FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05569
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FRANKLIN UNIVERSAL TRUST
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(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Address of principal executive offices) (Zip code)
CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 8/31
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Date of reporting period: 11/30/06
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Item 1. Schedule of Investments.
Franklin Universal Trust
QUARTERLY STATEMENT OF INVESTMENTS
November 30, 2006
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CONTENTS
Statement of Investments ................................................... 3
Notes to Statement of Investments .......................................... 8
[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS
FRANKLIN o Templeton o Mutual Series
Quarterly Statement of Investments | 1
This page intentionally left blank.
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED)
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COUNTRY SHARES VALUE
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LONG TERM INVESTMENTS 126.2%
COMMON STOCKS 38.8%
NON-ENERGY MINERALS 1.3%
AngloGold Ashanti Ltd., ADR .......................................... South Africa 30,446 $ 1,468,106
Barrick Gold Corp. ................................................... Canada 35,800 1,125,552
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2,593,658
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PRODUCER MANUFACTURING 0.0% a
b Harvard Industries Inc. .............................................. United States 109,618 767
b,c,d VS Holdings Inc. ..................................................... United States 181,875 --
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767
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UTILITIES 37.5%
Alliant Energy Corp. ................................................. United States 55,000 2,139,500
Ameren Corp. ......................................................... United States 40,000 2,188,400
American Electric Power Co. Inc. ..................................... United States 30,000 1,245,300
Atmos Energy Corp. ................................................... United States 85,000 2,785,450
CenterPoint Energy Inc. .............................................. United States 226,600 3,704,910
Constellation Energy Group ........................................... United States 55,000 3,773,550
Dominion Resources Inc. .............................................. United States 70,000 5,651,800
DTE Energy Co. ....................................................... United States 45,000 2,119,050
Duke Energy Corp. .................................................... United States 124,700 3,955,484
Edison International ................................................. United States 65,000 2,988,700
Energy East Corp. .................................................... United States 42,000 1,026,060
Entergy Corp. ........................................................ United States 50,500 4,611,660
Exelon Corp. ......................................................... United States 104,000 6,315,920
FirstEnergy Corp. .................................................... United States 75,000 4,488,000
FPL Group Inc. ....................................................... United States 125,000 6,662,500
NiSource Inc. ........................................................ United States 80,000 1,972,800
NSTAR ................................................................ United States 37,800 1,329,804
Pinnacle West Capital Corp. .......................................... United States 76,000 3,749,840
Progress Energy Inc. ................................................. United States 70,000 3,343,900
Public Service Enterprise Group Inc. ................................. United States 62,200 4,181,084
The Southern Co. ..................................................... United States 170,000 6,162,500
TXU Corp. ............................................................ United States 24,000 1,377,360
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75,773,572
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TOTAL COMMON STOCKS (COST $52,125,111) ............................... 78,367,997
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PRINCIPAL AMOUNT e
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CORPORATE BONDS 85.3%
COMMERCIAL SERVICES 7.9%
Corrections Corp. of America, senior note, 7.50%, 5/01/11 ............ United States 1,500,000 1,548,750
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 ................ United States 2,342,000 2,564,490
Iron Mountain Inc., senior sub. note, 8.75%, 7/15/18 ................. United States 2,400,000 2,574,000
JohnsonDiversey Inc., senior sub. note, B, 9.625%, 5/15/12 ........... United States 3,000,000 3,120,000
f Lamar Media Corp., senior sub. note, 144A, 6.625%, 8/15/15 ........... United States 2,500,000 2,440,625
R.H. Donnelley Corp., senior note, 8.875%, 1/15/16 ................... United States 700,000 738,500
f Rental Service Corp., senior note, 144A, 9.50%, 12/01/14 United States 400,000 407,000
United Rentals North America Inc., senior sub. note, 7.75%,
11/15/13 ............................................................ United States 2,500,000 2,512,500
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15,905,865
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Quarterly Statement of Investments | 3
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT e VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
COMMUNICATIONS 8.4%
Dobson Cellular Systems Inc., senior secured note, 9.875%,
11/01/12 ............................................................ United States 1,900,000 $ 2,071,000
Inmarsat Finance II PLC, senior note, zero cpn. to 11/15/08,
10.375% thereafter, 11/15/12 ........................................ United Kingdom 2,700,000 2,480,625
Intelsat Bermuda Ltd., senior note, 8.25%, 1/15/13 ................... Bermuda 2,700,000 2,764,125
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 .... Luxembourg 2,300,000 2,504,125
Qwest Communications International Inc., senior note, 7.50%,
2/15/14 ............................................................. United States 2,000,000 2,070,000
f Wind Acquisition Finance SA, senior note, 144A, 10.75%, 12/01/15 ..... Italy 2,700,000 3,057,750
f Windstream Corp., senior note, 144A, 8.625%, 8/01/16 ................. United States 1,900,000 2,078,125
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17,025,750
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CONSUMER DURABLES 7.4%
Beazer Homes USA Inc., senior note, 8.125%, 6/15/16 .................. United States 2,000,000 2,085,000
Ford Motor Credit Co.,
5.625%, 10/01/08 ................................................... United States 2,000,000 1,953,064
senior note, 9.875%, 8/10/11 ....................................... United States 500,000 535,429
General Motors Acceptance Corp., 6.875%, 8/28/12 ..................... United States 2,700,000 2,785,706
General Motors Corp., senior deb., 8.25%, 7/15/23 .................... United States 1,000,000 916,250
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 ................. United States 1,400,000 1,421,000
KB Home, senior note,
6.25%, 6/15/15 ..................................................... United States 1,200,000 1,140,080
7.25%, 6/15/18 ..................................................... United States 1,300,000 1,297,459
Visant Holding Corp., senior note, 8.75%, 12/01/13 ................... United States 1,100,000 1,134,375
William Lyon Homes Inc., senior note, 7.625%, 12/15/12 ............... United States 1,900,000 1,610,250
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14,878,613
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CONSUMER NON-DURABLES 4.1%
Dole Foods Co., senior note, 7.25%, 6/15/10 .......................... United States 500,000 473,125
f Reynolds American Inc., senior secured note, 144A, 7.625%,
6/01/16 ............................................................. United States 2,500,000 2,680,165
Smithfield Foods Inc., senior note,
7.00%, 8/01/11 ..................................................... United States 1,500,000 1,548,750
7.75%, 5/15/13 ..................................................... United States 1,000,000 1,047,500
Spectrum Brands Inc., senior sub. note, 7.375%, 2/01/15 .............. United States 3,000,000 2,542,500
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8,292,040
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CONSUMER SERVICES 12.8%
c,d,g Atherton Franchise Capital, 13.073%, 12/01/08 ........................ United States 721,603 28,864
Cablevision Systems Corp., senior note, B, 8.00%, 4/15/12 ............ United States 2,500,000 2,468,750
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 ................. Canada 2,000,000 2,075,000
CCH II LLC, senior note, 10.25%, 9/15/10 ............................. United States 2,500,000 2,625,000
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 ................... United States 1,283,000 1,339,131
EchoStar DBS Corp., senior note, 7.125%, 2/01/16 ..................... United States 2,500,000 2,493,750
Host Marriott LP, senior note,
M, 7.00%, 8/15/12 .................................................. United States 2,000,000 2,040,000
O, 6.375%, 3/15/15 ................................................. United States 500,000 494,375
4 | Quarterly Statement of Investments
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT e VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ................. United States 1,500,000 $ 1,432,500
MGM MIRAGE Inc., senior note, 6.875%, 4/01/16 .......................... United States 2,500,000 2,434,375
Quebecor Media Inc., senior note, 7.75%, 3/15/16 ....................... Canada 1,900,000 1,933,250
Radio One Inc., senior sub. note, 6.375%, 2/15/13 ...................... United States 1,700,000 1,593,750
Royal Caribbean Cruises Ltd., senior note,
8.00%, 5/15/10 ....................................................... United States 1,200,000 1,283,416
6.875%, 12/01/13 ..................................................... United States 800,000 822,834
Station Casinos Inc.,
senior note, 6.00%, 4/01/12 .......................................... United States 500,000 482,500
senior sub. note, 6.50%, 2/01/14 ..................................... United States 300,000 282,375
senior sub. note, 6.875%, 3/01/16 .................................... United States 2,200,000 2,062,500
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25,892,370
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ELECTRONIC TECHNOLOGY 6.8%
f Bombardier Inc., senior note, 144A, 8.00%, 11/15/14 .................... Canada 800,000 808,000
DRS Technologies Inc., senior sub. note, 7.625%, 2/01/18 ............... United States 1,800,000 1,863,000
f,h Freescale Semiconductor Inc., senior note, 144A, 8.875%,
12/15/14 .............................................................. United States 2,200,000 2,216,500
L-3 Communications Corp., senior sub. note, 6.375%, 10/15/15 ........... United States 2,500,000 2,493,750
f NXP BV, 144A, 7.875%, 10/15/14 ......................................... Netherlands 1,900,000 1,961,750
Sanmina-SCI Corp., senior sub. note,
6.75%, 3/01/13 ....................................................... United States 2,000,000 1,870,000
8.125%, 3/01/16 ...................................................... United States 400,000 388,000
Solectron Global Finance Ltd., senior sub. note, 8.00%, 3/15/16 ........ United States 2,000,000 2,040,000
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13,641,000
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ENERGY MINERALS 4.6%
Chesapeake Energy Corp., senior note, 6.25%, 1/15/18 ................... United States 2,500,000 2,378,125
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ....................... United States 2,500,000 2,437,500
Massey Energy Co., senior note, 6.875%, 12/15/13 ....................... United States 2,500,000 2,337,500
Pogo Producing Co., senior sub. note,
f 144A, 7.875%, 5/01/13 ............................................... United States 300,000 309,000
6.875%, 10/01/17 .................................................... United States 2,000,000 1,925,000
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9,387,125
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HEALTH SERVICES 5.6%
DaVita Inc., senior sub. note, 7.25%, 3/15/15 .......................... United States 2,700,000 2,733,750
HCA Inc.,
senior note, 6.50%, 2/15/16 ......................................... United States 1,800,000 1,498,500
f senior secured note, 144A, 9.125%, 11/15/14 ......................... United States 1,400,000 1,466,500
Tenet Healthcare Corp., senior note, 7.375%, 2/01/13 ................... United States 3,000,000 2,752,500
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 .............................................................. United States 2,800,000 2,814,000
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11,265,250
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INDUSTRIAL SERVICES 3.5%
Allied Waste North America Inc., senior secured note, 6.50%,
11/15/10 .............................................................. United States 1,100,000 1,105,500
Copano Energy LLC, senior note, 8.125%, 3/01/16 ........................ United States 1,500,000 1,552,500
Quarterly Statement of Investments | 5
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT e VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
INDUSTRIAL SERVICES (CONTINUED)
Hanover Equipment Trust 01, senior secured note, B, 8.75%,
9/01/11 ............................................................... United States 2,500,000 $ 2,618,750
Markwest Energy Partners LP, senior note, 6.875%, 11/01/14 ............. United States 2,000,000 1,890,000
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7,166,750
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NON-ENERGY MINERALS 0.8%
f Novelis Inc., senior note, 144A, 7.25%, 2/15/15 ........................ Canada 1,700,000 1,640,500
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PROCESS INDUSTRIES 10.0%
Abitibi-Consolidated Co. of Canada, senior note, 8.375%, 4/01/15 ....... Canada 1,500,000 1,312,500
BCP Crystal Holdings Corp., senior sub. note, 9.625%, 6/15/14 .......... United States 1,785,000 1,967,962
Buckeye Technologies Inc., senior sub. note, 8.00%, 10/15/10 ........... United States 2,000,000 2,005,000
Crown Americas Inc., senior note, 7.75%, 11/15/15 ...................... United States 2,500,000 2,581,250
f Huntsman International LLC, senior note, 144A, 7.875%, 11/15/14 ........ United States 700,000 707,000
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 ...................... Ireland 2,500,000 2,412,500
Lyondell Chemical Co., senior note, 8.00%, 9/15/14 ..................... United States 1,200,000 1,243,500
Nalco Co., senior sub. note, 8.875%, 11/15/13 .......................... United States 2,000,000 2,125,000
Owens-Brockway Glass Container Inc., senior note, 6.75%, 12/01/14 ...... United States 2,000,000 1,940,000
Rhodia SA, senior note, 10.25%, 6/01/10 ................................ France 2,000,000 2,285,000
f Verso Paper Holdings LLC, senior secured note, 144A, 9.125%,
8/01/14 ............................................................... United States 1,500,000 1,567,500
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20,147,212
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PRODUCER MANUFACTURING 3.4%
Case New Holland Inc., senior note, 9.25%, 8/01/11 ..................... United States 2,500,000 2,665,625
Milacron Escrow Corp., senior secured note, 11.50%, 5/15/11 ............ United States 400,000 380,000
f RBS Global & Rexnord Corp., senior note, 144A, 9.50%, 8/01/14 .......... United States 2,000,000 2,095,000
TRW Automotive Inc., senior note, 9.375%, 2/15/13 ...................... United States 1,701,000 1,832,828
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6,973,453
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RETAIL TRADE 2.6%
GSC Holdings Corp., senior note, 8.00%, 10/01/12 ....................... United States 2,500,000 2,618,750
f Michaels Stores Inc., senior note, 144A, 10.00%, 11/01/14 .............. United States 2,500,000 2,565,625
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5,184,375
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TECHNOLOGY SERVICES 1.5%
d,g PSINet Inc.,
10.50%, 12/01/06 ..................................................... United States 700,000 70
senior note, 11.00%, 8/01/09 ......................................... United States 3,250,000 325
SunGard Data Systems Inc.,
senior note, 9.125%, 8/15/13 ......................................... United States 900,000 948,375
senior sub note, 10.25%, 8/15/15 ..................................... United States 1,900,000 2,023,500
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2,972,270
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TRANSPORTATION 0.6%
Great Lakes Dredge & Dock Co., senior sub. note, 7.75%, 12/15/13 ....... United States 1,200,000 1,158,000
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6 | Quarterly Statement of Investments
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2006 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT e VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
UTILITIES 5.3%
Aquila Inc., senior note, 14.875%, 7/01/12 ............................ United States 2,000,000 $ 2,625,000
Dynegy Holdings Inc., senior note, 8.75%, 2/15/12 ..................... United States 2,600,000 2,736,500
Midwest Generation LLC, senior secured note, 8.75%, 5/01/34 ........... United States 2,600,000 2,834,000
NRG Energy Inc., senior note, 7.375%,
2/01/16 ............................................................. United States 1,800,000 1,804,500
1/15/17 ............................................................. United States 700,000 700,000
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10,700,000
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TOTAL CORPORATE BONDS (COST $172,056,938) ............................. 172,230,573
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FOREIGN GOVERNMENT AND AGENCY SECURITIES 2.1%
GOVERNMENT BONDS 2.1%
Eskom, E168, 11.00%, 6/01/08 .......................................... South Africa 2,350,000 ZAR 336,758
Government of Mexico, 11.375%, 9/15/16 ................................ Mexico 2,750,000 3,971,000
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TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $3,514,405) .................................................... 4,307,758
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TOTAL LONG TERM INVESTMENTS (COST $227,696,454) ....................... 254,906,328
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SHARES
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SHORT TERM INVESTMENT (COST $2,093,138) 1.0%
MONEY MARKET FUND 1.0%
i Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.97% .. United States 2,093,138 2,093,138
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TOTAL INVESTMENTS (COST $229,789,592) 127.2% .......................... 256,999,466
NOTES PAYABLE (27.2)% ................................................. (55,000,000)
OTHER ASSETS, LESS LIABILITIES (0.0)% a ............................... (1,490)
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NET ASSETS 100.0% ..................................................... $ 201,997,976
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CURRENCY ABBREVIATIONS
ZAR - South African Rand
SELECTED PORTFOLIO ABBREVIATIONS
ADR - American Depository Receipt
a Rounds to less than 0.1% of net assets.
b Non-income producing for the twelve months ended November 30, 2006.
c See Note 2 regarding restricted securities.
d Security has been deemed illiquid because it may not be able to be sold
within seven days. At November 30, 2006, the aggregate value of these
securities was $29,259, representing 0.01% of net assets.
e The principal amount is stated in U.S. dollars unless otherwise indicated.
f Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and 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. These securities have been deemed liquid under
guidelines approved by the Fund's Board of Trustees. At November 30, 2006,
the aggregate value of these securities was $26,001,040, representing
12.87% of net assets.
g Defaulted security.
h Security purchased on a delayed delivery basis.
i The Franklin Institutional Fiduciary Trust Money Market Portfolio is
managed by the Fund's investment manager. The rate shown is the annualized
seven-day yield at period end.
Quarterly Statement of Investments | See Notes to Statement of Investments. | 7
Franklin Universal Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin Universal Trust (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, closed-end investment company.
1. INCOME TAXES
At November 30, 2006, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:
Cost of investments ........................................... $ 229,996,714
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Unrealized appreciation ....................................... $ 38,204,338
Unrealized depreciation ....................................... (11,201,586)
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Net unrealized appreciation (depreciation) .................... $ 27,002,752
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2. RESTRICTED SECURITIES
At November 30, 2006, the Fund held investments in restricted securities,
excluding 144A securities deemed to be liquid, valued in accordance with
procedures approved by the Fund's Board of Trustees as reflecting fair value, as
follows:
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PRINCIPAL AMOUNT/ ACQUISITION
SHARES ISSUER DATE COST VALUE
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721,603 Atherton Franchise Capital, 13.073%,
12/01/08 ........................................ 4/28/94 $ 721,603 $ 28,864
181,875 VS Holdings Inc. ................................. 12/06/01 181,875 --
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TOTAL RESTRICTED SECURITIES (0.01% of Net Assets) ........................... $ 28,864
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For information on the Fund's policy regarding valuation of investments and
other significant accounting policies, please refer to the Fund's most recent
semiannual or annual shareholder report.
8 | Quarterly Statement of Investments
Item 2. Controls and Procedures.
(a) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 and the Investment Company Act of 1940 is recorded,
processed, summarized and reported within the periods specified in the rules and
forms of the Securities and Exchange Commission. Such information is accumulated
and communicated to the Registrant's management, including its principal
executive officer and principal financial officer, as appropriate, to allow
timely decisions regarding required disclosure. The Registrant's management,
including the principal executive officer and the principal financial officer,
recognizes that any set of controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired
control objectives.
Within 90 days prior to the filing date of this Quarterly Schedule of Portfolio
Holdings on Form N-Q, the Registrant had carried out an evaluation, under the
supervision and with the participation of the Registrant's management, including
the Registrant's principal executive officer and the Registrant's principal
financial officer, of the effectiveness of the design and operation of the
Registrant's disclosure controls and procedures. Based on such evaluation, the
Registrant's principal executive officer and principal financial officer
concluded that the Registrant's disclosure controls and procedures are
effective.
(b) CHANGES IN INTERNAL CONTROLS. There have been no significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Quarterly Schedule of Portfolio Holdings
on Form N-Q.
Item 3. Exhibits.
(A) Certification pursuant to Section 30a-2 under the Investment Company Act of
1940 of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration,
and Galen G. Vetter, Chief Financial Officer.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
FRANKILN UNIVERSAL TRUST
By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date January 25, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /S/JIMMY D. GAMBILL
-------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date January 25, 2007
By /S/GALEN G. VETTER
-----------------
Galen G. Vetter
Chief Financial Officer
Date January 25, 2007
Exhibit A
I, Jimmy D. Gambill, certify that:
1. I have reviewed this report on Form N-Q of FRANKLIN UNIVERSAL TRUST;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to
the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
January 25, 2007
/S/JIMMY D. GAMBILL
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
I, Galen G. Vetter, certify that:
1. I have reviewed this report on Form N-Q of FRANKLIN UNIVERSAL TRUST;
2. Based on my knowledge, this report does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the schedules of investments included in this
report fairly present in all material respects the investments of the registrant
as of the end of the fiscal quarter for which the report is filed;
4. The registrant's other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined in
Rule 30a-3(c) under the Investment Company Act of 1940) and internal control
over financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our supervision, to
ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused
such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant's disclosure controls
and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of a date within 90
days prior to the filing date of this report, based on such evaluation; and
(d) Disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the registrant's most
recent fiscal quarter that has materially affected, or is reasonably likely to
materially affect, the registrant's internal control over financial reporting;
and
5. The registrant's other certifying officer(s) and I have disclosed to
the registrant's auditors and the audit committee of the registrant's board of
directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant's ability to record, process,
summarize, and report financial information; and
(b) Any fraud, whether or not material, that involves management or other
employees who have a significant role in the registrant's internal control over
financial reporting.
January 25, 2007
/S/GALEN G. VETTER
Galen G. Vetter
Chief Financial Officer