U.S. 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
1. Investment Company Act File Number: Date Examination completed:
811-05873 July 5, 2006
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 MULTI-INCOME TRUST
4. Address of principal executive office: (number, street, city, state, zip
code)
One Franklin Parkway San Mateo, CA 94403
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees of
Franklin Templeton Fund Allocator Series
Franklin Templeton Variable Insurance Products Trust
Franklin Global Trust
Franklin Strategic Series
Franklin Universal Trust
Franklin Strategic Mortgage Portfolio
Franklin Gold and Precious Metals Fund
Franklin Floating Rate Trust
Franklin Capital Growth Fund
Institutional Fiduciary Trust
Franklin High Income Trust
Franklin Real Estate Securities Trust
Franklin Multi-Income Trust
Franklin Templeton Limited Duration Income Trust
Templeton Russia and East European Fund, Inc.
Templeton Emerging Markets Fund
Templeton Global Income Fund
Templeton Emerging Markets Income Fund
Templeton Capital Accumulator Fund
Franklin Templeton Money Fund Trust
Franklin Investors Securities Trust
Franklin Value Investors Trust
and the Board of Directors of
Franklin Federal Money Fund
Franklin Money Fund
Franklin Custodian Funds, Inc.
Templeton Dragon Fund, Inc.
Templeton Institutional Funds, 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, about the funds' (hereafter referred to as the "Funds") compliance
(see Attachment I) with the requirements of subsections (b) and (c) of Rule
17f-2 under the Investment Company Act of 1940 ("the Act") as of January 31,
2005. Management is responsible for the Funds' compliance with those
requirements. Our responsibility is to express an opinion on management's
assertion about the Funds' compliance based on our examination.
Our examination was conducted in accordance with the standards of the Public
Company Accounting Oversight Board (United States) 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 January 31, 2005, and with respect to agreement of security
purchases and sales, for the periods indicated in Attachment I:
o Inspection of the records of Franklin Templeton Investors Services,
Inc. as they pertain to the security positions owned by the Funds and held
in book entry form.
o Reconciliation of such security positions to the books and records
of the Funds.
o Agreement of a sample of security purchases and sales since our last
report to the books and records of the Funds.
We believe that our examination provides 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 were in compliance with
the requirements of subsections (b) and (c) of Rule 17f-2 of the Investment
Company Act of 1940 as of January 31, 2005 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 the Board of
Trustees and Board of Directors, management, 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
PricewaterhouseCoopers LLP
San Francisco, California
July 5, 2006
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
interpreted in Franklin Investors Securities Trust SEC No-Action Letter
(publicly available September 24, 1992), and subsection (c) of Rule 17f-2 of the
Investment Company Act of 1940, as of January 30, 2005, 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 interpreted in Franklin
Investors Securities Trust SEC No-Action Letter (publicly available September
24, 1992), and subsection (c) of Rule 17f-2 of the Investment Company Act of
1940, as of January 30, 2005, and for the periods indicated in Attachment I,
with respect to securities reflected in the investment accounts of the Funds.
By:
/s/ Galen G. Vetter
---------------------------------
GALEN G. VETTER
CHIEF FINANCIAL OFFICER
6/21/06
---------------------------------
Date
/s/ Jimmy D. Gambill
-----------------------------------
JIMMY D. GAMBILL
SENIOR VICE PRESIDENT AND CHIEF EXECUTIVE
OFFICER-FINANCE AND ADMINISTRATION
6/26/06
----------------------------------
Date
ATTACHMENT I
FUND PERIODS COVERED
-------------------------------------------------------------------------------
FRANKLIN TEMPLETON FUND ALLOCATOR SERIES:
Franklin Templeton Conservative Target Fund December 31, 2004 - January 31, 2005
Franklin Templeton Moderate Target Fund December 31, 2004 - January 31, 2005
Franklin Templeton Growth Target Fund December 31, 2004 - January 31, 2005
Franklin Templeton Corefolio Allocation Fund December 31, 2004 - January 31, 2005
Franklin Templeton Perspectives Allocation Fund December 31, 2004 - January 31, 2005
Franklin Templeton Founding Funds Allocation Fund December 31, 2004 - January 31, 2005
FRANKLIN TEMPLETON VARIABLE INSURANCE PRODUCTS TRUST
Franklin Strategic Income Securities Fund December 31, 2004 - January 31, 2005
Franklin Small Cap Value Securities Fund December 31, 2004 - January 31, 2005
Franklin Rising Dividends Fund December 31, 2004 - January 31, 2005
Franklin Small Cap Fund December 31, 2004 - January 31, 2005
Templeton Global Asset Allocation Fund December 31, 2004 - January 31, 2005
Templeton Foreign Securities Fund December 31, 2004 - January 31, 2005
FRANKLIN GLOBAL TRUST:
Fiduciary High Income Fund October 31, 2004 - January 31, 2005
Fiduciary Core Fixed Income Fund October 31, 2004 - January 31, 2005
Fiduciary Small Capitalization Equity Fund October 31, 2004 - January 31, 2005
Fiduciary Large Capitalization Growth and Income Fund October 31, 2004 - January 31, 2005
Fiduciary European Smaller Companies Fund October 31, 2004 - January 31, 2005
Fiduciary Core Plus Fixed Income Fund October 31, 2004 - January 31, 2005
FRANKLIN STRATEGIC SERIES:
Franklin Aggressive Growth Fund October 31, 2004 - January 31, 2005
Franklin U.S. Long- Short Fund October 31, 2004 - January 31, 2005
Franklin Natural Resources Fund October 31, 2004 - January 31, 2005
Franklin Biotechnology Discovery Fund October 31, 2004 - January 31, 2005
Franklin Blue Chip Fund October 31, 2004 - January 31, 2005
Franklin Global Health Care Fund October 31, 2004 - January 31, 2005
Franklin Global Communications Fund October 31, 2004 - January 31, 2005
Franklin Strategic Income Fund October 31, 2004 - January 31, 2005
Franklin Flex Cap Growth Fund October 31, 2004 - January 31, 2005
Franklin Technology Fund October 31, 2004 - January 31, 2005
Franklin Small Cap Growth Fund II October 31, 2004 - January 31, 2005
Franklin Small-Mid Cap Growth Fund October 31, 2004 - January 31, 2005
FRANKLIN UNIVERSAL TRUST October 31, 2004 - January 31, 2005
FRANKLIN STRATEGIC MORTGAGE PORTFOLIO October 31, 2004 - January 31, 2005
FRANKLIN GOLD AND PRECIOUS METALS FUND October 31, 2004 - January 31, 2005
FRANKLIN FLOATING RATE TRUST October 31, 2004 - January 31, 2005
FRANKLIN CAPITAL GROWTH FUND October 31, 2004 - January 31, 2005
INSTITUTIONAL FIDUCIARY TRUST:
Money Market Portfolio October 31, 2004 - January 31, 2005
Franklin Cash Reserves Fund October 31, 2004 - January 31, 2005
Franklin Structured Large Cap Growth Equity Fund October 31, 2004 - January 31, 2005
Franklin Structured Large Cap Core Equity Fund October 31, 2004 - January 31, 2005
FRANKLIN HIGH INCOME TRUST:
Franklin AGE High Income Fund October 31, 2004 - January 31, 2005
FRANKLIN REAL ESTATE SECURITIES TRUST:
Franklin Real Estate Securities Fund October 31, 2004 - January 31, 2005
FRANKLIN MULTI-INCOME TRUST October 31, 2004 - January 31, 2005
FRANKLIN TEMPLETON LIMITED DURATION INCOME TRUST October 31, 2004 - January 31, 2005
TEMPLETON RUSSIA AND EAST EUROPEAN FUND, INC. October 31, 2004 - January 31, 2005
TEMPLETON EMERGING MARKETS FUND October 31, 2004 - January 31, 2005
TEMPLETON GLOBAL INCOME FUND October 31, 2004 - January 31, 2005
TEMPLETON EMERGING MARKETS INCOME FUND October 31, 2004 - January 31, 2005
TEMPLETON CAPITAL ACCUMULATOR FUND October 31, 2004 - January 31, 2005
FRANKLIN TEMPLETON MONEY FUND TRUST:
Franklin Templeton Money Fund October 31, 2004 - January 31, 2005
FRANKLIN INVESTORS SECURITIES TRUST:
Franklin Floating Rate Daily Access Fund October 31, 2004 - January 31, 2005
Franklin Total Return Fund October 31, 2004 - January 31, 2005
Franklin Limited Maturity U.S. Government Securities Fund October 31, 2004 - January 31, 2005
Franklin Convertible Securities Fund October 31, 2004 - January 31, 2005
Franklin Equity Income Fund October 31, 2004 - January 31, 2005
Franklin Low Duration Total Return Fund November 17, 2004 - January 31, 2005
Franklin Adjustable U.S. Government Securities Fund October 31, 2004 - January 31, 2005
FRANKLIN VALUE INVESTORS TRUST:
Franklin Balance Sheet Investment Fund October 31, 2004 - January 31, 2005
Franklin MicroCap Value Fund October 31, 2004 - January 31, 2005
Franklin Small Cap Value Fund October 31, 2004 - January 31, 2005
Franklin Large Cap Value Fund October 31, 2004 - January 31, 2005
FRANKLIN FEDERAL MONEY FUND October 31, 2004 - January 31, 2005
FRANKLIN MONEY FUND October 31, 2004 - January 31, 2005
FRANKLIN CUSTODIAN FUNDS, INC.:
Franklin Growth Fund October 31, 2004 - January 31, 2005
Franklin Utilities Fund October 31, 2004 - January 31, 2005
Franklin DynaTech Fund October 31, 2004 - January 31, 2005
Franklin Income Fund October 31, 2004 - January 31, 2005
Franklin U.S. Government Securities Fund October 31, 2004 - January 31, 2005
TEMPLETON DRAGON FUND, INC. October 31, 2004 - January 31, 2005
TEMPLETON INSTITUTIONAL FUNDS, INC.:
Foreign Equity Series October 31, 2004 - January 31, 2005