Edgar Filing: FRANKLIN UNIVERSAL TRUST

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: 5/31/07
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Item 1. Schedule of Investments.

Franklin Universal Trust

QUARTERLY STATEMENT OF INVESTMENTS
MAY 31, 2007

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CONTENTS

Statement of Investments .................................................. 3

Notes to Statement of Investments ......................................... 9

[LOGO](R)
FRANKLIN TEMPLETON
INVESTMENTS

FRANKLIN o Templeton o Mutual Series

Quarterly Statement of Investments | 1

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Franklin Universal Trust

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED)

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COUNTRY SHARES VALUE
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LONG TERM INVESTMENTS 125.2%
COMMON STOCKS 39.2%
NON-ENERGY MINERALS 1.1%
AngloGold Ashanti Ltd., ADR ........................................... South Africa 30,446 $ 1,270,207
Barrick Gold Corp. .................................................... Canada 35,800 1,042,854
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2,313,061
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PRODUCER MANUFACTURING 0.0% a
b Harvard Industries Inc. ............................................... United States 109,618 877
b,c,d VS Holdings Inc. ...................................................... United States 181,875 --
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877
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UTILITIES 38.1%
Alliant Energy Corp. .................................................. United States 55,000 2,376,000
Ameren Corp. .......................................................... United States 60,000 3,184,200
American Electric Power Co. Inc. ...................................... United States 30,000 1,428,900
Atmos Energy Corp. .................................................... United States 85,000 2,753,150
CenterPoint Energy Inc. ............................................... United States 226,600 4,289,538
Constellation Energy Group ............................................ United States 55,000 5,047,350
Dominion Resources Inc. ............................................... United States 70,000 6,201,300
DTE Energy Co. ........................................................ United States 45,000 2,379,600
Duke Energy Corp. ..................................................... United States 124,700 2,436,638
Edison International .................................................. United States 65,000 3,787,550
Entergy Corp. ......................................................... United States 50,500 5,701,450
Exelon Corp. .......................................................... United States 104,000 8,112,000
FirstEnergy Corp. ..................................................... United States 75,000 5,192,250
FPL Group Inc. ........................................................ United States 100,000 6,393,000
NSTAR ................................................................. United States 37,800 1,316,574
Pinnacle West Capital Corp. ........................................... United States 76,000 3,528,680
Progress Energy Inc. .................................................. United States 30,000 1,502,700
Public Service Enterprise Group Inc. .................................. United States 62,200 5,532,068
The Southern Co. ...................................................... United States 170,000 6,121,700
Spectra Energy Corp. .................................................. United States 62,350 1,660,381
TXU Corp. ............................................................. United States 24,000 1,618,800
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80,563,829
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TOTAL COMMON STOCKS (COST $48,157,075) ................................ 82,877,767
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PRINCIPAL AMOUNT e
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CORPORATE BONDS 84.0%
COMMERCIAL SERVICES 6.8%
f ARAMARK Corp., senior note, 144A, 8.50%, 2/01/15 ...................... United States 2,000,000 2,112,500
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 ................. United States 2,342,000 2,555,707
Iron Mountain Inc., senior sub. note, 8.75%, 7/15/18 .................. United States 2,400,000 2,610,000
JohnsonDiversey Inc., senior sub. note, B, 9.625%, 5/15/12 ............ United States 1,000,000 1,050,000
Lamar Media Corp., senior sub. note, 6.625%, 8/15/15 .................. United States 2,500,000 2,500,000
R.H. Donnelley Corp., senior note, 8.875%, 1/15/16 .................... United States 700,000 757,750
f Rental Service Corp., senior note, 144A, 9.50%, 12/01/14 .............. United States 2,500,000 2,700,000
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14,285,957
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Quarterly Statement of Investments | 3

Franklin Universal Trust

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

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COUNTRY PRINCIPAL AMOUNT e VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
COMMUNICATIONS 8.8%
f Digicel Group Ltd., senior note, 144A, 8.875%, 1/15/15 ................ Jamaica 2,000,000 $ 1,987,500
Dobson Cellular Systems Inc., senior secured note, 9.875%,
11/01/12 ............................................................. United States 1,900,000 2,085,250
Inmarsat Finance II PLC, senior note, zero cpn. to 11/15/08,
10.375% thereafter, 11/15/12 ......................................... United Kingdom 2,500,000 2,412,500
Intelsat Subsidiary Holding Co. Ltd., senior note, 8.25%, 1/15/13 ..... Bermuda 2,500,000 2,609,375
f MetroPCS Wireless Inc., senior note, 144A, 9.25%, 11/01/14 ............ United States 900,000 952,875
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 ..... Luxembourg 1,300,000 1,430,000
Qwest Communications International Inc., senior note, 7.50%,
2/15/14 .............................................................. United States 2,000,000 2,075,000
f Wind Acquisition Finance SA, senior note, 144A, 10.75%, 12/01/15 ...... Italy 2,500,000 2,937,500
Windstream Corp., senior note, 8.625%, 8/01/16 ........................ United States 1,900,000 2,085,250
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18,575,250
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CONSUMER DURABLES 6.2%
Beazer Homes USA Inc., senior note, 8.125%, 6/15/16 ................... United States 400,000 412,000
Ford Motor Credit Co. LLC,
5.625%, 10/01/08 .................................................. United States 1,000,000 986,634
7.80%, 6/01/12 .................................................... United States 1,000,000 996,108
senior note, 9.875%, 8/10/11 ...................................... United States 2,000,000 2,144,244
General Motors Corp., senior deb., 8.25%, 7/15/23 ..................... United States 1,500,000 1,408,125
Jarden Corp., senior sub. note, 7.50%, 5/01/17 ........................ United States 2,000,000 2,050,000
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 .................. United States 1,400,000 1,438,500
KB Home, senior note,
6.25%, 6/15/15 .................................................... United States 1,200,000 1,144,500
7.25%, 6/15/18 .................................................... United States 1,300,000 1,282,125
Visant Holding Corp., senior note, 8.75%, 12/01/13 .................... United States 1,100,000 1,155,000
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13,017,236
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CONSUMER NON-DURABLES 2.7%
Dole Foods Co., senior note, 7.25%, 6/15/10 ........................... United States 100,000 99,500
Reynolds American Inc., senior secured note, 7.625%, 6/01/16 .......... United States 2,500,000 2,720,782
Smithfield Foods Inc., senior note,
7.00%, 8/01/11 .................................................... United States 1,000,000 1,020,000
7.75%, 5/15/13 .................................................... United States 1,000,000 1,040,000
Spectrum Brands Inc., senior sub. note, 7.375%, 2/01/15 ............... United States 900,000 767,250
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5,647,532
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CONSUMER SERVICES 11.5%
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 2,000,000 2,040,000
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 2,675,000
EchoStar DBS Corp., senior note, 7.125%, 2/01/16 ...................... United States 2,000,000 2,062,500
f,h Fontainebleau Las Vegas, 144A, 10.25%, 6/15/15 ........................ United States 700,000 724,500
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ................ United States 1,500,000 1,522,500
MGM MIRAGE, senior note,
6.875%, 4/01/16 ................................................... United States 2,000,000 1,925,000
7.50%, 6/01/16 .................................................... United States 500,000 495,000

4 | Quarterly Statement of Investments

Franklin Universal Trust

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
CONSUMER SERVICES (CONTINUED)
Quebecor Media Inc., senior note, 7.75%, 3/15/16 ........................ Canada 2,000,000 $ 2,110,000
Radio One Inc., senior sub. note, 6.375%, 2/15/13 ....................... United States 1,700,000 1,674,500
Royal Caribbean Cruises Ltd., senior note,
8.00%, 5/15/10 ....................................................... United States 1,200,000 1,271,189
6.875%, 12/01/13 ..................................................... United States 800,000 812,976
Station Casinos Inc., senior sub. note,
6.50%, 2/01/14 ....................................................... United States 300,000 279,375
6.875%, 3/01/16 ...................................................... United States 2,200,000 2,040,500
f Univision Communications Inc., senior note, 144A, PIK, 9.75%, 3/15/15 ... United States 2,500,000 2,600,000
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24,336,904
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ELECTRONIC TECHNOLOGY 7.7%
DRS Technologies Inc., senior sub. note, 7.625%, 2/01/18 ................ United States 1,800,000 1,874,250
f Freescale Semiconductor Inc., senior note, 144A, 8.875%, 12/15/14 ....... United States 2,200,000 2,213,750
f Hawker Beechcraft Acquisition Co., senior note, 144A,
8.50%, 4/01/15 ....................................................... United States 500,000 528,750
PIK, 8.875%, 4/01/15 ................................................. United States 1,300,000 1,374,750
L-3 Communications Corp., senior sub. note, 6.375%, 10/15/15 ............ United States 2,500,000 2,506,250
f NXP BV/NXP Funding LLC, senior secured note, 144A, 7.875%, 10/15/14 ..... Netherlands 1,900,000 1,966,500
Sanmina-SCI Corp., senior sub. note,
6.75%, 3/01/13 ....................................................... United States 2,000,000 1,895,000
8.125%, 3/01/16 ...................................................... United States 400,000 391,000
Solectron Global Finance Ltd., senior sub. note, 8.00%, 3/15/16 ......... United States 2,000,000 2,025,000
f TransDigm Inc., senior sub. note, 144A, 7.75%, 7/15/14 .................. United States 1,500,000 1,567,500
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16,342,750
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ENERGY MINERALS 4.3%
Chesapeake Energy Corp., senior note, 6.25%, 1/15/18 .................... United States 2,500,000 2,493,750
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ........................ United States 2,500,000 2,506,250
f Petroplus Finance Ltd., senior note, 144A, 6.75%, 5/01/14 ............... Switzerland 1,300,000 1,308,125
Pogo Producing Co., senior sub. note,
7.875%, 5/01/13 ...................................................... United States 300,000 316,500
6.875%, 10/01/17 ..................................................... United States 2,000,000 2,035,000
f Tesoro Corp., senior note, 144A, 6.50%, 6/01/17 ......................... United States 500,000 503,125
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9,162,750
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FINANCE 2.6%
GMAC LLC, 6.875%, 8/28/12 ............................................... United States 3,500,000 3,520,857
United Rentals North America Inc., senior sub. note, 7.75%, 11/15/13 .... United States 2,000,000 2,085,000
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5,605,857
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HEALTH SERVICES 6.2%
DaVita Inc., senior sub. note, 7.25%, 3/15/15 ........................... United States 2,500,000 2,575,000
HCA Inc., senior note, 6.50%, 2/15/16 ................................... United States 2,500,000 2,212,500
Tenet Healthcare Corp., senior note, 7.375%, 2/01/13 .................... United States 3,000,000 2,842,500

Quarterly Statement of Investments | 5

Franklin Universal Trust

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
HEALTH SERVICES (CONTINUED)
f,i U.S. Oncology Holdings Inc., senior note, 144A, FRN, 9.797%, 3/15/12 .... United States 1,900,000 $ 1,892,875
f United Surgical Partners International Inc., senior sub. note, 144A,
PIK, 9.25%, 5/01/17 .................................................... United States 1,000,000 1,038,750
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 ............................................................... United States 2,500,000 2,631,250
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13,192,875
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INDUSTRIAL SERVICES 3.9%
Allied Waste North America Inc., senior secured note, 6.875%, 6/01/17 ... United States 1,100,000 1,126,125
Compagnie Generale de Geophysique-Veritas, senior note,
7.50%, 5/15/15 ....................................................... France 400,000 420,500
7.75%, 5/15/17 ....................................................... France 600,000 636,000
Copano Energy LLC, senior note, 8.125%, 3/01/16 ......................... United States 1,500,000 1,571,250
Markwest Energy Partners LP, senior note, 6.875%, 11/01/14 .............. United States 2,000,000 1,972,500
The Williams Cos. Inc.,
8.75%, 3/15/32 ....................................................... United States 800,000 956,000
senior note, 7.625%, 7/15/19 ......................................... United States 600,000 661,500
senior note, 7.875%, 9/01/21 ......................................... United States 700,000 787,500
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8,131,375
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NON-ENERGY MINERALS 1.7%
Freeport-McMoRan Copper & Gold Inc., senior note, 8.375%, 4/01/17 ....... United States 1,700,000 1,861,500
Novelis Inc., senior note, 7.25%, 2/15/15 ............................... Canada 1,700,000 1,802,000
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3,663,500
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PROCESS INDUSTRIES 9.6%
Buckeye Technologies Inc., senior sub. note, 8.00%, 10/15/10 ............ United States 2,000,000 2,015,000
Crown Americas Inc., senior note, 7.75%, 11/15/15 ....................... United States 2,500,000 2,625,000
f Huntsman International LLC, senior note, 144A, 7.875%, 11/15/14 ......... United States 2,500,000 2,640,625
f Ineos Group Holdings PLC, 144A, 8.50%, 2/15/16 .......................... United Kingdom 1,400,000 1,415,750
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 ....................... Ireland 2,500,000 2,581,250
Lyondell Chemical Co., senior note,
8.00%, 9/15/14 ....................................................... United States 1,200,000 1,275,000
6.875%, 6/15/17 ...................................................... United States 1,000,000 1,006,250
f MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17 .................. United States 800,000 848,000
Nalco Co., senior sub. note, 8.875%, 11/15/13 ........................... United States 2,000,000 2,155,000
Owens-Brockway Glass Container Inc., senior note, 6.75%, 12/01/14 ....... United States 2,000,000 2,030,000
f Verso Paper Holdings LLC, senior secured note, 144A, 9.125%, 8/01/14 .... United States 1,500,000 1,597,500
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20,189,375
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6 | Quarterly Statement of Investments

Franklin Universal Trust

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
PRODUCER MANUFACTURING 2.5%
Greenbrier Cos. Inc., senior note, 8.375%, 5/15/15 ...................... United States 1,000,000 $ 1,015,000
RBS Global & Rexnord Corp., senior note, 9.50%, 8/01/14 ................. United States 2,000,000 2,160,000
f TRW Automotive Inc., senior note, 144A, 7.25%, 3/15/17 .................. United States 2,000,000 2,015,000
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5,190,000
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REAL ESTATE INVESTMENT TRUST 1.2%
Host Marriott LP, senior note,
M, 7.00%, 8/15/12 .................................................... United States 2,000,000 2,045,000
O, 6.375%, 3/15/15 ................................................... United States 500,000 500,625
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2,545,625
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RETAIL TRADE 1.3%
f Michaels Stores Inc., senior note, 144A, 10.00%, 11/01/14 ............... United States 2,500,000 2,712,500
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TECHNOLOGY SERVICES 1.4%
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 900,000 960,750
senior sub. note, 10.25%, 8/15/15 .................................... United States 1,900,000 2,087,625
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3,048,770
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TRANSPORTATION 0.7%
Great Lakes Dredge & Dock Co., senior sub. note, 7.75%, 12/15/13 ........ United States 1,500,000 1,488,750
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UTILITIES 4.9%
Aquila Inc., senior note, 14.875%, 7/01/12 .............................. United States 2,000,000 2,609,880
Dynegy Inc., senior note, 8.75%, 2/15/12 ................................ United States 2,600,000 2,788,500
f Edison Mission Energy, senior note, 144A, 7.00%, 5/15/17 ................ United States 2,300,000 2,302,875
NRG Energy Inc., senior note, 7.375%,
2/01/16 .............................................................. United States 1,800,000 1,872,000
1/15/17 .............................................................. United States 700,000 728,875
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10,302,130
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TOTAL CORPORATE BONDS (COST $174,423,986) ............................... 177,439,136
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FOREIGN GOVERNMENT AND AGENCY SECURITIES 2.0%
GOVERNMENT BONDS 2.0%
Eskom Holdings Ltd., 11.00%, 6/01/07 .................................... South Africa 783,333 ZAR 111,809
Eskom Holdings Ltd., 11.00%, 6/01/08 .................................... South Africa 783,334 ZAR 111,808
Eskom Holdings Ltd., 11.00%, 6/01/09 .................................... South Africa 783,333 ZAR 111,808
Government of Mexico, 11.375%, 9/15/16 .................................. Mexico 2,750,000 3,912,425
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TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $3,516,223) ...................................................... 4,247,850
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TOTAL LONG TERM INVESTMENTS (COST $226,097,284) ......................... 264,564,753
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Quarterly Statement of Investments | 7

Franklin Universal Trust

STATEMENT OF INVESTMENTS, MAY 31, 2007 (UNAUDITED) (CONTINUED)

SHORT TERM INVESTMENT (COST $2,197,959) 1.0%
MONEY MARKET FUND 1.0%
j Franklin Institutional Fiduciary Trust Money Market Portfolio, 4.83% .... United States 2,197,959 $ 2,197,959
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TOTAL INVESTMENTS (COST $228,295,243) 126.2% ............................ 266,762,712
NOTES PAYABLE (26.0)% ................................................... (55,000,000)
OTHER ASSETS, LESS LIABILITIES (0.2)% ................................... (431,364)
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NET ASSETS 100.0% ....................................................... $ 211,331,348
===============

CURRENCY ABBREVIATIONS

ZAR - South African Rand

SELECTED PORTFOLIO ABBREVIATIONS

ADR - American Depository Receipt
FRN - Floating Rate Note
PIK - Payment-In-Kind

a Rounds to less than 0.1% of net assets.

b Non-income producing for the twelve months ended May 31, 2007.

c See Note 4 regarding restricted securities.

d Security has been deemed illiquid because it may not be able to be sold within
seven days. At May 31, 2007, 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 May 31, 2007, the aggregate value of these
securities was $39,941,250, representing 18.9% of net assets.

g Defaulted security.

h Security purchased on a when-issued or delayed delivery basis.

i The coupon rate shown represents the rate at period end.

j 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.

8 | See Notes to Statement of Investments. | Quarterly Statement of Investments

Franklin Universal Trust

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED)

1. ORGANIZATION

Franklin Universal Trust (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, closed-end investment company.

2. SECURITY VALUATION

Securities listed on a securities 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. Over-the-counter securities and listed securities for
which there is no reported sale 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. Investments in open-end mutual funds are valued at the closing net asset
value.

Corporate debt securities and government securities, generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate and maturity date, option adjusted
spread models, prepayment projections, interest rate spreads and yield curves,
to determine current value.

Foreign securities are valued as of the close of trading on the foreign stock
exchange on which the security is primarily traded, or the NYSE, whichever is
earlier. If no sale is reported at that time, the foreign security will be
valued within the range of the most recent quoted bid and ask prices. The value
is then converted into its U.S. dollar equivalent at the foreign exchange rate
in effect at the close of the NYSE on the day that the value of the foreign
security is determined.

The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the Fund. The investment manager monitors price movements
following the close of trading in foreign stock markets through a series of
country specific market proxies (such as baskets of American Depository
Receipts, futures contracts and exchange traded funds). These price movements
are measured

Quarterly Statement of Investments | 9

Franklin Universal Trust

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)

2. SECURITY VALUATION (CONTINUED)

against established trigger thresholds for each specific market proxy to assist
in determining if an event has occurred. If such an event occurs, the securities
may be valued using fair value procedures, which may include the use of
independent pricing services. All security valuation procedures are approved by
the Fund's Board of Trustees.

3. INCOME TAXES

At May 31, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments .................................... $228,562,862
=============

Unrealized appreciation ................................ $ 47,707,826
Unrealized depreciation ................................ (9,507,976)
-------------
Net unrealized appreciation (depreciation) ............. $ 38,199,850
=============

4. RESTRICTED SECURITIES

At May 31, 2007, 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:

------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT/ ACQUISITION
SHARES ISSUER DATES COST VALUE
------------------------------------------------------------------------------------------------------------

$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 --
-------
TOTAL RESTRICTED SECURITIES (0.01% of Net Assets).............................. $28,864
=======

For information on the Fund's policy regarding other significant accounting
policies, please refer to the Fund's most recent semiannual or annual
shareholder report.

10 | 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 July 26, 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 July 26, 2007

By /S/GALEN G. VETTER
------------------
Galen G. Vetter
Chief Financial Officer
Date July 26, 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.

7/26/2007

/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;

(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.

7/26/2007

/S/GALEN G. VETTER

Galen G. Vetter
Chief Financial Officer