Certificate of Accounting of Securities and Similar Investments in the Custody of Management Investment Companies Filed Pursu...

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM N-17F-2

 

CERTIFICATE OF ACCOUNTING OF SECURITIES AND SIMILAR

INVESTMENTS IN THE CUSTODY OF

MANAGEMENT INVESTMENT COMPANIES

 

PURSUANT TO RULE N-17F-2 [17 CFR 270.17F-2]

 

 

 

 

1. Investment Company Act File Number:					Date Examination completed:
811-23124					May 20, 2020
2. State Identification Number:
AL		AK	AZ	AR		CA	CO
CT		DE	DC	FL		GA	HI
ID		IL	IN	IA		KS	KY
LA		ME	MD	MA		MI	MN
MS		MO	MT	NE		NV	NH
NJ		NM	NY	NC		ND	OH
OK		OR	PA	RI		SC	SD
TN		TX	UT	VT		VA	WA
WV		WI	WY	PUERTO RICO
3. Exact name of investment company as specified in registration statement:
Franklin Templeton ETF Trust
	Franklin LibertyQ Emerging Markets ETF
	Franklin LibertyQ Small Cap Equity ETF
	Franklin LibertyQ Mid-Cap Equity ETF
	Franklin LibertyQ U.S. Equity ETF
	Franklin FTSE Asia ex Japan ETF
	Franklin FTSE South Korea ETF
	Franklin FTSE Russia ETF
4. Address of principal executive office: (number, street, city, state, zip code)
One Franklin Parkway, San Mateo, CA 94403

 

 

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Report of Independent Accountants

 

To the Board of Trustees of

 

Templeton Global Investment Trust

Franklin Real Estate Securities Trust

Franklin Strategic Series

Franklin High Income Trust

Institutional Fiduciary Trust

Franklin Global Trust

Franklin Gold and Precious Metals Fund

Franklin Universal Trust

Templeton China World Fund

Templeton Emerging Markets Fund

Templeton Emerging Markets Income Fund

Templeton Funds

Templeton Global Income Fund

Templeton Global Smaller Companies Fund

Templeton Income Trust

Franklin Custodian Funds

Franklin Strategic Mortgage Portfolio

Franklin Investors Securities Trust

Franklin Templeton Global Trust

Franklin Templeton International Trust

Templeton Developing Markets Trust

Franklin Fund Allocator Series

Franklin Templeton Variable Insurance Products Trust

Templeton Institutional Funds

Franklin ETF Trust

Franklin Managed Trust

Franklin Limited Duration Income Trust

Franklin Templeton ETF Trust

 

and the Board of Directors of

 

Templeton Growth Fund, Inc.

Templeton Dragon Fund, Inc.

 

We have examined management's assertion, included in the accompanying Management Statement Regarding Compliance with Certain Provisions of the Investment Company Act of 1940, that each of the Funds listed in Attachment I (the “Funds”) complied with the requirements of subsections (b) and (c) of Rule 17f-2 under the Investment Company Act of 1940 (“the Act”) as of May 31, 2019.  The Funds’ management is responsible for its assertion and the Company’s compliance with those requirements.  Our responsibility is to express an opinion on management's assertion about the Funds' compliance with the specified requirements based on our examination.

 

Our examination was conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the examination to obtain reasonable assurance about whether management’s assertion about compliance with the specified requirements is fairly stated, in all material respects, and, accordingly, included examining, on a test basis, evidence about the Funds' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.  Included among our procedures were the following tests performed as of May 31, 2019, and with respect to agreement of security purchases and sales, for the period from February 28, 2019 (the date of our last examinations), through May 31, 2019:

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• Without prior notice to management, confirmation of all securities held by Franklin Templeton Investors Services, Inc., transfer agent, as they pertain to the security positions owned by the Funds and held in book entry form.
• Reconciliation of such security positions to the books and records of the Funds.
• Agreement of 55 security purchases and 55 security sales, since our last report, from the books and records of the Funds to the records of the transfer agent.

 

We believe that our examination provides, and that the evidence we obtained is sufficient and appropriate to provide, a reasonable basis for our opinion.  Our examination does not provide a legal determination on the Funds' compliance with specified requirements.

 

In our opinion, management's assertion that the Funds complied with the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment Company Act of 1940 as of May 31, 2019 with respect to securities reflected in the investment accounts of the Funds is fairly stated, in all material respects.

 

This report is intended solely for the information and use of management and the Board of Directors and Trustees of the Funds and the Securities and Exchange Commission and is not intended to be and should not be used by anyone other than these specified parties.

 

/s/PRICEWATERHOUSECOOPERS, LLP

 

May 20, 2020

 

 

 

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Management Statement Regarding Compliance with Certain

Provisions of the Investment Company Act of 1940

 

We, as members of management of the Franklin Templeton Funds indicated in Attachment I (the “Funds”), are responsible for complying with the requirements of subsections (b) and (c) of Rule 17f-2, “Custody of Investments by Registered Management Investment Companies,” of the Investment Company Act of 1940.  We are also responsible for establishing and maintaining effective internal controls over compliance with those requirements.  We have performed an evaluation of the Funds’ compliance with the requirements of subsection (b) of Rule 17f-2 as of May 31, 2019, and for the periods indicated in Attachment I.

 

Based on this evaluation, we assert that the Funds were in compliance with the requirements of subsection (b) of Rule 17f-2 as of May 31, 2019, and for the periods indicated in Attachment I, with respect to securities reflected in the investment accounts of the Funds.

 

By:

 

/s/GASTON GARDEY

Gaston Gardey

Chief Financial Officer and Chief Accounting Officer

Franklin Funds Board

Date May 20, 2020

 

 

/s/ROBERT G. KUBILIS

Robert G. Kubilis

Chief Financial Officer and Chief Accounting Officer

Templeton, New Jersey and Alternative Strategies Funds Board

Date May 20, 2020

 

 

/s/MATTHEW T. HINKLE

Matthew T. Hinkle

Chief Executive Officer - Finance and Administration

Date May 20, 2020

 

 

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Attachment I

Fund				Period
Templeton Global Investment Trust:
	Templeton Emerging Markets Balanced Fund				February 28, 2019 – May 31, 2019
	Templeton Emerging Markets Small Cap Fund				February 28, 2019 – May 31, 2019
	Templeton Frontier Markets Fund				February 28, 2019 – May 31, 2019
	Templeton Global Balanced Fund				February 28, 2019 – May 31, 2019
	Templeton Dynamic Equity Fund				February 28, 2019 – May 31, 2019
Franklin Real Estate Securities Trust:
	Franklin Real Estate Securities Fund				February 28, 2019 – May 31, 2019
Franklin Strategic Series:
	Franklin Biotechnology Discovery Fund				February 28, 2019 – May 31, 2019
	Franklin Flexible Alpha Bond Fund				February 28, 2019 – May 31, 2019
	Franklin Select U.S. Equity Fund				February 28, 2019 – May 31, 2019
	Franklin Growth Opportunities Fund				February 28, 2019 – May 31, 2019
	Franklin Natural Resources Fund				February 28, 2019 – May 31, 2019
	Franklin Small Cap Growth Fund				February 28, 2019 – May 31, 2019
	Franklin Small-Mid Cap Growth Fund				February 28, 2019 – May 31, 2019
	Franklin Strategic Income Fund				February 28, 2019 – May 31, 2019
Franklin High Income Trust:
	Franklin High Income Fund				February 28, 2019 – May 31, 2019
Institutional Fiduciary Trust:
	Money Market Portfolio				February 28, 2019 – May 31, 2019
Franklin Global Trust:
	Franklin Emerging Market Debt Opportunities Fund				February 28, 2019 – May 31, 2019
	Franklin International Growth Fund				February 28, 2019 – May 31, 2019
	Franklin Global Listed Infrastructure Fund				February 28, 2019 – May 31, 2019
Franklin Gold and Precious Metals Fund					February 28, 2019 – May 31, 2019
Franklin Universal Trust					February 28, 2019 – May 31, 2019
Templeton China World Fund					February 28, 2019 – May 31, 2019
Templeton Emerging Markets Fund					February 28, 2019 – May 31, 2019
Templeton Emerging Markets Income Fund					February 28, 2019 – May 31, 2019
Templeton Funds:
	Templeton Foreign Fund				February 28, 2019 – May 31, 2019
	Templeton World Fund				February 28, 2019 – May 31, 2019
	Templeton International Climate Change Fund				February 28, 2019 – May 31, 2019
Templeton Global Income Fund					February 28, 2019 – May 31, 2019
Templeton Global Smaller Companies Fund					February 28, 2019 – May 31, 2019
Templeton Growth Fund, Inc.					February 28, 2019 – May 31, 2019
Templeton Income Trust:
	Templeton Emerging Markets Bond Fund				February 28, 2019 – May 31, 2019
	Templeton Global Bond Fund				February 28, 2019 – May 31, 2019
	Templeton Global Total Return Fund				February 28, 2019 – May 31, 2019
	Templeton International Bond Fund				February 28, 2019 – May 31, 2019
Franklin Custodian Funds:
	Franklin DynaTech Fund				February 28, 2019 – May 31, 2019
	Franklin Growth Fund				February 28, 2019 – May 31, 2019
	Franklin Income Fund				February 28, 2019 – May 31, 2019
	Franklin U.S. Government Securities Fund				February 28, 2019 – May 31, 2019
	Franklin Utilities Fund				February 28, 2019 – May 31, 2019
	Franklin Focused Growth Fund				February 28, 2019 – May 31, 2019
Franklin Strategic Mortgage Portfolio					February 28, 2019 – May 31, 2019
Franklin Investors Securities Trust:
	Franklin Adjustable U.S. Government Securities Fund				February 28, 2019 – May 31, 2019
	Franklin Balanced Fund				February 28, 2019 – May 31, 2019
	Franklin Convertible Securities Fund				February 28, 2019 – May 31, 2019
	Franklin Equity Income Fund				February 28, 2019 – May 31, 2019
	Franklin Floating Rate Daily Access Fund				February 28, 2019 – May 31, 2019
	Franklin Low Duration Total Return Fund				February 28, 2019 – May 31, 2019
	Franklin Real Return Fund				February 28, 2019 – May 31, 2019
	Franklin Total Return Fund				February 28, 2019 – May 31, 2019
Franklin Templeton Global Trust:
	Templeton Global Currency Fund				February 28, 2019 – May 31, 2019
Franklin Templeton International Trust:
	Franklin India Growth Fund				February 28, 2019 – May 31, 2019
Templeton Developing Markets Trust					February 28, 2019 – May 31, 2019
Franklin Fund Allocator Series:
	Franklin Conservative Allocation Fund				February 28, 2019 – May 31, 2019
	Franklin Corefolio Allocation Fund				February 28, 2019 – May 31, 2019
	Franklin Founding Funds Allocation Fund				February 28, 2019 – May 31, 2019
	Franklin Growth Allocation Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart Retirement Income Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2020 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2025 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2030 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2035 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2040 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2045 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2050 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin LifeSmart 2055 Retirement Target Fund				February 28, 2019 – May 31, 2019
	Franklin Moderate Allocation Fund				February 28, 2019 – May 31, 2019
	Franklin NextStep Conservative Fund				February 28, 2019 – May 31, 2019
	Franklin NextStep Moderate Fund				February 28, 2019 – May 31, 2019
	Franklin NextStep Growth Fund				February 28, 2019 – May 31, 2019
	Franklin Payout 2019 Fund				February 28, 2019 – May 31, 2019
	Franklin Payout 2020 Fund				February 28, 2019 – May 31, 2019
	Franklin Payout 2021 Fund				February 28, 2019 – May 31, 2019
	Franklin Payout 2022 Fund				February 28, 2019 – May 31, 2019
Franklin Templeton Variable Insurance Products Trust:
	Franklin Flex Cap Growth VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Founding Funds Allocation VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Income VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Mutual Global Discovery VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Mutual Shares VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Rising Dividends VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Small Cap Value VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Small-Mid Cap Growth VIP Fund				February 28, 2019 – May 31, 2019
	Franklin Strategic Income VIP Fund				February 28, 2019 – May 31, 2019
	Franklin VolSmart Allocation VIP Fund				February 28, 2019 – May 31, 2019
	Templeton Developing Markets VIP Fund				February 28, 2019 – May 31, 2019
	Templeton Foreign VIP Fund				February 28, 2019 – May 31, 2019
	Templeton Growth VIP Fund				February 28, 2019 – May 31, 2019
	Templeton Global Bond VIP Fund				February 28, 2019 – May 31, 2019
Templeton Dragon Fund, Inc.					February 28, 2019 – May 31, 2019
Templeton Institutional Funds:
	International Equity Series				February 28, 2019 – May 31, 2019
	Global Equity Series				February 28, 2019 – May 31, 2019
Franklin ETF Trust:
	Franklin Liberty Short Duration U.S. Government ETF				February 28, 2019 – May 31, 2019
Franklin Managed Trust:
	Franklin Rising Dividends Fund				February 28, 2019 – May 31, 2019
Franklin Limited Duration Income Trust					February 28, 2019 – May 31, 2019
Franklin Templeton ETF Trust:
	Franklin LibertyQ Emerging Markets ETF				February 28, 2019 – May 31, 2019
	Franklin LibertyQ Small Cap Equity ETF				February 28, 2019 – May 31, 2019
	Franklin LibertyQ Mid Cap Equity ETF				February 28, 2019 – May 31, 2019
	Franklin LibertyQ U.S. Equity ETF				February 28, 2019 – May 31, 2019
	Franklin FTSE Asia ex Japan ETF				February 28, 2019 – May 31, 2019
	Franklin FTSE South Korea ETF				February 28, 2019 – May 31, 2019
	Franklin FTSE Russia ETF				February 28, 2019 – May 31, 2019

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