<PAGE> PAGE 1
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000 C000000 0000833040
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000 F000000 Y
000 G000000 N
000 H000000 N
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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
002 D010000 94404
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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 C000001 801-26292
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008 D040001 1585
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011 C030001 10019
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012 B000001 85-1119600
012 C010001 WILMINGTON
012 C020001 DE
012 C030001 19809
013 A000001 COOPERS & LYBRAND L.L.P.
013 B010001 SAN FRANCISCO
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013 B030001 94105
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015 E040003 X
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015 B000004 S
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015 D010004 CHILE
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015 A000005 THE ROYAL TRUST CORPORATION OF CANADA
015 B000005 S
015 C010005 MONTREAL
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015 E040005 X
015 A000006 STANDARD CHARTERED BANK
<PAGE> PAGE 4
015 B000006 S
015 C010006 SHANGHAI
015 D010006 CHINA
015 E040006 X
015 A000007 CTBANK, NA VIA CITITRUST CLMBIA SA SOC. FIDU.
015 B000007 S
015 C010007 BOGOTA
015 D010007 COLOMBIA
015 E040007 X
015 A000008 DEN DANSKE BANK
015 B000008 S
015 C010008 COPENHAGEN
015 D010008 DENMARK
015 E040008 X
015 A000009 MERITA BANK
015 B000009 S
015 C010009 HELSINKI
015 D010009 FINLAND
015 E040009 X
015 A000010 BANQUE PARIBAS
015 B000010 S
015 C010010 PARIS
015 D010010 FRANCE
015 E040010 X
015 A000011 ALPHA CREDIT BANK A.E.
015 B000011 S
015 C010011 ATHENS
015 D010011 GREECE
015 E040011 X
015 A000012 THE HONGKONG & SHANGHAI BANKING CORP., LTD.
015 B000012 S
015 C010012 HONG KONG
015 D010012 HONG KONG
015 E040012 X
015 A000013 THE HONGKONG & SHANGHAI BANKING CORP., LTD.
015 B000013 S
015 C010013 BOMBAY
015 D010013 INDIA
015 E040013 X
015 A000014 THE HONGKONG & SHANGHAI BANKING CORP., LTD.
015 B000014 S
015 C010014 JAKARATA
015 D010014 INDONESIA
015 E040014 X
015 A000015 ALLIED IRISH BANK
015 B000015 S
015 C010015 DUBLIN
015 D010015 IRELAND
015 E040015 X
015 A000016 BANCA COMMERCIALE ITALIANA
015 B000016 S
<PAGE> PAGE 5
015 C010016 MILAN
015 D010016 ITALY
015 E040016 X
015 A000017 YASUDA TRUST AND BANKING COMPANY LIMITED
015 B000017 S
015 C010017 TOKYO
015 D010017 JAPAN
015 E040017 X
015 A000018 SEOULBANK
015 B000018 S
015 C010018 SEOUL
015 D010018 SOUTH KOREA
015 E040018 X
015 A000019 CEDEL
015 B000019 S
015 C010019 LUXEMBOURG CITY
015 D010019 LUXEMBOURG
015 E040019 X
015 A000020 THE HONGKONG BANK MALAYSIA 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 MEESPIERSON
015 B000022 S
015 C010022 AMSTERDAM
015 D010022 NETHERLANDS
015 E040022 X
015 A000023 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED
015 B000023 S
015 C010023 WELLINGTON
015 D010023 NEW ZEALAND
015 E040023 X
015 A000024 DEN NORSKE BANK A.S.
015 B000024 S
015 C010024 BERGEN/OSLO
015 D010024 NORWAY
015 E040024 X
015 A000025 STANDARD CHARTERED BANK
015 B000025 S
015 C010025 KARACHI
015 D010025 PAKISTAN
015 E040025 X
015 A000026 CITIBANK, N.A.
015 B000026 S
015 C010026 LIMA
<PAGE> PAGE 6
015 D010026 PERU
015 E040026 X
015 A000027 THE HONGKONG & SHANGHAI BANKING CORP., LTD.
015 B000027 S
015 C010027 MANILA
015 D010027 PHILIPPINES
015 E040027 X
015 A000028 BANCO COMERCIAL PORTUGUES, S.A.
015 B000028 S
015 C010028 LISBON
015 D010028 PORTUGAL
015 E040028 X
015 A000029 UNITED OVERSEAS BANK
015 B000029 S
015 C010029 SINGAPORE
015 D010029 SINGAPORE
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 BILBAO VIZCAYA
015 B000031 S
015 C010031 MADRID/BILBAO
015 D010031 SPAIN
015 E040031 X
015 A000032 STANDARD CHARTERED BANK
015 B000032 S
015 C010032 COLOMBO
015 D010032 SRI LANKA
015 E040032 X
015 A000033 SKANDINAVISKA ENSKILDA BANKEN
015 B000033 S
015 C010033 STOCKHOLM
015 D010033 SWEDEN
015 E040033 X
015 A000034 UNION BANK OF SWITZERLAND
015 B000034 S
015 C010034 ZURICH
015 D010034 SWITZERLAND
015 E040034 X
015 A000035 THE SIAM COMMERCIAL BANK PUBLIC COMPANY LTD.
015 B000035 S
015 C010035 BANGKOK
015 D010035 THAILAND
015 E040035 X
015 A000036 CITIBANK, N.A.
015 B000036 S
015 C010036 ISTANBUL
015 D010036 TURKEY
<PAGE> PAGE 7
015 E040036 X
015 A000037 THE BANK OF BOSTON
015 B000037 S
015 C010037 BUENOS AIRES
015 D010037 ARGENTINA
015 E040037 X
015 A000038 AUSTRALIA & NEW ZEALAND BANKING GROUP LIMITED
015 B000038 S
015 C010038 MELBOURNE
015 D010038 AUSTRALIA
015 E040038 X
015 A000039 GIROCREDIT BANK AG DER OSTERREICHISCHEN SPARK
015 B000039 S
015 C010039 VIENNA
015 D010039 AUSTRIA
015 E040039 X
015 A000040 THE BANK OF BOSTON
015 B000040 S
015 C010040 SAO PAULO
015 D010040 BRAZIL
015 E040040 X
015 A000041 DRESDNER BANK AG
015 B000041 S
015 C010041 FRANKFURT
015 D010041 GERMANY
015 E040041 X
015 A000042 CESKOSLOVENSKA OBCHODNI BANKA
015 B000042 S
015 C010042 PRAHA (PRAGUE)
015 D010042 CZECH REPUBLIC
015 E040042 X
015 A000043 CITIBANK, N.A.
015 B000043 S
015 C010043 BUDAPEST
015 D010043 HUNGARY
015 E040043 X
015 A000044 ISRAEL DISCOUNT BANK
015 B000044 S
015 C010044 TEL AVIV
015 D010044 ISRAEL
015 E040044 X
015 A000045 BANK HANDLOWY W WARSZAWIE, S.A.
015 B000045 S
015 C010045 WARSAW
015 D010045 POLAND
015 E040045 X
015 A000046 THE HONGKONG & SHANGHAI BANKING CORP., LTD.
015 B000046 S
015 C010046 TAIPEI
015 D010046 TAIWAN (ROC)
015 E040046 X
<PAGE> PAGE 8
015 A000047 THE BANK OF NEW YORK
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 STANDARD CHARTERED BANK
015 B000049 S
015 C010049 SHENZHEN
015 D010049 CHINA
015 E040049 X
015 A000050 BANQUE COMMERCIALE DU MAROC
015 B000050 S
015 C010050 CASABLANCA
015 D010050 MOROCCO
015 E040050 X
015 A000051 THE BANK OF NEW YORK
015 B000051 C
015 C010051 NEW YORK
015 C020051 NY
015 C030051 10286
015 E010051 X
015 A000052 BANCO DE CHILE
015 B000052 S
015 C010052 SANTIAGO
015 D010052 CHILE
015 E040052 X
015 A000053 FIRST CHICAGO CLEARING CENTRE
015 B000053 S
015 C010053 LONDON
015 D010053 UNITED KINGDOM
015 E040053 X
015 A000054 THE BANK OF BOSTON
015 B000054 S
015 C010054 MONTEVIDEO
015 D010054 URUGUAY
015 E040054 X
018 000000 Y
019 A000000 Y
019 B000000 193
019 C000000 FRNKTEMGRP
020 A000001 MORGAN STANLEY & CO., INC.
020 B000001 13-2655998
020 C000001 20
020 A000002 JEFFERIES & CO., INC.
020 B000002 95-2622900
020 C000002 10
<PAGE> PAGE 9
020 A000003 MERRILL LYNCH PIERCE FENNER
020 B000003 13-5674085
020 C000003 7
020 A000004 DEAN WITTER REYNOLDS, INC.
020 B000004 94-1671384
020 C000004 3
020 A000005 BT SECURITIES CORPORATION
020 B000005 13-3311934
020 C000005 2
020 A000006 GOLDMAN SACHS & CO.
020 B000006 13-5108880
020 C000006 2
020 A000007 SALOMON BROTHERS, INC.
020 B000007 13-3082694
020 C000007 2
020 A000008 SMITH BARNEY SHEARSON
020 B000008 13-1912900
020 C000008 1
020 A000009 NATWEST SECURITIES CORPORATION
020 B000009 11-0773597
020 C000009 1
020 C000010 0
021 000000 49
022 A000001 SBCI SWISS BANK CORP INV BANK
022 B000001 13-2639550
022 C000001 178526
022 D000001 0
022 A000002 DAIWA SECURITIES AMERICA, INC.
022 B000002 13-5680329
022 C000002 150190
022 D000002 0
022 A000003 FUJI SECURITIES, INC.
022 B000003 13-3038090
022 C000003 103551
022 D000003 0
022 A000004 DONALDSON LUFKIN & JENRETTE
022 B000004 13-2741729
022 C000004 104370
022 D000004 0
022 A000005 BEAR, STEARNS & CO.
022 B000005 13-3299429
022 C000005 94411
022 D000005 0
022 A000006 UBS SECURITIES, INC.
022 B000006 13-2932996
022 C000006 91399
022 D000006 0
022 A000007 LEHMAN BROTHERS SECURITIES
022 B000007 13-2518466
022 C000007 80467
022 D000007 7784
<PAGE> PAGE 10
022 A000008 BANK OF AMERICA, NT & SA
022 B000008 94-1687665
022 C000008 74017
022 D000008 3821
022 A000009 NIKKO SECURITIES CO., INT'L. INC.
022 B000009 94-1302123
022 C000009 61900
022 D000009 0
022 A000010 BANKERS TRUST CO.
022 B000010 13-4941247
022 C000010 43611
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<PAGE> PAGE 11
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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<PAGE> PAGE 14
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<PAGE> PAGE 15
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<PAGE> PAGE 16
085 B000000 N
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086 C010000 0
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SIGNATURE DIOMEDES LOO-TAM
TITLE TREAS., & PAO
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FRANKLIN UNIVERSAL TRUST AUGUST 31, 1996 ANNUAL REPORT AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> AUG-31-1996
<PERIOD-END> AUG-31-1996
<INVESTMENTS-AT-COST> 320,167,840
<INVESTMENTS-AT-VALUE> 327,137,243
<RECEIVABLES> 5,188,362
<ASSETS-OTHER> 247,659
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 332,573,264
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 74,973,947
<OTHER-ITEMS-LIABILITIES> 2,399,486
<TOTAL-LIABILITIES> 77,373,433
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 246,871,142
<SHARES-COMMON-STOCK> 26,779,333
<SHARES-COMMON-PRIOR> 26,779,333
<ACCUMULATED-NII-CURRENT> 1,252,117
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 107,572
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 6,969,000
<NET-ASSETS> 255,199,831
<DIVIDEND-INCOME> 6,505,316
<INTEREST-INCOME> 22,730,256
<OTHER-INCOME> 0
<EXPENSES-NET> (7,212,964)
<NET-INVESTMENT-INCOME> 22,022,608
<REALIZED-GAINS-CURRENT> 4,578,673
<APPREC-INCREASE-CURRENT> 520,346
<NET-CHANGE-FROM-OPS> 27,121,627
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (22,655,316)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 4,466,311
<ACCUMULATED-NII-PRIOR> 1,948,330
<ACCUMULATED-GAINS-PRIOR> (4,534,603)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,491,558
<INTEREST-EXPENSE> 4,231,812
<GROSS-EXPENSE> 7,212,964
<AVERAGE-NET-ASSETS> 331,972,155
<PER-SHARE-NAV-BEGIN> 9.360
<PER-SHARE-NII> .820
<PER-SHARE-GAIN-APPREC> .200
<PER-SHARE-DIVIDEND> (.850)
<PER-SHARE-DISTRIBUTIONS> .000
<RETURNS-OF-CAPITAL> .000
<PER-SHARE-NAV-END> 9.53
<EXPENSE-RATIO> 2.170
<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 the 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, 1996,
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, 1996.
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 AND LYBRAND L.L.P.
Coopers and Lybrand L.L.P.
San Francisco, California
October 3, 1996
