fund
Overview
Q.
What
is
the
Fund’s
investment
strategy?
A.
The
Fund’s
primary
investment
objective
is
to
provide
high,
current
income
consistent
with
preservation
of
capital.
Its
secondary
objective
is
growth
of
income
through
dividend
increases
and
capital
appreciation.
We
invest
primarily
in
two
asset
classes:
high-yield
bonds
and
utility
stocks.
Within
the
high-yield
portion
of
the
portfolio,
we
use
fundamental
research
to
invest
in
a
diversified
portfolio
of
bonds.
Within
the
utility
portion
of
the
portfolio,
we
focus
on
companies
with
attractive
dividend
yields
and
with
a
history
of
increasing
their
dividends.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
The
one-year
period
ended
August
31,
2026,
was
characterized
by
resilient
but
divergent
global
growth,
shifting
inflation
pressures
and
a
rise
in
geopolitical
risk.
During
the
second
half
of
2025,
trade
policy
developments
and
political
uncertainty
were
dominant
themes.
By
early
2026,
the
global
economic
cycle
appeared
to
be
maturing
before
the
escalation
of
conflict
in
the
Middle
East
starting
in
late
February,
which
changed
the
macroeconomic
and
market
narrative.
The
U.S.-Iran
war
and
inflation
outlook
dominated
developments
for
the
remainder
of
the
period.
Oil
prices
rose
sharply
following
the
outbreak
of
the
conflict
and
remained
high
through
much
of
the
first
half
of
calendar
2026,
although
they
fell
back
in
June
after
a
Memorandum
of
Understanding
to
extend
the
ceasefire
was
signed.
Though
oil
prices
edged
slightly
higher
in
August,
they
are
still
below
the
peaks
reached
in
the
March-May
2026
period.
Monetary
policy
reflected
a
transition
from
late-cycle
easing
to
a
more
complicated
inflation-growth
trade-off
over
the
one-year
period.
The
U.S.
Federal
Reserve
(Fed)
resumed
its
easing
cycle
in
September
2025,
cutting
rates
by
75
basis
points
(bps)
in
total
by
year-end
to
bring
the
fed
funds
target
range
to
3.50%–3.75%
by
December
2025.
The
Fed
has
since
kept
rates
unchanged,
though
its
tone
changed
from
an
easing
bias
to
a
more
hawkish
outlook.
Kevin
Warsh
assumed
the
role
of
Fed
chairman
on
May
22,
2026,
and
his
speech
at
the
annual
Jackson
Hole
Economic
Policy
Symposium
was
perceived
hawkishly
by
the
bond
market.
The
U.S.
10-year
Treasury
note’s
yield
rose
by
90
bps
over
the
period
to
4.75%.
Despite
facing
headwinds
from
rising
UST
yields,
the
U.S.
high-yield
bond
market
delivered
positive
total
returns
during
the
one-year
period,
supported
by
resilient
corporate
earnings
and
historically
tight
credit
spreads.
Thematically,
investors
watched
as
the
evolution
of
artificial
intelligence
(AI)
remained
as
a
core
market
theme,
with
investor
sentiment
becoming
more
selective
toward
AI
data
center
bond
issuance
by
the
end
of
the
reporting
period
and
markets
shifting
back
to
established
health
care,
software
and
legacy
industries
that
are
demonstrating
tangible
benefits
from
AI
adoption.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
Throughout
the
period,
sector
and
security
allocations
were
adjusted
as
volatility
in
market
conditions
provided
opportunities
to
manage
sector
rotations,
individual
security
positions
and
portfolio
duration
exposure.
Our
dedicated
credit
research
analysts
looked
to
find
value
across
industry
sectors
and
rating
classifications.
At
the
end
of
August
2026,
the
Fund
was
overweight
to
the
homebuilding,
finance,
and
metals
&
mining
sectors,
while
underweight
to
the
building
materials,
information
technology
and
telecom
segments.
The
Fund
remained
overweight
utility
equities
and
underweight
high-yield
bonds
relative
to
its
benchmark.
Performance
Overview
For
the
12
months
under
review,
the
Fund’s
cumulative
total
returns
were
+7.37%
based
on
net
asset
value
and
+3.57%
based
on
market
price.
For
comparison,
the
ICE
BofA
US
High
Yield
Constrained
Index,
which
measures
the
performance
of
USD-denominated,
non-investment
grade,
fixed
rate
and
taxable
corporate
bonds,
posted
a
+4.78%
cumulative
total
return
1
.
Utilities
stocks,
as
measured
by
the
Standard
&
Poor’s
(S&P)
500
Utilities
Index,
which
is
comprised
of
companies
included
in
the
S&P
500
that
are
classified
as
members
of
the
GICS
utilities
sector,
posted
a
+2.97%
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
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
1.
Source:
Morningstar.
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
.
Franklin
Universal
Trust
3
franklintempleton.com
Annual
Report
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.
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.
Q.
What
were
the
leading
contributors
to
performance?
A.
Security
selection
was
a
positive
contributor
to
performance
within
the
portfolio.
Our
fundamental
research
and
investment
strategy
led
to
favorable
security
selection
in
the
utilities
sector.
NextEra
Energy
contributed
favorably
due
to
the
benefits
from
AI
data
center
power
demand.
NextEra
is
the
world’s
largest
producer
of
wind
and
solar
with
a
strong
pipeline
to
add
power
capacity
over
the
coming
five
years.
The
company
also
announced
the
acquisition
of
Dominion
Energy,
which
faces
a
lengthy
regulatory
approval
process,
with
the
combined
entity
becoming
the
largest
utility
and
energy
infrastructure
company
in
North
America.
Evergy
Inc.
and
Entergy
Corporation
both
saw
outperformance
from
signing
electric
service
agreements
with
major
hyperscalers,
which
we
believe
should
boost
peak
loads
and
support
long-
term
earnings
growth.
Entergy
increased
its
capital
spending
plan
by
33%
to
build
out
energy
infrastructure
to
support
data
centers,
including
new
natural
gas
power
plants
across
its
footprint
in
Arkansas,
Louisiana,
Mississippi
and
Texas
(where
the
regulatory
environment
is
highly
favorable).
The
Fund
also
saw
positive
performance
contributions
from
exposure
to
mining
companies,
including
Freeport-McMoRan
and
Newmont,
where
demand
for
commodities
remained
robust
and
operating
performance
had
been
solid.
The
Fund’s
asset
allocation
was
also
a
positive
contributor
as
the
Fund
continued
to
be
overweight
utility
equities
relative
to
its
benchmark
given
increasing
demand
for
power,
which
in
our
view,
could
lead
to
future
profit
growth
in
addition
to
the
dividend
yield.
In
contrast,
the
Fund
remained
underweight
high-yield
bonds
relative
to
the
benchmark
as
total
return
is
limited
due
to
the
current
spread
environment,
offset
by
a
beneficial
economic
growth
outlook
and
low
default
rate
relative
to
the
history
of
the
high-yield
market.
Q.
What
were
the
leading
detractors
from
performance?
A.
The
Fund’s
holdings
in
Constellation
Energy
and
Talen
Energy
detracted
from
performance.
Both
companies
saw
setbacks
from
regulatory
and
political
intervention
that
will
delay
additional
data
center
colocation
transactions.
Growing
negative
public
sentiment
and
political
pushback
could
delay
or
reduce
opportunities
for
additional
colocation
and/or
expanding
load
growth
on
market
power
pricing.
Constellation
and
Talen
are
independent
power
producers
and
are
more
subject
to
market
forces
rather
than
regulators
who
determine
rates,
which
makes
them
more
cyclical
than
regulated
utilities.
Regulated
utilities
remained
at
the
core
of
the
Fund’s
utility
investment
strategy.
Bonds
of
GDP
Companies
underperformed
due
to
strained
cash
generation
from
weak
commodity
plastic
demand
and
stranded
corporate
overhead
costs
following
a
major
divestiture.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
There
were
no
material
modifications
as
to
the
way
the
Fund
was
managed
during
the
period
under
review.
Effective
June
30,
2026,
Bryant
Dieffenbacher
and
Robert
Salvin
were
added
as
Portfolio
Managers
of
the
Fund.
As
of
June
30,
2026,
Patricia
O’Connor
retired
from
the
firm
and
was
removed
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.
Portfolio
Composition
8/31/26
%
of
Total
Investments
Corporate
Bonds
58.9%
Common
Stocks
37.4%
Other
*
1.1%
Short-Term
Investments
2.6%
*
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
8/31/26
Issuer
%
of
Total
Net
Assets
a
a
NextEra
Energy,
Inc.
4.4%
Sempra,
Inc.
3.4%
Entergy
Corp.
3.0%
Evergy,
Inc.
2.7%
Alliant
Energy
Corp.
2.5%
CenterPoint
Energy,
Inc.
2.3%
Duke
Energy
Corp.
2.2%
American
Electric
Power
Co.,
Inc.
2.0%
Southern
Co.
(The)
2.0%
Dominion
Energy,
Inc.
2.0%
Franklin
Universal
Trust
4
franklintempleton.com
Annual
Report
Sincerely,
Glenn
Voyles,
CFA
Jonathan
G.
Belk,
CFA
Robert
L
Salvin
Bryant
Dieffenbacher,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
August
31,
2026,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
August
31,
2026
Franklin
Universal
Trust
5
franklintempleton.com
Annual
Report
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Total
returns
do
not
reflect
any
sales
charges
paid
at
inception
or
brokerage
commissions
paid
on
secondary
market
purchases.
Total
return
also
does
not
reflect
brokerage
commissions
or
sales
charges
in
connection
with
the
purchase
or
sale
of
Fund
shares
at
the
opening
of
the
first
business
day
and
sale
on
the
closing
of
the
last
business
day
of
each
period.
The
performance
table
and
graph
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
8/31/26
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.
Share
Prices
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
+7.37%
+3.57%
+7.37%
+3.57%
5-Year
+33.12%
+28.14%
+5.89%
+5.08%
10-Year
+96.57%
+111.45%
+6.99%
+7.78%
Symbol:
FT
8/31/26
8/31/25
Change
Net
Asset
Value
(NAV)
$8.57
$8.46
+$0.11
Market
Price
(NYSE)
$7.71
$7.93
-$0.22
Distributions
Per
Share
(9/1/25–8/31/26)
Net
Investment
Income
Tax
Return
of
Capital
Total
$0.3464
$0.1636
$0.5100
See
page
7
for
Performance
Summary
footnotes.
Franklin
Universal
Trust
Performance
Summary
6
franklintempleton.com
Annual
Report
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.
8/31/16–8/31/26
See
page
7
for
Performance
Summary
footnotes.
Franklin
Universal
Trust
Performance
Summary
7
franklintempleton.com
Annual
Report
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
determinative
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
measures
the
performance
of
USD-denominated,
noninvestment
grade,
fixed
rate
and
taxable
corpo-
rate
bonds.
The
S&P
500
Utilities
Index
comprises
those
companies
included
in
the
S&P
500
that
are
classified
as
members
of
the
GICS
utilities
sector.
Important
data
provider
notices
and
terms
available
at
www.franklintempletondatasources.com.
Franklin
Universal
Trust
Financial
Highlights
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
Year
Ended
August
31,
2026
2025
2024
2023
2022
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
...................
$8.46
$8.20
$7.36
$8.08
$8.92
Income
from
investment
operations:
Net
investment
income
a
.........................
0.36
0.36
0.33
0.43
0.41
Net
realized
and
unrealized
gains
(losses)
...........
0.26
0.41
1.02
(0.58)
(0.70)
Total
from
investment
operations
....................
0.62
0.77
1.35
(0.15)
(0.29)
Less
distributions
from:
Net
investment
income
..........................
(0.35)
(0.49)
(0.30)
(0.31)
(0.51)
Net
realized
gains
.............................
—
—
—
(0.05)
(0.04)
Tax
return
of
capital
............................
(0.16)
(0.02)
(0.21)
(0.21)
—
Total
distributions
...............................
(0.51)
(0.51)
(0.51)
(0.57)
(0.55)
Net
asset
value,
end
of
year
.......................
$8.57
$8.46
$8.20
$7.36
$8.08
Market
value,
end
of
year
b
.........................
$7.71
$7.93
$7.28
$6.76
$8.00
Total
return
(based
on
net
asset
value
per
share)
c
.......
7.37%
9.71%
19.18%
(1.81)%
(3.41)%
Total
return
(based
on
market
value
per
share)
c
.........
3.57%
16.45%
16.20%
(8.24)%
(0.36)%
Ratios
to
average
net
assets
Expenses
before
waiver
and
payments
by
affiliates
d
.....
2.98%
3.00%
3.32%
2.78%
2.57%
Expenses
net
of
waiver
and
payments
by
affiliates
d
......
2.98%
e
2.99%
3.31%
2.77%
f
2.57%
e,f
Net
investment
income
...........................
4.07%
4.38%
4.36%
5.66%
4.85%
Supplemental
data
Net
assets,
end
of
year
(000’s)
.....................
$215,301
$212,600
$206,193
$184,859
$203,053
Portfolio
turnover
rate
............................
19.28%
21.76%
21.79%
17.73%
22.29%
Total
credit
facility
outstanding
at
end
of
year
(000’s)
.....
$60,000
$60,000
$60,000
$—
$—
Total
debt
outstanding
at
end
of
year
(000's)
...........
$—
$—
$—
$65,000
$65,000
Asset
coverage
per
$1,000
of
debt
..................
$4,588
$4,543
$4,437
$3,844
$4,124
Average
amount
of
senior
fixed
rate
Notes
per
share
during
the
year
......................................
$—
$—
$0.11
$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
Includes
expenses
related
to
borrowings
of
1.65%,
1.75%,
1.89%,
1.34%
and
1.20%
for
the
years
ended
August
31,
2026,
2025,
2024,
2023
and
2022,
respectively.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Universal
Trust
Schedule
of
Investments,
August
31,
2026
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
47.2%
Electric
Utilities
25.2%
Alliant
Energy
Corp.
.................................
United
States
80,000
$
5,438,400
American
Electric
Power
Co.,
Inc.
.......................
United
States
36,000
4,407,480
Constellation
Energy
Corp.
............................
United
States
5,000
1,373,850
Duke
Energy
Corp.
..................................
United
States
40,000
4,796,400
Edison
International
.................................
United
States
20,000
1,079,600
Entergy
Corp.
......................................
United
States
60,000
6,378,600
Evergy,
Inc.
........................................
United
States
72,000
5,833,440
Exelon
Corp.
.......................................
United
States
40,000
1,748,800
FirstEnergy
Corp.
...................................
United
States
50,000
2,293,000
NextEra
Energy,
Inc.
.................................
United
States
115,000
9,469,100
Pinnacle
West
Capital
Corp.
...........................
United
States
20,000
1,952,800
PPL
Corp.
.........................................
United
States
24,500
836,185
Southern
Co.
(The)
..................................
United
States
50,000
4,400,000
Xcel
Energy,
Inc.
....................................
United
States
55,000
4,162,950
54,170,605
Metals
&
Mining
4.9%
BHP
Group
Ltd.,
ADR
................................
Australia
25,185
2,365,375
Freeport-McMoRan,
Inc.
..............................
United
States
40,380
3,058,381
Newmont
Corp.
.....................................
United
States
26,000
3,277,560
Rio
Tinto
plc,
ADR
...................................
Australia
15,000
1,537,500
South32
Ltd.,
ADR
..................................
Australia
10,074
185,060
10,423,876
Multi-Utilities
15.2%
CenterPoint
Energy,
Inc.
..............................
United
States
122,800
4,862,880
CMS
Energy
Corp.
..................................
United
States
60,000
4,083,600
Consolidated
Edison,
Inc.
.............................
United
States
15,000
1,605,300
Dominion
Energy,
Inc.
................................
United
States
65,000
4,290,650
DTE
Energy
Co.
....................................
United
States
30,000
4,068,900
NiSource,
Inc.
......................................
United
States
60,000
2,455,200
Public
Service
Enterprise
Group,
Inc.
....................
United
States
25,000
1,833,250
Sempra,
Inc.
.......................................
United
States
90,000
7,353,000
WEC
Energy
Group,
Inc.
..............................
United
States
20,000
2,123,400
32,676,180
Oil,
Gas
&
Consumable
Fuels
1.8%
a
Amplify
Energy
Corp.
................................
United
States
245
1,205
Birch
Permian
Holdings,
Inc.
...........................
United
States
32,490
203,063
California
Resources
Corp.
............................
United
States
47
2,492
DT
Midstream,
Inc.
..................................
United
States
10,000
1,310,200
Enbridge,
Inc.
......................................
Canada
39,360
1,990,435
Expand
Energy
Corp.
................................
United
States
2,380
233,621
Woodside
Energy
Group
Ltd.,
ADR
......................
Australia
9,101
211,871
3,952,887
Pharmaceuticals
0.1%
a
Keenova
Therapeutics
plc
.............................
United
States
2,929
285,088
a
Par
Health,
Inc.
.....................................
United
States
2,929
17,993
303,081
Software
0.0%
†
a,b
DSG
Topco,
Inc.
....................................
United
States
2,027
507
Total
Common
Stocks
(Cost
$32,959,712)
....................................
101,527,136
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Convertible
Preferred
Stocks
0.4%
Aerospace
&
Defense
0.1%
Boeing
Co.
(The),
6%
................................
United
States
3,000
$
194,520
Interactive
Media
&
Services
0.2%
Alphabet,
Inc.,
A,
6.25%
..............................
United
States
5,105
247,388
Alphabet,
Inc.,
B,
6.25%
..............................
United
States
5,105
245,040
492,428
Software
0.1%
Oracle
Corp.,
D,
6.5%
................................
United
States
5,357
250,065
Total
Convertible
Preferred
Stocks
(Cost
$928,350)
............................
937,013
Preferred
Stocks
0.2%
Electric
Utilities
0.2%
SCE
Trust
II,
5.1%
..................................
United
States
27,500
464,750
Total
Preferred
Stocks
(Cost
$598,125)
.......................................
464,750
Rights
Rights
0.0%
†
Diversified
Telecommunication
Services
0.0%
†
a
Altice
France
SA,
2/20/49
.............................
France
1,254
19,482
Total
Rights
(Cost
$–)
......................................................
19,482
Principal
Amount
*
Convertible
Bonds
0.3%
Oil,
Gas
&
Consumable
Fuels
0.3%
c
Crescent
Energy
Co.
,
Senior
Note
,
144A,
2.75
%
,
3/15/31
.....
United
States
490,000
567,788
Total
Convertible
Bonds
(Cost
$490,000)
.....................................
567,788
Corporate
Bonds
74.3%
Aerospace
&
Defense
1.9%
d
ATI,
Inc.
,
Senior
Note
,
7.25
%
,
8/15/30
....................
United
States
700,000
726,220
c
Axon
Enterprise,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
3/15/33
.....
United
States
250,000
254,525
c
Bombardier,
Inc.
,
Senior
Note,
144A,
7%,
6/01/32
......................
Canada
85,000
87,951
Senior
Note,
144A,
5.875%,
1/15/35
...................
Canada
660,000
655,691
c
Efesto
Bidco
SpA
Efesto
US
LLC
,
XR
,
Senior
Secured
Note
,
144A,
7.5
%
,
2/15/32
...............................
Italy
1,050,000
1,067,373
c
TransDigm,
Inc.
,
Senior
Secured
Note,
144A,
6%,
1/15/33
................
United
States
170,000
170,366
Senior
Sub.
Note,
144A,
6.75%,
1/31/34
................
United
States
1,020,000
1,036,779
3,998,905
Automobile
Components
2.1%
c,d
Adient
Global
Holdings
Ltd.
,
Senior
Note
,
144A,
8.25
%
,
4/15/31
United
States
300,000
312,871
c
Allison
Transmission,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
10/01/27
.
United
States
600,000
598,733
c
Clarios
Global
LP
/
Clarios
US
Finance
Co.
,
Senior
Note
,
144A,
6.75
%
,
9/15/32
...................................
United
States
310,000
316,000
c
Dexko
Global,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
4/15/32
........
United
States
1,841,500
1,547,215
c
Forvia
SE
,
Senior
Note
,
144A,
6.75
%
,
9/15/33
..............
France
355,000
355,891
c,e
IHO
Verwaltungs
GmbH
,
Senior
Secured
Note,
144A,
PIK,
7.75%,
11/15/30
.........
Germany
400,000
416,086
Senior
Secured
Note,
144A,
PIK,
8%,
11/15/32
...........
Germany
900,000
951,707
4,498,503
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
11
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Automobiles
0.5%
c
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
.........................................
United
Kingdom
500,000
$
497,398
c
Nissan
Motor
Co.
Ltd.
,
Senior
Bond
,
144A,
8.125
%
,
7/17/35
...
Japan
565,000
600,301
1,097,699
Biotechnology
1.1%
c
Emergent
BioSolutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
8/15/28
United
States
900,000
829,185
c
Genmab
A/S
/
Genmab
Finance
LLC
,
Senior
Note,
144A,
7.25%,
12/15/33
...................
Denmark
480,000
500,380
Senior
Secured
Note,
144A,
6.25%,
12/15/32
............
Denmark
480,000
487,360
c
Grifols
SA
,
Senior
Note
,
144A,
4.75
%
,
10/15/28
............
Spain
600,000
591,806
2,408,731
Broadline
Retail
0.7%
c,d
Wayfair
LLC
,
Senior
Secured
Note,
144A,
7.25%,
10/31/29
............
United
States
700,000
725,281
Senior
Secured
Note,
144A,
7.75%,
9/15/30
.............
United
States
800,000
843,000
1,568,281
Building
Products
1.6%
c,d
Advanced
Drainage
Systems,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/30
.........................................
United
States
500,000
504,224
c
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
.........................................
United
States
300,000
37,125
c,d
EMRLD
Borrower
LP
/
Emerald
Co-Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
6.625
%
,
12/15/30
........................
United
States
800,000
816,867
c
Quikrete
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.375
%
,
3/01/32
.........................................
United
States
300,000
303,882
c,d
Standard
Building
Solutions,
Inc.
,
Senior
Note,
144A,
6.5%,
8/15/32
.....................
United
States
600,000
603,581
Senior
Note,
144A,
6.25%,
8/01/33
....................
United
States
495,000
491,715
c
Standard
Industries,
Inc.
,
d
Senior
Bond,
144A,
4.75%,
1/15/28
....................
United
States
500,000
498,505
Senior
Bond,
144A,
4.375%,
7/15/30
...................
United
States
100,000
95,133
3,351,032
Capital
Markets
0.4%
c
Stonex
Escrow
Issuer
LLC
,
Secured
Note
,
144A,
6.875
%
,
7/15/32
United
States
285,000
289,958
c,d
StoneX
Group,
Inc.
,
Secured
Note
,
144A,
7.875
%
,
3/01/31
....
United
States
500,000
520,809
810,767
Chemicals
2.3%
c,e
Advancion
Sciences,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
........................................
United
States
194,518
156,587
b,c,e,f
Anagram
Holdings
LLC
/
Anagram
International,
Inc.
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
........................
United
States
257,209
—
c
ARC
Falcon
I,
Inc.
/
Arclin
USA
LLC
/
New
Arclin
US
Holding
Corp.
,
Senior
Secured
Note
,
144A,
9.75
%
,
3/01/33
.........
United
States
525,000
526,684
c
Avient
Corp.
,
Senior
Note
,
144A,
6.25
%
,
11/01/31
...........
United
States
300,000
304,372
c,f
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
.........................................
Mexico
300,000
204,965
c
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
...
United
States
200,000
195,437
c,e
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
PIK,
12.5
%
,
12/31/29
........................................
United
States
811,793
535,054
c
Illuminate
Buyer
LLC
/
Illuminate
Holdings
IV,
Inc.
,
Senior
Note
,
144A,
9
%
,
7/01/28
.................................
United
States
218,000
218,431
c,d
Rain
Carbon,
Inc.
,
Senior
Secured
Note
,
144A,
12.25
%
,
9/01/29
United
States
1,200,000
1,276,901
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
(continued)
c
SCIH
Salt
Holdings,
Inc.
,
Senior
Note,
144A,
8%,
8/15/32
......................
United
States
600,000
$
606,832
Senior
Secured
Note,
144A,
6.625%,
8/15/31
............
United
States
300,000
303,192
c
Solstice
Advanced
Materials,
Inc.
,
Senior
Note
,
144A,
5.625
%
,
9/30/33
.........................................
United
States
625,000
613,980
4,942,435
Commercial
Services
&
Supplies
1.5%
c
Neptune
Bidco
US,
Inc.
,
Senior
Secured
Note,
144A,
9.29%,
4/15/29
.............
United
States
130,000
133,244
Senior
Secured
Note,
144A,
9.5%,
2/15/33
..............
United
States
625,000
642,494
c,d
RR
Donnelley
&
Sons
Co.
,
Senior
Secured
Note
,
144A,
9.5
%
,
8/01/29
.........................................
United
States
1,125,000
1,173,046
c
Veritiv
Operating
Co.
,
Senior
Secured
Note
,
144A,
10.5
%
,
11/30/30
........................................
United
States
320,000
334,611
c
Waste
Pro
USA,
Inc.
,
Senior
Note
,
144A,
7
%
,
2/01/33
........
United
States
200,000
204,680
c,d
Wrangler
Holdco
Corp.
,
Senior
Note
,
144A,
6.625
%
,
4/01/32
...
Canada
700,000
707,038
3,195,113
Communications
Equipment
0.2%
c
Viasat,
Inc.
,
Senior
Note
,
144A,
7.5
%
,
5/30/31
..............
United
States
525,000
527,696
Construction
&
Engineering
0.2%
c
Arcosa,
Inc.
,
d
Senior
Note,
144A,
4.375%,
4/15/29
...................
United
States
300,000
295,110
Senior
Note,
144A,
6.875%,
8/15/32
...................
United
States
100,000
103,633
398,743
Consumer
Finance
3.6%
c
Encore
Capital
Group,
Inc.
,
Senior
Secured
Note,
144A,
8.5%,
5/15/30
..............
United
States
400,000
424,409
Senior
Secured
Note,
144A,
6.625%,
6/01/32
............
United
States
875,000
878,168
c
FirstCash,
Inc.
,
d
Senior
Note,
144A,
6.875%,
3/01/32
...................
United
States
1,100,000
1,123,015
Senior
Note,
144A,
6.125%,
5/01/34
...................
United
States
270,000
267,202
c
Jefferson
Capital
Holdings
LLC
,
Senior
Note,
144A,
9.5%,
2/15/29
.....................
United
States
1,400,000
1,465,972
Senior
Note,
144A,
8.25%,
5/15/30
....................
United
States
365,000
382,413
c
Macquarie
Airfinance
Holdings
Ltd.
,
Senior
Note
,
144A,
6.5
%
,
3/26/31
.........................................
United
Kingdom
200,000
207,269
OneMain
Finance
Corp.
,
Senior
Bond,
5.375%,
11/15/29
.......................
United
States
500,000
493,083
Senior
Note,
6.5%,
3/15/33
..........................
United
States
290,000
283,875
c
PRA
Group,
Inc.
,
d
Senior
Note,
144A,
8.375%,
2/01/28
...................
United
States
600,000
609,408
Senior
Note,
144A,
5%,
10/01/29
.....................
United
States
300,000
288,173
Senior
Note,
144A,
8.875%,
1/31/30
...................
United
States
400,000
415,508
c,d
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.......
United
States
900,000
885,610
7,724,105
Consumer
Staples
Distribution
&
Retail
0.3%
c,d
US
Foods,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
9/15/28
.........
United
States
700,000
713,738
Containers
&
Packaging
1.6%
c
CANPACK
Group,
Inc.
/
CANPACK
SA
,
Senior
Note
,
144A,
6
%
,
5/15/31
.........................................
United
States
200,000
200,807
c,d
Clydesdale
Acquisition
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
4/15/32
...............................
United
States
1,000,000
977,196
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Containers
&
Packaging
(continued)
c
Mauser
Packaging
Solutions
Holding
Co.
,
Secured
Note
,
144A,
9.25
%
,
4/15/30
...................................
United
States
1,500,000
$
1,498,888
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
717,996
3,394,887
Distributors
0.3%
c
Gates
Corp.
,
Senior
Note
,
144A,
6.875
%
,
7/01/29
...........
United
States
400,000
408,536
c
RB
Global
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
6.75
%
,
3/15/28
.........................................
Canada
125,000
126,247
534,783
Diversified
Consumer
Services
0.1%
Grand
Canyon
University
,
Secured
Note
,
5.125
%
,
10/01/28
....
United
States
300,000
296,829
Diversified
REITs
1.0%
c,d
Global
Net
Lease,
Inc.
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
.....
United
States
900,000
882,599
c,d
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
.................
United
States
670,000
657,250
c,d
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...................................
United
States
700,000
697,143
2,236,992
Diversified
Telecommunication
Services
4.4%
c
APLD
ComputeCo
2
LLC
,
Senior
Secured
Note
,
144A,
6.75
%
,
3/15/31
.........................................
United
States
690,000
663,371
c
APLD
ComputeCo
3
LLC
,
Senior
Secured
Note
,
144A,
7
%
,
6/15/31
.........................................
United
States
350,000
337,418
c
APLD
ComputeCo
LLC
,
Senior
Secured
Note
,
144A,
9.25
%
,
12/15/30
........................................
United
States
725,000
765,119
c
Black
Pearl
Compute
LLC
,
Senior
Secured
Note
,
144A,
6.125
%
,
2/15/31
.........................................
United
States
400,000
400,756
c
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
d
Senior
Bond,
144A,
5.375%,
6/01/29
...................
United
States
500,000
491,327
d
Senior
Bond,
144A,
4.5%,
8/15/30
.....................
United
States
1,700,000
1,583,339
Senior
Bond,
144A,
4.25%,
2/01/31
....................
United
States
200,000
180,514
Senior
Bond,
144A,
4.25%,
1/15/34
....................
United
States
365,000
304,644
Senior
Note,
144A,
7%,
2/01/33
......................
United
States
200,000
195,374
c
Cipher
Compute
LLC
,
Senior
Secured
Note
,
144A,
7.125
%
,
11/15/30
........................................
United
States
385,000
390,253
c
Edged
Compute
LLC
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/30/31
United
States
1,100,000
1,044,420
c
Galaxy
Helios
Data
Centers
II
LLC
,
Senior
Secured
Note
,
144A,
9.875
%
,
8/01/31
...................................
United
States
675,000
669,035
c
PR
RNO
Property
Owner
1
LLC
,
Senior
Secured
Note
,
144A,
6.5
%
,
5/01/31
....................................
United
States
765,000
709,597
c
SV
RNO
Property
Owner
1
LLC
,
Senior
Secured
Note
,
144A,
5.875
%
,
3/01/31
...................................
United
States
610,000
560,342
c
WULF
Compute
LLC
,
Senior
Secured
Note
,
144A,
7.75
%
,
10/15/30
........................................
United
States
560,000
582,174
c
Yondr
JK
1
LLC
,
Senior
Secured
Note
,
144A,
6.875
%
,
6/30/31
.
United
States
510,000
478,224
9,355,907
Electric
Utilities
1.6%
c,d
California
Buyer
Ltd.
/
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
6.375
%
,
2/15/32
....................
United
Kingdom
1,500,000
1,478,312
c
NRG
Energy,
Inc.
,
Senior
Bond,
144A,
6%,
1/15/36
......................
United
States
665,000
646,974
d
Senior
Note,
144A,
5.75%,
7/15/29
....................
United
States
800,000
799,064
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electric
Utilities
(continued)
c
Vistra
Operations
Co.
LLC
,
d
Senior
Note,
144A,
4.375%,
5/01/29
...................
United
States
400,000
$
391,387
Senior
Note,
144A,
7.75%,
10/15/31
...................
United
States
100,000
104,193
3,419,930
Electronic
Equipment,
Instruments
&
Components
0.2%
c,d
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
......
United
States
500,000
481,886
Energy
Equipment
&
Services
2.1%
c
Archrock
Services
LP
/
Archrock
Partners
Finance
Corp.
,
Senior
Note
,
144A,
6
%
,
2/01/34
............................
United
States
805,000
793,871
c
Borr
IHC
Ltd.
/
Borr
Finance
LLC
,
Senior
Secured
Note,
144A,
8.75%,
1/15/32
.............
Mexico
255,000
247,818
Senior
Secured
Note,
144A,
9%,
1/15/34
................
Mexico
205,000
198,322
c
Kodiak
Gas
Services
LLC
,
Senior
Note
,
144A,
5.875
%
,
4/01/31
.
United
States
385,000
384,029
c
Nabors
Industries,
Inc.
,
Senior
Note,
144A,
9.125%,
1/31/30
...................
United
States
254,000
266,567
Senior
Note,
144A,
8.875%,
8/15/31
...................
United
States
255,000
266,941
c
Oceaneering
International,
Inc.
,
Senior
Note
,
144A,
6.875
%
,
7/15/34
.........................................
United
States
285,000
294,284
Transocean
International
Ltd.
,
Senior
Bond,
6.8%,
3/15/38
..........................
United
States
600,000
570,029
c
Senior
Note,
144A,
8.25%,
5/15/29
....................
United
States
100,000
103,969
c
Senior
Note,
144A,
7.875%,
10/15/32
..................
United
States
90,000
94,547
c
Senior
Secured
Note,
144A,
8.75%,
2/15/30
.............
United
States
520,000
541,142
c
Weatherford
International
Ltd.
,
d
Senior
Note,
144A,
8.625%,
4/30/30
...................
United
States
184,000
186,317
Senior
Note,
144A,
6.75%,
10/15/33
...................
United
States
590,000
602,085
4,549,921
Entertainment
1.0%
c,d
Banijay
Entertainment
SAS
,
Senior
Secured
Note
,
144A,
8.125
%
,
5/01/29
.........................................
France
800,000
821,734
Discovery
Global
Holdings,
Inc.
,
Senior
Bond,
5.05%,
3/15/42
.........................
United
States
350,000
255,353
Senior
Note,
4.054%,
3/15/29
........................
United
States
520,000
515,143
c
OAK-Eagle
Acquireco,
Inc.
,
Senior
Note,
144A,
8.75%,
7/01/34
....................
United
States
260,000
276,106
Senior
Secured
Note,
144A,
7.25%,
7/01/33
.............
United
States
310,000
322,604
2,190,940
Financial
Services
3.5%
c
CrossCountry
Intermediate
HoldCo
LLC
,
Senior
Note,
144A,
6.5%,
10/01/30
....................
United
States
430,000
419,104
Senior
Note,
144A,
7.75%,
8/15/31
....................
United
States
380,000
380,682
Senior
Note,
144A,
6.75%,
12/01/32
...................
United
States
625,000
599,028
c
Freedom
Mortgage
Holdings
LLC
,
Senior
Note,
144A,
9.25%,
2/01/29
....................
United
States
300,000
310,337
Senior
Note,
144A,
6.875%,
5/01/31
...................
United
States
300,000
287,837
d
Senior
Note,
144A,
8.375%,
4/01/32
...................
United
States
650,000
653,513
Senior
Note,
144A,
7.875%,
4/01/33
...................
United
States
325,000
313,083
c
GGAM
Finance
Ltd.
,
Senior
Note
,
144A,
8
%
,
6/15/28
........
Ireland
700,000
724,918
c
Osaic
Holdings,
Inc.
,
Senior
Note,
144A,
8%,
8/01/33
......................
United
States
500,000
512,424
Senior
Secured
Note,
144A,
6.75%,
8/01/32
.............
United
States
235,000
236,576
c
PHH
Escrow
Issuer
LLC
/
PHH
Corp.
,
Senior
Note
,
144A,
9.875
%
,
11/01/29
..................................
United
States
1,800,000
1,778,857
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Financial
Services
(continued)
c
Rocket
Cos.,
Inc.
,
Senior
Note,
144A,
6.125%,
8/01/31
...................
United
States
945,000
$
957,540
Senior
Note,
144A,
6.375%,
8/01/33
...................
United
States
400,000
405,640
7,579,539
Food
Products
1.5%
c
Chobani
LLC
/
Chobani
Finance
Corp.,
Inc.
,
Senior
Note,
144A,
7.625%,
7/01/29
...................
United
States
200,000
205,983
Senior
Note,
144A,
6.375%,
4/15/34
...................
United
States
265,000
267,880
d
Senior
Secured
Note,
144A,
4.625%,
11/15/28
...........
United
States
800,000
793,095
c
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.....
United
States
200,000
201,199
c
Froneri
Lux
FinCo
SARL
,
Senior
Secured
Note
,
144A,
6
%
,
8/01/32
.........................................
United
Kingdom
920,000
908,563
c,d
Post
Holdings,
Inc.
,
Senior
Bond
,
144A,
4.625
%
,
4/15/30
.....
United
States
400,000
385,763
c
TreeHouse
Foods,
Inc.
,
Senior
Secured
Note
,
144A,
7.75
%
,
2/11/33
.........................................
United
States
475,000
480,806
3,243,289
Ground
Transportation
0.9%
c
Beacon
Mobility
Corp.
,
Senior
Secured
Note
,
144A,
7.25
%
,
8/01/30
.........................................
United
States
260,000
267,555
c,d
First
Student
Bidco,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
.....................
United
States
900,000
880,287
c
Watco
Cos.
LLC
/
Watco
Finance
Corp.
,
Senior
Note
,
144A,
7.125
%
,
8/01/32
...................................
United
States
660,000
680,608
1,828,450
Health
Care
Equipment
&
Supplies
0.4%
c
Bausch
+
Lomb
Corp.
,
Senior
Secured
Note
,
144A,
8.375
%
,
10/01/28
........................................
United
States
400,000
410,812
c,d
Medline
Borrower
LP
,
Senior
Note
,
144A,
5.25
%
,
10/01/29
....
United
States
500,000
497,426
908,238
Health
Care
Providers
&
Services
3.1%
d
Centene
Corp.
,
Senior
Bond
,
2.5
%
,
3/01/31
...............
United
States
500,000
436,804
c
CHS/Community
Health
Systems,
Inc.
,
144A,
10.75%,
6/15/33
.............................
United
States
500,000
531,582
Secured
Note,
144A,
6.125%,
4/01/30
..................
United
States
500,000
427,796
Senior
Secured
Note,
144A,
6%,
1/15/29
................
United
States
300,000
296,727
Senior
Secured
Note,
144A,
10.875%,
1/15/32
...........
United
States
288,000
305,962
c
DaVita,
Inc.
,
d
Senior
Note,
144A,
4.625%,
6/01/30
...................
United
States
1,200,000
1,160,216
Senior
Note,
144A,
6.875%,
9/01/32
...................
United
States
200,000
204,960
c,d
Kedrion
SpA
,
Senior
Secured
Note
,
144A,
6.5
%
,
9/01/29
......
Italy
1,500,000
1,503,291
c
MPH
Acquisition
Holdings
LLC
,
Senior
Secured
Note,
144A,
5.75%,
12/31/30
............
United
States
90,027
77,271
e
Senior
Secured
Note,
144A,
PIK,
11.5%,
12/31/30
.........
United
States
148,379
145,957
e
Senior
Secured
Note,
144A,
PIK,
6.75%,
3/31/31
.........
United
States
780,903
545,256
Tenet
Healthcare
Corp.
,
Senior
Secured
Note,
6.125%,
6/15/30
.................
United
States
575,000
579,676
d
Senior
Secured
Note,
6.75%,
5/15/31
..................
United
States
500,000
510,884
6,726,382
Health
Care
REITs
0.9%
c
Diversified
Healthcare
Trust
,
Senior
Secured
Note
,
144A,
7.25
%
,
10/15/30
........................................
United
States
1,190,000
1,220,568
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Health
Care
REITs
(continued)
c,d
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Secured
Note
,
144A,
8.5
%
,
2/15/32
....................
United
States
750,000
$
760,945
1,981,513
Health
Care
Technology
0.4%
c,d
IQVIA,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
6/01/32
.............
United
States
925,000
942,908
Hotel
&
Resort
REITs
0.9%
c
Pebblebrook
Hotel
LP
/
PEB
Finance
Corp.
,
Senior
Note
,
144A,
6.375
%
,
10/15/29
..................................
United
States
355,000
361,978
c
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
d
Senior
Note,
144A,
7.25%,
7/15/28
....................
United
States
300,000
305,468
d
Senior
Note,
144A,
6.5%,
4/01/32
.....................
United
States
700,000
713,129
Senior
Note,
144A,
6.5%,
6/15/33
.....................
United
States
275,000
280,667
c
XHR
LP
,
Senior
Note
,
144A,
6.625
%
,
5/15/30
..............
United
States
200,000
203,813
1,865,055
Hotels,
Restaurants
&
Leisure
4.3%
c
A&K
Travel
Group
Holdings
Ltd.
,
Senior
Note
,
144A,
7.5
%
,
5/15/33
.........................................
United
Kingdom
450,000
458,021
c
Allwyn
Entertainment
Financing
UK
plc
,
Senior
Secured
Note
,
144A,
7.875
%
,
4/30/29
..............................
United
Kingdom
800,000
819,984
c,d
Carnival
Corp.
Ltd.
,
Senior
Note
,
144A,
5.75
%
,
8/01/32
.......
United
States
835,000
827,381
c
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.................
United
States
1,300,000
1,273,435
c
Great
Canadian
Gaming
Corp.
/
Raptor
LLC
,
Senior
Secured
Note
,
144A,
8.75
%
,
11/15/29
.........................
Canada
660,000
664,617
c
Hilton
Domestic
Operating
Co.,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
9/15/31
.........................................
United
States
815,000
812,456
c,d
Mohegan
Tribal
Gaming
Authority
/
MS
Digital
Entertainment
Holdings
LLC
,
Senior
Secured
Note
,
144A,
8.25
%
,
4/15/30
..
United
States
650,000
678,872
c
NCL
Corp.
Ltd.
,
Senior
Note,
144A,
6.75%,
2/01/32
....................
United
States
160,000
155,765
Senior
Note,
144A,
6.25%,
9/15/33
....................
United
States
320,000
299,518
c
Rivers
Enterprise
Borrower
LLC
,
Senior
Secured
Note
,
144A,
6.25
%
,
10/15/30
...................................
United
States
275,000
278,851
c
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note,
144A,
6.25%,
3/15/32
....................
United
States
300,000
304,305
Senior
Note,
144A,
6%,
2/01/33
......................
United
States
300,000
301,893
c
Station
Casinos
LLC
,
Senior
Bond,
144A,
4.625%,
12/01/31
..................
United
States
150,000
141,551
Senior
Note,
144A,
4.5%,
2/15/28
.....................
United
States
250,000
247,633
c
Viking
Cruises
Ltd.
,
d
Senior
Note,
144A,
7%,
2/15/29
......................
United
States
600,000
602,890
Senior
Note,
144A,
5.875%,
10/15/33
..................
United
States
520,000
514,875
c,d
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.125
%
,
2/15/31
.........................
United
States
800,000
840,334
9,222,381
Household
Durables
2.3%
c
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
d
Senior
Note,
144A,
4.625%,
8/01/29
...................
United
States
1,200,000
1,168,121
Senior
Note,
144A,
6.875%,
8/01/33
...................
United
States
70,000
70,316
c,d
Dream
Finders
Homes,
Inc.
,
Senior
Note
,
144A,
8.25
%
,
8/15/28
United
States
500,000
510,012
c
K.
Hovnanian
Enterprises,
Inc.
,
Senior
Note,
144A,
8%,
4/01/31
......................
United
States
150,000
154,383
Senior
Note,
144A,
8.375%,
10/01/33
..................
United
States
225,000
230,509
d
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
..............
United
States
600,000
573,692
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Household
Durables
(continued)
c
Weekley
Homes
LLC
/
Weekley
Finance
Corp.
,
d
Senior
Note,
144A,
4.875%,
9/15/28
...................
United
States
1,300,000
$
1,283,227
Senior
Note,
144A,
6.75%,
1/15/34
....................
United
States
435,000
441,202
Whirlpool
Corp.
,
Senior
Bond,
4.5%,
6/01/46
..........................
United
States
250,000
141,839
c
Senior
Secured
Note,
144A,
7.5%,
7/01/31
..............
United
States
155,000
155,584
c
Senior
Secured
Note,
144A,
7.875%,
7/01/34
............
United
States
260,000
255,001
4,983,886
Household
Products
0.1%
c
Energizer
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
3/31/29
..
United
States
200,000
194,124
Independent
Power
and
Renewable
Electricity
Producers
1.6%
c
Clearway
Energy
Operating
LLC
,
d
Senior
Bond,
144A,
3.75%,
1/15/32
....................
United
States
400,000
361,654
Senior
Note,
144A,
4.75%,
3/15/28
....................
United
States
400,000
397,022
Senior
Note,
144A,
3.75%,
2/15/31
....................
United
States
300,000
276,809
Senior
Note,
144A,
5.75%,
1/15/34
....................
United
States
145,000
140,214
c
Leeward
Renewable
Energy
Operations
LLC
,
Senior
Note
,
144A,
4.25
%
,
7/01/29
...................................
United
States
1,000,000
957,438
c
Talen
Energy
Supply
LLC
,
Senior
Bond,
144A,
6.5%,
2/01/36
.....................
United
States
590,000
579,324
Senior
Note,
144A,
6.375%,
5/01/33
...................
United
States
435,000
429,734
Senior
Note,
144A,
6.25%,
2/01/34
....................
United
States
370,000
363,495
3,505,690
Insurance
1.1%
c
Acrisure
LLC
/
Acrisure
Finance,
Inc.
,
Senior
Note,
144A,
8.5%,
6/15/29
.....................
United
States
400,000
363,663
Senior
Secured
Note,
144A,
7.5%,
11/06/30
.............
United
States
400,000
368,373
c,d
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Secured
Note
,
144A,
7
%
,
1/15/31
................
United
States
500,000
508,136
c
Asurion
LLC
/
Asurion
Co-Issuer,
Inc.
,
Secured
Note,
144A,
8.375%,
2/01/34
..................
United
States
695,000
627,718
Senior
Secured
Note,
144A,
8%,
12/31/32
...............
United
States
550,000
547,598
2,415,488
IT
Services
0.9%
c
Cogent
Communications
Group
LLC
/
Cogent
Finance,
Inc.
,
d
Senior
Note,
144A,
7%,
6/15/27
......................
United
States
700,000
664,405
Senior
Secured
Note,
144A,
6.5%,
7/01/32
..............
United
States
765,000
586,890
c,d
Fortress
Intermediate
3,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
6/01/31
.........................................
United
States
600,000
614,068
1,865,363
Machinery
1.8%
c,d
ATS
Corp.
,
Senior
Note
,
144A,
4.125
%
,
12/15/28
...........
Canada
1,300,000
1,260,961
c,d
Calderys
Financing
LLC
,
Senior
Secured
Note
,
144A,
11.25
%
,
6/01/28
.........................................
France
800,000
828,994
c
ESAB
Corp.
,
d
Senior
Note,
144A,
6.25%,
4/15/29
....................
United
States
600,000
607,669
Senior
Note,
144A,
5.625%,
4/01/31
...................
United
States
325,000
322,878
d
Hillenbrand,
Inc.
,
Senior
Secured
Note
,
6.25
%
,
2/15/29
.......
United
States
600,000
595,845
c
Terex
Corp.
,
Senior
Note
,
144A,
6.25
%
,
10/15/32
...........
United
States
170,000
171,677
3,788,024
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Media
3.8%
c
Block
Communications,
Inc.
,
Senior
Secured
Note
,
144A,
10.25
%
,
3/01/31
...................................
United
States
540,000
$
470,371
c
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
....................
United
States
300,000
300,000
Senior
Secured
Note,
144A,
7.5%,
3/15/33
..............
United
States
700,000
738,206
c
CSC
Holdings
LLC
,
Senior
Bond,
144A,
3.375%,
2/15/31
...................
United
States
300,000
156,234
Senior
Note,
144A,
11.25%,
5/15/28
...................
United
States
700,000
390,734
Senior
Note,
144A,
11.75%,
1/31/29
...................
United
States
200,000
110,990
c
Directv
Financing
LLC
,
Senior
Secured
Note
,
144A,
8.875
%
,
2/01/30
.........................................
United
States
150,000
153,644
c
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note,
144A,
5.875%,
8/15/27
............
United
States
13,000
12,972
Senior
Secured
Note,
144A,
9.25%,
6/01/32
.............
United
States
800,000
835,600
c
EW
Scripps
Co.
(The)
,
Secured
Note
,
144A,
9.875
%
,
8/15/30
..
United
States
750,000
677,047
c
Gray
Media,
Inc.
,
Secured
Note,
144A,
9.625%,
7/15/32
..................
United
States
390,000
400,624
Senior
Bond,
144A,
5.375%,
11/15/31
..................
United
States
300,000
233,770
c,d
McGraw-Hill
Education,
Inc.
,
Senior
Secured
Note
,
144A,
7.375
%
,
9/01/31
...................................
United
States
800,000
822,130
c
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
...........
United
States
200,000
193,320
c
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Bond
,
144A,
4.625
%
,
3/15/30
.........................
United
States
75,000
72,726
Paramount
Global
,
Senior
Bond,
6.875%,
4/30/36
........................
United
States
150,000
139,524
Senior
Bond,
4.375%,
3/15/43
........................
United
States
230,000
145,857
Senior
Bond,
5.85%,
9/01/43
.........................
United
States
300,000
219,246
c,d
Sinclair
Television
Group,
Inc.
,
Senior
Secured
Note
,
144A,
8.125
%
,
2/15/33
...................................
United
States
800,000
832,608
c
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
9.375%,
8/01/32
............
United
States
145,000
148,067
Senior
Secured
Note,
144A,
8.875%,
4/15/33
............
United
States
415,000
410,455
c
VZ
Secured
Financing
BV
,
Senior
Secured
Note
,
144A,
7.5
%
,
1/15/33
.........................................
Netherlands
895,000
810,445
8,274,570
Metals
&
Mining
2.3%
c
Capstone
Copper
Corp.
,
Senior
Note
,
144A,
6.75
%
,
3/31/33
...
Canada
240,000
243,855
c
Cleveland-Cliffs,
Inc.
,
Senior
Note,
144A,
7%,
3/15/32
......................
United
States
340,000
343,405
Senior
Note,
144A,
7.625%,
1/15/34
...................
United
States
565,000
576,837
Commercial
Metals
Co.
,
d
Senior
Bond,
3.875%,
2/15/31
........................
United
States
700,000
659,263
c
Senior
Bond,
144A,
6%,
12/15/35
.....................
United
States
445,000
439,667
c
Senior
Note,
144A,
5.75%,
11/15/33
...................
United
States
225,000
221,587
c
Constellium
SE
,
d
Senior
Note,
144A,
3.75%,
4/15/29
....................
United
States
600,000
576,898
Senior
Note,
144A,
6.375%,
8/15/32
...................
United
States
400,000
403,474
c
Mineral
Resources
Ltd.
,
Senior
Note,
144A,
7%,
4/01/31
......................
Australia
295,000
304,329
Senior
Note,
144A,
6%,
5/01/32
......................
Australia
200,000
197,517
c
Novelis
Corp.
,
Senior
Bond,
144A,
3.875%,
8/15/31
...................
United
States
100,000
91,508
Senior
Note,
144A,
6.875%,
1/30/30
...................
United
States
300,000
308,394
Senior
Note,
144A,
6.375%,
8/15/33
...................
United
States
680,000
681,982
5,048,716
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.2%
c
Starwood
Property
Trust,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
1/15/31
United
States
445,000
$
441,318
Oil,
Gas
&
Consumable
Fuels
7.3%
c,d
Antero
Resources
Corp.
,
Senior
Note
,
144A,
5.375
%
,
3/01/30
..
United
States
700,000
700,191
c
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note,
144A,
9.75%,
2/15/31
....................
United
States
305,000
330,636
d
Senior
Secured
Note,
144A,
9.25%,
7/15/29
.............
United
States
800,000
817,000
c
Coronado
Finance
Pty.
Ltd.
,
Senior
Secured
Note
,
144A,
9.25
%
,
10/01/29
........................................
Australia
950,000
810,673
c
Crescent
Energy
Finance
LLC
,
Senior
Note,
144A,
7.875%,
4/15/32
...................
United
States
375,000
387,628
Senior
Note,
144A,
7.375%,
1/15/33
...................
United
States
295,000
301,431
d
Senior
Note,
144A,
8.375%,
1/15/34
...................
United
States
800,000
844,684
c
DT
Midstream,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
6/15/29
......
United
States
300,000
293,097
c,d
Hess
Midstream
Operations
LP
,
Senior
Note
,
144A,
6.5
%
,
6/01/29
United
States
500,000
510,597
c
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
7.25%,
2/15/35
....................
United
States
200,000
201,690
d
Senior
Note,
144A,
6%,
4/15/30
......................
United
States
600,000
599,750
d
Senior
Note,
144A,
8.375%,
11/01/33
..................
United
States
700,000
742,680
c
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
......
United
States
400,000
402,140
c
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note
,
144A,
11.5
%
,
2/15/28
...................
United
States
1,700,000
1,732,278
Murphy
Oil
Corp.
,
Senior
Note,
6%,
10/01/32
..........................
United
States
260,000
259,432
Senior
Note,
6.5%,
2/15/34
..........................
United
States
480,000
478,700
c
Neo
Next+
Energy
Consolidated
Holdings
Ltd.
,
Senior
Note
,
144A,
Reg
S,
6.625
%
,
6/11/31
........................
United
Kingdom
400,000
399,324
c,d
Northriver
Midstream
Finance
LP
,
Senior
Secured
Note
,
144A,
6.75
%
,
7/15/32
...................................
Canada
600,000
611,882
c
Saturn
Oil
&
Gas,
Inc.
,
Senior
Note
,
144A,
8.5
%
,
7/30/31
.....
Canada
375,000
389,485
c
Sunoco
LP
,
Senior
Note,
144A,
5.375%,
7/15/31
...................
United
States
95,000
93,754
d
Senior
Note,
144A,
7.25%,
5/01/32
....................
United
States
500,000
517,320
Senior
Note,
144A,
5.625%,
7/15/34
...................
United
States
55,000
53,446
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note
,
4.5
%
,
5/15/29
United
States
200,000
195,717
c
Venture
Global
Calcasieu
Pass
LLC
,
d
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
............
United
States
300,000
280,484
Senior
Secured
Bond,
144A,
6%,
5/01/36
...............
United
States
80,000
79,713
d
Senior
Secured
Note,
144A,
3.875%,
8/15/29
............
United
States
300,000
287,585
c
Venture
Global
LNG,
Inc.
,
d
Senior
Secured
Note,
144A,
9.5%,
2/01/29
..............
United
States
1,100,000
1,183,505
d
Senior
Secured
Note,
144A,
8.375%,
6/01/31
............
United
States
500,000
520,119
Senior
Secured
Note,
144A,
9.875%,
2/01/32
............
United
States
400,000
426,573
c
Venture
Global
Plaquemines
LNG
LLC
,
Senior
Secured
Bond,
144A,
7.75%,
5/01/35
.............
United
States
200,000
222,528
d
Senior
Secured
Bond,
144A,
6.75%,
1/15/36
.............
United
States
490,000
516,051
Senior
Secured
Note,
144A,
6.125%,
12/15/30
...........
United
States
45,000
45,962
Senior
Secured
Note,
144A,
7.5%,
5/01/33
..............
United
States
200,000
217,356
Senior
Secured
Note,
144A,
6.5%,
1/15/34
..............
United
States
295,000
305,202
Senior
Secured
Note,
144A,
6.5%,
6/15/34
..............
United
States
45,000
46,554
15,805,167
Paper
&
Forest
Products
0.1%
c
Magnera
Corp.
,
Senior
Secured
Note
,
144A,
4.75
%
,
11/15/29
..
United
States
300,000
283,468
Passenger
Airlines
0.4%
c
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
..............................
United
States
525,000
524,020
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Passenger
Airlines
(continued)
c,d
United
Airlines,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
4/15/29
United
States
300,000
$
295,630
819,650
Personal
Care
Products
0.5%
c,d
Opal
Bidco
SAS
,
Senior
Secured
Note
,
144A,
6.5
%
,
3/31/32
...
France
950,000
959,581
Pharmaceuticals
0.5%
c
Endo
Finance
Holdings
LP
,
Senior
Secured
Note
,
144A,
8.5
%
,
4/15/31
.........................................
United
States
200,000
210,933
d
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
4.75%,
5/09/27
.........................
Israel
600,000
599,573
Senior
Note,
8.125%,
9/15/31
........................
Israel
300,000
335,936
1,146,442
Professional
Services
0.2%
c
CACI
International,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/33
..
United
States
425,000
430,922
Real
Estate
Management
&
Development
0.3%
c
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
3/15/33
.......
United
States
700,000
704,322
Semiconductors
&
Semiconductor
Equipment
0.2%
c
Qnity
Electronics,
Inc.
,
Senior
Note,
144A,
6.25%,
8/15/33
....................
United
States
140,000
141,099
Senior
Secured
Note,
144A,
5.75%,
8/15/32
.............
United
States
240,000
238,761
379,860
Software
1.0%
c
Gen
Digital,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
4/01/33
.........
United
States
250,000
250,095
c
McAfee
Corp.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
..........
United
States
800,000
724,257
c
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
......
United
States
1,100,000
1,079,185
2,053,537
Specialized
REITs
1.3%
c
Iron
Mountain,
Inc.
,
d
Senior
Bond,
144A,
5.625%,
7/15/32
...................
United
States
300,000
294,855
d
Senior
Note,
144A,
7%,
2/15/29
......................
United
States
700,000
712,870
Senior
Note,
144A,
6.25%,
1/15/35
....................
United
States
355,000
351,508
c
Millrose
Properties,
Inc.
,
Senior
Note,
144A,
6.375%,
8/01/30
...................
United
States
1,125,000
1,141,639
Senior
Note,
144A,
6.25%,
9/15/32
....................
United
States
375,000
376,619
2,877,491
Specialty
Retail
0.6%
c,d
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
........
United
States
700,000
662,555
c
PetSmart
LLC
/
PetSmart
Finance
Corp.
,
Senior
Secured
Note
,
144A,
7.5
%
,
9/15/32
...............................
United
States
595,000
601,055
1,263,610
Technology
Hardware,
Storage
&
Peripherals
0.3%
d
Seagate
Data
Storage
Technology
Pte.
Ltd.
,
Senior
Note
,
5.875
%
,
7/15/30
.........................................
United
States
550,000
559,090
Textiles,
Apparel
&
Luxury
Goods
0.4%
c,e
Beach
Acquisition
Bidco
LLC
,
Senior
Note
,
144A,
PIK,
10
%
,
7/15/33
.........................................
United
States
758,915
814,970
Trading
Companies
&
Distributors
1.2%
c
EquipmentShare.com,
Inc.
,
Secured
Note,
144A,
9%,
5/15/28
.....................
United
States
655,000
669,580
d
Secured
Note,
144A,
8.625%,
5/15/32
..................
United
States
745,000
775,628
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Trading
Companies
&
Distributors
(continued)
c
WESCO
Distribution,
Inc.
,
Senior
Note,
144A,
6.375%,
3/15/29
...................
United
States
400,000
$
406,638
Senior
Note,
144A,
5.25%,
4/15/31
....................
United
States
235,000
231,672
Senior
Note,
144A,
6.375%,
3/15/33
...................
United
States
450,000
457,307
2,540,825
Wireless
Telecommunication
Services
1.3%
c
Altice
France
Lux
3
/
Altice
Holdings
1
,
Senior
Note
,
144A,
10
%
,
1/15/33
.........................................
Luxembourg
300,000
292,603
c,d
Connect
Finco
SARL
/
Connect
US
Finco
LLC
,
Senior
Secured
Note
,
144A,
9
%
,
9/15/29
............................
United
Kingdom
1,300,000
1,361,063
b,g
Digicel
Group
Holdings
Ltd.
,
37.6%
,
11/17/33
..............
Bermuda
26,418
2,642
c
Iliad
Holding
SAS
,
d
Senior
Secured
Note,
144A,
7%,
10/15/28
...............
France
800,000
802,342
Senior
Secured
Note,
144A,
7%,
4/15/32
................
France
425,000
428,987
2,887,637
Total
Corporate
Bonds
(Cost
$161,446,677)
...................................
160,039,329
h
Senior
Floating
Rate
Interests
0.0%
†
IT
Services
0.0%
†
e
Diamond
Sports
Net
LLC,
First
Lien,
Exit
Term
Loan,
PIK,
12%,
1/03/28
.........................................
United
States
25,719
4,844
Total
Senior
Floating
Rate
Interests
(Cost
$25,096)
............................
4,844
i
Marketplace
Loans
0.2%
b
Financial
Services
0.2%
a
a
a
a
a
a
Total
Marketplace
Loans
(Cost
$518,703)
.....................................
423,402
Municipal
Bonds
0.2%
Arizona
0.2%
c
Maricopa
County
Industrial
Development
Authority
,
Grand
Canyon
University
Obligated
Group
,
Revenue
,
144A,
2024
,
7.375
%
,
10/01/29
........................................
United
States
430,000
445,490
Total
Municipal
Bonds
(Cost
$431,797)
.......................................
445,490
Shares
a
Escrows
and
Litigation
Trusts
0.0%
†
a,b
Endo
GUC
Trust,
Escrow
Account
.......................
United
States
51,454
—
a,b
Expand
Energy
Corp.,
Escrow
Account
...................
United
States
1,500,000
2
Total
Escrows
and
Litigation
Trusts
(Cost
$–)
.................................
2
Total
Long
Term
Investments
(Cost
$197,398,460)
.............................
264,429,236
a
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
Short
Term
Investments
3.3%
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Money
Market
Funds
3.3%
j,k
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.629%
.........................................
United
States
7,164,662
$
7,164,662
Total
Money
Market
Funds
(Cost
$7,164,662)
.................................
7,164,662
Total
Short
Term
Investments
(Cost
$7,164,662
)
...............................
7,164,662
a
Total
Investments
(Cost
$204,563,122)
126.1%
................................
$271,593,898
l
Credit
Facility
(27.9)%
......................................................
(60,000,000)
Other
Assets,
less
Liabilities
1.8%
...........................................
3,707,464
Net
Assets
100.0%
.........................................................
$215,301,362
a
a
a
See
Abbreviations
on
page
39
.
*
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
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,
2026,
the
aggregate
value
of
these
securities
was
$151,478,355,
representing
70.4%
of
net
assets.
d
A
portion
or
all
of
the
security
is
pledged
as
collateral
in
connection
with
the
Fund’s
credit
facility.
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
See
Note
3(c)
regarding
investments
in
affiliated
management
investment
companies.
k
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
l
See
Note
7
regarding
credit
facility.
Franklin
Universal
Trust
Schedule
of
Investments,
August
31,
2026
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
At
August
31,
2026,
the
Fund
had
the
following
marketplace
loans
outstanding.
See
Note
1(d).
Description
Principal
Amount
Value
Marketplace
Loans
-
0.2%
Freedom
Financial
Asset
Management
LLC
APP-10704368.FP.FTS.B,
14.99%,
10/16/26
..........................
$
870
$
873
APP-10845328.FP.FTS.B,
11.99%,
11/16/26
1,671
1,676
APP-10848002.FP.FTS.B,
17.99%,
11/19/26
..........................
1,382
1,395
APP-11094577.FP.FTS.B,
19.49%,
12/08/26
..........................
1,148
1,170
APP-11021456.FP.FTS.B,
20.99%,
12/15/26
..........................
3,408
3,476
APP-11007668.FP.FTS.B,
19.99%,
12/19/26
..........................
1,730
1,763
APP-11111264.FP.FTS.B,
16.49%,
12/20/26
1,034
1,042
APP-11677084.FP.FTS.B,
15.49%,
12/26/26
..........................
3,853
3,877
APP-11844341.FP.FTS.B,
16.74%,
2/01/27
4,206
4,250
APP-12397051.FP.FTS.B,
17.49%,
2/06/27
1,695
1,719
a
APP-11743079.FP.FTS.B,
16.24%,
2/07/27
8,611
2,297
APP-11674918.FP.FTS.B,
20.49%,
2/25/27
3,966
4,077
APP-10848317.FP.FTS.B,
12.24%,
2/28/27
3,320
3,360
APP-12106158.FP.FTS.B,
11.24%,
3/07/27
2,206
2,219
APP-12341500.FP.FTS.B,
20.49%,
3/20/27
2,788
2,876
APP-12270734.FP.FTS.B,
16.99%,
3/21/27
2,935
2,973
APP-13513406.FP.FTS.B,
14.34%,
4/01/27
8,784
8,845
APP-11744634.FP.FTS.B,
19.99%,
5/01/27
5,149
5,293
APP-08710316.FP.FTS.B,
10.99%,
5/13/27
5,323
5,362
APP-13498730.FP.FTS.B,
11.34%,
5/15/27
3,520
3,551
APP-11845152.FP.FTS.B,
11.74%,
5/15/27
3,120
3,132
APP-13507352.FP.FTS.B,
20.49%,
5/19/27
1,598
1,631
APP-11801830.FP.FTS.B,
16.49%,
5/31/27
5,423
3,393
APP-12304720.FP.FTS.B,
18.74%,
7/06/27
6,500
6,596
APP-15057995.FP.FTS.B,
18.99%,
7/23/27
2,411
2,448
APP-15058449.FP.FTS.B,
11.99%,
7/25/27
2,626
2,655
APP-15078317.FP.FTS.B,
13.99%,
7/25/27
4,670
4,729
APP-15053719.FP.FTS.B,
16.99%,
7/28/27
2,553
2,596
APP-15053776.FP.FTS.B,
17.49%,
7/30/27
2,936
3,023
APP-15048744.FP.FTS.B,
16.49%,
7/31/27
6,043
6,225
APP-15053141.FP.FTS.B,
18.99%,
9/15/27
1,312
1,326
APP-15039962.FP.FTS.B,
12.49%,
10/28/27
..........................
13,791
10,526
APP-14860724.FP.FTS.B,
20.99%,
12/26/27
..........................
2,186
2,246
APP-15070181.FP.FTS.B,
19.99%,
2/15/28
2,679
2,720
APP-15070551.FP.FTS.B,
24.74%,
4/27/28
7,107
7,485
APP-13256383.FP.FTS.B,
7.99%,
9/18/36
.
281
281
APP-10460831.FP.FTS.B,
21.99%,
9/19/36
178
179
123,285
Happen,
Inc.
-
LCX
PM
185284755.LC.FTS.B,
20.24%,
1/21/27
...
2,984
3,023
184608676.LC.FTS.B,
21.99%,
1/21/27
...
5,564
–
184862697.LC.FTS.B,
13.19%,
1/28/27
...
1,820
1,836
185553869.LC.FTS.B,
17.44%,
1/31/27
...
5,423
–
185801067.LC.FTS.B,
15.19%,
2/04/27
...
2,058
2,070
185785605.LC.FTS.B,
16.99%,
2/04/27
...
3,556
3,588
186037923.LC.FTS.B,
23.49%,
2/12/27
...
1,128
1,150
Description
Principal
Amount
Value
Happen,
Inc.
-
LCX
PM
(continued)
185788975.LC.FTS.B,
20.44%,
2/15/27
...
$
6,236
$
6,319
188818650.LC.FTS.B,
20.99%,
4/26/27
...
1,282
1,310
188684882.LC.FTS.B,
23.99%,
4/26/27
...
1,443
1,474
188821742.LC.FTS.B,
23.99%,
4/27/27
...
4,198
4,335
188825826.LC.FTS.B,
23.49%,
4/28/27
...
2,089
2,156
188877761.LC.FTS.B,
25.99%,
4/28/27
...
1,407
1,445
188652977.LC.FTS.B,
23.99%,
5/24/27
...
1,001
193
185215933.LC.FTS.B,
28.99%,
6/25/27
...
7,806
–
a
185440062.LC.FTS.B,
17.49%,
2/25/28
...
9,668
1,228
186004411.LC.FTS.B,
5%,
2/28/28
......
5,763
5,981
185828353.LC.FTS.B,
22.99%,
2/08/35
...
4,949
–
36,108
Prosper
Funding
LLC
1644875.PS.FTS.B,
11.6%,
10/26/26
....
328
329
1645337.PS.FTS.B,
18.48%,
10/27/26
...
1,617
1,641
1651868.PS.FTS.B,
9.45%,
11/08/26
....
855
855
1658185.PS.FTS.B,
10.5%,
11/08/26
....
569
570
1660066.PS.FTS.B,
12.6%,
11/10/26
....
2,315
2,319
1666359.PS.FTS.B,
21%,
11/15/26
......
502
506
1666890.PS.FTS.B,
17%,
11/20/26
......
2,263
2,276
1651871.PS.FTS.B,
20.66%,
11/20/26
....
490
494
1651913.PS.FTS.B,
25.67%,
11/22/26
....
813
821
1672316.PS.FTS.B,
10.44%,
12/14/26
...
1,094
1,095
1675010.PS.FTS.B,
12.5%,
12/20/26
....
507
507
1685637.PS.FTS.B,
11.7%,
12/28/26
....
3,407
3,444
1672718.PS.FTS.B,
14.38%,
1/07/27
....
1,011
1,012
a
1689173.PS.FTS.B,
11.2%,
1/14/27
.....
5,535
–
1695787.PS.FTS.B,
11.7%,
1/14/27
.....
2,678
2,684
1701108.PS.FTS.B,
15.7%,
1/15/27
.....
3,375
3,408
1702455.PS.FTS.B,
15.18%,
1/20/27
....
1,951
1,953
1689251.PS.FTS.B,
19%,
1/21/27
.......
513
520
1707746.PS.FTS.B,
9.45%,
2/14/27
.....
858
859
1720917.PS.FTS.B,
13.7%,
2/15/27
.....
1,658
1,683
1714648.PS.FTS.B,
16.7%,
2/15/27
.....
1,052
1,067
1721346.PS.FTS.B,
16.7%,
2/15/27
.....
2,806
2,855
1703169.PS.FTS.B,
25.6%,
2/25/27
.....
4,518
4,716
1753011.PS.FTS.B,
12%,
4/06/27
.......
2,561
2,559
1744328.PS.FTS.B,
14.89%,
4/15/27
....
3,701
3,740
1752654.PS.FTS.B,
12.76%,
4/30/27
....
3,072
3,105
a
1750735.PS.FTS.B,
16%,
5/15/27
.......
2,626
–
a
1607291.PS.FTS.B,
28.59%,
7/18/27
....
671
–
1666362.PS.FTS.B,
19%,
8/23/27
.......
1,059
739
1672730.PS.FTS.B,
13.8%,
9/14/27
.....
8,583
8,679
1678354.PS.FTS.B,
11.07%,
9/20/27
....
4,300
2,928
1685634.PS.FTS.B,
12.5%,
11/14/27
....
2,833
1,752
1705005.PS.FTS.B,
15%,
1/15/28
.......
9,434
9,474
1609277.PS.FTS.B,
15.7%,
8/23/36
.....
25
23
1611746.PS.FTS.B,
14.29%,
8/27/36
....
212
–
a
1610327.PS.FTS.B,
27.6%,
9/17/36
.....
1,934
292
1635897.PS.FTS.B,
12%,
9/23/36
.......
484
486
1637445.PS.FTS.B,
13.3%,
9/27/36
.....
473
475
69,866
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upgrade,
Inc.
-
Card
992301470.UG.FTS.B,
28.98%,
1/02/27
..
$
61
$
53
992238906.UG.FTS.B,
22.97%,
6/03/29
..
2,660
2,680
2,733
Upstart
Network,
Inc.
FW1902353.UP.FTS.B,
5.71%,
10/22/26
..
536
529
FW1901571.UP.FTS.B,
16.95%,
10/22/26
.
612
606
L1902683.UP.FTS.B,
25.19%,
10/22/26
...
684
677
L1901951.UP.FTS.B,
25.24%,
10/22/26
...
137
136
FW1902836.UP.FTS.B,
25.41%,
10/22/26
.
1,162
1,149
FW1901303.UP.FTS.B,
31.21%,
10/22/26
.
243
240
FW1900628.UP.FTS.B,
31.23%,
10/22/26
.
70
69
FW1902299.UP.FTS.B,
31.27%,
10/27/26
.
323
320
L2032147.UP.FTS.B,
11.65%,
11/12/26
...
517
511
FW2032727.UP.FTS.B,
12.91%,
11/12/26
.
232
229
L2032226.UP.FTS.B,
14.31%,
11/12/26
...
1,467
1,449
L2032373.UP.FTS.B,
14.92%,
11/12/26
...
520
514
L2033008.UP.FTS.B,
17.14%,
11/12/26
...
463
458
L2031479.UP.FTS.B,
17.32%,
11/12/26
...
1,354
1,338
L2030806.UP.FTS.B,
19.55%,
11/12/26
...
303
298
FW2032947.UP.FTS.B,
19.59%,
11/12/26
.
1,986
1,962
L2032060.UP.FTS.B,
20.25%,
11/12/26
...
459
452
L2032456.UP.FTS.B,
20.93%,
11/12/26
...
112
110
L2032183.UP.FTS.B,
24.12%,
11/12/26
...
1,087
912
FW2032753.UP.FTS.B,
27.55%,
11/12/26
.
114
113
FW2032946.UP.FTS.B,
27.87%,
11/12/26
.
1,703
1,677
FW2031644.UP.FTS.B,
30.67%,
11/12/26
.
166
164
FW2032325.UP.FTS.B,
31.07%,
11/12/26
.
111
109
L2031623.UP.FTS.B,
9.89%,
11/16/26
....
2,149
2,123
L2101522.UP.FTS.B,
12.34%,
11/23/26
...
2,194
2,171
L2102939.UP.FTS.B,
13.35%,
11/23/26
...
234
231
L2102751.UP.FTS.B,
16.5%,
11/23/26
....
284
282
FW2102941.UP.FTS.B,
20.37%,
11/23/26
.
1,528
1,512
L2102400.UP.FTS.B,
22.64%,
11/23/26
...
395
391
L2101750.UP.FTS.B,
24.17%,
11/23/26
...
854
772
FW2102727.UP.FTS.B,
24.84%,
11/23/26
.
333
330
L2103842.UP.FTS.B,
25.11%,
11/23/26
...
334
331
L2102028.UP.FTS.B,
25.89%,
11/23/26
...
506
501
FW2101678.UP.FTS.B,
26.5%,
11/23/26
..
346
342
FW2103284.UP.FTS.B,
27.1%,
11/23/26
..
221
219
L2250662.UP.FTS.B,
8.88%,
12/14/26
....
894
883
L2249279.UP.FTS.B,
9.09%,
12/14/26
....
554
251
L2251398.UP.FTS.B,
9.28%,
12/14/26
....
656
647
FW2251249.UP.FTS.B,
10.34%,
12/14/26
.
1,594
1,574
a
L2248805.UP.FTS.B,
10.51%,
12/14/26
...
1,651
160
L2249903.UP.FTS.B,
11.03%,
12/14/26
...
254
251
L2247235.UP.FTS.B,
13.18%,
12/14/26
...
353
349
L2249248.UP.FTS.B,
16.43%,
12/14/26
...
1,038
1,027
L2249629.UP.FTS.B,
17.8%,
12/14/26
....
531
524
L2249412.UP.FTS.B,
19.96%,
12/14/26
...
157
156
L2251409.UP.FTS.B,
20.71%,
12/14/26
...
1,239
1,223
L2251393.UP.FTS.B,
20.81%,
12/14/26
...
420
414
L2249780.UP.FTS.B,
21.14%,
12/14/26
...
830
818
L2250707.UP.FTS.B,
21.52%,
12/14/26
...
580
573
L2249149.UP.FTS.B,
21.87%,
12/14/26
...
1,053
1,040
FW2248314.UP.FTS.B,
21.92%,
12/14/26
.
369
363
L2251333.UP.FTS.B,
22.77%,
12/14/26
...
1,676
1,421
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
L2249765.UP.FTS.B,
23.67%,
12/14/26
...
$
435
$
429
L2250334.UP.FTS.B,
24.44%,
12/14/26
...
958
945
L2250314.UP.FTS.B,
24.91%,
12/14/26
...
402
397
L2249782.UP.FTS.B,
24.98%,
12/14/26
...
466
460
L2248144.UP.FTS.B,
25.08%,
12/14/26
...
541
534
L2249856.UP.FTS.B,
25.32%,
12/14/26
...
133
131
L2249823.UP.FTS.B,
25.41%,
12/14/26
...
90
89
a
FW2249041.UP.FTS.B,
31.12%,
12/14/26
.
223
48
FW2250974.UP.FTS.B,
31.12%,
12/14/26
.
574
467
a
FW2251410.UP.FTS.B,
31.25%,
12/14/26
.
1,399
101
L2141755.UP.FTS.B,
8.51%,
12/15/26
....
3,141
3,103
FW2253701.UP.FTS.B,
10.99%,
12/15/26
.
1,063
1,050
L2252976.UP.FTS.B,
16.75%,
12/15/26
...
547
541
FW2251546.UP.FTS.B,
19.76%,
12/15/26
.
1,528
1,509
L2252318.UP.FTS.B,
20.43%,
12/15/26
...
307
303
L2251727.UP.FTS.B,
20.77%,
12/15/26
...
263
260
L2252135.UP.FTS.B,
22.59%,
12/15/26
...
320
316
L2252447.UP.FTS.B,
25.4%,
12/15/26
....
135
133
FW2253392.UP.FTS.B,
25.5%,
12/15/26
..
973
961
a
FW2253542.UP.FTS.B,
31.19%,
12/15/26
.
554
40
L2251912.UP.FTS.B,
13.91%,
12/19/26
...
316
313
L2252296.UP.FTS.B,
8.02%,
12/26/26
....
1,189
1,174
L2251043.UP.FTS.B,
12.11%,
12/28/26
...
2,796
2,762
L2499407.UP.FTS.B,
5.37%,
1/24/27
....
4,690
4,618
L2497458.UP.FTS.B,
8.44%,
1/24/27
....
3,388
3,344
a
FW2499235.UP.FTS.B,
11.45%,
1/24/27
..
1,092
227
L2498730.UP.FTS.B,
14.35%,
1/24/27
....
697
689
L2497377.UP.FTS.B,
16.51%,
1/24/27
....
646
640
L2500130.UP.FTS.B,
18.16%,
1/24/27
....
846
838
a
L2500098.UP.FTS.B,
18.6%,
1/24/27
....
1,768
127
L2497754.UP.FTS.B,
19.19%,
1/24/27
....
382
378
L2499090.UP.FTS.B,
20.13%,
1/24/27
....
752
745
L2497527.UP.FTS.B,
21.34%,
1/24/27
....
640
634
FW2497553.UP.FTS.B,
23.05%,
1/24/27
..
2,096
2,076
L2500230.UP.FTS.B,
25.4%,
1/24/27
....
715
708
L2497705.UP.FTS.B,
25.44%,
1/24/27
....
692
599
FW2498744.UP.FTS.B,
26.78%,
1/24/27
..
1,407
1,394
FW2502639.UP.FTS.B,
4.89%,
1/25/27
...
1,236
1,217
L2443263.UP.FTS.B,
6.66%,
1/25/27
....
819
806
L2501608.UP.FTS.B,
7.8%,
1/25/27
.....
1,959
1,929
L2501547.UP.FTS.B,
8.21%,
1/25/27
....
719
709
L2502319.UP.FTS.B,
8.49%,
1/25/27
....
4,908
4,839
L2502134.UP.FTS.B,
9.38%,
1/25/27
....
3,062
3,023
L2501198.UP.FTS.B,
12.05%,
1/25/27
....
1,348
1,333
FW2502179.UP.FTS.B,
12.78%,
1/25/27
..
218
216
L2501977.UP.FTS.B,
12.89%,
1/25/27
....
4,113
4,068
L2500808.UP.FTS.B,
14.3%,
1/25/27
....
832
823
L2501876.UP.FTS.B,
14.91%,
1/25/27
....
456
451
L2501997.UP.FTS.B,
17.77%,
1/25/27
....
601
596
FW2501148.UP.FTS.B,
17.78%,
1/25/27
..
239
237
FW2501125.UP.FTS.B,
17.82%,
1/25/27
..
181
179
FW2500961.UP.FTS.B,
20.28%,
1/25/27
..
348
344
FW2501561.UP.FTS.B,
21.33%,
1/25/27
..
225
223
L2503424.UP.FTS.B,
21.51%,
1/25/27
....
1,258
1,246
L2502058.UP.FTS.B,
21.83%,
1/25/27
....
1,582
1,566
FW2503375.UP.FTS.B,
24.71%,
1/25/27
..
465
460
Franklin
Universal
Trust
Schedule
of
Investments
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
Description
Principal
Amount
Value
Marketplace
Loans
(continued)
Upstart
Network,
Inc.
(continued)
FW2503209.UP.FTS.B,
25.12%,
1/25/27
..
$
857
$
849
L2500860.UP.FTS.B,
25.49%,
1/25/27
....
170
169
FW2501330.UP.FTS.B,
26.47%,
1/25/27
..
801
794
FW2502187.UP.FTS.B,
26.63%,
1/25/27
..
701
695
FW2502652.UP.FTS.B,
27.68%,
1/25/27
..
700
693
FW2500797.UP.FTS.B,
28.58%,
1/25/27
..
238
236
a
FW2501430.UP.FTS.B,
31.03%,
1/25/27
..
490
100
FW2500654.UP.FTS.B,
31.21%,
1/25/27
..
147
146
FW2502276.UP.FTS.B,
33.54%,
1/25/27
..
810
803
a
FW2498422.UP.FTS.B,
31.2%,
2/01/27
...
315
22
FW1729970.UP.FTS.B,
18.27%,
2/17/27
..
5,309
4,508
a
L1729858.UP.FTS.B,
25.05%,
2/17/27
....
7,515
735
L2031108.UP.FTS.B,
11.34%,
4/12/27
....
8,256
8,142
FW2031845.UP.FTS.B,
15.93%,
4/12/27
..
2,978
2,121
L2972334.UP.FTS.B,
6.17%,
4/19/27
....
7,591
7,458
L2971286.UP.FTS.B,
7.38%,
4/19/27
....
3,891
3,823
L2967243.UP.FTS.B,
14.24%,
4/19/27
....
3,025
2,989
L2971759.UP.FTS.B,
16.29%,
4/19/27
....
1,358
1,347
L2972008.UP.FTS.B,
20.74%,
4/19/27
....
1,085
1,072
L2971841.UP.FTS.B,
25.2%,
4/19/27
....
92
7
FW2972220.UP.FTS.B,
26.42%,
4/19/27
..
858
849
L2971662.UP.FTS.B,
26.49%,
4/19/27
....
222
220
FW2972305.UP.FTS.B,
27.33%,
4/19/27
..
1,340
1,326
FW2972190.UP.FTS.B,
7.92%,
4/28/27
...
7,429
7,301
FW2102410.UP.FTS.B,
22.44%,
5/07/27
..
1,068
1,058
L2250820.UP.FTS.B,
13.59%,
5/14/27
....
537
530
L2250559.UP.FTS.B,
14.84%,
5/14/27
....
1,385
1,365
L2251037.UP.FTS.B,
19.7%,
5/14/27
....
402
399
FW2248500.UP.FTS.B,
23.6%,
5/14/27
...
670
661
L2249257.UP.FTS.B,
26.38%,
5/14/27
....
1,913
1,887
L2252476.UP.FTS.B,
9.18%,
5/15/27
....
1,598
1,573
L2252566.UP.FTS.B,
19.55%,
5/15/27
....
1,537
1,197
L2252234.UP.FTS.B,
21.66%,
5/15/27
....
1,271
433
a
FW2253234.UP.FTS.B,
28.94%,
5/15/27
..
4,405
317
FW2249414.UP.FTS.B,
19.5%,
6/01/27
...
1,735
1,713
L2032337.UP.FTS.B,
26.62%,
6/12/27
....
2,562
184
L2247268.UP.FTS.B,
14.22%,
6/14/27
....
13,232
8,751
L2497350.UP.FTS.B,
13.11%,
6/24/27
....
2,809
2,157
L2500224.UP.FTS.B,
25.04%,
6/24/27
....
1,706
1,356
L2501796.UP.FTS.B,
9.36%,
6/25/27
....
3,077
3,026
FW1729187.UP.FTS.B,
30.3%,
7/17/27
...
1,585
1,567
L1902855.UP.FTS.B,
19.55%,
8/22/27
....
334
24
L1901067.UP.FTS.B,
23.17%,
8/22/27
....
2,190
159
FW2249049.UP.FTS.B,
30.95%,
10/14/27
.
916
65
L2247794.UP.FTS.B,
12.65%,
10/15/27
...
869
857
a
FW2249158.UP.FTS.B,
11.8%,
10/28/27
..
3,922
722
FW2497574.UP.FTS.B,
12.62%,
11/24/27
.
8,245
8,132
L2498668.UP.FTS.B,
13.66%,
11/25/27
...
11,888
11,719
L2500727.UP.FTS.B,
19.88%,
11/25/27
...
2,019
1,999
L2500341.UP.FTS.B,
18.83%,
11/28/27
...
349
346
L2971527.UP.FTS.B,
13.17%,
1/19/28
....
1,486
107
FW1729657.UP.FTS.B,
9.44%,
9/17/36
...
146
144
L1730112.UP.FTS.B,
15.91%,
9/17/36
....
177
102
L1730290.UP.FTS.B,
23.01%,
9/17/36
....
209
206
Description
Principal
Amount
Value
Upstart
Network,
Inc.
(continued)
a
FW1729390.UP.FTS.B,
32.18%,
9/17/36
..
$
340
$
–
191,410
Total
Marketplace
Loans
(Cost
$518,703
)
$423,402
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,
2026
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
Franklin
Universal
Trust
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$197,398,460
Cost
-
Non-controlled
affiliates
(Note
3
c
)
........................................................
7,164,662
Value
-
Unaffiliated
issuers
..................................................................
$264,429,236
Value
-
Non-controlled
affiliates
(Note
3
c
)
.......................................................
7,164,662
Receivables:
Investment
securities
sold
...................................................................
1,413,146
Dividends
and
interest
.....................................................................
3,281,095
Total
assets
..........................................................................
276,288,139
Liabilities:
Payables:
Credit
facility
(Note
7
)
......................................................................
60,000,000
Management
fees
.........................................................................
172,776
Trustees'
fees
and
expenses
.................................................................
303
Accrued
interest
(Note
7)
...................................................................
307,417
Funds
advanced
by
custodian
.................................................................
266,412
Accrued
expenses
and
other
liabilities
...........................................................
239,869
Total
liabilities
.........................................................................
60,986,777
Net
assets,
at
value
.................................................................
$215,301,362
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$148,669,538
Total
distributable
earnings
(losses)
.............................................................
66,631,824
Net
assets,
at
value
.................................................................
$215,301,362
Shares
outstanding
.........................................................................
25,131,894
Net
asset
value
per
share
a
....................................................................
$8.57
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,
2026
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
Franklin
Universal
Trust
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$15,733)
Unaffiliated
issuers
........................................................................
$3,204,015
Non-controlled
affiliates
(Note
3
c
)
.............................................................
263,733
Interest:
Unaffiliated
issuers
........................................................................
12,008,858
Total
investment
income
...................................................................
15,476,606
Expenses:
Management
fees
(Note
3
a
)
...................................................................
2,098,194
Transfer
agent
fees
.........................................................................
40,776
Custodian
fees
.............................................................................
2,480
Reports
to
shareholders
fees
..................................................................
173,279
Professional
fees
...........................................................................
234,270
Trustees'
fees
and
expenses
..................................................................
2,419
Marketplace
lending
fees
(Note
1
d
)
.............................................................
273,832
Interest
expense
(Note
7)
.....................................................................
3,619,583
Other
....................................................................................
105,059
Total
expenses
.........................................................................
6,549,892
Expenses
waived/paid
by
affiliates
(Note
3
c
)
...................................................
(10,970)
Net
expenses
.........................................................................
6,538,922
Net
investment
income
................................................................
8,937,684
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
320,155
Foreign
currency
transactions
................................................................
(172)
Net
realized
gain
(loss)
..................................................................
319,983
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
6,261,664
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
..............................
(391)
Net
change
in
unrealized
appreciation
(depreciation)
............................................
6,261,273
Net
realized
and
unrealized
gain
(loss)
............................................................
6,581,256
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$15,518,940
Franklin
Universal
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
Franklin
Universal
Trust
Year
Ended
August
31,
2026
Year
Ended
August
31,
2025
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$8,937,684
$9,071,563
Net
realized
gain
(loss)
.................................................
319,983
3,787,293
Net
change
in
unrealized
appreciation
(depreciation)
...........................
6,261,273
6,364,764
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
15,518,940
19,223,620
Distributions
to
shareholders
..............................................
(8,704,755)
(12,211,739)
Distributions
to
shareholders
from
tax
return
of
capital
...........................
(4,112,511)
(605,527)
Total
distributions
to
shareholders
..........................................
(12,817,266)
(12,817,266)
Net
increase
(decrease)
in
net
assets
...................................
2,701,674
6,406,354
Net
assets:
Beginning
of
year
.......................................................
212,599,688
206,193,334
End
of
year
...........................................................
$215,301,362
$212,599,688
Franklin
Universal
Trust
Financial
Statements
Statement
of
Cash
Flows
for
the
year
ended
August
31,
2026
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
Franklin
Universal
Trust
Increase
(Decrease)
in
Cash:
Cash
flows
from
operating
activities:
Net
increase
in
net
assets
resulting
from
operating
activities
..............................................
$15,518,940
Adjustments
to
reconcile
net
increase
in
net
assets
resulting
from
operating
activities
to
net
cash
provided
by
operating
activities:
Purchases
of
long-term
investments
.............................................................
(51,978,587)
Sales
and
maturities
of
long-term
investments
......................................................
56,787,865
Net
purchases
of
short-term
investments
.........................................................
(1,085,508)
Realized
loss
on
foreign
currency
transactions
.....................................................
172
Net
accretion
of
discount
......................................................................
(267,382)
Reinvested
dividends
from
non-controlled
affiliates
..................................................
(263,733)
Interest
received
in
the
form
of
securities
..........................................................
(119,090)
Increase
in
dividends
and
interest
receivable
and
other
assets
..........................................
(180,838)
Decrease
in
receivable
for
investment
securities
sold
.................................................
820,431
Increase
in
funds
advanced
by
custodian
.........................................................
266,412
Increase
in
payable
to
affiliates,
accrued
expenses,
and
other
liabilities
...................................
49,901
Decrease
in
payable
for
investment
securities
purchased
.............................................
(205,254)
Net
realized
gain
on
investments
................................................................
(320,155)
Change
in
net
unrealized
appreciation
(depreciation)
of
investments
.....................................
(6,261,664)
Net
cash
provided
by
operating
activities
*
............................................................
12,761,510
Cash
flows
from
financing
activities:
Cash
distributions
to
shareholders
...............................................................
(12,817,266)
Net
cash
used
in
financing
activities
................................................................
(12,817,266)
Net
decrease
in
cash
...........................................................................
(55,756)
Cash
at
beginning
of
year
......................................................................
55,756
Cash
at
end
of
year
...........................................................................
$–
*
Included
in
operating
expenses
is
$3,619,583
paid
for
interest
on
borrowings.
Franklin
Universal
Trust
Notes
to
Financial
Statements
30
franklintempleton.com
Annual
Report
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
31
franklintempleton.com
Annual
Report
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
32
franklintempleton.com
Annual
Report
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,
2026, 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).
The
Fund's federal
and
state
income
and
federal
excise
tax
returns
for
the
prior
three
fiscal
years
are
subject
to
examination
by
the
Internal
Revenue
Service
and
state
departments
of
revenue.
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.
The
Fund
employs
a
distribution
policy
whereby
the
Fund
will
distribute
a
level
monthly
distribution
amount
to
shareholders.
The
Fund's
distribution
level
may
be
changed
by
the
Board
in
the
future.
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
33
franklintempleton.com
Annual
Report
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,
2026,
there
were
an
unlimited
number
of
shares
authorized
($0.01
par
value). During
the
years
ended
August
31,
2026
and
2025,
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,
2026
and
2025,
there
were
no
shares
repurchased.
3
.
Transactions
with
Affiliates
Effective
August
17,
2026,
Franklin
Resources,
Inc.
was
renamed
Franklin
Templeton,
Inc.
Franklin
Templeton,
Inc.
is
the
holding
company
for
various
subsidiaries.
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,
2026,
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
34
franklintempleton.com
Annual
Report
4.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
August
31,
2026,
the
capital
loss
carryforwards
were
as
follows:
For
tax
purposes,
the
Fund
may
elect
to
defer
any
portion
of
a
post-October
capital
loss
or
late-year
ordinary
loss
to
the
first
day
of
the
following
fiscal
year.
At
August
31,
2026,
the
Fund
deferred
late-year
ordinary
losses
of
$2,091.
The
tax
character
of
distributions
paid
during
the
years
ended
August
31,
2026
and
2025,
was
as
follows:
At
August
31,
2026,
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.
    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
Franklin
Institutional
U.S.
Government
Money
Market
Fund,
3.629%
............
$5,815,421
$49,704,480
$(48,355,239)
$—
$—
$7,164,662
7,164,662
$263,733
Total
Affiliated
Securities
...
$5,815,421
$49,704,480
$(48,355,239)
$—
$—
$7,164,662
$263,733
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
................................................................................
$
8,739
2026
2025
Distributions
paid
from:
Ordinary
income
..........................................................
$8,704,755
$8,557,992
Long
term
capital
gain
......................................................
—
3,653,747
Return
of
capital
...........................................................
4,112,511
605,527
$12,817,266
$12,817,266
Cost
of
investments
..........................................................................
$204,950,987
Unrealized
appreciation
........................................................................
$74,830,011
Unrealized
depreciation
........................................................................
(8,187,100)
Net
unrealized
appreciation
(depreciation)
..........................................................
$66,642,911
3
.
Transactions
with
Affiliates
(continued)
c.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
35
franklintempleton.com
Annual
Report
5.
Investment
Transactions
Purchases
and
sales
of
investments (excluding
short
term
securities) for
the
year
ended
August
31,
2026,
aggregated
$52,091,598 and
$56,989,463,
respectively. 
6.
Credit
Risk
and
Defaulted
Securities
At
August
31,
2026,
the
Fund
had 53.7% 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,
2026,
the
aggregate
value
of
these
securities
was
$211,380,
representing
0.1%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
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
matured
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,
2026,
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,
2026,
were
$60,000,000
and
5.95%,
respectively.
On
September
15,
2026,
the
Fund
entered
into
a
master
margin
loan
agreement
with
The
Bank
of
New
York
Mellon
(BNYM)
and
borrowed
$60
million
to
paydown
the
outstanding
Credit
Facility
borrowings
upon
maturity.
Under
the
terms
of
the
new
agreement,
the
Fund
may
borrow
up
to
a
maximum
commitment
amount
of
$70
million
and
pays
interest
expense
at
a
rate
equal
to
the
Secured
Overnight
Financing
Rate
(SOFR)
plus
0.80%. 
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)
Franklin
Universal
Trust
Notes
to
Financial
Statements
36
franklintempleton.com
Annual
Report
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,
2026,
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:
a
Common
Stocks
:
Electric
Utilities
........................
$
54,170,605
$
—
$
—
$
54,170,605
Metals
&
Mining
.......................
10,423,876
—
—
10,423,876
Multi-Utilities
..........................
32,676,180
—
—
32,676,180
Oil,
Gas
&
Consumable
Fuels
.............
3,749,824
203,063
—
3,952,887
Pharmaceuticals
.......................
—
303,081
—
303,081
Software
.............................
—
—
507
507
Convertible
Preferred
Stocks
................
937,013
—
—
937,013
Preferred
Stocks
.........................
464,750
—
—
464,750
Rights
.................................
—
19,482
—
19,482
Convertible
Bonds
.......................
—
567,788
—
567,788
Corporate
Bonds
:
Aerospace
&
Defense
...................
—
3,998,905
—
3,998,905
Automobile
Components
.................
—
4,498,503
—
4,498,503
Automobiles
..........................
—
1,097,699
—
1,097,699
Biotechnology
.........................
—
2,408,731
—
2,408,731
Broadline
Retail
.......................
—
1,568,281
—
1,568,281
Building
Products
......................
—
3,351,032
—
3,351,032
Capital
Markets
........................
—
810,767
—
810,767
Chemicals
...........................
—
4,942,435
—
b
4,942,435
Commercial
Services
&
Supplies
...........
—
3,195,113
—
3,195,113
Communications
Equipment
..............
—
527,696
—
527,696
Construction
&
Engineering
...............
—
398,743
—
398,743
Consumer
Finance
.....................
—
7,724,105
—
7,724,105
Consumer
Staples
Distribution
&
Retail
......
—
713,738
—
713,738
Containers
&
Packaging
.................
—
3,394,887
—
3,394,887
Distributors
...........................
—
534,783
—
534,783
Diversified
Consumer
Services
............
—
296,829
—
296,829
Diversified
REITs
......................
—
2,236,992
—
2,236,992
Diversified
Telecommunication
Services
.....
—
9,355,907
—
9,355,907
Electric
Utilities
........................
—
3,419,930
—
3,419,930
Electronic
Equipment,
Instruments
&
Components
........................
—
481,886
—
481,886
Energy
Equipment
&
Services
.............
—
4,549,921
—
4,549,921
Entertainment
.........................
—
2,190,940
—
2,190,940
Financial
Services
......................
—
7,579,539
—
7,579,539
Food
Products
........................
—
3,243,289
—
3,243,289
Ground
Transportation
..................
—
1,828,450
—
1,828,450
Health
Care
Equipment
&
Supplies
.........
—
908,238
—
908,238
Health
Care
Providers
&
Services
..........
—
6,726,382
—
6,726,382
Health
Care
REITs
.....................
—
1,981,513
—
1,981,513
Health
Care
Technology
.................
—
942,908
—
942,908
Hotel
&
Resort
REITs
...................
—
1,865,055
—
1,865,055
Hotels,
Restaurants
&
Leisure
.............
—
9,222,381
—
9,222,381
Household
Durables
....................
—
4,983,886
—
4,983,886
Household
Products
....................
—
194,124
—
194,124
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
3,505,690
—
3,505,690
Insurance
............................
—
2,415,488
—
2,415,488
IT
Services
...........................
—
1,865,363
—
1,865,363
8.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
37
franklintempleton.com
Annual
Report
A
reconciliation
in
which
Level
3
inputs
are
used
in
determining
fair
value
is
presented
when
there
are
significant
Level
3
assets
and/or
liabilities
at
the
beginning
and/or
end
of
the year.
At
August
31,
2026,
the
reconciliation
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Universal
Trust
(continued)
Assets:
(continued)
Investments
in
Securities:
a
(continued)
Corporate
Bonds:
(continued)
Machinery
............................
$
—
$
3,788,024
$
—
$
3,788,024
Media
...............................
—
8,274,570
—
8,274,570
Metals
&
Mining
.......................
—
5,048,716
—
5,048,716
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
441,318
—
441,318
Oil,
Gas
&
Consumable
Fuels
.............
—
15,805,167
—
15,805,167
Paper
&
Forest
Products
.................
—
283,468
—
283,468
Passenger
Airlines
.....................
—
819,650
—
819,650
Personal
Care
Products
.................
—
959,581
—
959,581
Pharmaceuticals
.......................
—
1,146,442
—
1,146,442
Professional
Services
...................
—
430,922
—
430,922
Real
Estate
Management
&
Development
....
—
704,322
—
704,322
Semiconductors
&
Semiconductor
Equipment
.
—
379,860
—
379,860
Software
.............................
—
2,053,537
—
2,053,537
Specialized
REITs
......................
—
2,877,491
—
2,877,491
Specialty
Retail
........................
—
1,263,610
—
1,263,610
Technology
Hardware,
Storage
&
Peripherals
.
—
559,090
—
559,090
Textiles,
Apparel
&
Luxury
Goods
..........
—
814,970
—
814,970
Trading
Companies
&
Distributors
..........
—
2,540,825
—
2,540,825
Wireless
Telecommunication
Services
.......
—
2,884,995
2,642
2,887,637
Senior
Floating
Rate
Interests
...............
—
4,844
—
4,844
Marketplace
Loans
.......................
—
—
423,402
423,402
Municipal
Bonds
.........................
—
445,490
—
445,490
Escrows
and
Litigation
Trusts
...............
—
—
2
b
2
Short
Term
Investments
...................
7,164,662
—
—
7,164,662
Total
Investments
in
Securities
...........
$109,586,910
$161,580,435
$426,553
$271,593,898
a
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
b
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
....
$
287,042
$
5
$
(253,363)
$
—
$
—
$
—
$
—
$
(33,684)
$
—
$
—
Software
..........
27,871
—
—
—
—
—
—
(27,364)
507
(27,364)
Corporate
Bonds
:
Chemicals
........
—
d
—
—
—
—
—
—
—
—
d
—
Hotels,
Restaurants
&
Leisure
.........
—
d
—
(1,762,609)
—
—
—
—
1,762,609
—
—
Oil,
Gas
&
Consumable
Fuels
..........
—
d
—
—
—
—
—
(790,481)
790,481
—
—
8.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
38
franklintempleton.com
Annual
Report
Level
3
financial
instruments
include
the
fair
value
of
immaterial
assets
and/or
liabilities
developed
using
various
valuation
techniques
and
unobservable
inputs.
9.
Distributions
Subsequent
to
August
31,
2026
The
following
distributions
have
been
declared
by
the
Fund’s
Board
and
are
payable
subsequent
to
the
period
end
of
this
report.
10.
Operating
Segments
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. 
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
Unrealized
Appreciation
(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
(continued)
Assets:
(continued)
Investments
in
Securities:
(continued)
Corporate
Bonds:
(continued)
Wireless
Telecommunication
Services
........
$
844
$
—
$
(253)
$
—
$
—
$
815
$
223
$
1,013
$
2,642
$
1,806
Marketplace
Loans
:
Financial
Services
...
1,959,866
32,468
(1,855,773)
—
—
—
64,607
222,234
423,402
(22,714)
Escrows
and
Litigation
Trusts
:
—
d
—
(24,486)
5,700
—
—
4,939
13,849
2
d
(5,698)
Total
Investments
in
Securities
............
$2,275,623
$32,473
$(3,896,484)
$5,700
$—
$815
$(720,712)
$2,729,138
$426,553
$(53,970)
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.
d
Includes
financial
instruments
determined
to
have
no
value.
Record
Date 
Payable
Date
Amount
9/23/2026
9/30/2026
$0.0425 
10/23/2026
10/30/2026
$0.0425 
11/20/2026 
11/30/2026 
$0.0425 
12/23/2026 
12/31/2026 
$0.0425 
8.
Fair
Value
Measurements
(continued)
Franklin
Universal
Trust
Notes
to
Financial
Statements
39
franklintempleton.com
Annual
Report
11.
New
Accounting
Pronouncements
In
September
2026,
the
FASB
issued
Accounting
Standards
Update
(ASU)
No.
2026-03,
Fair
Value
Measurement
(Topic
820)—Investment
Companies
with
Equity
Securities
Subject
to
Contractual
Sale
Restrictions.
The
amendments
in
the
ASU
require
contractual
sale
restrictions
to
be
considered
in
measuring
the
fair
value
of
equity
securities
and
require
disclosure
of
the
amount
of
the
discount
attributable
to
the
contractual
sale
restriction.
The
ASU
is
effective
for
interim
and
annual
reporting
periods
beginning
after
December
15,
2027,
with
early
adoption
permitted.
Management
is
currently
evaluating
the
impact
on
the
financial
statements.
12.
Subsequent
Events
The Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
PIK
Payment-In-Kind
REIT
Real
Estate
Investment
Trust
Franklin
Universal
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
40
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
and
Shareholders
of
Franklin
Universal
Trust
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
Universal
Trust
(the
"Fund")
as
of
August
31,
2026,
the
related
statements
of
operations
and
cash
flows
for
the
year
ended
August
31,
2026,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
August
31,
2026,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2026
(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,
2026,
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,
2026
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
ended
August
31,
2026
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,
2026
by
correspondence
with
the
custodians,
transfer
agent,
private
placement
agents,
broker
and
agent
bank;
when
replies
were
not
received
from
the
private
placement
agent
or
broker,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
/s/
PricewaterhouseCoopers
LLP
San
Francisco,
California
October
19,
2026
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Universal
Trust
Tax
Information
(unaudited)
41
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
fiscal
year.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
August
31,
2026:
Pursuant
to:
Amount
Reported
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$2,952,466
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$3,206,064
Qualified
Net
Interest
Income
(QII)
§871(k)(1)(C)
$5,548,251
Section
163(j)
Interest
Earned
§163(j)
$6,918,861
Franklin
Universal
Trust
Important
Information
to
Shareholders
(unaudited)
42
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Share
Repurchase
Program
The
Fund’s
Board
has
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.
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
highly
leveraged,
or
because
of
other
considerations.
In
addition,
high
yield
debt
instruments
generally
are
more
vulnerable
to
changes
in
the
relevant
economy,
such
Franklin
Universal
Trust
Important
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to
Shareholders
(unaudited)
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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.
Focus
To
the
extent
that
the
Fund
focuses
on
particular
countries,
regions,
industries,
sectors
or
types
of
investments
from
time
to
time,
the
Fund
may
be
subject
to
greater
risks
of
adverse
developments
in
such
areas
of
focus
than
a
fund
that
invests
in
a
wider
variety
of
countries,
regions,
industries,
sectors
or
investments.
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.
Ongoing
or
threatened
armed
conflicts
throughout
the
world
have
caused
and
could
continue
to
cause
significant
market
disruptions
and
volatility.
The
hostilities
and
sanctions
resulting
from
those
hostilities
have
and
could
continue
to
have
a
significant
impact
on
certain
investments
of
the
Fund
as
well
as
the
Fund’s
performance
and
liquidity.
Stock
prices
tend
to
go
up
and
down
more
dramatically
than
those
of
debt
securities.
A
slower-growth
or
recessionary
economic
environment
could
have
an
adverse
effect
on
the
prices
of
the
various
stocks
held
by
the
Fund.
Franklin
Universal
Trust
Important
Information
to
Shareholders
(unaudited)
44
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When-Issued
and
Delayed
Delivery
Transactions
Mortgage-backed
securities
may
be
issued
on
a
when-
issued
or
delayed
delivery
basis,
where
payment
and
delivery
take
place
at
a
future
date.
Because
the
market
price
of
the
security
may
fluctuate
during
the
time
before
payment
and
delivery,
the
Fund
assumes
the
risk
that
the
value
of
the
security
at
delivery
may
be
more
or
less
than
the
purchase
price.
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.
Leverage
is
a
speculative
technique
that
may
expose
the
Fund
to
greater
risk
and
increased
costs.
Leverage
tends
to
magnify,
sometimes
significantly,
the
effect
of
any
increase
or
decrease
in
the
Fund’s
exposure
to
an
asset
or
class
of
assets
and
may
cause
the
Fund’s
NAV
per
share
to
be
volatile.
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
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
Franklin
Universal
Trust
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Shareholders
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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.
Portfolio
Management
Changes
Effective
June
30,
2026,
Bryant
Dieffenbacher
and
Robert
Salvin
were
added
as
Portfolio
Managers
of
the
Fund.
As
of
June
30,
2026,
Patricia
O’Connor
retired
from
the
firm
and
was
removed
as
a
Portfolio
Manager
of
the
Fund.
Franklin
Universal
Trust
Annual
Meeting
of
Shareholders:
March
9,
2026
(unaudited)
46
franklintempleton.com
Annual
Report
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
9,
2026.
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:
Harris
J.
Ashton,
Edith
E.
Holiday
and
Rupert
H.
Johnson,
Jr.*
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:
*
Terrence
J.
Checki
,
Mary
C.
Choksi,
Gregory
E.
Johnson,
J.
Michael
Luttig
,
Larry
D.
Thompson
and
Valerie
M.
Williams
are
Trustees
of
the
Fund
who
are
currently
serving
and
whose
terms
of
office
continued
after
the
Annual
Meeting
of
Shareholders.
Term
Expiring
2029
For
%
of
Outstanding
Shares
%
of
Shares
Present
Withheld
%
of
Outstanding
Shares
%
of
Shares
Present
Harris
J.
Ashton
14,331,824
57.03%
80.33%
2,716,815
10.81%
15.23%
Edith
E.
Holiday
14,493,700
57.67%
81.24%
2,556,000
10.17%
14.33%
Rupert
H.
Johnson,
Jr.
16,446,373
65.44%
92.18%
572,438
2.28%
3.21%
Franklin
Universal
Trust
47
franklintempleton.com
Annual
Report
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.
Computershare
Trust
Company,
N.A.
(Plan
Agent),
P.O.
Box
43006
Providence,
RI
02940-
3078,
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
Computershare
Trust
Company,
N.A.
and
sent
to
Computershare
Trust
Company,
N.A.,
P.O.
Box
43006
Providence,
RI
02940-3078,
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)
48
franklintempleton.com
Annual
Report
You
will
receive
a
monthly
account
statement
from
the
Plan
Agent
showing
total
dividends
and
capital
gain
distributions,
date
of
investment,
shares
acquired
and
price
per
share,
and
total
shares
of
record
held
by
you
and
by
the
Plan
Agent
for
you.
You
are
entitled
to
vote
all
shares
of
record,
including
shares
purchased
for
you
by
the
Plan
Agent,
and,
if
you
vote
by
proxy,
your
proxy
will
include
all
such
shares.
As
long
as
you
participate
in
the
Plan,
the
Plan
Agent
will
hold
the
shares
it
has
acquired
for
you
in
safekeeping,
in
its
name
or
in
the
name
of
its
nominee.
This
convenience
provides
added
protection
against
loss,
theft
or
inadvertent
destruction
of
certificates.
However,
you
may
request
that
a
certificate
representing
your
Plan
shares
be
issued
to
you.
You
may
withdraw
from
the
Plan
without
penalty
at
any
time
by
notifying
the
Plan
Agent,
in
writing,
at
the
address
above.
If
you
withdraw,
you
will
receive,
without
charge,
stock
certificates
issued
in
your
name
for
all
full
shares.
The
Plan
Agent
will
convert
any
fractional
shares
you
hold
at
the
time
of
your
withdrawal
to
cash
at
current
market
price
and
send
you
a
check
for
the
proceeds.
If
you
hold
shares
in
your
own
name,
please
address
all
notices,
correspondence,
questions,
or
other
communications
regarding
the
Plan
to
the
Plan
Agent
at
the
address
noted
above.
If
your
shares
are
not
held
in
your
name,
you
should
contact
your
brokerage
firm,
bank,
or
other
nominee
for
more
information
and
to
determine
if
our
nominee
will
participate
in
the
Plan
on
your
behalf.
The
Fund
or
the
Plan
Agent
may
amend
or
terminate
the
Plan.
You
will
receive
written
notice
at
least
90
days
before
the
effective
date
of
termination
or
of
any
amendment.
In
the
case
of
termination,
you
will
receive
written
notice
at
least
90
days
before
the
record
date
of
any
dividend
or
capital
gain
distribution
by
the
Fund.
Franklin
Universal
Trust
Board
Members
and
Officers
(unaudited)
49
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Fund,
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
114
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).
Ann
Torre
Bates
(1958)*
Trustee
Since
August
2026
123**
Ares
Core
Infrastructure
Fund
(closed-end
management
investment
company
regulated
as
a
business
development
company)
(2024-present);
Ares
Strategic
Income
Fund
(closed-end
management
investment
company
regulated
as
a
business
development
company)
(2022-present);
Ares
Capital
Corporation
(closed-
end
management
investment
company
regulated
as
a
business
development
company)
(2010-present);
and
formerly
,
United
Natural
Foods,
Inc.
(food
distribution)
(2013-2023)
and
Navient
Corporation
(loan
management,
servicing
and
asset
recovery)
(2014-2016).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Executive
Vice
President
and
Chief
Financial
Officer,
NHP
Incorporated
(manager
of
multifamily
housing)
(1995-1997);
and
Vice
President
and
Treasurer,
US
Airways,
Inc.
(until
1995).
Terrence
J.
Checki
(1945)
Trustee
Since
2018
114
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-2025).
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).
Franklin
Universal
Trust
50
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Mary
C.
Choksi
(1950)
Trustee
Since
2014
114
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).
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee2004
and
Lead
Independent
Trustee
since
2019
114
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-
2025);
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
114
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
The
Coca-Cola
Company
(beverage
company)
(2021-2025);
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).
Independent
Board
Members
(continued)
Franklin
Universal
Trust
51
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Larry
D.
Thompson
(1945)
Trustee
Since
2007
114
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).
Valerie
M.
Williams
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
123
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
Templeton,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Templeton,
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
Templeton,
Inc.
Rupert
H.
Johnson,
Jr.
3
(1940)
Trustee
Since
1988
114
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Templeton,
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
Templeton,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton
fund
complex.
Independent
Board
Members
(continued)
Franklin
Universal
Trust
52
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
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.
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
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.
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).
Franklin
Universal
Trust
53
franklintempleton.com
Annual
Report
1.
Information
is
for
the
calendar
year
ended
December
31,
2025,
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
Templeton,
Inc.,
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
Franklin
Templeton,
Inc.,
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
*
Ms.
Bates
was
appointed
to
the
Board
of
Trustees
effective
August
1,
2026.
**
Information
is
estimated
as
of
August
1,
2026.
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.
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.
Interested
Board
Members
and
Officers
(continued)
Franklin
Universal
Trust
Shareholder
Information
54
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
(unaudited)
FRANKLIN
UNIVERSAL
TRUST
(Fund)
At
an
in-person
meeting
held
on
April
14,
2026
(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
FT’s
regular
updates
to
the
Board
on
strategic
initiatives,
ongoing
attention
to
the
service
level
quality
of
third-party
service
providers,
ongoing
efforts
to
modernize
its
mutual
fund
lineup,
mutual
fund
to
ETF
conversions,
integration
of
private
market
investments
into
existing
mutual
funds,
creation
of
additional
blockchain-compatible
money
market
funds,
and
sharpening
of
its
active,
income-oriented
offerings,
along
with
the
impact
on
FT
of
team
integrations
and
staff
reductions.
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
the
Manager’s
parent,
Franklin
Templeton,
Inc.
(FTI),
FTI’s
continued
growth
of
its
global,
multi-asset
franchise,
and
its
commitment
to
the
mutual
fund
business.
The
Board
further
noted
FTI’s
continued
reassessment
of
fund
offerings
in
response
to
FT
acquisitions
and
the
market
environment,
FTI’s
focus
on
technology-driven
transformation,
expansion
of
its
private
market
investment
capabilities
and
global
alternatives
platform,
and
leveraging
of
artificial
intelligence
(AI),
blockchain
and
digital
wealth
platforms.
Franklin
Universal
Trust
Shareholder
Information
55
franklintempleton.com
Annual
Report
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.
Fund
Performance
The
Board
reviewed
and
considered
the
performance
results
of
the
Fund
over
various
time
periods
ended
December
31,
2025.
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-
,
five-
and
10-year
periods
was
above
the
median
of
its
Performance
Universe,
but
for
the
three-year
period
was
below
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
nine
other
closed-end
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,
2025,
being
the
most
recent
fiscal
year-
end
for
FTI.
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.
Franklin
Universal
Trust
Shareholder
Information
56
franklintempleton.com
Annual
Report
The
Board
also
considered
the
extent
to
which
the
Manager
and
its
affiliates
might
derive
ancillary
benefits
from
fund
operations,
potential
benefits
resulting
from
personnel
and
systems
enhancements
necessitated
by
fund
growth,
as
well
as
increased
leverage
with
service
providers
and
counterparties.
Based
upon
its
consideration
of
all
these
factors,
the
Board
concluded
that
the
level
of
profits
realized
by
the
Manager
and
its
affiliates
from
providing
services
to
the
Fund
was
not
excessive
in
view
of
the
nature,
extent
and
quality
of
services
provided
to
the
Fund.
Economies
of
Scale
The
Board
reviewed
and
considered
the
extent
to
which
the
Manager
may
realize
economies
of
scale,
if
any,
as
the
Fund
grows
larger
and
whether
the
Fund’s
management
fee
structure
reflects
any
economies
of
scale
for
the
benefit
of
shareholders.
The
Board
believes
that
the
Manager’s
ability
to
realize
economies
of
scale
and
the
sharing
of
such
benefit
is
a
more
relevant
consideration
in
the
case
of
an
open-end
fund
whose
size
increases
as
a
result
of
the
continuous
sale
of
its
shares.
A
closed-end
fund,
such
as
the
Fund,
does
not
continuously
offer
shares,
and
growth
following
its
initial
public
offering
will
primarily
result
from
market
appreciation,
which
benefits
its
shareholders.
While
believing
economies
of
scale
to
be
less
of
a
factor
in
the
context
of
a
closed-end
fund,
the
Board
believes
at
some
point
an
increase
in
size
may
lead
to
economies
of
scale
that
would
be
shared
with
the
Fund
and
its
shareholders
and
intends
to
monitor
future
growth
of
the
Fund
accordingly.
The
Board
recognized
that
there
would
not
likely
be
any
economies
of
scale
for
the
Fund
until
the
Fund’s
assets
grow.
The
Board
considered
the
Manager’s
view
that
any
analyses
of
potential
economies
of
scale
in
managing
a
particular
fund
are
inherently
limited
in
light
of
the
joint
and
common
costs
and
investments
the
Manager
incurs
across
the
FT
family
of
funds
as
a
whole.
Conclusion
Based
on
its
review,
consideration
and
evaluation
of
all
factors
it
believed
relevant,
including
the
above-described
factors
and
conclusions,
the
Board
unanimously
approved
the
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
Fund
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
Fund
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.
gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
FUT-A
10/26
©
2026
Franklin
Templeton
Investments.
All
rights
reserved.
Investors
should
be
aware
that
the
value
of
investments
made
for
the
Fund
may
go
down
as
well
as
up.
Like
any
investment
in
securities,
the
value
of
the
Fund's
portfolio
will
be
subject
to
the
risk
of
loss
from
market,
currency,
economic,
political
and
other
factors.
The
Fund
and
its
investors
are
not
protected
from
such
losses
by
the
investment
manager.
Therefore,
investors
who
cannot
accept
this
risk
should
not
invest
in
shares
of
the
Fund.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Annual
Report
Franklin
Universal
Trust
Investment
Manager
Transfer
Agent
Franklin
Advisers,
Inc.
(800)
DIAL
BEN
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/
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