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: 312/650-2000
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Date of fiscal year end: 8/31
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Date of reporting period: 11/30/07
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Item 1. Schedule of Investments.

Franklin Universal Trust

QUARTERLY STATEMENT OF INVESTMENTS
NOVEMBER 30, 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, NOVEMBER 30, 2007 (UNAUDITED)

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COUNTRY SHARES VALUE
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LONG TERM INVESTMENTS 126.0%
COMMON STOCKS 40.9%
AUTOMOBILES & COMPONENTS 0.0% a
b Harvard Industries Inc. ............................................ United States 109,618 $ 548
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COMMERCIAL SERVICES & SUPPLIES 0.0% a
b,c,d VS Holdings Inc. ................................................... United States 181,875 --
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ENERGY 0.8%
Spectra Energy Corp. ............................................... United States 62,350 1,536,304
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MATERIALS 1.5%
AngloGold Ashanti Ltd., ADR ........................................ South Africa 30,446 1,484,852
Barrick Gold Corp. ................................................. Canada 35,800 1,450,258
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2,935,110
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UTILITIES 38.6%
Alliant Energy Corp. ............................................... United States 55,000 2,283,600
Ameren Corp. ....................................................... United States 60,000 3,231,000
American Electric Power Co. Inc. ................................... United States 30,000 1,430,100
Atmos Energy Corp. ................................................. United States 85,000 2,226,150
CenterPoint Energy Inc. ............................................ United States 226,600 4,044,810
Constellation Energy Group ......................................... United States 55,000 5,511,550
Dominion Resources Inc. ............................................ United States 100,000 4,723,000
DTE Energy Co. ..................................................... United States 45,000 2,207,250
Duke Energy Corp. .................................................. United States 124,700 2,467,813
Edison International ............................................... United States 65,000 3,638,700
Entergy Corp. ...................................................... United States 50,500 6,036,770
Exelon Corp. ....................................................... United States 104,000 8,431,280
FirstEnergy Corp. .................................................. United States 75,000 5,142,000
FPL Group Inc. ..................................................... United States 100,000 6,976,000
NSTAR .............................................................. United States 37,800 1,323,000
Pinnacle West Capital Corp. ........................................ United States 76,000 3,257,360
Progress Energy Inc. ............................................... United States 30,000 1,464,600
Public Service Enterprise Group Inc. ............................... United States 50,100 4,796,574
The Southern Co. ................................................... United States 170,000 6,395,400
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75,586,957
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TOTAL COMMON STOCKS (COST $45,083,071) ............................. 80,058,919
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PRINCIPAL AMOUNT e
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CORPORATE BONDS 85.0%
AUTOMOBILES & COMPONENTS 3.9%
f Allison Transmission Inc., senior note, 144A, 11.00%, 11/01/15 ..... United States 1,400,000 1,354,500
Ford Motor Credit Co. LLC,
7.80%, 6/01/12 .................................................. United States 1,500,000 1,338,053
senior note, 9.875%, 8/10/11 .................................... United States 2,000,000 1,936,872
General Motors Corp., senior deb., 8.25%, 7/15/23 .................. United States 1,500,000 1,237,500
f TRW Automotive Inc., senior note, 144A, 7.25%, 3/15/17 ............. United States 2,000,000 1,865,000
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7,731,925
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Quarterly Statement of Investments | 3

Franklin Universal Trust

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED)

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COUNTRY PRINCIPAL AMOUNT e VALUE
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LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
CAPITAL GOODS 6.1%
DRS Technologies Inc., senior sub. note, 7.625%, 2/01/18 ........... United States 1,800,000 $ 1,840,500
Greenbrier Cos. Inc., senior note, 8.375%, 5/15/15 ................. United States 2,000,000 1,915,000
L-3 Communications Corp., senior sub. note, 6.375%, 10/15/15 ....... United States 2,500,000 2,487,500
RBS Global & Rexnord Corp., senior note, 9.50%, 8/01/14 ............ United States 2,000,000 1,990,000
RSC Equipment Rental Inc., senior note, 9.50%, 12/01/14 ............ United States 2,500,000 2,331,250
United Rentals North America Inc., senior sub. note, 7.75%,
11/15/13 ......................................................... United States 1,500,000 1,372,500
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11,936,750
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COMMERCIAL SERVICES & SUPPLIES 2.9%
Allied Waste North America Inc., senior secured note, 6.875%,
6/01/17 .......................................................... United States 1,100,000 1,087,625
ARAMARK Corp., senior note, 8.50%, 2/01/15 ......................... United States 2,000,000 2,017,500
f Ceva Group PLC, senior note, 144A, 10.00%, 9/01/14 ................. United Kingdom 1,500,000 1,541,250
JohnsonDiversey Inc., senior sub. note, B, 9.625%, 5/15/12 ......... United States 1,000,000 1,025,000
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5,671,375
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CONSUMER DURABLES & APPAREL 3.5%
Beazer Homes USA Inc., senior note, 8.125%, 6/15/16 ................ United States 300,000 222,000
Jarden Corp., senior sub. note, 7.50%, 5/01/17 ..................... United States 2,000,000 1,810,000
Jostens IH Corp., senior sub. note, 7.625%, 10/01/12 ............... United States 1,400,000 1,407,000
KB Home, senior note,
6.25%, 6/15/15 .................................................. United States 1,200,000 1,047,000
7.25%, 6/15/18 .................................................. United States 1,300,000 1,189,500
Visant Holding Corp., senior note, 8.75%, 12/01/13 ................. United States 1,100,000 1,102,750
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6,778,250
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CONSUMER SERVICES 4.4%
c,d,g Atherton Franchise Capital, 13.073%, 12/01/08 ...................... United States 721,603 28,864
f Fontainebleau Las Vegas, 144A, 10.25%, 6/15/15 ..................... United States 1,100,000 979,000
MGM MIRAGE, senior note,
6.875%, 4/01/16 ................................................. United States 2,000,000 1,892,500
7.50%, 6/01/16 .................................................. United States 500,000 493,750
f Outback Steakhouse Inc., senior note, 144A, 10.00%, 6/15/15 ........ United States 1,300,000 1,043,250
Royal Caribbean Cruises Ltd., senior note,
8.00%, 5/15/10 .................................................. United States 1,200,000 1,262,107
6.875%, 12/01/13 ................................................ United States 800,000 789,054
Station Casinos Inc., senior sub. note,
6.50%, 2/01/14 .................................................. United States 300,000 244,500
6.875%, 3/01/16 ................................................. United States 2,200,000 1,762,750
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8,495,775
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DIVERSIFIED FINANCIALS 1.5%
GMAC LLC, 6.875%, 8/28/12 .......................................... United States 3,500,000 2,978,357
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ENERGY 8.8%
f Bristow Group Inc., senior note, 144A, 7.50%, 9/15/17 .............. United States 700,000 706,125
Chesapeake Energy Corp., senior note, 6.25%, 1/15/18 ............... United States 2,500,000 2,368,750

4 | Quarterly Statement of Investments

Franklin Universal Trust

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
ENERGY (CONTINUED)
Compagnie Generale de Geophysique-Veritas, senior note,
7.50%, 5/15/15 .................................................. France 400,000 $ 405,000
7.75%, 5/15/17 .................................................. France 600,000 606,000
Copano Energy LLC, senior note, 8.125%, 3/01/16 .................... United States 1,500,000 1,507,500
El Paso Corp., senior note, 6.875%, 6/15/14 ........................ United States 2,400,000 2,419,039
Mariner Energy Inc., senior note, 7.50%, 4/15/13 ................... United States 2,500,000 2,387,500
Markwest Energy Partners LP, senior note, 6.875%, 11/01/14 ......... United States 2,000,000 1,895,000
f Petroplus Finance Ltd., senior note, 144A, 6.75%, 5/01/14 .......... Switzerland 2,000,000 1,855,000
f Tesoro Corp., senior note, 144A, 6.50%, 6/01/17 .................... United States 600,000 595,500
The Williams Cos. Inc.,
8.75%, 3/15/32 .................................................. United States 800,000 970,000
senior note, 7.625%, 7/15/19 .................................... United States 600,000 667,500
senior note, 7.875%, 9/01/21 .................................... United States 700,000 794,500
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17,177,414
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FOOD, BEVERAGE & TOBACCO 2.3%
Dole Foods Co., senior note, 7.25%, 6/15/10 ........................ United States 100,000 92,000
Reynolds American Inc., senior secured note, 7.625%, 6/01/16 ....... United States 2,500,000 2,741,780
Smithfield Foods Inc., senior note, 7.75%,
5/15/13 ......................................................... United States 700,000 696,500
7/01/17 ......................................................... United States 1,000,000 975,000
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4,505,280
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HEALTH CARE EQUIPMENT & SERVICES 6.3%
f FMC Finance III SA, senior note, 144A, 6.875%, 7/15/17 ............. Germany 2,500,000 2,462,500
HCA Inc., senior note, 6.50%, 2/15/16 .............................. United States 2,500,000 2,093,750
Tenet Healthcare Corp., senior note, 7.375%, 2/01/13 ............... United States 3,000,000 2,655,000
h U.S. Oncology Holdings Inc., senior note, FRN, 10.759%, 3/15/12 .... United States 2,000,000 1,700,000
United Surgical Partners International Inc., senior sub. note,
PIK, 9.25%, 5/01/17 .............................................. United States 1,100,000 1,064,250
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 ......................................................... United States 2,500,000 2,381,250
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12,356,750
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MATERIALS 11.2%
Buckeye Technologies Inc., senior sub. note, 8.00%, 10/15/10 ....... United States 1,745,000 1,749,362
Crown Americas Inc., senior note, 7.75%, 11/15/15 .................. United States 2,500,000 2,562,500
Freeport-McMoRan Copper & Gold Inc., senior note, 8.375%, 4/01/17... United States 1,700,000 1,840,250
Huntsman International LLC, senior sub. note, 7.875%, 11/15/14 ..... United States 2,500,000 2,693,750
f Ineos Group Holdings PLC, 144A, 8.50%, 2/15/16 ..................... United Kingdom 2,500,000 2,262,500
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 .................. Ireland 2,000,000 1,910,000
Lyondell Chemical Co., senior note,
8.00%, 9/15/14 .................................................. United States 1,200,000 1,365,000
6.875%, 6/15/17 ................................................. United States 1,000,000 1,140,000
f MacDermid Inc., senior sub. note, 144A, 9.50%, 4/15/17 ............. United States 800,000 730,000
Nalco Co., senior sub. note, 8.875%, 11/15/13 ...................... United States 2,000,000 2,090,000

Quarterly Statement of Investments | 5

Franklin Universal Trust

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
MATERIALS (CONTINUED)
Novelis Inc., senior note, 7.25%, 2/15/15 .......................... Canada 1,700,000 $ 1,593,750
Owens-Brockway Glass Container Inc., senior note, 6.75%,
12/01/14 ......................................................... United States 2,000,000 1,995,000
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21,932,112
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MEDIA 11.4%
Cablevision Systems Corp., senior note, B, 8.00%, 4/15/12 .......... United States 1,200,000 1,149,000
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 ............... Canada 2,000,000 1,865,000
CSC Holdings Inc., senior note, 6.75%, 4/15/12 ..................... United States 800,000 754,000
CCH II LLC, senior note, 10.25%, 9/15/10 ........................... United States 2,500,000 2,481,250
Dex Media West LLC, senior sub. note, 9.875%, 8/15/13 .............. United States 2,342,000 2,438,607
EchoStar DBS Corp., senior note, 7.125%, 2/01/16 ................... United States 2,000,000 2,092,500
IDEARC Inc., senior note, 8.00%, 11/15/16 .......................... United States 1,500,000 1,410,000
Lamar Media Corp., senior sub. note, 6.625%, 8/15/15 ............... United States 2,500,000 2,387,500
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ............. United States 1,500,000 1,425,000
Quebecor Media Inc.,
f 144A, 7.75%, 3/15/16 ............................................ Canada 200,000 187,500
senior note, 7.75%, 3/15/16 ..................................... Canada 2,000,000 1,875,000
R.H. Donnelley Corp., senior note, 8.875%, 1/15/16 ................. United States 700,000 665,000
Radio One Inc., senior sub. note, 6.375%, 2/15/13 .................. United States 1,700,000 1,402,500
f Univision Communications Inc., senior note, 144A, PIK, 9.75%,
3/15/15 .......................................................... United States 2,500,000 2,337,500
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22,470,357
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REAL ESTATE 1.0%
Host Marriott LP, senior note,
M, 7.00%, 8/15/12 ............................................... United States 1,500,000 1,507,500
O, 6.375%, 3/15/15 .............................................. United States 500,000 491,250
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1,998,750
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RETAILING 2.2%
f Dollar General Corp., senior note, 144A, 10.625%, 7/15/15 .......... United States 2,000,000 1,830,000
Michaels Stores Inc., senior note, 10.00%, 11/01/14 ................ United States 2,500,000 2,475,000
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4,305,000
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SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT 1.3%
Freescale Semiconductor Inc., senior note, 8.875%, 12/15/14 ........ United States 1,300,000 1,194,375
NXP BV/NXP Funding LLC, senior secured note, 7.875%, 10/15/14 ...... Netherlands 1,400,000 1,351,000
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2,545,375
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SOFTWARE & SERVICES 3.4%
f First Data Corp., senior note, 144A, 9.875%, 9/24/15 ............... United States 1,300,000 1,210,625
Iron Mountain Inc., senior sub. note, 8.75%, 7/15/18 ............... United States 2,400,000 2,520,000
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

6 | Quarterly Statement of Investments

Franklin Universal Trust

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED)

LONG TERM INVESTMENTS (CONTINUED)
CORPORATE BONDS (CONTINUED)
SOFTWARE & SERVICES (CONTINUED)
SunGard Data Systems Inc.,
senior note, 9.125%, 8/15/13 .................................... United States 900,000 $ 920,250
senior sub. note, 10.25%, 8/15/15 ............................... United States 1,900,000 1,966,500
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6,617,770
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TECHNOLOGY HARDWARE & EQUIPMENT 1.0%
Sanmina-SCI Corp.,
f,h senior note, 144A, FRN, 8.444%, 6/15/14 ......................... United States 700,000 682,500
senior sub. note, 6.75%, 3/01/13 ................................ United States 1,100,000 948,750
senior sub. note, 8.125%, 3/01/16 ............................... United States 400,000 356,000
----------------
1,987,250
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TELECOMMUNICATION SERVICES 6.8%
f Digicel Group Ltd., senior note, 144A, 8.875%, 1/15/15 ............. Jamaica 2,000,000 1,795,000
Inmarsat Finance II PLC, senior note, zero cpn. to 11/15/08,
10.375% thereafter, 11/15/12 ..................................... United Kingdom 1,500,000 1,451,250
Intelsat Subsidiary Holding Co. Ltd., senior note, 8.25%,
1/15/13 .......................................................... Bermuda 2,500,000 2,537,500
MetroPCS Wireless Inc., senior note, 9.25%, 11/01/14 ............... United States 900,000 857,250
Qwest Communications International Inc., senior note, 7.50%,
2/15/14 .......................................................... United States 2,000,000 1,995,000
f Wind Acquisition Finance SA, senior note, 144A, 10.75%, 12/01/15 ... Italy 2,500,000 2,712,500
Windstream Corp., senior note, 8.625%, 8/01/16 ..................... United States 1,900,000 1,980,750
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13,329,250
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TRANSPORTATION 0.8%
TransDigm Inc., senior sub. note, 7.75%, 7/15/14 ................... United States 1,500,000 1,522,500
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UTILITIES 6.2%
Aquila Inc., senior note, 14.875%, 7/01/12 ......................... United States 2,000,000 2,530,000
Dynegy Holdings Inc., senior note, 8.75%, 2/15/12 .................. United States 2,600,000 2,619,500
Edison Mission Energy, senior note, 7.00%, 5/15/17 ................. United States 2,300,000 2,213,750
NRG Energy Inc., senior note, 7.375%,
2/01/16 ......................................................... United States 1,800,000 1,768,500
1/15/17 ......................................................... United States 700,000 686,000
f Texas Competitive Electric Holdings Co. LLC, senior note,
144A,10.25%, 11/01/15 ............................................ United States 2,500,000 2,418,750
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12,236,500
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TOTAL CORPORATE BONDS (COST $174,252,549) .......................... 166,576,740
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FOREIGN GOVERNMENT AND AGENCY SECURITIES 0.1%
GOVERNMENT BONDS 0.1%
Eskom Holdings Ltd., 11.00%,
6/01/08 ......................................................... South Africa 783,334 ZAR 115,126
6/01/09 ......................................................... South Africa 783,333 ZAR 115,346
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TOTAL FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $425,225) .................................................. 230,472
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TOTAL LONG TERM INVESTMENTS (COST $219,760,845) .................... 246,866,131
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Quarterly Statement of Investments | 7

Franklin Universal Trust

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2007 (UNAUDITED) (CONTINUED)

SHORT TERM INVESTMENT (COST $2,571,977) 1.3%
MONEY MARKET FUND 1.3%
i Franklin Institutional Fiduciary Trust Money Market Portfolio,
4.61% ............................................................ United States 2,571,977 $ 2,571,977
----------------
TOTAL INVESTMENTS (COST $222,332,822) 127.3% ....................... 249,438,108
NOTES PAYABLE (28.1)% .............................................. (55,000,000)
OTHER ASSETS, LESS LIABILITIES 0.8% ................................ 1,518,852
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NET ASSETS 100.0% .................................................. $ 195,956,960
================

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 November 30, 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 November 30, 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 November 30, 2007, the aggregate value of these
securities was $28,569,000, representing 14.58% of net assets.

g Defaulted security.

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

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.

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 (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 against established trigger thresholds for each specific market
proxy

Quarterly Statement of Investments | 9

Franklin Universal Trust

NOTES TO STATEMENT OF INVESTMENTS (UNAUDITED) (CONTINUED)

2. SECURITY VALUATION (CONTINUED)

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 November 30, 2007, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ........................................... $ 222,620,370
==============

Unrealized appreciation ....................................... $ 42,179,115
Unrealized depreciation ....................................... (15,361,377)
==============

Net unrealized appreciation (depreciation) .................... $ 26,817,738
==============

4. RESTRICTED SECURITIES

At November 30, 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 DATE 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
=========

5. NEW ACCOUNTING PRONOUNCEMENT

In September 2006, the Financial Accounting Standards Board (FASB) issued FASB
Statement No. 157, "Fair Value Measurement" (SFAS 157), which defines fair
value, establishes a framework for measuring fair value, and expands disclosures
about fair value measurements. SFAS 157 is effective for fiscal years beginning
after November 15, 2007, and interim periods within those fiscal years. The Fund
believes the adoption of SFAS 157 will have no material impact on its financial
statements.

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.

Franklin Universal Trust

By /s/JIMMY D. GAMBILL
-----------------------
Jimmy D. Gambill
Chief Executive Officer -
Finance and Administration
Date January 25, 2008

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, 2008

By /s/GALEN G. VETTER
-----------------------
Galen G. Vetter
Chief Financial Officer
Date January 25, 2008