FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF
REGISTERED MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-05569
FRANKLIN UNIVERSAL TRUST
(Exact name of registrant as specified in charter)
ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906 (Address of
principal executive offices) (Zip code)
MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 8/31
Date of reporting period: 11/30/04
Item 1. Schedule of Investments.
Franklin Universal Trust
QUARTERLY STATEMENT OF INVESTMENTS
NOVEMBER 30, 2004
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CONTENTS
Statement of Investments ............................................... 3
Notes to Statement of Investments ...................................... 9
[LOGO OMITTED]
FRANKLIN[R] TEMPLETON[R]
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, 2004 (UNAUDITED)
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COUNTRY SHARES/WARRANTS VALUE
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COMMON STOCKS AND WARRANTS 32.1%
COMMUNICATIONS 1.6%
a Call-Net Enterprises Inc., B ....................................... Canada 41,958 $ 96,503
a,b Poland Telecom Finance, wts., 144A, 12/01/07 ....................... Poland 3,000 --
a Telewest Global Inc. ............................................... United Kingdom 160,567 2,350,701
a USA Mobility Inc. .................................................. United States 19,188 697,666
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3,144,870
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ELECTRONIC TECHNOLOGY
a Loral Space & Communications Ltd., wts., 12/27/06 .................. United States 21,638 173
a Loral Space & Communications Ltd., wts., 1/15/07 ................... United States 5,000 1
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174
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ENERGY MINERALS .2%
Devon Energy Corp. ................................................. United States 6,570 272,129
a McMoRan Exploration Co. ............................................ United States 1,800 28,242
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300,371
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NON-ENERGY MINERALS 1.1%
AngloGold Ashanti Ltd., ADR ........................................ South Africa 30,446 1,215,100
Barrick Gold Corp. ................................................. Canada 35,800 880,322
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2,095,422
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PRODUCER MANUFACTURING
a Harvard Industries Inc. ............................................ United States 109,618 548
a VS Holdings ........................................................ United States 181,875 18
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566
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TRANSPORTATION
a Continental Airlines Inc., B ....................................... United States 2,500 27,850
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UTILITIES 29.2%
Alliant Energy Corp. ............................................... United States 95,000 2,591,600
Ameren Corp. ....................................................... United States 40,000 1,936,800
American Electric Power Co. Inc. ................................... United States 30,000 1,025,100
Atmos Energy Corp. ................................................. United States 85,000 2,294,150
Cinergy Corp. ...................................................... United States 55,000 2,276,450
Dominion Resources Inc. ............................................ United States 70,000 4,582,900
DTE Energy Co. ..................................................... United States 45,000 1,974,600
Edison International ............................................... United States 65,000 2,073,500
Energy East Corp. .................................................. United States 42,000 1,057,140
Entergy Corp. ...................................................... United States 28,000 1,814,960
Exelon Corp. ....................................................... United States 104,000 4,337,840
FirstEnergy Corp. .................................................. United States 75,000 3,167,250
FPL Group Inc. ..................................................... United States 70,000 4,923,100
Nicor Inc. ......................................................... United States 98,000 3,616,200
NiSource Inc. ...................................................... United States 80,000 1,743,200
ONEOK Inc. ......................................................... United States 22,600 630,992
Quarterly Statement of Investments | 3
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY SHARES/WARRANTS VALUE
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COMMON STOCKS AND WARRANTS (CONT.)
UTILITIES (CONT.)
Pepco Holdings Inc. ................................................ United States 68,000 $ 1,451,120
Pinnacle West Capital Corp. ........................................ United States 76,000 3,359,200
Progress Energy Inc. ............................................... United States 70,000 3,073,700
Southern Co. ....................................................... United States 170,000 5,574,300
TXU Corp. .......................................................... United States 39,600 2,487,672
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55,991,774
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TOTAL COMMON STOCKS AND WARRANTS (COST $48,861,987) ................ 61,561,027
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PREFERRED STOCKS 1.0%
PROCESS INDUSTRIES
b,c Asia Pulp & Paper Co. Ltd., 12.00%, Perpetual, pfd. ................ Indonesia 4,000 43,720
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UTILITIES 1.0%
Heco Capital Trust III, 6.50%, pfd. ................................ United States 75,000 1,971,000
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TOTAL PREFERRED STOCKS (COST $5,875,000) ........................... 2,014,720
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CONVERTIBLE PREFERRED STOCK (COST $1,700,803) 1.1%
CONSUMER DURABLES
Ford Motor Co. Capital Trust II, 6.50%, cvt. pfd. .................. United States 40,800 2,139,960
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PRINCIPAL AMOUNT E
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BONDS 92.2%
COMMERCIAL SERVICES
c Key3Media Group Inc., senior sub. note, 11.25%, 6/15/11 ............ United States $ 5,000,000 6,250
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COMMUNICATIONS 11.4%
Dobson Cellular Systems Inc., secured note, 144A, 9.875%,
11/01/12 ......................................................... United States 1,900,000 1,871,500
Inmarsat Finance PLC, senior note, 7.625%, 6/30/12 ................. United Kingdom 2,000,000 2,055,000
Millicom International Cellular SA, senior note, 144A, 10.00%,
12/01/13 ......................................................... Luxembourg 2,300,000 2,386,250
Nextel Communications Inc., senior note, 7.375%, 8/01/15 ........... United States 3,000,000 3,315,000
NTL Cable PLC, senior note, 144A, 8.75%, 4/15/14 ................... United Kingdom 900,000 1,019,250
PanAmSat Corp., senior note, 144A, 9.00%, 8/15/14 .................. United States 2,100,000 2,257,500
c Poland Telecom Finance BV, B, 14.00%, 12/01/07 ..................... Poland 3,000,000 300
Qwest Communications International Inc., senior note, 144A, 7.50%,
2/15/14 ......................................................... United States 2,000,000 1,960,000
Rogers Wireless Communications Inc., senior secured note, 144A, 7.25%,
12/15/12 ........................................................ Canada 2,700,000 2,818,125
Time Warner Telecom Holdings Inc., senior note, 9.25%, 2/15/14 ..... United States 1,300,000 1,313,000
Time Warner Telecom Inc., senior note, 10.125%, 2/01/11 ............ United States 1,700,000 1,640,500
Triton PCS Inc., senior note, 8.50%, 6/01/13 ....................... United States 1,300,000 1,196,000
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21,832,425
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4 | Quarterly Statement of Investments
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT E VALUE
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BONDS (CONT.)
CONSUMER DURABLES 4.0%
D.R. Horton Inc., senior note, 8.50%, 4/15/12 ...................... United States $ 3,000,000 $ 3,390,000
Jostens IH Corp., senior sub. note, 144A, 7.625%, 10/01/12 ......... United States 1,400,000 1,473,500
Simmons Co., senior sub. note, 7.875%, 1/15/14 ..................... United States 1,900,000 1,985,500
True Temper Sports Inc., senior sub. note, 8.375%, 9/15/11 ......... United States 800,000 716,000
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7,565,000
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CONSUMER NON-DURABLES 1.7%
Smithfield Foods Inc., senior note, 7.00%, 8/01/11 ................. United States 2,000,000 2,130,000
Smithfield Foods Inc., senior note, 7.75%, 5/15/13 ................. United States 1,000,000 1,105,000
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3,235,000
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CONSUMER SERVICES 18.4%
b,c Atherton Franchise Capital, 13.073%, 12/01/08 ...................... United States 752,296 37,615
Cablevision Systems Corp., senior note, 144A, 8.00%, 4/15/12 ....... United States 2,900,000 3,103,000
c Century Communications Corp., senior disc. note, B, zero cpn.,
1/15/08 .......................................................... United States 5,000,000 3,475,000
Charter Communications Holdings II, senior note, 10.25%, 9/15/10 ... United States 2,500,000 2,625,000
Corrections Corp. of America, senior note, 7.50%, 5/01/11 .......... United States 2,300,000 2,466,750
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 .............. United States 2,342,000 2,716,720
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 ................. United States 2,000,000 2,255,000
Emmis Operating Co., senior sub. note, 6.875%, 5/15/12 ............. United States 2,700,000 2,841,750
Marquee Inc., senior note, 144A, 8.625%, 8/15/12 ................... United States 1,900,000 2,104,250
Nexstar Finance Inc., senior sub. note, 7.00%, 1/15/14 ............. United States 3,000,000 2,962,500
Park Place Entertainment Corp., senior sub. note, 7.875%, 3/15/10 .. United States 2,400,000 2,712,000
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 ..... United States 800,000 866,000
Pinnacle Entertainment Inc., senior sub. note, B, 9.25%, 2/15/07 ... United States 165,000 169,538
Royal Caribbean Cruises Ltd., senior note, 8.00%, 5/15/10 .......... United States 1,200,000 1,362,000
Royal Caribbean Cruises Ltd., senior note, 6.875%, 12/01/13 ........ United States 800,000 871,000
Station Casinos Inc., senior note, 6.00%, 4/01/12 .................. United States 500,000 517,500
Station Casinos Inc., senior sub. note, 6.50%, 2/01/14 ............. United States 300,000 312,750
Station Casinos Inc., senior sub. note, 6.875%, 3/01/16 ............ United States 2,200,000 2,304,500
Young Broadcasting Inc., senior sub. note, 8.75%, 1/15/14 .......... United States 1,500,000 1,481,250
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35,184,123
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DISTRIBUTION SERVICES
c AmeriServe Food Distribution Inc., senior note, 8.875%, 10/15/06 ... United States 1,000,000 --
c AmeriServe Food Distribution Inc., senior sub. note, 10.125%,
7/15/07 .......................................................... United States 2,700,000 --
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--
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ELECTRONIC TECHNOLOGY 3.8%
Communications & Power Industries, senior sub. note, 8.00%, 2/01/12 United States 1,900,000 2,004,500
Flextronics International Ltd., senior sub. note, 6.50%, 5/15/13 ... Singapore 1,100,000 1,116,500
Solectron Corp., senior note, 9.625%, 2/15/09 ...................... United States 1,400,000 1,550,500
Xerox Corp., senior note, 7.125%, 6/15/10 .......................... United States 2,500,000 2,700,000
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7,371,500
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Quarterly Statement of Investments | 5
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT E VALUE
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BONDS (CONT.)
ENERGY MINERALS 4.1%
Foundation PA Coal Co., senior note, 144A, 7.25%, 8/01/14 .......... United States $ 1,700,000 $ 1,827,500
Markwest Energy Partners, senior note, 144A, 6.875%, 11/01/14 ...... United States 1,500,000 1,541,250
Plains Exploration & Production Co., senior note, 7.125%, 6/15/14 .. United States 1,200,000 1,326,000
Vintage Petroleum, senior sub. note, 7.875%, 5/15/11 ............... United States 3,000,000 3,240,000
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7,934,750
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GOVERNMENT BONDS 5.1%
Eskom, E168, utility deb., 11.00%, 6/01/08 ......................... South Africa 4,350,000 ZAR 809,193
Federation of Russia, 3.00%, 5/14/06 ............................... Russia 1,300,000 1,270,750
Republic of Bulgaria, FRN, 2.75%, 7/28/11 .......................... Bulgaria 3,640,000 3,636,597
United Mexican States, 11.375%, 9/15/16 ............................ Mexico 2,750,000 4,001,250
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9,717,790
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HEALTH SERVICES 5.0%
HCA Inc., senior note, 8.75%, 9/01/10 .............................. United States 3,000,000 3,413,316
Tenet Healthcare Corp., senior note, 7.375%, 2/01/13 ............... United States 3,000,000 2,940,000
Vanguard Health Holding Co. II LLC, senior sub. note, 144A, 9.00%,
10/01/14 ......................................................... United States 3,000,000 3,202,500
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9,555,816
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INDUSTRIAL SERVICES 3.9%
Allied Waste North America Inc., senior secured note, 6.50%,
11/15/10 ......................................................... United States 3,000,000 2,910,000
Grant Prideco Escrow, senior note, 9.00%, 12/15/09 ................. United States 1,000,000 1,117,500
Hanover Equipment Trust 01, senior secured note, B, 8.75%,
9/01/11 .......................................................... United States 3,000,000 3,270,000
URS Corp., senior sub. note, 12.25%, 5/01/09 ....................... United States 152,000 162,640
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7,460,140
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NON-ENERGY MINERALS 1.8%
Ispat Inland ULC, senior secured note, 9.75%, 4/01/14 .............. United States 2,900,000 3,516,250
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PROCESS INDUSTRIES 11.3%
BCP Caylux Holding Lux SCA, senior sub. note, 144A, 9.625%,
6/15/14 .......................................................... United States 2,700,000 3,044,250
Boise Cascade LLC, senior sub. note, 144A, 7.125%, 10/15/14 ........ United States 1,900,000 1,995,000
c FiberMark Inc., senior note, 10.75%, 4/15/11 ....................... United States 3,000,000 2,070,000
Georgia-Pacific Corp., senior note, 8.00%, 1/15/24 ................. United States 3,000,000 3,495,000
Huntsman ICI Holdings LLC, senior disc. note, zero cpn., 12/31/09 .. United States 6,000,000 3,375,000
Nalco Co., senior sub. note, 8.875%, 11/15/13 ...................... United States 1,500,000 1,663,125
Owens-Brockway Glass Container Inc., senior note, 144A, 6.75%,
12/01/14 ......................................................... United States 2,000,000 2,015,000
b,c Pindo Deli Finance Mauritius Ltd., senior note, 11.75%, 10/01/17 ... Singapore 3,000,000 688,590
Rhodia SA, senior note, 10.25%, 6/01/10 ............................ France 3,000,000 3,345,000
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21,690,965
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6 | Quarterly Statement of Investments
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY PRINCIPAL AMOUNT E VALUE
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BONDS (CONT.)
PRODUCER MANUFACTURING 7.9%
Case New Holland Inc., senior note, 144A, 9.25%, 8/01/11 ........... United States $ 3,000,000 $ 3,337,500
Fimep SA, senior note, 10.50%, 2/15/13 ............................. France 2,000,000 2,350,000
Invensys PLC, senior note, 144A, 9.875%, 3/15/11 ................... United Kingdom 1,800,000 1,948,500
Milacron Escrow Corp., senior secured note, 11.50%, 5/15/11 ........ United States 2,000,000 2,130,000
THL Buildco Inc., senior sub. note, 144A, 8.50%, 9/01/14 ........... United States 1,900,000 2,052,000
TRW Automotive Inc., senior note, 9.375%, 2/15/13 .................. United States 1,701,000 1,990,170
Westinghouse Air Brake Technologies Co., senior note, 6.875%,
7/31/13 .......................................................... United States 1,300,000 1,365,000
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15,173,170
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REAL ESTATE INVESTMENT TRUSTS 2.4%
Host Marriott LP, senior note, 144A, 7.00%, 8/15/12 ................ United States 2,500,000 2,650,000
Ventas Realty LP/Capital Corp., senior note, 9.00%, 5/01/12 ........ United States 1,700,000 1,976,250
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4,626,250
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RETAIL TRADE 1.5%
Rite Aid Corp., senior note, 144A, 6.125%, 12/15/08 ................ United States 3,000,000 2,835,000
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TECHNOLOGY SERVICES 1.8%
c PSINet Inc., 10.50%, 12/01/06 ...................................... United States 700,000 10,500
c PSINet Inc., senior note, 11.00%, 8/01/09 .......................... United States 3,250,000 48,750
UGS Corp., senior sub. note, 144A, 10.00%, 6/01/12 ................. United States 3,000,000 3,435,000
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3,494,250
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TRANSPORTATION 2.4%
Great Lakes Dredge & Dock Corp., senior sub. note, 7.75%, 12/15/13 . United States 1,200,000 1,119,000
Laidlaw International Inc., senior note, 10.75%, 6/15/11 ........... United States 3,000,000 3,468,750
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4,587,750
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UTILITIES 5.7%
Aquila Inc., senior note, 14.875%, 7/01/12 ......................... United States 2,000,000 2,790,000
Calpine Corp., senior secured note, 144A, 8.75%, 7/15/13 ........... United States 2,500,000 1,931,250
Dynegy Holdings Inc., senior note, 8.75%, 2/15/12 .................. United States 2,600,000 2,730,000
Midwest Generation LLC, senior secured note, 8.75%, 5/01/34 ........ United States 3,000,000 3,416,249
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10,867,499
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TOTAL BONDS (COST $181,834,419) .................................... 176,653,928
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TOTAL LONG TERM INVESTMENTS (COST $238,272,209) .................... 242,369,635
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Quarterly Statement of Investments | 7
Franklin Universal Trust
STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)
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COUNTRY SHARES VALUE
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MONEY FUND
d Franklin Institutional Fiduciary Trust Money Market Portfolio ...... United States 3,373,161 $ 3,373,161
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TOTAL INVESTMENTS (COST $241,645,370) 128.2% ....................... 245,742,796
OTHER ASSETS, LESS LIABILITIES (28.2)% ............................. (54,051,006)
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NET ASSETS 100.0% .................................................. $191,691,790
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CURRENCY ABBREVIATIONS | ZAR - South African Rand
a Non-income producing.
b See Note 2 regarding restricted securities.
c Defaulted security.
d The Franklin Institutional Fiduciary Trust Money Market Portfolio is managed
by the Fund's investment manager.
e The principal amount is stated in U.S. dollars unless otherwise indicated.
8 | See Notes to Statement of Investments. | Quarterly Statement of Investments
Franklin Universal Trust
NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)
Franklin Universal Trust (the Fund) is registered under the Investment Company
Act of 1940 as a closed-end investment company.
1. INCOME TAXES
At November 30, 2004, the net unrealized appreciation (depreciation) based on
the cost of investments for income tax purposes were as follows:
Cost of investments ........................... $241,772,776
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Unrealized appreciation ....................... $ 35,275,892
Unrealized depreciation ....................... (31,305,872)
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Net unrealized appreciation (depreciation) .... $ 3,970,020
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2. RESTRICTED SECURITIES
At November 30, 2004, the Fund held investments in restricted and illiquid
securities that were valued under approved methods by the Trustees, as follows:
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PRINCIPAL AMOUNT/ ACQUISITION
SHARES/WARRANTS ISSUER DATE COST VALUE
----------------------------------------------------------------------------------------------------------------
4,000 Asia Pulp & Paper Co. Ltd., 12.00%,
Perpetual, pfd. ................................. 2/14/97 $4,000,000 $ 43,720
$ 752,296 Atherton Franchise Capital, 13.073%,
12/01/08 ........................................ 4/28/94 752,296 37,615
$3,000,000 Pindo Deli Finance Mauritius Ltd., senior note,
11.75%, 10/01/17 ................................ 9/25/97 2,977,200 688,590
3,000 Poland Telecom Finance, wts., 144A,
12/01/07 ........................................ 11/24/97 18,000 --
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TOTAL RESTRICTED SECURITIES (.02% OF NET ASSETS) .. $769,925
---------
For information on the Funds' policy regarding valuation of investments and
other significant accounting policies, please refer to the Funds' most recent
semiannual or annual shareholder report.
Quarterly Statement of Investments | 9
tem 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.
(Registrant) FRANKILN UNIVERSAL TRUST
By /S/JIMMY D. GAMBILL
--------------------
Chief Executive Officer - Finance and Administration
Date January 20, 2005
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
--------------------
Chief Executive Officer - Finance and Administration
Date January 20, 2005
By /S/GALEN G. VETTER
-------------------
Chief Financial Officer
Date January 20, 2005
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 20, 2005
/s/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 20, 2005
/s/GALEN G. VETTER
Chief Financial Officer