<PAGE> PAGE 1
000 B000000 08/31/95
000 C000000 0000833040
000 D000000 N
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000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0
000 J000000 A
001 A000000 FRANKLIN UNIVERSAL TRUST
001 B000000 811-5569
001 C000000 4153122000
002 A000000 777 MARINERS ISLAND BOULEVARD
002 B000000 SAN MATEO
002 C000000 CA
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002 D020000 1585
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<PAGE> PAGE 2
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<PAGE> PAGE 3
007 C018000 80
008 A000001 FRANKLIN ADVISERS INC
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008 D040001 1585
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011 C030001 10019
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012 C020001 DE
012 C030001 19809
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
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013 B040001 2119
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015 E040003 X
015 A000004 THE BANK OF N.T. BUTTERFIELD & SON LTD.
015 B000004 S
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015 D010004 BERMUDA
015 E040004 X
015 A000005 THE CANADA TRUST COMPANY
015 B000005 S
015 C010005 TORONTO
015 D010005 CANADA
015 E040005 X
015 A000006 THE HONGKONG AND SHANGHAI BANKING CORP.
<PAGE> PAGE 4
015 B000006 S
015 C010006 SHANGHAI
015 D010006 CHINA
015 E040006 X
015 A000007 CITITRUST COLOMBIA S.A.SOCIEDAD FIDUCIARIA
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015 E040008 X
015 A000009 KANSALLIS-OSAKE-PANKKI
015 B000009 S
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015 D010009 FINLAND
015 E040009 X
015 A000010 SOCIETE GENERALE
015 B000010 S
015 C010010 PARIS
015 D010010 FRANCE
015 E040010 X
015 A000011 BARCLAYS BANK PLC
015 B000011 S
015 C010011 ATHENS
015 D010011 GREECE
015 E040011 X
015 A000012 BARCLAYS BANK PLC
015 B000012 S
015 C010012 HONG KONG
015 D010012 HONG KONG
015 E040012 X
015 A000013 BARCLAYS BANK PLC VIA STANDARD CHARTERED BANK
015 B000013 S
015 C010013 FORT BOMBAY
015 D010013 INDIA
015 E040013 X
015 A000014 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000014 S
015 C010014 JAKARATA
015 D010014 INDONESIA
015 E040014 X
015 A000015 BANK OF IRELAND
015 B000015 S
015 C010015 DUBLIN
015 D010015 IRELAND
015 E040015 X
015 A000016 CITIBANK, N.A.
015 B000016 S
<PAGE> PAGE 5
015 C010016 MILAN
015 D010016 ITALY
015 E040016 X
015 A000017 BARCLAYS TRUST AND BANKING COMPANY (JAPAN)
015 B000017 S
015 C010017 TOKYO
015 D010017 JAPAN
015 E040017 X
015 A000018 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000018 S
015 C010018 SEOUL
015 D010018 KOREA
015 E040018 X
015 A000019 CEDEL S.A. (DEPOSITORY)
015 B000019 S
015 C010019 LUXEMBOURG CITY
015 D010019 LUXEMBOURG
015 E040019 X
015 A000020 UNITED MALAYAN BANKING CORPORATION BERHAD
015 B000020 S
015 C010020 KUALA LUMPUR
015 D010020 MALAYSIA
015 E040020 X
015 A000021 BANCO NACIONAL DE MEXICO
015 B000021 S
015 C010021 MEXICO CITY
015 D010021 MEXICO
015 E040021 X
015 A000022 KAS-ASSOCIATIE N.V.
015 B000022 S
015 C010022 AMSTERDAM
015 D010022 NETHERLANDS
015 E040022 X
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015 B000023 S
015 C010023 WELLINGTON
015 D010023 NEW ZEALAND
015 E040023 X
015 A000024 CHRISTIANIA BANK OG KREDITKASSE
015 B000024 S
015 C010024 BERGEN
015 D010024 NORWAY
015 E040024 X
015 A000025 BARCLAYS BANK PLC VIA STANDARD CHARTERED BANK
015 B000025 S
015 C010025 KARACHI
015 D010025 PAKISTAN
015 E040025 X
015 A000026 BANCO DE CREDITO DEL PERU
015 B000026 S
015 C010026 LIMA
<PAGE> PAGE 6
015 D010026 PERU
015 E040026 X
015 A000027 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000027 S
015 C010027 MANILA
015 D010027 PHILIPPINES
015 E040027 X
015 A000028 BANCO ESPIRITO SANTO E COMMERCIAL DE LISBOA
015 B000028 S
015 C010028 LISBON
015 D010028 PORTUGAL
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015 A000029 BARCLAYS BANK PLC
015 B000029 S
015 C010029 SINGAPORE
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015 E040029 X
015 A000030 STANDARD BANK OF SOUTH AFRICA LIMITED
015 B000030 S
015 C010030 JOHANNESBURG
015 D010030 SOUTH AFRICA
015 E040030 X
015 A000031 BANCO DE SANTANDER
015 B000031 S
015 C010031 MADRID
015 D010031 SPAIN
015 E040031 X
015 A000032 THE HONGKONG AND SHANGHAI BANKING CORP. LTD.
015 B000032 S
015 C010032 COLOMBO
015 D010032 SRI LANKA
015 E040032 X
015 A000033 SKANDINAVISKA ENSKILDA BANKEN
015 B000033 S
015 C010033 STOCKHOLM
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015 A000034 SWISS BANK CORPORATION
015 B000034 S
015 C010034 ZURICH
015 D010034 SWITZERLAND
015 E040034 X
015 A000035 BARCLAYS BANK PLC VIA BANGKOK BANK LTD.
015 B000035 S
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015 D010035 THAILAND
015 E040035 X
015 A000036 BARCLAYS BANK PLC VIA YAPI VE KREDI BANKASI
015 B000036 S
015 C010036 ISTANBUL
015 D010036 TURKEY
<PAGE> PAGE 7
015 E040036 X
015 A000037 CITIBANK, N.A.
015 B000037 S
015 C010037 BUENOS AIRES
015 D010037 ARGENTINA
015 E040037 X
015 A000038 NATIONAL AUSTRALIA BANK LTD.
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015 C010038 MELBOURNE
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015 A000039 CREDITANSTALT-BANKVEREIN
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015 C010039 VIENNA
015 D010039 AUSTRIA
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015 A000040 CITIBANK, N.A.
015 B000040 S
015 C010040 SAO PAULO
015 D010040 BRAZIL
015 E040040 X
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015 C010041 FRANKFURT
015 D010041 GERMANY
015 E040041 X
015 A000042 BERLINER HANDELS-UND FRANKFURTER BANK
015 B000042 S
015 C010042 FRANKFURT
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015 E040042 X
015 A000043 CITIBANK, N.A.
015 B000043 S
015 C010043 BUDAPEST
015 D010043 HUNGARY
015 E040043 X
015 A000044 BANK LEUMI LE-ISRAEL, B.M.
015 B000044 S
015 C010044 TEL AVIV
015 D010044 ISRAEL
015 E040044 X
015 A000045 CITIBANK, N.A.
015 B000045 S
015 C010045 WARSAW
015 D010045 POLAND
015 E040045 X
015 A000046 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000046 S
015 C010046 TAIPEI
015 D010046 TAIWAN (ROC)
015 E040046 X
<PAGE> PAGE 8
015 A000047 BANK OF AMERICA FOREIGN DIVISION - LONDON
015 B000047 S
015 C010047 LONDON
015 D010047 UNITED KINGDOM
015 E040047 X
015 A000048 CITIBANK, N.A.
015 B000048 S
015 C010048 CARACAS
015 D010048 VENEZUELA
015 E040048 X
015 A000049 THE HONGKONG AND SHANGHAI BANKING CORP.
015 B000049 S
015 C010049 SHENZHEN
015 D010049 CHINA
015 E040049 X
018 000000 Y
019 A000000 Y
019 B000000 189
019 C000000 FRNKTEMGRP
020 A000001 CANTOR FITZGERALD & CO INC
020 B000001 95-3976315
020 C000001 25
020 A000002 LEHMAN BROTHERS SECS
020 B000002 13-2518466
020 C000002 16
020 A000003 FIRST BOSTON CORP
020 B000003 13-5659485
020 C000003 9
020 A000004 HAMBRECHT & QUIST INC
020 B000004 94-2856935
020 C000004 8
020 A000005 RAYMOND JAMES & ASSOC INC
020 B000005 59-1237041
020 C000005 7
020 A000006 ADVEST INC
020 B000006 06-0950348
020 C000006 7
020 A000007 SMITH BARNEY SHEARSON
020 B000007 13-1912900
020 C000007 6
020 A000008 COWEN & CO NYC
020 B000008 13-5616116
020 C000008 5
020 A000009 DAIN BOSWORTH INC
020 B000009 41-0212020
020 C000009 4
020 A000010 MERRILL LYNCH PIERCE FENNER
020 B000010 13-5674085
020 C000010 4
021 000000 104
022 A000001 LEHMAN BROTHERS SECS
<PAGE> PAGE 9
022 B000001 13-2518466
022 C000001 432079
022 D000001 5114
022 A000002 DAIWA SECURITIES AMERICA
022 B000002 13-5680329
022 C000002 359714
022 D000002 0
022 A000003 CITICORP
022 B000003 13-3187336
022 C000003 95332
022 D000003 0
022 A000004 FUJI SECURITIES INC
022 B000004 13-3038090
022 C000004 49157
022 D000004 0
022 A000005 CHASE MANHATTAN BANK
022 B000005 13-2633612
022 C000005 31377
022 D000005 2858
022 A000006 SANWA-BGK SEC CO L.P.
022 B000006 13-3154528
022 C000006 21277
022 D000006 0
022 A000007 DONALDSON LUFKIN & JENRETTE
022 B000007 13-2741729
022 C000007 17503
022 D000007 3284
022 A000008 FIRST BOSTON CORP
022 B000008 13-5659485
022 C000008 6629
022 D000008 9613
022 A000009 GREENWICH CAPITAL MARKETS
022 B000009 13-3122275
022 C000009 12767
022 D000009 0
022 A000010 BANKERS TRUST CO
022 B000010 13-4941247
022 C000010 6000
022 D000010 6253
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<PAGE> PAGE 10
026 B000000 Y
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<PAGE> PAGE 11
042 D000000 0
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<PAGE> PAGE 12
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<PAGE> PAGE 13
070 G020000 N
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070 L020000 Y
070 M010000 Y
070 M020000 Y
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<PAGE> PAGE 14
072 Y000000 0
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074 R040000 2209
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<PAGE> PAGE 15
077 F000000 N
077 G000000 N
077 H000000 N
077 I000000 N
077 J000000 N
077 K000000 N
077 L000000 N
077 M000000 N
077 N000000 N
077 O000000 N
077 P000000 N
077 Q010000 N
077 Q020000 N
077 Q030000 N
078 000000 N
080 A000000 ICI MUTUAL INSURANCE COMPANY
080 C000000 130000
081 A000000 Y
081 B000000 188
082 A000000 N
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083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 0
086 B020000 0
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
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087 A010000 COMMON STOCK
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087 A030000 FT
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088 D000000 N
SIGNATURE DIOMEDES LOO-LAM
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN UNIVERSAL TRUST AUGUST 31, 1995 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1995
<PERIOD-END> AUG-31-1995
<INVESTMENTS-AT-COST> 310,649,578
<INVESTMENTS-AT-VALUE> 317,098,074
<RECEIVABLES> 10,637,294
<ASSETS-OTHER> 371,824
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 328,107,192
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 74,960,886
<OTHER-ITEMS-LIABILITIES> 2,412,786
<TOTAL-LIABILITIES> 77,373,672
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 246,871,139
<SHARES-COMMON-STOCK> 26,779,333
<SHARES-COMMON-PRIOR> 26,779,333
<ACCUMULATED-NII-CURRENT> 1,948,330
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (4,534,603)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,448,654
<NET-ASSETS> 250,733,520
<DIVIDEND-INCOME> 6,305,389
<INTEREST-INCOME> 23,569,568
<OTHER-INCOME> 0
<EXPENSES-NET> (7,068,395)
<NET-INVESTMENT-INCOME> 22,806,562
<REALIZED-GAINS-CURRENT> 5,243,923
<APPREC-INCREASE-CURRENT> 11,072,599
<NET-CHANGE-FROM-OPS> 39,123,084
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (21,691,260)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 17,431,824
<ACCUMULATED-NII-PRIOR> 820,596
<ACCUMULATED-GAINS-PRIOR> (9,766,094)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,343,213
<INTEREST-EXPENSE> 4,231,800
<GROSS-EXPENSE> 7,068,395
<AVERAGE-NET-ASSETS> 312,432,195
<PER-SHARE-NAV-BEGIN> 8.710
<PER-SHARE-NII> .850
<PER-SHARE-GAIN-APPREC> .610
<PER-SHARE-DIVIDEND> (.810)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.360
<EXPENSE-RATIO> 2.260
<AVG-DEBT-OUTSTANDING> 75,000,000
<AVG-DEBT-PER-SHARE> 2.800
</TABLE>
REPORT OF INDEPENDENT AUDITORS
To the Shareholders and Board of Trustees of
Franklin Universal Trust:
In planning and performing our audit of the financial
statements and financial highlights of the Franklin
Universal Trust for the year ended August 31, 1995, we
considered its internal control structure, including
procedures for safeguarding securities, in order to
determine our auditing procedures for the purpose of
expressing our opinion on the financial statements and
financial highlights and to comply with the requirements of
Form N-SAR, not to provide assurance on the internal control
structure.
The management of the Franklin Universal Trust is
responsible for establishing and maintaining an internal
control structure. In fulfilling this responsibility,
estimates and judgements by management are required to
assess the expected benefits and related costs of internal
control structure policies and procedures. Two of the
objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that
assets are safeguarded against loss from unauthorized use or
disposition and that transactions are executed in accordance
with management's authorization and recorded properly to
permit preparation of financial statements in conformity
with generally accepted accounting principles.
Because of inherent limitations in any internal control
structure, errors or irregularities may occur and not be
detected. Also, projection of any evaluation of the
structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or
that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would
not necessarily disclose all matters in the internal control
structure that might be material weaknesses under standards
established by the American Institute of Certified Public
Accountants. A material weakness is a condition in which
the design or operation of the specific internal control
structure elements does not reduce to a relatively low level
the risk that errors or irregularities in amounts that
would be material in relation to the financial statements
and financial highlights being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving the internal control structure,
including procedures for safeguarding securities, that we
consider to be material weaknesses, as defined above, as of
August 31, 1995.
This report is intended solely for the information and use
of management of the Franklin Universal Trust and the
Securities and Exchange Commission.
S\COOPERS & LYBRAND L.L.P.
Coopers & Lybrand L.L.P.
San Francisco, California
September 29, 1995
NAME OF REGISTRANT:
Franklin Universal Trust
File No. 811-5569
EXHIBIT ITEM No. 77D:
Policies with respect to security investments
Standard & Poor's Corporation ("S&P) has advised the
registrant that its over collateralization levels and
diversification parameters are in the process of being
revised and will be sent to the registrant by S&P when that
process is completed. In the interim, S&P has informed the
registrant that it may purchase common stocks of public
utility holding companies, whether or not they have a senior
debt rating of investment grade with respect to an
outstanding issue of debt security, provided they have a
market capitalization of at least $500 million and still
maintain the AAA rating on the registrant's outstanding
Notes.
