Franklin Corefolio Allocation Fund Class C (FTCLX) N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number

811-07851

Franklin Fund Allocator Series

 (Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code:(650) 312-2000

Date of fiscal year end: 12/31

Date of reporting period: 6/30/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.

Not Applicable

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

June

30,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

LifeSmart

TM

Retirement

Income

Fund

2020

Retirement

Target

Fund

2025

Retirement

Target

Fund

2030

Retirement

Target

Fund

2035

Retirement

Target

Fund

2040

Retirement

Target

Fund

2045

Retirement

Target

Fund

2050

Retirement

Target

Fund

2055

Retirement

Target

Fund

2060

Retirement

Target

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

June

30,

2021,

the

U.S.

economy

continued

to

recover

from

the

effects

of

the

coronavirus

(COVID-19)

pandemic.

The

recovery

accelerated

in

2021’s

first

quarter,

with

total

U.S.

economic

output

nearly

reaching

pre-pandemic

levels.

The

lifting

of

restrictions,

solid

vaccination

rates,

additional

fiscal

stimulus

measures

and

steady

improvement

in

consumer

confidence

drove

spending

higher

and

fueled

optimism

about

the

ongoing

recovery.

During

the

period,

the

U.S.

Federal

Reserve

held

the

federal

funds

rate

unchanged

at

0.25%

to

support

credit

markets

and

U.S.

economic

activity,

and

it

continued

broad

quantitative

easing

and

its

policy

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

Rebounding

global

economic

activity,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

lockdown

restrictions

and

the

implementation

of

vaccination

programs

globally

led

many

equity

markets

to

reach

all-time

price

highs.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+14.41%

(the

index

increasing

from

3,756.07

to

4,297.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+12.16%

(the

index

increasing

from

2,690.044

to

3,017.228).

2,3

Investment-

grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.60%

total

return

(an

index

decrease

from

2,392.02

to

2,353.64),

which

includes

reinvestment

of

income

and

distributions.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

semiannual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2021,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

+15.25%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

8,942.78)

and

MSCI

World

Index

+13.33%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

13,174.277).

4.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

LifeSmart

™

Retirement

Income

Fund

4

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

10

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

15

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

20

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

25

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

30

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

35

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

40

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

45

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

50

Financial

Highlights

and

Statements

of

Investments

55

Financial

Statements

123

Notes

to

Financial

Statements

140

Shareholder

Information

171

Visit

franklintempleton.com

for

fund

updates

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+12.30%

total

return

for

the

six

months

ended

June

30,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

rebounding

economic

activity

and

easing

novel

coronavirus

(COVID-19)

pandemic

restrictions

in

many

regions.

The

implementation

of

vaccination

programs

and

additional

fiscal

stimulus

measures

led

many

equity

markets

to

reach

new

all-time

price

highs.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

an

accommodative

monetary

policy,

additional

fiscal

stimulus

measures

and

ongoing

vaccination

programs.

The

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

also

supported

the

economy.

Gross

domestic

product

(GDP)

growth

accelerated

in

2021’s

first

quarter,

with

total

economic

output

nearly

reaching

pre-

pandemic

levels.

The

rebound

in

corporate

earnings

and

progress

toward

a

bipartisan

infrastructure

plan

further

bolstered

investor

sentiment.

The

U.S.

Federal

Reserve

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%

and

continued

its

program

of

open-ended

bond

purchases

to

help

keep

markets

functioning.

The

economic

recovery

in

the

eurozone

was

relatively

weak,

as

quarter-over-quarter

GDP

growth

contracted

during

2021’s

first

quarter.

GDP

growth

rates

were

mostly

negative

among

the

region’s

largest

economies

amid

renewed

lockdowns,

delays

in

COVID-19

vaccine

distribution

and

weak

consumer

spending.

Nevertheless,

optimism

that

successful

vaccine

programs

would

lift

global

growth

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+11.80%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

+4.54%

total

return

for

the

six-month

period.

1

The

region’s

economic

recovery

was

pressured

by

weak

domestic

demand,

most

notably

in

China,

despite

improvement

in

manufacturing

and

exports.

Asian

equity

markets

experienced

volatility

near

period-end

due

to

inflation

concerns,

rising

COVID-19

infection

rates

in

many

countries,

especially

India,

and

renewed

lockdowns.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

+7.45%

total

return

for

the

six

months

under

review.

1

The

recovery

in

oil

and

industrial

metals

prices

supported

global

emerging

market

equities.

Late

in

the

period,

higher

COVID-19

cases

in

some

countries,

limited

vaccine

rollouts

and

concerns

about

rising

interest

rates

and

inflation

amid

higher

commodity

prices

dampened

investor

enthusiasm

in

global

emerging

market

equities.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

June

30,

2021.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

Retirement

Income

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

Retirement

Income

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

make

monthly

distributions,

while

preserving

the

investors’

capital

over

the

long

term.

The

Fund

employs

an

asset

allocation

strategy,

combined

with

an

income

generation

strategy,

designed

for

investors

in

retirement.

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+3.27%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.58%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

40%

of

the

Fund’s

assets

are

allocated

to

equity

investments

and

60%

of

the

Fund’s

assets

are

allocated

to

fixed-income

investments.

The

underlying

funds

and

the

percentage

allocations

to

each

asset

class

may

be

changed

from

time

to

time

by

the

Fund’s

investment

manager

without

the

approval

of

shareholders,

and,

under

normal

market

conditions,

the

percentage

allocations

for

equity

and

fixed-income

funds

may

vary

up

to

10%

from

the

stated

allocations.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

The

Fund

was

able

to

successfully

meet

its

monthly

distributions

without

the

return

of

capital.

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Fixed

Income

44.3%

Domestic

Equity

24.3%

Foreign

Fixed

Income

12.5%

Index-Linked

Notes

10.2%

Foreign

Equity

7.4%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).The

SOI

begins

on

page

60

.

Franklin

LifeSmart™

Retirement

Income

Fund

5

franklintempleton.com

Semiannual

Report

At

period-end,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

foreign

fixed

income

fund

holding,

Western

Asset

Income

Fund,

Class

IS,

outperformed

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Our

largest

domestic

equity

fund

holding,

Global

X

U.S.

Preferred

ETF,

and

our

largest

foreign

equity

fund

holding,

Templeton

Foreign

Fund

–

Class

R6,

underperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR.

The

index-linked

note

increased

the

level

of

income

the

Fund

was

able

to

generate.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

Retirement

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

13.0%

Global

X

U.S.

Preferred

ETF

12.1%

Western

Asset

Income

Fund,

Class

IS

10.0%

Franklin

Liberty

Investment

Grade

Corporate

ETF

7.0%

Templeton

Foreign

Fund,

Class

R6

6.5%

Franklin

Liberty

High

Yield

Corporate

ETF

5.9%

Franklin

U.S.

Government

Securities

Fund,

Class

R6

5.7%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

5.4%

iShares

Core

S&P

U.S.

Value

ETF

5.3%

UBS

AG,

Senior

Note

5.1%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

Retirement

Income

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+3.27%

-2.45%

1-Year

+12.70%

+6.52%

5-Year

+32.42%

+4.59%

10-Year

+58.29%

+4.11%

Advisor

6-Month

+3.39%

+3.39%

1-Year

+13.05%

+13.05%

5-Year

+34.13%

+6.05%

10-Year

+62.64%

+4.98%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

3.45%

2.37%

1.80%

Advisor

3.90%

2.77%

2.16%

See

page

8

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investments

in

equity-linked

notes

(ELNs)

often

have

risks

similar

to

their

underlying

securities,

which

could

include

management,

market,

and,

as

applicable,

foreign

securities

and

currency

risks.

In

addition,

ELNs

are

subject

to

certain

debt

securities

risks,

such

as

interest

rate

and

credit

risks,

as

well

as

counterparty

and

liquidity

risk.

Investments

in

equity

index-linked

notes

(ILNs)

often

have

risks

similar

to

securities

in

the

underlying

index,

which

could

include

management

risk,

market

risk

and,

as

applicable,

foreign

securities

and

currency

risks.

Investments

in

derivatives

involve

costs

and

can

create

economic

leverage,

which

may

result

in

significant

volatility

and

cause

the

fund

to

participate

in

losses

(as

well

as

gains)

that

exceed

the

fund’s

initial

investment.

The

Fund

is

not

guaranteed

to

achieve

its

investment

goal

of

preserving

capital

while

making

monthly

distributions

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

In

addition,

some

of

its

distributions

may

be

treated

in

part

as

a

return

of

capital

which

will

de-

crease

shareholders’

cost

basis

in

the

Fund

and

affect

the

amount

of

any

capital

gain

or

loss

that

shareholders

realize

when

selling

or

exchanging

Fund

shares.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year,

and

could

vary

substantially

over

time.

It

is

possible

for

the

Fund

to

suffer

substantial

investment

losses

and

simultaneously

experience

additional

asset

reductions

as

a

result

of

its

distributions

to

shareholders

under

the

managed

distribution

policy.

Investors

who

hold

the

Fund

within

a

tax-advantaged

retirement

account

should

consult

their

tax

advisors

to

discuss

tax

consequences

of

receiving

cash

distributions.

In

addition,

use

of

the

Fund

or

election

of

the

option

to

receive

distribution

payments

in

cash

may

be

restricted

in

certain

retirement

plans

by

the

terms

of

the

governing

plan

documents

and/or

the

discretion

of

the

plan

administrator.

Investors

are

strongly

advised

to

consult

with

their

financial

advisor

for

assistance

before

selecting

the

appropriate

fund,

based

on

their

goals

and

personal

situations,

including

time

horizon,

retirement

income

needs,

risk

tolerance

and

tax

bracket.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

and

other

risks

are

described

more

fully

in

the

Fund’s

prospectus.

1.

The

Fund

has

an

expense

reduction

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction;

without

this

reduction,

the

results

would

have

been

lower.

As

of

May

1,

2016,

the

Fund

changed

its

name

from

Franklin

LifeSmart

2015

Retirement

Target

Date

Fund

in

connection

with

changes

to

its

strat-

egies

including,

among

other

things,

the

addition

of

an

income

generation

strategy

to

support

the

Fund’s

managed

distribution

policy.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

Net

Asset

Value

Share

Class

6/30/21

12/31/20

Change

A

(FTRAX)

$11.77

$11.62

+$0.15

C

(FRTCX)

$11.63

$11.48

+$0.15

R

(FBRLX)

$11.74

$11.59

+$0.15

R6

(FLMTX)

$11.83

$11.67

+$0.16

Advisor

(FLRDX)

$11.82

$11.66

+$0.16

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

A

$0.2148

C

$0.1692

R

$0.2046

R6

$0.2334

Advisor

$0.2304

Total

Annual

Operating

Expenses

7

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.54%

1.19%

Advisor

0.29%

0.94%

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

8

franklintempleton.com

Semiannual

Report

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

June

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

6/30/21.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

Franklin

LifeSmart™

Retirement

Income

Fund

9

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,032.70

$1.51

$1,023.31

$1.50

0.30%

C

$1,000

$1,029.00

$5.28

$1,019.59

$5.26

1.05%

R

$1,000

$1,031.90

$2.64

$1,022.20

$2.63

0.52%

R6

$1,000

$1,034.20

$0.00

$1,024.80

$0.00

0.00%

Advisor

$1,000

$1,033.90

$0.25

$1,024.55

$0.25

0.05%

10

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2020

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+6.00%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Fixed

Income

41.9%

Domestic

Equity

39.0%

Foreign

Equity

14.9%

Foreign

Fixed

Income

2.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.2%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

67

.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

11

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2020

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021

,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

17.8%

Franklin

U.S.

Core

Equity

(IU)

Fund

15.6%

Franklin

Growth

Fund,

Class

R6

10.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.2%

Franklin

International

Core

Equity

(IU)

Fund

5.4%

Western

Asset

Core

Plus

Bond

Fund,

Class

S

4.0%

Franklin

LibertyQ

U.S.

Equity

ETF

3.9%

Franklin

Liberty

High

Yield

Corporate

ETF

3.5%

iShares

Core

S&P

U.S.

Value

ETF

3.2%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

3.2%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2020

Retirement

Target

Fund

12

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+6.00%

+0.14%

1-Year

+17.50%

+11.03%

5-Year

+44.42%

+6.42%

Since

Inception

(7/1/13)

+64.57%

+5.68%

Advisor

6-Month

+6.10%

+6.10%

1-Year

+17.72%

+17.72%

5-Year

+46.17%

+7.89%

Since

Inception

(7/1/13)

+68.07%

+6.71%

See

page

13

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

13

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0600

$0.0260

$0.1229

$0.2089

C

$0.0234

$0.0260

$0.1229

$0.1723

R

$0.0347

$0.0260

$0.1229

$0.1836

R6

$0.0782

$0.0260

$0.1229

$0.2271

Advisor

$0.0752

$0.0260

$0.1229

$0.2241

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.21%

Advisor

0.45%

0.96%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2020

Retirement

Target

Fund

14

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher

.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,060.00

$2.36

$1,022.51

$2.31

0.46%

C

$1,000

$1,055.90

$6.18

$1,018.79

$6.06

1.21%

R

$1,000

$1,058.10

$3.64

$1,021.26

$3.57

0.71%

R6

$1,000

$1,061.20

$0.83

$1,023.99

$0.81

0.16%

Advisor

$1,000

$1,061.00

$1.08

$1,023.74

$1.06

0.21%

15

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+7.20%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

17

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

43.5%

Domestic

Fixed

Income

34.5%

Foreign

Equity

18.5%

Foreign

Fixed

Income

2.0%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.0%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

74

.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

16

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2025

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

17.5%

Franklin

Liberty

U.S.

Core

Bond

ETF

14.7%

Franklin

Growth

Fund,

Class

R6

11.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.9%

Franklin

International

Core

Equity

(IU)

Fund

6.3%

Franklin

LibertyQ

U.S.

Equity

ETF

4.4%

iShares

Core

S&P

U.S.

Value

ETF

3.6%

Templeton

Foreign

Fund,

Class

R6

3.5%

Western

Asset

Core

Plus

Bond

Fund,

Class

S

3.3%

Franklin

Liberty

High

Yield

Corporate

ETF

2.9%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2025

Retirement

Target

Fund

17

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+7.20%

+1.33%

1-Year

+21.03%

+14.37%

5-Year

+54.63%

+7.87%

10-Year

+95.28%

+6.32%

Advisor

6-Month

+7.38%

+7.38%

1-Year

+21.36%

+21.36%

5-Year

+56.55%

+9.38%

10-Year

+100.67%

+7.21%

See

page

18

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

18

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0615

$0.1818

$0.2433

C

$0.0238

$0.1818

$0.2056

R

$0.0436

$0.1818

$0.2254

R6

$0.0810

$0.1818

$0.2628

Advisor

$0.0778

$0.1818

$0.2596

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.01%

Advisor

0.45%

0.76%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2025

Retirement

Target

Fund

19

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher

.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,072.00

$2.33

$1,022.54

$2.28

0.45%

C

$1,000

$1,068.20

$6.16

$1,018.84

$6.01

1.20%

R

$1,000

$1,070.20

$3.62

$1,021.30

$3.54

0.71%

R6

$1,000

$1,073.20

$0.80

$1,024.03

$0.78

0.16%

Advisor

$1,000

$1,073.80

$1.06

$1,023.78

$1.03

0.21%

20

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+8.35%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

22

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

49.0%

Domestic

Fixed

Income

26.0%

Foreign

Equity

21.9%

Foreign

Fixed

Income

1.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.1%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

81

.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

21

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2030

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

19.6%

Franklin

Growth

Fund,

Class

R6

12.8%

Franklin

Liberty

U.S.

Core

Bond

ETF

11.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

7.7%

Franklin

International

Core

Equity

(IU)

Fund

7.4%

Franklin

LibertyQ

U.S.

Equity

ETF

4.9%

Templeton

Foreign

Fund,

Class

R6

4.1%

iShares

Core

S&P

U.S.

Value

ETF

4.0%

Templeton

Developing

Markets

Trust,

Class

R6

2.8%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.7%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2030

Retirement

Target

Fund

22

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+8.35%

+2.38%

1-Year

+24.76%

+17.86%

5-Year

+62.19%

+8.91%

Since

Inception

(7/1/13)

+87.51%

+7.42%

Advisor

6-Month

+8.51%

+8.51%

1-Year

+25.06%

+25.06%

5-Year

+64.35%

+10.45%

Since

Inception

(7/1/13)

+91.29%

+8.45%

See

page

23

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

23

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0597

$0.1325

$0.1922

C

$0.0230

$0.1325

$0.1555

R

$0.0428

$0.1325

$0.1753

R6

$0.0797

$0.1325

$0.2122

Advisor

$0.0761

$0.1325

$0.2086

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.20%

Advisor

0.45%

0.95%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2030

Retirement

Target

Fund

24

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,083.50

$2.34

$1,022.55

$2.27

0.45%

C

$1,000

$1,079.80

$6.20

$1,018.84

$6.02

1.20%

R

$1,000

$1,082.40

$3.63

$1,021.31

$3.52

0.70%

R6

$1,000

$1,085.30

$0.79

$1,024.04

$0.77

0.15%

Advisor

$1,000

$1,085.10

$1.05

$1,023.79

$1.02

0.20%

25

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+9.35%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

27

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

53.4%

Foreign

Equity

25.4%

Domestic

Fixed

Income

18.3%

Foreign

Fixed

Income

1.2%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.2%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

88

.

Franklin

LifeSmart™t

2035

Retirement

Target

Fund

26

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

gradually

shifts

semiannually,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF

and

our

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2035

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

21.4%

Franklin

Growth

Fund,

Class

R6

14.0%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

8.4%

Franklin

International

Core

Equity

(IU)

Fund

8.3%

Franklin

Liberty

U.S.

Core

Bond

ETF

7.7%

Franklin

LibertyQ

U.S.

Equity

ETF

5.3%

Templeton

Foreign

Fund,

Class

R6

4.6%

iShares

Core

S&P

U.S.

Value

ETF

4.3%

Templeton

Developing

Markets

Trust,

Class

R6

3.5%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.5%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2035

Retirement

Target

Fund

27

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+9.35%

+3.36%

1-Year

+27.93%

+20.86%

5-Year

+69.98%

+9.94%

10-Year

+117.72%

+7.48%

Advisor

6-Month

+9.44%

+9.44%

1-Year

+28.28%

+28.28%

5-Year

+72.15%

+11.48%

10-Year

+123.84%

+8.39%

See

page

28

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

28

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individ-

ual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0582

$0.0795

$0.1822

$0.3199

C

$0.0048

$0.0795

$0.1822

$0.2665

R

$0.0315

$0.0795

$0.1822

$0.2932

R6

$0.0799

$0.0795

$0.1822

$0.3416

Advisor

$0.0763

$0.0795

$0.1822

$0.3380

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.08%

Advisor

0.45%

0.83%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2035

Retirement

Target

Fund

29

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,00

0

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,093.50

$2.30

$1,022.60

$2.22

0.44%

C

$1,000

$1,089.00

$6.17

$1,018.89

$5.97

1.19%

R

$1,000

$1,091.80

$3.58

$1,021.38

$3.46

0.69%

R6

$1,000

$1,094.10

$0.74

$1,024.09

$0.72

0.14%

Advisor

$1,000

$1,094.40

$1.00

$1,023.84

$0.97

0.19%

30

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2040

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+10.52%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

32

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

59.1%

Foreign

Equity

28.8%

Domestic

Fixed

Income

10.4%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.2%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

95

.

FranklinLifeSmart™

2040

Retirement

Target

Fund

31

franklintempleton.com

Semiannual

Report

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2040

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.6%

Franklin

Growth

Fund,

Class

R6

15.3%

Franklin

International

Core

Equity

(IU)

Fund

9.4%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

9.3%

Franklin

LibertyQ

U.S.

Equity

ETF

5.9%

Templeton

Foreign

Fund,

Class

R6

5.2%

iShares

Core

S&P

U.S.

Value

ETF

4.9%

Franklin

Liberty

U.S.

Core

Bond

ETF

4.7%

Templeton

Developing

Markets

Trust,

Class

R6

4.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.0%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2040

Retirement

Target

Fund

32

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+10.52%

+4.44%

1-Year

+31.69%

+24.42%

5-Year

+76.50%

+10.78%

Since

Inception

(7/1/13)

+104.96%

+8.62%

Advisor

6-Month

+10.72%

+10.72%

1-Year

+31.98%

+31.98%

5-Year

+78.54%

+12.29%

Since

Inception

(7/1/13)

+109.23%

+9.67%

See

page

33

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

33

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0497

$0.0778

$0.1823

$0.3098

C

$0.0039

$0.0778

$0.1823

$0.2640

R

$0.0274

$0.0778

$0.1823

$0.2875

R6

$0.0712

$0.0778

$0.1823

$0.3313

Advisor

$0.0683

$0.0778

$0.1823

$0.3284

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.38%

Advisor

0.45%

1.13%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2040

Retirement

Target

Fund

34

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,105.20

$2.33

$1,022.58

$2.24

0.45%

C

$1,000

$1,101.40

$6.23

$1,018.86

$5.99

1.20%

R

$1,000

$1,104.50

$3.64

$1,021.34

$3.49

0.70%

R6

$1,000

$1,107.20

$0.77

$1,024.06

$0.74

0.15%

Advisor

$1,000

$1,107.20

$1.03

$1,023.82

$0.99

0.20%

35

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.38%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

37

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

62.7%

Foreign

Equity

32.3%

Domestic

Fixed

Income

3.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.0%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

102

.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

36

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Western

Asset

Core

Plus

Bond

Fund

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2045

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

25.0%

Franklin

Growth

Fund,

Class

R6

16.4%

Franklin

International

Core

Equity

(IU)

Fund

10.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

9.9%

Franklin

LibertyQ

U.S.

Equity

ETF

6.4%

Templeton

Foreign

Fund,

Class

R6

5.7%

iShares

Core

S&P

U.S.

Value

ETF

5.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.7%

Templeton

Developing

Markets

Trust,

Class

R6

4.7%

iShares

MSCI

EAFE

Value

ETF

3.4%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2045

Retirement

Target

Fund

37

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+11.38%

+5.26%

1-Year

+34.06%

+26.65%

5-Year

+79.90%

+11.20%

10-Year

+132.05%

+8.16%

Advisor

6-Month

+11.54%

+11.54%

1-Year

+34.40%

+34.40%

5-Year

+82.27%

+12.76%

10-Year

+138.33%

+9.07%

See

page

38

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

38

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0430

$0.0929

$0.2134

$0.3493

C

$0.0050

$0.0929

$0.2134

$0.3113

R

$0.0250

$0.0929

$0.2134

$0.3313

R6

$0.0661

$0.0929

$0.2134

$0.3724

Advisor

$0.0622

$0.0929

$0.2134

$0.3685

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.21%

Advisor

0.45%

0.96%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2045

Retirement

Target

Fund

39

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,113.80

$2.31

$1,022.61

$2.21

0.44%

C

$1,000

$1,109.70

$6.21

$1,018.91

$5.94

1.19%

R

$1,000

$1,112.50

$3.60

$1,021.39

$3.44

0.69%

R6

$1,000

$1,115.60

$0.74

$1,024.09

$0.71

0.14%

Advisor

$1,000

$1,115.40

$1.00

$1,023.85

$0.96

0.19%

40

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.59%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

42

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

63.5%

Foreign

Equity

34.4%

Domestic

Fixed

Income

0.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.1%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

109

.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

41

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Western

Asset

Core

Plus

Bond

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2050

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.9%

Franklin

Growth

Fund,

Class

R6

16.5%

Franklin

International

Core

Equity

(IU)

Fund

11.0%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

10.1%

Franklin

LibertyQ

U.S.

Equity

ETF

6.9%

Templeton

Foreign

Fund,

Class

R6

6.1%

iShares

Core

S&P

U.S.

Value

ETF

5.2%

Templeton

Developing

Markets

Trust,

Class

R6

5.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.0%

iShares

MSCI

EAFE

Value

ETF

3.7%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2050

Retirement

Target

Fund

42

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+11.59%

+5.43%

1-Year

+34.71%

+27.29%

5-Year

+80.88%

+11.31%

Since

Inception

(7/1/13)

+111.78%

+9.07%

Advisor

6-Month

+11.69%

+11.69%

1-Year

+35.11%

+35.11%

5-Year

+83.18%

+12.87%

Since

Inception

(7/1/13)

+116.47%

+10.14%

See

page

43

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

43

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0417

$0.0892

$0.2060

$0.3369

C

$0.0040

$0.0892

$0.2060

$0.2992

R

$0.0072

$0.0892

$0.2060

$0.3024

R6

$0.0640

$0.0892

$0.2060

$0.3592

Advisor

$0.0603

$0.0892

$0.2060

$0.3555

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.55%

Advisor

0.45%

1.30%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2050

Retirement

Target

Fund

44

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,115.90

$2.31

$1,022.61

$2.21

0.44%

C

$1,000

$1,112.00

$6.23

$1,018.90

$5.95

1.19%

R

$1,000

$1,115.00

$3.62

$1,021.37

$3.46

0.69%

R6

$1,000

$1,117.10

$0.74

$1,024.09

$0.71

0.14%

Advisor

$1,000

$1,116.90

$1.00

$1,023.85

$0.96

0.19%

45

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.60%

cumulative

total

return

for

the

six

months

ended

June

30,

2021.

In

comparison,

the

Fund’s

new

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

1

The

Fund’s

prior

equity

benchmark,

the

MSCI

ACWI,

posted

a

+12.56%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

47

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

63.6%

Foreign

Equity

34.2%

Domestic

Fixed

Income

0.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.2%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

116

.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

46

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Western

Asset

Core

Plus

Bond

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2055

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.9%

Franklin

Growth

Fund,

Class

R6

16.9%

Franklin

International

Core

Equity

(IU)

Fund

10.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

9.9%

Franklin

LibertyQ

U.S.

Equity

ETF

6.7%

Templeton

Foreign

Fund,

Class

R6

6.1%

iShares

Core

S&P

U.S.

Value

ETF

5.1%

Templeton

Developing

Markets

Trust,

Class

R6

5.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.9%

iShares

MSCI

EAFE

Value

ETF

3.7%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2055

Retirement

Target

Fund

47

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+11.60%

+5.46%

1-Year

+34.78%

+27.40%

5-Year

+81.84%

+11.45%

Since

Inception

(5/1/15)

+70.40%

+8.04%

Advisor

6-Month

+11.70%

+11.70%

1-Year

+34.93%

+34.93%

5-Year

+83.71%

+12.93%

Since

Inception

(5/1/15)

+72.57%

+9.26%

See

page

48

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

48

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

As

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility;

such

a

change

can

impact

performance.

Previously,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0385

$0.0596

$0.1471

$0.2452

C

$0.0080

$0.0596

$0.1471

$0.2147

R

$0.0253

$0.0596

$0.1471

$0.2320

R6

$0.0569

$0.0596

$0.1471

$0.2636

Advisor

$0.0539

$0.0596

$0.1471

$0.2606

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

2.30%

Advisor

0.45%

2.05%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2055

Retirement

Target

Fund

49

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,116.00

$2.31

$1,022.61

$2.21

0.44%

C

$1,000

$1,111.90

$6.23

$1,018.90

$5.95

1.19%

R

$1,000

$1,114.70

$3.61

$1,021.38

$3.45

0.69%

R6

$1,000

$1,117.20

$0.74

$1,024.10

$0.71

0.14%

Advisor

$1,000

$1,117.00

$1.00

$1,023.85

$0.96

0.19%

50

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

This

inaugural

semiannual

report

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund

covers

the

period

since

the

Fund's

inception

on

January

29,

2021,

through

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+12.46%

cumulative

total

return

for

the

period

since

the

Fund's

inception

through

June

30,

2021.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.81%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.11%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

52

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

63.5%

Foreign

Equity

34.2%

Domestic

Fixed

Income

0.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

FactSet.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

109

.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

51

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

largely

to

its

allocation

among

equities

and

fixed-income

securities

and

to

the

actual

performance

of

the

fund

investments.

This

allocation

shifts

every

year,

in

accordance

with

the

target

date

associated

with

the

portfolio.

At

period-end,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

Fund’s

equity

benchmark,

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Western

Asset

Core

Plus

Bond

Fund

–

Class

IS,

performed

better

than

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2060

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.9%

Franklin

Growth

Fund,

Class

R6

17.0%

Franklin

International

Core

Equity

(IU)

Fund

10.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

9.6%

Franklin

LibertyQ

U.S.

Equity

ETF

6.7%

Templeton

Foreign

Fund,

Class

R6

6.1%

iShares

Core

S&P

U.S.

Value

ETF

5.3%

Templeton

Developing

Markets

Trust,

Class

R6

5.0%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.9%

iShares

MSCI

EAFE

Value

ETF

3.6%

Performance

Summary

as

of

June

30,

2021

Franklin

LifeSmart™

2060

Retirement

Target

Fund

52

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

Since

Inception

(1/29/21)

+12.46%

+6.30%

Advisor

Since

Inception

(1/29/21)

+12.45%

+12.45%

See

page

53

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

53

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/29/21–6/30/21)

Share

Class

Net

Investment

Income

A

$0.0361

C

$0.0363

R

$0.0365

R6

$0.0369

Advisor

$0.0354

Total

Annual

Operating

Expenses

4

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.57%

Advisor

0.45%

1.32%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2060

Retirement

Target

Fund

54

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

January

29,

2021

for

Actual;

January

1,

2021

for

Hypothetical.

2.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period

for

Hypothetical

expenses.

Non-recurring

expenses

are

not

annualized.

For

Actual

expenses,

the

multiplier

is

152/365

to

reflect

the

number

of

days

since

commencement

of

operations.

3.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/29/21–6/30/21

2,3

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

2,3

a

Net

Annualized

Expense

Ratio

3

A

$1,000

$1,124.60

$0.88

$1,023.80

$1.00

0.20%

C

$1,000

$1,124.60

$0.88

$1,023.80

$1.00

0.20%

R

$1,000

$1,124.60

$0.88

$1,023.80

$1.00

0.20%

R6

$1,000

$1,124.70

$0.71

$1,024.00

$0.80

0.16%

Advisor

$1,000

$1,124.50

$0.88

$1,023.80

$1.00

0.20%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.62

$11.15

$10.35

$11.06

$10.96

$10.78

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.15

0.39

0.43

0.50

0.43

0.27

Net

realized

and

unrealized

gains

(losses)

0.21

0.52

0.79

(0.77)

0.10

0.28

Total

from

investment

operations

........

0.36

0.91

1.22

(0.27)

0.53

0.55

Less

distributions

from:

Net

investment

income

..............

(0.21)

(0.44)

(0.42)

(0.44)

(0.43)

(0.28)

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

—

—

—

(0.04)

Total

distributions

...................

(0.21)

(0.44)

(0.42)

(0.44)

(0.43)

(0.37)

Net

asset

value,

end

of

period

..........

$11.77

$11.62

$11.15

$10.35

$11.06

$10.96

Total

return

d

.......................

3.27%

8.40%

11.93%

(2.48)%

4.84%

5.25%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.92%

0.94%

0.95%

0.90%

0.92%

0.90%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.30%

g

0.30%

g

0.30%

g

0.30%

g

0.30%

Net

investment

income

c

...............

2.58%

3.56%

3.91%

4.63%

3.89%

2.50%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$42,730

$40,343

$34,363

$31,461

$32,397

$39,713

Portfolio

turnover

rate

................

69.22%

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.48

$11.01

$10.23

$10.92

$10.83

$10.66

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.10

0.30

0.34

0.42

0.34

0.19

Net

realized

and

unrealized

gains

(losses)

0.22

0.52

0.78

(0.76)

0.10

0.28

Total

from

investment

operations

........

0.32

0.82

1.12

(0.34)

0.44

0.47

Less

distributions

from:

Net

investment

income

..............

(0.17)

(0.35)

(0.34)

(0.35)

(0.35)

(0.22)

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

—

—

—

(0.03)

Total

distributions

...................

(0.17)

(0.35)

(0.34)

(0.35)

(0.35)

(0.30)

Net

asset

value,

end

of

period

..........

$11.63

$11.48

$11.01

$10.23

$10.92

$10.83

Total

return

d

.......................

2.90%

7.62%

11.14%

(3.29)%

4.07%

4.50%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.67%

1.69%

1.69%

1.65%

1.67%

1.64%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.05%

1.05%

g

1.04%

g

1.05%

g

1.05%

g

1.04%

Net

investment

income

c

...............

1.81%

2.80%

3.17%

3.88%

3.14%

1.76%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$8,808

$9,355

$10,568

$11,796

$16,070

$17,570

Portfolio

turnover

rate

................

69.22%

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

57

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.59

$11.11

$10.31

$11.01

$10.92

$10.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.13

0.37

0.40

0.48

0.40

0.25

Net

realized

and

unrealized

gains

(losses)

0.22

0.52

0.79

(0.77)

0.09

0.28

Total

from

investment

operations

........

0.35

0.89

1.19

(0.29)

0.49

0.53

Less

distributions

from:

Net

investment

income

..............

(0.20)

(0.41)

(0.39)

(0.41)

(0.40)

(0.26)

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

—

—

—

(0.04)

Total

distributions

...................

(0.20)

(0.41)

(0.39)

(0.41)

(0.40)

(0.35)

Net

asset

value,

end

of

period

..........

$11.74

$11.59

$11.11

$10.31

$11.01

$10.92

Total

return

d

.......................

3.19%

8.22%

11.69%

(2.67)%

4.57%

4.94%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.15%

1.11%

1.16%

1.11%

1.17%

1.15%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.52%

0.47%

g

0.51%

g

0.51%

g

0.55%

g

0.55%

Net

investment

income

c

...............

2.34%

3.39%

3.70%

4.42%

3.64%

2.25%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,083

$2,108

$2,336

$2,876

$4,071

$4,920

Portfolio

turnover

rate

................

69.22%

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.67

$11.20

$10.40

$11.11

$11.01

$10.82

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.17

0.43

0.47

0.54

0.47

0.30

Net

realized

and

unrealized

gains

(losses)

0.22

0.52

0.78

(0.78)

0.10

0.29

Total

from

investment

operations

........

0.39

0.95

1.25

(0.24)

0.57

0.59

Less

distributions

from:

Net

investment

income

..............

(0.23)

(0.48)

(0.45)

(0.47)

(0.47)

(0.31)

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

—

—

—

(0.04)

Total

distributions

...................

(0.23)

(0.48)

(0.45)

(0.47)

(0.47)

(0.40)

Net

asset

value,

end

of

period

..........

$11.83

$11.67

$11.20

$10.40

$11.11

$11.01

Total

return

d

.......................

3.42%

8.81%

12.20%

(2.16)%

5.14%

5.60%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.57%

0.58%

0.59%

0.54%

0.52%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

—%

—%

g

—%

g

—%

g

—%

g

—%

Net

investment

income

c

...............

2.89%

3.84%

4.21%

4.93%

4.19%

2.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,289

$4,092

$2,043

$1,798

$4,031

$3,930

Portfolio

turnover

rate

................

69.22%

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

59

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.66

$11.19

$10.39

$11.10

$11.00

$10.81

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.16

0.42

0.46

0.53

0.46

0.29

Net

realized

and

unrealized

gains

(losses)

0.23

0.52

0.79

(0.77)

0.10

0.29

Total

from

investment

operations

........

0.39

0.94

1.25

(0.24)

0.56

0.58

Less

distributions

from:

Net

investment

income

..............

(0.23)

(0.47)

(0.45)

(0.47)

(0.46)

(0.30)

Net

realized

gains

.................

—

—

—

—

—

(0.05)

Tax

return

of

capital

................

—

—

—

—

—

(0.04)

Total

distributions

...................

(0.23)

(0.47)

(0.45)

(0.47)

(0.46)

(0.39)

Net

asset

value,

end

of

period

..........

$11.82

$11.66

$11.19

$10.39

$11.10

$11.00

Total

return

d

.......................

3.39%

8.75%

12.16%

(2.21)%

5.09%

5.55%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.67%

0.69%

0.70%

0.65%

0.67%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.05%

0.05%

g

0.05%

g

0.05%

g

0.05%

g

0.05%

Net

investment

income

c

...............

2.84%

3.83%

4.16%

4.88%

4.14%

2.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,349

$2,021

$1,875

$1,409

$2,122

$1,696

Portfolio

turnover

rate

................

69.22%

51.13%

82.72%

46.27%

28.12%

149.53%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

88.5%

Domestic

Equity

24.3%

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

207,754

$

3,041,517

Global

X

U.S.

Preferred

ETF

...........................................

277,796

7,269,921

iShares

Core

S&P

U.S.

Value

ETF

......................................

44,674

3,214,741

Vanguard

S&P

500

ETF

..............................................

2,929

1,152,620

14,678,799

Domestic

Fixed

Income

44.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

50,948

594,560

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

134,827

3,578,983

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

161,063

4,219,851

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

79,007

1,970,434

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

306,799

7,826,442

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

135,949

3,279,199

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

........................

575,371

3,429,209

Schwab

U.S.

TIPS

ETF

...............................................

28,611

1,788,474

26,687,152

Foreign

Equity

7.4%

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

21,988

598,502

a

Templeton

Foreign

Fund,

Class

R6

......................................

500,457

3,888,551

4,487,053

Foreign

Fixed

Income

12.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

47,464

1,191,346

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

.......................

2,661

299,256

a

Western

Asset

Income

Fund,

Class

IS

....................................

976,182

6,013,278

7,503,880

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$51,935,860)

................................................................

53,356,884

Units

a

a

a

a

b

Index-Linked

Notes

10.2%

Capital

Markets

10.2%

c,d

Credit

Suisse

AG,

Senior

Note

,

144A,

12.095%,

9/06/22

......................

812

3,068,280

c,d

UBS

AG,

Senior

Note

,

144A,

6.16%,

11/07/22

..............................

2,624

3,071,077

6,139,357

Total

Index-Linked

Notes

(Cost

$5,753,564)

.....................................

6,139,357

Total

Long

Term

Investments

(Cost

$57,689,424)

................................

59,496,241

a

a

a

a

a

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

61

Short

Term

Investments

1.3%

a

a

Shares

a

Value

a

Money

Market

Funds

1.3%

a,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

801,363

$

801,363

Total

Money

Market

Funds

(Cost

$801,363)

.....................................

801,363

Total

Short

Term

Investments

(Cost

$801,363

)

..................................

801,363

a

Total

Investments

(Cost

$58,490,787)

100.0%

...................................

$60,297,604

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(38,572)

Net

Assets

100.0%

...........................................................

$60,259,032

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(c)

regarding

index-linked

notes.

c

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2021,

the

aggregate

value

of

these

securities

was

$6,139,357,

representing

10.2%

of

net

assets.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.99

$12.17

$11.00

$11.76

$10.68

$10.61

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.19

0.29

0.35

0.18

0.13

Net

realized

and

unrealized

gains

(losses)

0.71

0.89

1.18

(0.79)

1.05

0.19

Total

from

investment

operations

........

0.78

1.08

1.47

(0.44)

1.23

0.32

Less

distributions

from:

Net

investment

income

..............

(0.06)

(0.26)

(0.30)

(0.32)

(0.15)

(0.17)

Net

realized

gains

.................

(0.15)

—

—

—

—

(0.08)

Total

distributions

...................

(0.21)

(0.26)

(0.30)

(0.32)

(0.15)

(0.25)

Net

asset

value,

end

of

period

..........

$13.56

$12.99

$12.17

$11.00

$11.76

$10.68

Total

return

d

.......................

6.00%

9.06%

13.43%

(3.78)%

11.53%

3.03%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.91%

0.98%

0.97%

0.94%

1.02%

0.98%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.46%

0.47%

g

0.35%

0.30%

0.30%

0.30%

Net

investment

income

c

...............

1.10%

1.61%

2.47%

2.92%

1.58%

1.25%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$34,141

$30,265

$27,016

$24,108

$20,289

$19,292

Portfolio

turnover

rate

................

55.78%

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

63

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.91

$12.09

$10.93

$11.69

$10.62

$10.56

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.10

0.20

0.24

0.10

0.05

Net

realized

and

unrealized

gains

(losses)

0.70

0.89

1.17

(0.76)

1.03

0.18

Total

from

investment

operations

........

0.72

0.99

1.37

(0.52)

1.13

0.23

Less

distributions

from:

Net

investment

income

..............

(0.02)

(0.17)

(0.21)

(0.24)

(0.06)

(0.09)

Net

realized

gains

.................

(0.15)

—

—

—

—

(0.08)

Total

distributions

...................

(0.17)

(0.17)

(0.21)

(0.24)

(0.06)

(0.17)

Net

asset

value,

end

of

period

..........

$13.46

$12.91

$12.09

$10.93

$11.69

$10.62

Total

return

d

.......................

5.59%

8.29%

12.59%

(4.53)%

10.69%

2.29%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.66%

1.73%

1.72%

1.69%

1.77%

1.73%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.21%

1.22%

g

1.10%

1.05%

1.05%

1.05%

Net

investment

income

c

...............

0.32%

0.85%

1.72%

2.17%

0.83%

0.50%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$7,180

$7,118

$6,811

$6,364

$6,287

$5,138

Portfolio

turnover

rate

................

55.78%

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.98

$12.16

$10.99

$11.75

$10.66

$10.59

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.16

0.26

0.29

0.12

0.10

Net

realized

and

unrealized

gains

(losses)

0.70

0.89

1.17

(0.76)

1.08

0.18

Total

from

investment

operations

........

0.75

1.05

1.43

(0.47)

1.20

0.28

Less

distributions

from:

Net

investment

income

..............

(0.03)

(0.23)

(0.26)

(0.29)

(0.11)

(0.13)

Net

realized

gains

.................

(0.15)

—

—

—

—

(0.08)

Total

distributions

...................

(0.18)

(0.23)

(0.26)

(0.29)

(0.11)

(0.21)

Net

asset

value,

end

of

period

..........

$13.55

$12.98

$12.16

$10.99

$11.75

$10.66

Total

return

d

.......................

5.81%

8.79%

13.25%

(4.14)%

11.26%

2.74%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.16%

1.23%

1.22%

1.19%

1.27%

1.23%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.71%

0.72%

g

0.60%

0.55%

0.55%

0.55%

Net

investment

income

c

...............

0.79%

1.35%

2.22%

2.67%

1.33%

1.00%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$697

$786

$745

$767

$969

$3,145

Portfolio

turnover

rate

................

55.78%

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

65

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.03

$12.20

$11.02

$11.79

$10.70

$10.64

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.22

0.32

0.37

0.21

0.17

Net

realized

and

unrealized

gains

(losses)

0.71

0.90

1.19

(0.78)

1.06

0.17

Total

from

investment

operations

........

0.80

1.12

1.51

(0.41)

1.27

0.34

Less

distributions

from:

Net

investment

income

..............

(0.08)

(0.29)

(0.33)

(0.36)

(0.18)

(0.20)

Net

realized

gains

.................

(0.15)

—

—

—

—

(0.08)

Total

distributions

...................

(0.23)

(0.29)

(0.33)

(0.36)

(0.18)

(0.28)

Net

asset

value,

end

of

period

..........

$13.60

$13.03

$12.20

$11.02

$11.79

$10.70

Total

return

d

.......................

6.12%

9.45%

13.83%

(3.57)%

11.93%

3.33%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.58%

0.62%

0.60%

0.58%

0.59%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.16%

0.16%

g

0.05%

—%

—%

—%

Net

investment

income

c

...............

1.38%

1.83%

2.77%

3.22%

1.88%

1.55%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,868

$4,855

$7,429

$8,562

$8,831

$6,670

Portfolio

turnover

rate

................

55.78%

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.03

$12.20

$11.03

$11.79

$10.70

$10.63

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.09

0.22

0.32

0.35

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

0.71

0.90

1.17

(0.76)

1.04

0.18

Total

from

investment

operations

........

0.80

1.12

1.49

(0.41)

1.27

0.34

Less

distributions

from:

Net

investment

income

..............

(0.08)

(0.29)

(0.32)

(0.35)

(0.18)

(0.19)

Net

realized

gains

.................

(0.15)

—

—

—

—

(0.08)

Total

distributions

...................

(0.23)

(0.29)

(0.32)

(0.35)

(0.18)

(0.27)

Net

asset

value,

end

of

period

..........

$13.60

$13.03

$12.20

$11.03

$11.79

$10.70

Total

return

d

.......................

6.10%

9.39%

13.77%

(3.62)%

11.88%

3.28%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.66%

0.73%

0.72%

0.69%

0.77%

0.73%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.21%

0.21%

g

0.10%

0.05%

0.05%

0.05%

Net

investment

income

c

...............

1.36%

1.80%

2.72%

3.17%

1.83%

1.50%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$777

$685

$745

$637

$691

$317

Portfolio

turnover

rate

................

55.78%

68.93%

120.35%

57.42%

47.93%

87.38%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

67

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.8%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

11,777

$

235,008

Domestic

Equity

39.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

76,081

2,949,660

a

Franklin

Growth

Fund,

Class

R6

........................................

31,816

4,822,693

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

43,408

1,858,297

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

508,699

7,447,358

iShares

Core

S&P

U.S.

Value

ETF

......................................

21,286

1,531,741

18,609,749

Domestic

Fixed

Income

41.9%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

101,110

1,179,953

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

63,415

1,683,351

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

50,263

1,316,891

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

52,066

1,298,526

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

332,726

8,487,840

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

62,507

1,507,719

Schwab

U.S.

TIPS

ETF

...............................................

23,893

1,493,551

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

155,747

1,886,095

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

286,941

1,127,677

19,981,603

Foreign

Equity

14.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

55,619

704,137

a

Franklin

FTSE

Europe

ETF

............................................

9,852

284,230

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

195,837

2,553,713

a

Franklin

International

Growth

Fund,

Class

R6

..............................

24,832

565,175

iShares

MSCI

EAFE

Value

ETF

.........................................

16,464

852,177

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

26,162

712,142

a

Templeton

Foreign

Fund,

Class

R6

......................................

182,753

1,419,988

7,091,562

Foreign

Fixed

Income

2.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

46,956

1,178,596

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$40,917,680)

................................................................

47,096,518

a

a

a

a

Short

Term

Investments

0.9%

a

Money

Market

Funds

0.8%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

358,050

358,050

Total

Money

Market

Funds

(Cost

$358,050)

.....................................

358,050

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$68,514)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$49,997)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$7,608)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$10,909)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$69,933)

..........................................

$

68,514

$

68,514

Total

Repurchase

Agreements

(Cost

$68,514)

...................................

68,514

Total

Short

Term

Investments

(Cost

$426,564

)

..................................

426,564

a

Total

Investments

(Cost

$41,344,244)

99.7%

....................................

$47,523,082

Other

Assets,

less

Liabilities

0.3%

.............................................

139,820

Net

Assets

100.0%

...........................................................

$47,662,902

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

69

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.80

$12.98

$11.52

$12.97

$11.49

$11.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.20

0.27

0.32

0.19

0.14

Net

realized

and

unrealized

gains

(losses)

0.92

1.08

1.66

(1.02)

1.52

0.19

Total

from

investment

operations

........

0.99

1.28

1.93

(0.70)

1.71

0.33

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.21)

(0.28)

(0.33)

(0.23)

(0.13)

Net

realized

gains

.................

(0.18)

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

...................

(0.24)

(0.46)

(0.47)

(0.75)

(0.23)

(0.28)

Net

asset

value,

end

of

period

..........

$14.55

$13.80

$12.98

$11.52

$12.97

$11.49

Total

return

d

.......................

7.20%

10.26%

16.85%

(5.46)%

14.95%

2.96%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.73%

0.77%

0.80%

0.77%

0.80%

0.76%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.45%

0.45%

g

0.35%

0.30%

g

0.30%

0.30%

Net

investment

income

c

...............

1.00%

1.53%

2.15%

2.41%

1.52%

1.18%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$107,429

$96,973

$86,084

$76,050

$77,510

$74,746

Portfolio

turnover

rate

................

48.58%

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.56

$12.76

$11.34

$12.77

$11.32

$11.27

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.09

0.17

0.20

0.09

0.05

Net

realized

and

unrealized

gains

(losses)

0.91

1.08

1.62

(0.97)

1.50

0.20

Total

from

investment

operations

........

0.93

1.17

1.79

(0.77)

1.59

0.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.12)

(0.18)

(0.24)

(0.14)

(0.05)

Net

realized

gains

.................

(0.18)

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

...................

(0.21)

(0.37)

(0.37)

(0.66)

(0.14)

(0.20)

Net

asset

value,

end

of

period

..........

$14.28

$13.56

$12.76

$11.34

$12.77

$11.32

Total

return

d

.......................

6.82%

9.44%

15.90%

(6.12)%

14.06%

2.21%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.47%

1.51%

1.55%

1.51%

1.55%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.20%

1.20%

g

1.10%

1.04%

g

1.05%

1.05%

Net

investment

income

c

...............

0.23%

0.76%

1.40%

1.67%

0.77%

0.43%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$22,028

$21,991

$23,450

$21,907

$27,301

$26,401

Portfolio

turnover

rate

................

48.58%

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

71

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.75

$12.93

$11.48

$12.93

$11.44

$11.40

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.16

0.23

0.26

0.14

0.11

Net

realized

and

unrealized

gains

(losses)

0.92

1.09

1.65

(0.99)

1.54

0.19

Total

from

investment

operations

........

0.97

1.25

1.88

(0.73)

1.68

0.30

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.18)

(0.24)

(0.30)

(0.19)

(0.11)

Net

realized

gains

.................

(0.18)

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

...................

(0.23)

(0.43)

(0.43)

(0.72)

(0.19)

(0.26)

Net

asset

value,

end

of

period

..........

$14.49

$13.75

$12.93

$11.48

$12.93

$11.44

Total

return

d

.......................

7.02%

10.00%

16.52%

(5.73)%

14.73%

2.65%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.98%

1.02%

1.05%

1.02%

1.05%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.71%

0.70%

g

0.60%

0.55%

g

0.55%

0.55%

Net

investment

income

c

...............

0.71%

1.24%

1.90%

2.16%

1.27%

0.93%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,978

$3,117

$3,930

$4,510

$6,166

$7,411

Portfolio

turnover

rate

................

48.58%

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.85

$13.02

$11.56

$13.01

$11.52

$11.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.23

0.31

0.34

0.23

0.17

Net

realized

and

unrealized

gains

(losses)

0.92

1.10

1.65

(1.00)

1.53

0.20

Total

from

investment

operations

........

1.01

1.33

1.96

(0.66)

1.76

0.37

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.25)

(0.31)

(0.37)

(0.27)

(0.17)

Net

realized

gains

.................

(0.18)

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

...................

(0.26)

(0.50)

(0.50)

(0.79)

(0.27)

(0.32)

Net

asset

value,

end

of

period

..........

$14.60

$13.85

$13.02

$11.56

$13.01

$11.52

Total

return

d

.......................

7.32%

10.64%

17.14%

(5.15)%

15.34%

3.24%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.38%

0.39%

0.41%

0.38%

0.37%

0.37%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.16%

0.15%

g

0.05%

—%

g

—%

—%

Net

investment

income

c

...............

1.29%

1.83%

2.45%

2.71%

1.82%

1.48%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$16,538

$16,094

$14,717

$14,228

$17,009

$13,936

Portfolio

turnover

rate

................

48.58%

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

73

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.83

$13.01

$11.55

$13.00

$11.51

$11.46

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.24

0.30

0.33

0.23

0.17

Net

realized

and

unrealized

gains

(losses)

0.93

1.07

1.66

(1.00)

1.52

0.19

Total

from

investment

operations

........

1.02

1.31

1.96

(0.67)

1.75

0.36

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.24)

(0.31)

(0.36)

(0.26)

(0.16)

Net

realized

gains

.................

(0.18)

(0.25)

(0.19)

(0.42)

—

(0.15)

Total

distributions

...................

(0.26)

(0.49)

(0.50)

(0.78)

(0.26)

(0.31)

Net

asset

value,

end

of

period

..........

$14.59

$13.83

$13.01

$11.55

$13.00

$11.51

Total

return

d

.......................

7.38%

10.51%

17.09%

(5.20)%

15.30%

3.20%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.48%

0.52%

0.55%

0.52%

0.55%

0.51%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.21%

0.20%

g

0.10%

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

1.24%

1.90%

2.40%

2.66%

1.77%

1.43%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,883

$2,872

$1,532

$1,449

$1,866

$1,381

Portfolio

turnover

rate

................

48.58%

66.87%

84.18%

52.98%

34.08%

83.67%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.0%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

37,487

$

748,046

Domestic

Equity

43.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

270,112

10,472,243

a

Franklin

Growth

Fund,

Class

R6

........................................

113,214

17,161,012

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

154,466

6,612,689

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

1,810,218

26,501,592

iShares

Core

S&P

U.S.

Value

ETF

......................................

75,976

5,467,233

66,214,769

Domestic

Fixed

Income

34.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

257,537

3,005,456

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

166,464

4,418,787

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

131,940

3,456,828

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

137,474

3,428,602

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

873,452

22,281,761

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

164,081

3,957,765

Schwab

U.S.

TIPS

ETF

...............................................

63,100

3,944,381

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

408,832

4,950,951

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

750,939

2,951,189

52,395,720

Foreign

Equity

18.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

271,066

3,431,696

a

Franklin

FTSE

Europe

ETF

............................................

35,645

1,028,358

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

728,846

9,504,146

a

Franklin

International

Growth

Fund,

Class

R6

..............................

93,749

2,133,717

iShares

MSCI

EAFE

Value

ETF

.........................................

61,281

3,171,905

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

125,827

3,425,020

a

Templeton

Foreign

Fund,

Class

R6

......................................

680,118

5,284,515

27,979,357

Foreign

Fixed

Income

2.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

120,784

3,031,678

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$125,034,850)

...............................................................

150,369,570

a

a

a

a

Short

Term

Investments

1.1%

a

Money

Market

Funds

1.0%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

1,435,837

1,435,837

Total

Money

Market

Funds

(Cost

$1,435,837)

...................................

1,435,837

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

75

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$214,543)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$156,560)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$23,823)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$34,160)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$218,986)

.........................................

$

214,543

$

214,543

Total

Repurchase

Agreements

(Cost

$214,543)

..................................

214,543

Total

Short

Term

Investments

(Cost

$1,650,380

)

.................................

1,650,380

a

Total

Investments

(Cost

$126,685,230)

100.1%

..................................

$152,019,950

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(162,967)

Net

Assets

100.0%

...........................................................

$151,856,983

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.40

$13.28

$11.50

$12.70

$11.08

$10.95

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.19

0.25

0.29

0.19

0.13

Net

realized

and

unrealized

gains

(losses)

1.13

1.29

1.90

(1.09)

1.65

0.19

Total

from

investment

operations

........

1.20

1.48

2.15

(0.80)

1.84

0.32

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.22)

(0.23)

(0.32)

(0.22)

(0.09)

Net

realized

gains

.................

(0.13)

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

...................

(0.19)

(0.36)

(0.37)

(0.40)

(0.22)

(0.19)

Net

asset

value,

end

of

period

..........

$15.41

$14.40

$13.28

$11.50

$12.70

$11.08

Total

return

d

.......................

8.35%

11.52%

18.80%

(6.32)%

16.73%

2.93%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.86%

0.95%

1.02%

0.98%

1.08%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.45%

0.44%

g

0.34%

g

0.30%

g

0.30%

0.30%

Net

investment

income

c

...............

0.90%

1.46%

1.96%

2.24%

1.60%

1.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$41,329

$34,019

$27,248

$22,447

$19,270

$16,788

Portfolio

turnover

rate

................

46.85%

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

77

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.22

$13.13

$11.37

$12.56

$10.97

$10.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.01

0.09

0.15

0.18

0.11

0.05

Net

realized

and

unrealized

gains

(losses)

1.12

1.27

1.89

(1.06)

1.63

0.17

Total

from

investment

operations

........

1.13

1.36

2.04

(0.88)

1.74

0.22

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.02)

(0.13)

(0.14)

(0.23)

(0.15)

(0.01)

Net

realized

gains

.................

(0.13)

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

...................

(0.15)

(0.27)

(0.28)

(0.31)

(0.15)

(0.11)

Net

asset

value,

end

of

period

..........

$15.20

$14.22

$13.13

$11.37

$12.56

$10.97

Total

return

d

.......................

7.98%

10.60%

17.98%

(7.02)%

15.89%

2.08%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.61%

1.70%

1.77%

1.73%

1.83%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.20%

1.19%

g

1.09%

g

1.05%

g

1.05%

1.05%

Net

investment

income

c

...............

0.12%

0.71%

1.21%

1.49%

0.85%

0.42%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$11,527

$10,937

$9,146

$7,460

$7,642

$5,127

Portfolio

turnover

rate

................

46.85%

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.38

$13.27

$11.48

$12.68

$11.06

$10.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.15

0.22

0.23

0.15

0.10

Net

realized

and

unrealized

gains

(losses)

1.13

1.29

1.91

(1.06)

1.65

0.18

Total

from

investment

operations

........

1.18

1.44

2.13

(0.83)

1.80

0.28

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

(0.19)

(0.20)

(0.29)

(0.18)

(0.06)

Net

realized

gains

.................

(0.13)

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

...................

(0.17)

(0.33)

(0.34)

(0.37)

(0.18)

(0.16)

Net

asset

value,

end

of

period

..........

$15.39

$14.38

$13.27

$11.48

$12.68

$11.06

Total

return

d

.......................

8.24%

11.17%

18.64%

(6.59)%

16.39%

2.60%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.11%

1.20%

1.27%

1.23%

1.33%

1.27%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.70%

0.69%

g

0.59%

g

0.55%

g

0.55%

0.55%

Net

investment

income

c

...............

0.64%

1.19%

1.71%

1.99%

1.35%

0.92%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,321

$1,186

$1,058

$816

$1,148

$1,398

Portfolio

turnover

rate

................

46.85%

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

79

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.46

$13.34

$11.54

$12.74

$11.12

$10.99

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.23

0.29

0.32

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

1.14

1.29

1.92

(1.08)

1.65

0.19

Total

from

investment

operations

........

1.23

1.52

2.21

(0.76)

1.88

0.35

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.26)

(0.27)

(0.36)

(0.26)

(0.12)

Net

realized

gains

.................

(0.13)

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

...................

(0.21)

(0.40)

(0.41)

(0.44)

(0.26)

(0.22)

Net

asset

value,

end

of

period

..........

$15.48

$14.46

$13.34

$11.54

$12.74

$11.12

Total

return

d

.......................

8.53%

11.80%

19.26%

(6.02)%

17.01%

3.20%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.45%

0.50%

0.53%

0.52%

0.54%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.15%

0.15%

g

0.04%

g

—%

g

—%

—%

Net

investment

income

c

...............

1.17%

1.72%

2.26%

2.54%

1.90%

1.47%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$25,453

$23,717

$22,064

$18,389

$18,260

$14,455

Portfolio

turnover

rate

................

46.85%

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.44

$13.33

$11.53

$12.73

$11.11

$10.98

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.23

0.28

0.31

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

1.15

1.28

1.92

(1.08)

1.64

0.19

Total

from

investment

operations

........

1.23

1.51

2.20

(0.77)

1.87

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.26)

(0.26)

(0.35)

(0.25)

(0.11)

Net

realized

gains

.................

(0.13)

(0.14)

(0.14)

(0.08)

—

(0.10)

Total

distributions

...................

(0.21)

(0.40)

(0.40)

(0.43)

(0.25)

(0.21)

Net

asset

value,

end

of

period

..........

$15.46

$14.44

$13.33

$11.53

$12.73

$11.11

Total

return

d

.......................

8.51%

11.68%

19.22%

(6.08)%

16.97%

3.15%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.61%

0.70%

0.77%

0.73%

0.83%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.20%

0.19%

g

0.09%

g

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

1.10%

1.74%

2.21%

2.49%

1.85%

1.42%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,478

$1,546

$997

$785

$662

$332

Portfolio

turnover

rate

................

46.85%

67.25%

93.46%

47.37%

37.45%

81.66%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

81

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.9%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

19,937

$

397,839

Domestic

Equity

49.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

161,820

6,273,749

a

Franklin

Growth

Fund,

Class

R6

........................................

68,423

10,371,506

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

92,851

3,974,951

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

1,088,130

15,930,229

iShares

Core

S&P

U.S.

Value

ETF

......................................

45,187

3,251,657

39,802,092

Domestic

Fixed

Income

26.0%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

102,712

1,198,647

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

66,965

1,777,586

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

53,077

1,390,617

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

55,116

1,374,593

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

351,412

8,964,520

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

66,007

1,592,142

Schwab

U.S.

TIPS

ETF

...............................................

25,298

1,581,378

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

164,464

1,991,664

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

300,474

1,180,865

21,052,012

Foreign

Equity

21.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

171,552

2,171,846

a

Franklin

FTSE

Europe

ETF

............................................

22,342

644,567

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

458,760

5,982,232

a

Franklin

International

Growth

Fund,

Class

R6

..............................

58,747

1,337,075

iShares

MSCI

EAFE

Value

ETF

.........................................

38,619

1,998,919

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

83,153

2,263,418

a

Templeton

Foreign

Fund,

Class

R6

......................................

428,230

3,327,345

17,725,402

Foreign

Fixed

Income

1.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

48,178

1,209,268

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$66,666,843)

................................................................

80,186,613

a

a

a

a

Short

Term

Investments

1.3%

a

Money

Market

Funds

0.9%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

758,982

758,982

Total

Money

Market

Funds

(Cost

$758,982)

.....................................

758,982

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.4%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$317,952)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$232,022)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$35,305)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$50,625)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$324,537)

.........................................

$

317,952

$

317,952

Total

Repurchase

Agreements

(Cost

$317,952)

..................................

317,952

Total

Short

Term

Investments

(Cost

$1,076,934

)

.................................

1,076,934

a

Total

Investments

(Cost

$67,743,777)

100.2%

...................................

$81,263,547

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(155,968)

Net

Assets

100.0%

...........................................................

$81,107,579

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

83

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.18

$13.94

$12.03

$13.70

$11.86

$11.78

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.06

0.19

0.24

0.29

0.20

0.13

Net

realized

and

unrealized

gains

(losses)

1.35

1.61

2.19

(1.21)

1.92

0.23

Total

from

investment

operations

........

1.41

1.80

2.43

(0.92)

2.12

0.36

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.20)

(0.24)

(0.30)

(0.28)

(0.10)

Net

realized

gains

.................

(0.26)

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

...................

(0.32)

(0.56)

(0.52)

(0.75)

(0.28)

(0.28)

Net

asset

value,

end

of

period

..........

$16.27

$15.18

$13.94

$12.03

$13.70

$11.86

Total

return

d

.......................

9.35%

13.44%

20.36%

(6.87)%

17.93%

3.11%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.75%

0.81%

0.86%

0.81%

0.86%

0.82%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.44%

0.43%

g

0.34%

0.30%

g

0.30%

0.30%

Net

investment

income

c

...............

0.77%

1.38%

1.81%

2.04%

1.55%

1.15%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$93,083

$84,029

$72,425

$60,087

$61,238

$56,650

Portfolio

turnover

rate

................

44.12%

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.79

$13.60

$11.75

$13.40

$11.61

$11.54

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

—

d

0.08

0.14

0.16

0.10

0.04

Net

realized

and

unrealized

gains

(losses)

1.32

1.58

2.13

(1.16)

1.88

0.22

Total

from

investment

operations

........

1.32

1.66

2.27

(1.00)

1.98

0.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.01)

(0.11)

(0.14)

(0.20)

(0.19)

(0.01)

Net

realized

gains

.................

(0.26)

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

...................

(0.27)

(0.47)

(0.42)

(0.65)

(0.19)

(0.19)

Net

asset

value,

end

of

period

..........

$15.84

$14.79

$13.60

$11.75

$13.40

$11.61

Total

return

e

.......................

8.90%

12.62%

19.46%

(7.58)%

17.09%

2.34%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..........................

1.50%

1.56%

1.61%

1.56%

1.60%

1.57%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

1.19%

1.18%

h

1.09%

1.05%

h

1.04%

1.05%

Net

investment

income

c

...............

0.02%

0.60%

1.06%

1.29%

0.81%

0.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$22,233

$21,329

$21,115

$18,350

$21,451

$18,781

Portfolio

turnover

rate

................

44.12%

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

85

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.17

$13.92

$12.01

$13.69

$11.84

$11.77

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.15

0.20

0.24

0.15

0.12

Net

realized

and

unrealized

gains

(losses)

1.35

1.63

2.20

(1.20)

1.94

0.21

Total

from

investment

operations

........

1.39

1.78

2.40

(0.96)

2.09

0.33

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.17)

(0.21)

(0.27)

(0.24)

(0.08)

Net

realized

gains

.................

(0.26)

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

...................

(0.29)

(0.53)

(0.49)

(0.72)

(0.24)

(0.26)

Net

asset

value,

end

of

period

..........

$16.27

$15.17

$13.92

$12.01

$13.69

$11.84

Total

return

d

.......................

9.18%

13.23%

20.10%

(7.18)%

17.71%

2.87%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.00%

1.05%

1.10%

1.05%

1.11%

1.07%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.69%

0.68%

g

0.58%

0.54%

g

0.55%

0.55%

Net

investment

income

c

...............

0.48%

1.07%

1.57%

1.80%

1.30%

0.90%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,071

$4,530

$4,966

$4,762

$5,745

$6,080

Portfolio

turnover

rate

................

44.12%

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.31

$14.05

$12.12

$13.80

$11.94

$11.85

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.23

0.29

0.31

0.25

0.17

Net

realized

and

unrealized

gains

(losses)

1.35

1.63

2.20

(1.20)

1.93

0.23

Total

from

investment

operations

........

1.44

1.86

2.49

(0.89)

2.18

0.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.24)

(0.28)

(0.34)

(0.32)

(0.13)

Net

realized

gains

.................

(0.26)

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

...................

(0.34)

(0.60)

(0.56)

(0.79)

(0.32)

(0.31)

Net

asset

value,

end

of

period

..........

$16.41

$15.31

$14.05

$12.12

$13.80

$11.94

Total

return

d

.......................

9.41%

13.82%

20.73%

(6.63)%

18.31%

3.48%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.38%

0.40%

0.41%

0.39%

0.38%

0.39%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.14%

0.13%

g

0.04%

—%

g

—%

—%

Net

investment

income

c

...............

1.07%

1.66%

2.11%

2.34%

1.85%

1.45%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$34,812

$30,069

$28,513

$22,207

$26,497

$22,068

Portfolio

turnover

rate

................

44.12%

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

87

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.33

$14.07

$12.13

$13.81

$11.95

$11.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.23

0.28

0.32

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

1.36

1.63

2.21

(1.22)

1.94

0.23

Total

from

investment

operations

........

1.44

1.86

2.49

(0.90)

2.17

0.39

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.24)

(0.27)

(0.33)

(0.31)

(0.12)

Net

realized

gains

.................

(0.26)

(0.36)

(0.28)

(0.45)

—

(0.18)

Total

distributions

...................

(0.34)

(0.60)

(0.55)

(0.78)

(0.31)

(0.30)

Net

asset

value,

end

of

period

..........

$16.43

$15.33

$14.07

$12.13

$13.81

$11.95

Total

return

d

.......................

9.44%

13.75%

20.73%

(6.67)%

18.24%

3.42%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.50%

0.56%

0.61%

0.56%

0.61%

0.57%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.19%

0.18%

g

0.09%

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

1.02%

1.67%

2.06%

2.29%

1.80%

1.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,932

$3,438

$2,145

$1,723

$1,578

$1,451

Portfolio

turnover

rate

................

44.12%

47.82%

79.04%

47.85%

31.98%

77.39%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27

%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.8%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

38,778

$

773,807

Domestic

Equity

53.4%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

343,647

13,323,179

a

Franklin

Growth

Fund,

Class

R6

........................................

146,418

22,194,101

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

197,441

8,452,449

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

2,313,835

33,874,542

iShares

Core

S&P

U.S.

Value

ETF

......................................

94,401

6,793,096

84,637,367

Domestic

Fixed

Income

18.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

166,517

1,943,259

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

90,495

2,402,190

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

71,727

1,879,247

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

74,386

1,855,187

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

474,674

12,108,934

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

89,200

2,151,575

Schwab

U.S.

TIPS

ETF

...............................................

34,143

2,134,279

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

222,252

2,691,477

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

405,526

1,593,718

28,759,866

Foreign

Equity

25.4%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

433,017

5,482,001

a

Franklin

FTSE

Europe

ETF

............................................

50,633

1,460,762

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

1,001,611

13,061,006

a

Franklin

International

Growth

Fund,

Class

R6

..............................

128,121

2,916,034

iShares

MSCI

EAFE

Value

ETF

.........................................

84,312

4,363,989

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

203,564

5,541,021

a

Templeton

Foreign

Fund,

Class

R6

......................................

934,941

7,264,493

40,089,306

Foreign

Fixed

Income

1.2%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

78,090

1,960,059

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$123,838,262)

...............................................................

156,220,405

a

a

a

a

Short

Term

Investments

1.2%

a

Money

Market

Funds

1.1%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

1,717,201

1,717,201

Total

Money

Market

Funds

(Cost

$1,717,201)

...................................

1,717,201

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

89

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$242,557)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$177,003)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$26,934)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$38,620)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$247,580)

.........................................

$

242,557

$

242,557

Total

Repurchase

Agreements

(Cost

$242,557)

..................................

242,557

Total

Short

Term

Investments

(Cost

$1,959,758

)

.................................

1,959,758

a

Total

Investments

(Cost

$125,798,020)

100.0%

..................................

$158,180,163

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(49,540)

Net

Assets

100.0%

...........................................................

$158,130,623

See

Abbreviations

on

page

170

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.30

$13.76

$11.61

$13.03

$11.20

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.18

0.22

0.27

0.18

0.14

Net

realized

and

unrealized

gains

(losses)

1.56

1.82

2.25

(1.17)

1.88

0.17

Total

from

investment

operations

........

1.61

2.00

2.47

(0.90)

2.06

0.31

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.23)

(0.18)

(0.30)

(0.23)

(0.08)

Net

realized

gains

.................

(0.26)

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

...................

(0.31)

(0.46)

(0.32)

(0.52)

(0.23)

(0.17)

Net

asset

value,

end

of

period

..........

$16.60

$15.30

$13.76

$11.61

$13.03

$11.20

Total

return

d

.......................

10.52%

15.04%

21.50%

(7.00)%

18.50%

2.91%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.98%

1.11%

1.18%

1.14%

1.26%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.45%

0.43%

g

0.34%

g

0.30%

g

0.30%

0.30%

Net

investment

income

c

...............

0.66%

1.30%

1.67%

2.03%

1.55%

1.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$29,362

$24,809

$19,322

$15,921

$14,001

$13,213

Portfolio

turnover

rate

................

48.62%

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

91

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.02

$13.52

$11.42

$12.83

$11.05

$10.97

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.01)

0.07

0.12

0.16

0.11

0.05

Net

realized

and

unrealized

gains

(losses)

1.53

1.79

2.21

(1.14)

1.83

0.18

Total

from

investment

operations

........

1.52

1.86

2.33

(0.98)

1.94

0.23

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(—)

d

(0.13)

(0.09)

(0.21)

(0.16)

(0.06)

Net

realized

gains

.................

(0.26)

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

...................

(0.26)

(0.36)

(0.23)

(0.43)

(0.16)

(0.15)

Net

asset

value,

end

of

period

..........

$16.28

$15.02

$13.52

$11.42

$12.83

$11.05

Total

return

e

.......................

10.14%

14.15%

20.56%

(7.71)%

17.63%

2.17%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..........................

1.73%

1.86%

1.93%

1.89%

2.01%

1.94%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

1.20%

1.18%

g

1.09%

h

1.05%

h

1.05%

1.05%

Net

investment

income

(loss)

c

..........

(0.10)%

0.55%

0.92%

1.28%

0.80%

0.47%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$7,681

$6,867

$5,630

$4,286

$4,015

$2,686

Portfolio

turnover

rate

................

48.62%

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.28

$13.74

$11.60

$13.02

$11.17

$11.05

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.03

0.14

0.18

0.22

0.13

0.13

Net

realized

and

unrealized

gains

(losses)

1.57

1.82

2.25

(1.16)

1.91

0.16

Total

from

investment

operations

........

1.60

1.96

2.43

(0.94)

2.04

0.29

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.19)

(0.15)

(0.26)

(0.19)

(0.08)

Net

realized

gains

.................

(0.26)

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

...................

(0.29)

(0.42)

(0.29)

(0.48)

(0.19)

(0.17)

Net

asset

value,

end

of

period

..........

$16.59

$15.28

$13.74

$11.60

$13.02

$11.17

Total

return

d

.......................

10.45%

14.74%

21.13%

(7.27)%

18.31%

2.66%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.23%

1.36%

1.43%

1.39%

1.51%

1.43%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.70%

0.68%

g

0.59%

g

0.55%

g

0.55%

0.54%

Net

investment

income

c

...............

0.37%

1.02%

1.42%

1.78%

1.30%

0.98%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,604

$1,540

$1,528

$1,273

$1,519

$2,188

Portfolio

turnover

rate

................

48.62%

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

93

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.40

$13.85

$11.69

$13.11

$11.26

$11.10

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.21

0.25

0.30

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

1.57

1.84

2.27

(1.16)

1.89

0.18

Total

from

investment

operations

........

1.65

2.05

2.52

(0.86)

2.12

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.27)

(0.22)

(0.34)

(0.27)

(0.09)

Net

realized

gains

.................

(0.26)

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

...................

(0.33)

(0.50)

(0.36)

(0.56)

(0.27)

(0.18)

Net

asset

value,

end

of

period

..........

$16.72

$15.40

$13.85

$11.69

$13.11

$11.26

Total

return

d

.......................

10.72%

15.35%

21.89%

(6.77)%

18.92%

3.16%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.49%

0.55%

0.58%

0.58%

0.61%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.15%

0.13%

g

0.04%

g

—%

g

—%

—%

Net

investment

income

c

...............

0.95%

1.58%

1.97%

2.33%

1.85%

1.52%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$29,453

$25,450

$22,250

$18,247

$17,521

$13,867

Portfolio

turnover

rate

................

48.62%

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.37

$13.82

$11.67

$13.10

$11.25

$11.09

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.22

0.33

0.27

0.22

0.15

Net

realized

and

unrealized

gains

(losses)

1.57

1.82

2.18

(1.15)

1.89

0.19

Total

from

investment

operations

........

1.65

2.04

2.51

(0.88)

2.11

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.26)

(0.22)

(0.33)

(0.26)

(0.09)

Net

realized

gains

.................

(0.26)

(0.23)

(0.14)

(0.22)

—

(0.09)

Total

distributions

...................

(0.33)

(0.49)

(0.36)

(0.55)

(0.26)

(0.18)

Net

asset

value,

end

of

period

..........

$16.69

$15.37

$13.82

$11.67

$13.10

$11.25

Total

return

d

.......................

10.72%

15.33%

21.68%

(6.82)%

18.88%

3.15%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.73%

0.86%

0.93%

0.89%

1.01%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.20%

0.18%

g

0.09%

g

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

0.96%

1.60%

1.92%

2.28%

1.80%

1.47%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$813

$506

$146

$165

$155

$141

Portfolio

turnover

rate

................

48.62%

37.54%

90.08%

41.77%

39.11%

72.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

95

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.8%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

16,987

$

338,972

Domestic

Equity

59.1%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

166,013

6,436,336

a

Franklin

Growth

Fund,

Class

R6

........................................

69,594

10,549,025

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

94,950

4,064,810

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

1,112,736

16,290,457

iShares

Core

S&P

U.S.

Value

ETF

......................................

46,744

3,363,698

40,704,326

Domestic

Fixed

Income

10.4%

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

24,374

647,008

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

19,318

506,132

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

20,127

501,967

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

127,729

3,258,367

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

24,025

579,502

Schwab

U.S.

TIPS

ETF

...............................................

9,238

577,467

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

59,862

724,926

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

109,725

431,218

7,226,587

Foreign

Equity

28.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

215,730

2,731,141

a

Franklin

FTSE

Europe

ETF

............................................

24,229

699,007

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

495,483

6,461,101

a

Franklin

International

Growth

Fund,

Class

R6

..............................

62,753

1,428,263

iShares

MSCI

EAFE

Value

ETF

.........................................

41,659

2,156,270

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

101,633

2,766,459

a

Templeton

Foreign

Fund,

Class

R6

......................................

462,380

3,592,694

19,834,935

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$54,274,003)

................................................................

68,104,820

a

a

a

a

Short

Term

Investments

1.6%

a

Money

Market

Funds

1.3%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

909,625

909,625

Total

Money

Market

Funds

(Cost

$909,625)

.....................................

909,625

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$173,054)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$126,284)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$19,216)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$27,554)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$176,637)

.........................................

$

173,053

$

173,053

Total

Repurchase

Agreements

(Cost

$173,053)

..................................

173,053

Total

Short

Term

Investments

(Cost

$1,082,678

)

.................................

1,082,678

a

Total

Investments

(Cost

$55,356,681)

100.4%

...................................

$69,187,498

Other

Assets,

less

Liabilities

(0.4)%

...........................................

(274,384)

Net

Assets

100.0%

...........................................................

$68,913,114

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

97

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.80

$14.27

$12.04

$13.78

$11.86

$11.75

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.17

0.21

0.27

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

1.76

1.98

2.45

(1.26)

2.01

0.24

Total

from

investment

operations

........

1.80

2.15

2.66

(0.99)

2.21

0.38

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

(0.19)

(0.21)

(0.27)

(0.29)

(0.10)

Net

realized

gains

.................

(0.31)

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

...................

(0.35)

(0.62)

(0.43)

(0.75)

(0.29)

(0.27)

Net

asset

value,

end

of

period

..........

$17.25

$15.80

$14.27

$12.04

$13.78

$11.86

Total

return

d

.......................

11.38%

15.76%

22.33%

(7.42)%

18.72%

3.29%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.85%

0.94%

0.98%

0.93%

1.01%

0.97%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.44%

0.43%

g

0.34%

g

0.30%

g

0.30%

0.30%

Net

investment

income

c

...............

0.51%

1.22%

1.57%

1.91%

1.53%

1.15%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$67,537

$59,801

$51,412

$44,978

$46,783

$44,521

Portfolio

turnover

rate

................

43.86%

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.33

$13.88

$11.72

$13.44

$11.57

$11.48

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.02)

0.06

0.11

0.15

0.10

0.04

Net

realized

and

unrealized

gains

(losses)

1.71

1.94

2.38

(1.22)

1.96

0.23

Total

from

investment

operations

........

1.69

2.00

2.49

(1.07)

2.06

0.27

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.01)

(0.12)

(0.11)

(0.17)

(0.19)

(0.01)

Net

realized

gains

.................

(0.31)

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

...................

(0.32)

(0.55)

(0.33)

(0.65)

(0.19)

(0.18)

Net

asset

value,

end

of

period

..........

$16.70

$15.33

$13.88

$11.72

$13.44

$11.57

Total

return

d

.......................

10.97%

15.00%

21.35%

(8.07)%

17.92%

2.43%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.60%

1.68%

1.73%

1.67%

1.75%

1.72%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.19%

1.17%

g

1.09%

g

1.04%

g

1.04%

1.05%

Net

investment

income

(loss)

c

..........

(0.24)%

0.46%

0.82%

1.17%

0.79%

0.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$15,088

$14,502

$13,333

$11,738

$13,190

$12,527

Portfolio

turnover

rate

................

43.86%

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

99

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.74

$14.20

$11.98

$13.72

$11.81

$11.71

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.11

0.17

0.23

0.17

0.11

Net

realized

and

unrealized

gains

(losses)

1.76

2.01

2.45

(1.25)

2.00

0.23

Total

from

investment

operations

........

1.78

2.12

2.62

(1.02)

2.17

0.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.15)

(0.18)

(0.24)

(0.26)

(0.07)

Net

realized

gains

.................

(0.31)

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

...................

(0.34)

(0.58)

(0.40)

(0.72)

(0.26)

(0.24)

Net

asset

value,

end

of

period

..........

$17.18

$15.74

$14.20

$11.98

$13.72

$11.81

Total

return

d

.......................

11.25%

15.55%

21.95%

(7.61)%

18.43%

2.99%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.10%

1.18%

1.22%

1.17%

1.26%

1.22%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.69%

0.67%

g

0.58%

g

0.54%

g

0.55%

0.55%

Net

investment

income

c

...............

0.26%

0.80%

1.33%

1.67%

1.28%

0.90%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,969

$2,620

$4,838

$5,146

$5,464

$4,682

Portfolio

turnover

rate

................

43.86%

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.93

$14.38

$12.12

$13.88

$11.94

$11.83

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.21

0.27

0.30

0.25

0.17

Net

realized

and

unrealized

gains

(losses)

1.78

2.01

2.46

(1.27)

2.02

0.24

Total

from

investment

operations

........

1.85

2.22

2.73

(0.97)

2.27

0.41

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.24)

(0.25)

(0.31)

(0.33)

(0.13)

Net

realized

gains

.................

(0.31)

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

...................

(0.38)

(0.67)

(0.47)

(0.79)

(0.33)

(0.30)

Net

asset

value,

end

of

period

..........

$17.40

$15.93

$14.38

$12.12

$13.88

$11.94

Total

return

d

.......................

11.56%

16.11%

22.69%

(7.16)%

19.10%

3.55%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.41%

0.44%

0.46%

0.46%

0.43%

0.44%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.14%

0.13%

g

0.04%

g

—%

g

—%

—%

Net

investment

income

c

...............

0.82%

1.52%

1.87%

2.21%

1.83%

1.45%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$27,816

$23,504

$20,022

$12,681

$13,787

$10,912

Portfolio

turnover

rate

................

43.86%

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

101

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.93

$14.38

$12.13

$13.88

$11.94

$11.83

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.06

0.21

0.25

0.31

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

1.78

2.00

2.46

(1.28)

2.03

0.25

Total

from

investment

operations

........

1.84

2.21

2.71

(0.97)

2.26

0.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.23)

(0.24)

(0.30)

(0.32)

(0.12)

Net

realized

gains

.................

(0.31)

(0.43)

(0.22)

(0.48)

—

(0.17)

Total

distributions

...................

(0.37)

(0.66)

(0.46)

(0.78)

(0.32)

(0.29)

Net

asset

value,

end

of

period

..........

$17.40

$15.93

$14.38

$12.13

$13.88

$11.94

Total

return

d

.......................

11.54%

16.06%

22.53%

(7.13)%

19.04%

3.49%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.60%

0.69%

0.73%

0.68%

0.76%

0.72%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.19%

0.18%

g

0.09%

g

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

0.77%

1.49%

1.82%

2.16%

1.78%

1.40%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,292

$1,089

$819

$639

$602

$479

Portfolio

turnover

rate

................

43.86%

36.61%

86.25%

43.20%

31.69%

75.72%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.0%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

28,195

$

562,626

Domestic

Equity

62.7%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

291,896

11,316,818

a

Franklin

Growth

Fund,

Class

R6

........................................

124,392

18,855,398

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

170,340

7,292,255

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

1,956,953

28,649,788

iShares

Core

S&P

U.S.

Value

ETF

......................................

80,161

5,768,386

71,882,645

Domestic

Fixed

Income

3.5%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

78,519

2,003,020

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

165,761

2,007,360

4,010,380

Foreign

Equity

32.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

430,250

5,446,961

a

Franklin

FTSE

Europe

ETF

............................................

44,045

1,270,698

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

904,587

11,795,814

a

Franklin

International

Growth

Fund,

Class

R6

..............................

115,808

2,635,790

iShares

MSCI

EAFE

Value

ETF

.........................................

76,054

3,936,555

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

199,672

5,435,061

a

Templeton

Foreign

Fund,

Class

R6

......................................

844,101

6,558,664

37,079,543

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$86,507,028)

................................................................

113,535,194

a

a

a

a

Short

Term

Investments

1.2%

a

Money

Market

Funds

0.8%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

877,302

877,302

Total

Money

Market

Funds

(Cost

$877,302)

.....................................

877,302

Principal

Amount

Repurchase

Agreements

0.4%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$460,219)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$335,840)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$51,103)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$73,276)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$469,750)

.........................................

$

460,219

460,219

Total

Repurchase

Agreements

(Cost

$460,219)

..................................

460,219

Total

Short

Term

Investments

(Cost

$1,337,521

)

.................................

1,337,521

a

Total

Investments

(Cost

$87,844,549)

100.2%

...................................

$114,872,715

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(169,939)

Net

Assets

100.0%

...........................................................

$114,702,776

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

103

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.76

$14.01

$11.74

$13.19

$11.29

$11.11

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.17

0.19

0.27

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

1.79

2.03

2.37

(1.23)

1.93

0.23

Total

from

investment

operations

........

1.83

2.20

2.56

(0.96)

2.13

0.37

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

(0.22)

(0.16)

(0.30)

(0.23)

(0.09)

Net

realized

gains

.................

(0.30)

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

...................

(0.34)

(0.45)

(0.29)

(0.49)

(0.23)

(0.19)

Net

asset

value,

end

of

period

..........

$17.25

$15.76

$14.01

$11.74

$13.19

$11.29

Total

return

d

.......................

11.59%

16.22%

22.00%

(7.40)%

18.96%

3.32%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.08%

1.28%

1.35%

1.30%

1.53%

1.47%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.44%

0.42%

g

0.34%

g

0.30%

g

0.30%

0.30%

Net

investment

income

c

...............

0.49%

1.23%

1.55%

1.98%

1.62%

1.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$24,330

$20,709

$16,729

$16,856

$13,823

$10,597

Portfolio

turnover

rate

................

45.91%

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

105

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.61

$13.91

$11.66

$13.11

$11.24

$11.07

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

,c

........

(0.02)

0.07

0.11

0.16

0.11

0.05

Net

realized

and

unrealized

gains

(losses)

1.77

2.00

2.34

(1.22)

1.91

0.23

Total

from

investment

operations

........

1.75

2.07

2.45

(1.06)

2.02

0.28

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(—)

d

(0.14)

(0.07)

(0.20)

(0.15)

(0.01)

Net

realized

gains

.................

(0.30)

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

...................

(0.30)

(0.37)

(0.20)

(0.39)

(0.15)

(0.11)

Net

asset

value,

end

of

period

..........

$17.06

$15.61

$13.91

$11.66

$13.11

$11.24

Total

return

e

.......................

11.20%

15.35%

21.13%

(8.12)%

18.03%

2.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..........................

1.83%

2.03%

2.10%

2.05%

2.28%

2.22%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

1.19%

1.17%

h

1.09%

h

1.05%

h

1.05%

1.05%

Net

investment

income

(loss)

c

..........

(0.26)%

0.48%

0.80%

1.23%

0.87%

0.42%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$8,198

$7,014

$5,658

$4,167

$3,797

$2,675

Portfolio

turnover

rate

................

45.91%

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.76

$14.01

$11.74

$13.19

$11.29

$11.12

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.02

0.13

0.17

0.23

0.16

0.11

Net

realized

and

unrealized

gains

(losses)

1.80

2.03

2.36

(1.22)

1.94

0.22

Total

from

investment

operations

........

1.82

2.16

2.53

(0.99)

2.10

0.33

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.01)

(0.18)

(0.13)

(0.27)

(0.20)

(0.06)

Net

realized

gains

.................

(0.30)

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

...................

(0.31)

(0.41)

(0.26)

(0.46)

(0.20)

(0.16)

Net

asset

value,

end

of

period

..........

$17.27

$15.76

$14.01

$11.74

$13.19

$11.29

Total

return

d

.......................

11.50%

15.92%

21.72%

(7.62)%

18.67%

3.01%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.34%

1.53%

1.60%

1.55%

1.78%

1.71%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.69%

0.67%

g

0.59%

g

0.55%

g

0.55%

0.54%

Net

investment

income

c

...............

0.18%

0.91%

1.30%

1.73%

1.37%

0.93%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,121

$2,468

$2,364

$1,814

$1,608

$1,219

Portfolio

turnover

rate

................

45.91%

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

107

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.87

$14.10

$11.80

$13.26

$11.34

$11.16

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.07

0.21

0.26

0.29

0.24

0.15

Net

realized

and

unrealized

gains

(losses)

1.79

2.05

2.37

(1.23)

1.94

0.24

Total

from

investment

operations

........

1.86

2.26

2.63

(0.94)

2.18

0.39

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.26)

(0.20)

(0.33)

(0.26)

(0.11)

Net

realized

gains

.................

(0.30)

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

...................

(0.36)

(0.49)

(0.33)

(0.52)

(0.26)

(0.21)

Net

asset

value,

end

of

period

..........

$17.37

$15.87

$14.10

$11.80

$13.26

$11.34

Total

return

d

.......................

11.71%

16.59%

22.50%

(7.18)%

19.36%

3.55%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.51%

0.59%

0.62%

0.65%

0.69%

0.75%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.14%

0.12%

g

0.04%

g

—%

g

—%

—%

Net

investment

income

c

...............

0.80%

1.54%

1.85%

2.28%

1.92%

1.47%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$26,726

$22,839

$17,560

$11,800

$12,099

$9,174

Portfolio

turnover

rate

................

45.91%

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

FranklinLifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

goo

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.87

$14.10

$11.80

$13.26

$11.35

$11.16

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.06

0.20

0.24

0.28

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

1.80

2.05

2.38

(1.22)

1.94

0.25

Total

from

investment

operations

........

1.86

2.25

2.62

(0.94)

2.17

0.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.25)

(0.19)

(0.33)

(0.26)

(0.11)

Net

realized

gains

.................

(0.30)

(0.23)

(0.13)

(0.19)

—

(0.10)

Total

distributions

...................

(0.36)

(0.48)

(0.32)

(0.52)

(0.26)

(0.21)

Net

asset

value,

end

of

period

..........

$17.37

$15.87

$14.10

$11.80

$13.26

$11.35

Total

return

d

.......................

11.69%

16.54%

22.44%

(7.23)%

19.20%

3.59%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.83%

1.03%

1.10%

1.05%

1.28%

1.22%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.19%

0.18%

g

0.09%

g

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

0.75%

1.45%

1.80%

2.23%

1.87%

1.42%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$857

$720

$617

$468

$512

$395

Portfolio

turnover

rate

................

45.91%

35.30%

94.67%

43.18%

35.70%

89.82%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27

%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

109

See

Abbreviations

on

page

170

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.9%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

15,450

$

308,302

Domestic

Equity

63.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

162,508

6,300,446

a

Franklin

Growth

Fund,

Class

R6

........................................

67,628

10,250,989

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

99,638

4,265,503

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

1,056,909

15,473,144

iShares

Core

S&P

U.S.

Value

ETF

......................................

45,118

3,246,691

39,536,773

Domestic

Fixed

Income

0.5%

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

25,952

314,281

Foreign

Equity

34.4%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

244,547

3,095,960

a

Franklin

FTSE

Europe

ETF

............................................

25,312

730,251

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

522,759

6,816,777

a

Franklin

International

Growth

Fund,

Class

R6

..............................

67,273

1,531,129

iShares

MSCI

EAFE

Value

ETF

.........................................

43,989

2,276,871

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

113,966

3,102,155

a

Templeton

Foreign

Fund,

Class

R6

......................................

490,374

3,810,206

21,363,349

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$47,915,265)

................................................................

61,522,705

a

a

a

a

Short

Term

Investments

1.5%

a

Money

Market

Funds

1.4%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

893,643

893,643

Total

Money

Market

Funds

(Cost

$893,643)

.....................................

893,643

Principal

Amount

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$47,049)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$34,334)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$5,224)

HSBC

Securities

(USA)

,

Inc.

(Maturity

Value

$7,491)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$48,024)

..........................................

$

47,049

47,049

Total

Repurchase

Agreements

(Cost

$47,049)

...................................

47,049

Total

Short

Term

Investments

(Cost

$940,692

)

..................................

940,692

a

Total

Investments

(Cost

$48,855,957)

100.4%

...................................

$62,463,397

Other

Assets,

less

Liabilities

(0.4)%

...........................................

(231,954)

Net

Assets

100.0%

...........................................................

$62,231,443

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

111

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.41

$11.86

$9.88

$11.05

$9.47

$9.34

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.15

0.18

0.23

0.18

0.12

Net

realized

and

unrealized

gains

(losses)

1.52

1.69

2.02

(1.03)

1.62

0.17

Total

from

investment

operations

........

1.56

1.84

2.20

(0.80)

1.80

0.29

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

(0.19)

(0.12)

(0.20)

(0.19)

(0.10)

Net

realized

gains

.................

(0.21)

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

...................

(0.25)

(0.29)

(0.22)

(0.37)

(0.22)

(0.16)

Net

asset

value,

end

of

period

..........

$14.72

$13.41

$11.86

$9.88

$11.05

$9.47

Total

return

d

.......................

11.60%

15.95%

22.39%

(7.37)%

19.06%

3.13%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.57%

2.03%

2.50%

2.51%

3.18%

5.09%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.44%

g

0.43%

g

0.34%

0.30%

g

0.30%

0.32%

Net

investment

income

c

...............

0.51%

1.27%

1.65%

2.01%

1.75%

1.43%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$15,720

$12,408

$8,254

$6,104

$4,684

$2,732

Portfolio

turnover

rate

................

44.93%

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.18

$11.69

$9.75

$10.92

$9.39

$9.30

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.02)

0.06

0.09

0.15

0.12

0.08

Net

realized

and

unrealized

gains

(losses)

1.50

1.66

1.99

(1.02)

1.58

0.14

Total

from

investment

operations

........

1.48

1.72

2.08

(0.87)

1.70

0.22

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.01)

(0.13)

(0.04)

(0.13)

(0.14)

(0.07)

Net

realized

gains

.................

(0.21)

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

...................

(0.22)

(0.23)

(0.14)

(0.30)

(0.17)

(0.13)

Net

asset

value,

end

of

period

..........

$14.44

$13.18

$11.69

$9.75

$10.92

$9.39

Total

return

d

.......................

11.19%

15.07%

21.45%

(8.04)%

18.10%

2.36%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

2.32%

2.78%

3.25%

3.26%

3.93%

5.82%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.19%

g

1.18%

g

1.09%

1.05%

g

1.05%

1.05%

Net

investment

income

(loss)

c

..........

(0.27)%

0.51%

0.90%

1.26%

1.00%

0.70%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$5,704

$5,083

$3,563

$2,338

$1,428

$572

Portfolio

turnover

rate

................

44.93%

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

113

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.36

$11.82

$9.85

$11.01

$9.44

$9.33

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.11

0.15

0.19

0.13

0.12

Net

realized

and

unrealized

gains

(losses)

1.52

1.69

2.01

(1.01)

1.63

0.14

Total

from

investment

operations

........

1.54

1.80

2.16

(0.82)

1.76

0.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.16)

(0.09)

(0.17)

(0.16)

(0.09)

Net

realized

gains

.................

(0.21)

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

...................

(0.24)

(0.26)

(0.19)

(0.34)

(0.19)

(0.15)

Net

asset

value,

end

of

period

..........

$14.66

$13.36

$11.82

$9.85

$11.01

$9.44

Total

return

d

.......................

11.47%

15.61%

22.08%

(7.53)%

18.69%

2.84%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.81%

2.29%

2.75%

2.76%

3.43%

5.32%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.69%

g

0.67%

g

0.59%

0.55%

g

0.55%

0.55%

Net

investment

income

c

...............

0.29%

0.95%

1.40%

1.76%

1.50%

1.20%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$826

$580

$539

$425

$354

$357

Portfolio

turnover

rate

................

44.93%

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

Ent

year

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.43

$11.87

$9.89

$11.06

$9.48

$9.34

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.06

0.18

0.22

0.24

0.22

0.21

Net

realized

and

unrealized

gains

(losses)

1.52

1.70

2.01

(1.01)

1.61

0.11

Total

from

investment

operations

........

1.58

1.88

2.23

(0.77)

1.83

0.32

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.22)

(0.15)

(0.23)

(0.22)

(0.12)

Net

realized

gains

.................

(0.21)

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

...................

(0.27)

(0.32)

(0.25)

(0.40)

(0.25)

(0.18)

Net

asset

value,

end

of

period

..........

$14.74

$13.43

$11.87

$9.89

$11.06

$9.48

Total

return

d

.......................

11.72%

16.34%

22.72%

(7.12)%

19.32%

3.49%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.68%

0.87%

1.18%

1.35%

1.85%

4.21%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.14%

g

0.13%

g

0.04%

—%

g

—%

—%

Net

investment

income

c

...............

0.80%

1.57%

1.95%

2.31%

2.05%

1.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$15,148

$12,017

$7,296

$3,573

$3,184

$1,618

Portfolio

turnover

rate

................

44.93%

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

115

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.42

$11.87

$9.90

$11.06

$9.48

$9.35

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.21

0.23

0.25

0.20

0.13

Net

realized

and

unrealized

gains

(losses)

1.52

1.66

1.99

(1.02)

1.62

0.18

Total

from

investment

operations

........

1.57

1.87

2.22

(0.77)

1.82

0.31

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.22)

(0.15)

(0.22)

(0.21)

(0.12)

Net

realized

gains

.................

(0.21)

(0.10)

(0.10)

(0.17)

(0.03)

(0.06)

Total

distributions

...................

(0.26)

(0.32)

(0.25)

(0.39)

(0.24)

(0.18)

Net

asset

value,

end

of

period

..........

$14.73

$13.42

$11.87

$9.90

$11.06

$9.48

Total

return

d

.......................

11.70%

16.19%

22.67%

(7.16)%

19.27%

3.45%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.32%

1.77%

2.25%

2.26%

2.93%

4.82%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.19%

g

0.19%

g

0.09%

0.05%

g

0.05%

0.05%

Net

investment

income

c

...............

0.73%

1.74%

1.90%

2.26%

2.00%

1.70%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$466

$378

$134

$46

$32

$13

Portfolio

turnover

rate

................

44.93%

32.75%

90.64%

42.85%

31.85%

93.35%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27

%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.8%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

9,169

$

182,966

Domestic

Equity

63.6%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

96,440

3,738,983

a

Franklin

Growth

Fund,

Class

R6

........................................

42,200

6,396,698

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

59,688

2,555,243

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

645,106

9,444,353

iShares

Core

S&P

U.S.

Value

ETF

......................................

26,676

1,919,605

24,054,882

Domestic

Fixed

Income

0.5%

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

15,401

186,511

Foreign

Equity

34.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

147,274

1,864,485

a

Franklin

FTSE

Europe

ETF

............................................

15,773

455,051

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

317,809

4,144,234

a

Franklin

International

Growth

Fund,

Class

R6

..............................

40,722

926,837

iShares

MSCI

EAFE

Value

ETF

.........................................

26,742

1,384,166

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

70,119

1,908,646

a

Templeton

Foreign

Fund,

Class

R6

......................................

296,612

2,304,677

12,988,096

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$30,170,479)

................................................................

37,412,455

a

a

a

a

Short

Term

Investments

1.1%

a

Money

Market

Funds

1.1%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

418,091

418,091

Total

Money

Market

Funds

(Cost

$418,091)

.....................................

418,091

Total

Short

Term

Investments

(Cost

$418,091

)

..................................

418,091

a

Total

Investments

(Cost

$30,588,570)

99.9%

....................................

$37,830,546

Other

Assets,

less

Liabilities

0.1%

.............................................

33,668

Net

Assets

100.0%

...........................................................

$37,864,214

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

117

a

Period

Ended

June

30,

2021

(unaudited)

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

...................................................................

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

..........................................................................

0.03

Net

realized

and

unrealized

gains

(losses)

.............................................................

1.22

Total

from

investment

operations

......................................................................

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

Net

asset

value,

end

of

period

........................................................................

$11.21

Total

return

e

.....................................................................................

12.46%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.......................................................

8.76%

Expenses

net

of

waiver

and

payments

by

affiliates

g

........................................................

0.20%

Net

investment

income

d

.............................................................................

0.70%

Supplemental

data

Net

assets,

end

of

period

(000’s)

......................................................................

$135

Portfolio

turnover

rate

..............................................................................

52.73%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.27%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

a

Period

Ended

June

30,

2021

(unaudited)

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

...................................................................

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

..........................................................................

0.04

Net

realized

and

unrealized

gains

(losses)

.............................................................

1.21

Total

from

investment

operations

......................................................................

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

Net

asset

value,

end

of

period

........................................................................

$11.21

Total

return

e

.....................................................................................

12.46%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.......................................................

8.76%

Expenses

net

of

waiver

and

payments

by

affiliates

g

........................................................

0.20%

Net

investment

income

d

.............................................................................

0.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

......................................................................

$23

Portfolio

turnover

rate

..............................................................................

52.73%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.27%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

119

a

Period

Ended

June

30,

2021

(unaudited)

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

...................................................................

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

..........................................................................

0.05

Net

realized

and

unrealized

gains

(losses)

.............................................................

1.20

Total

from

investment

operations

......................................................................

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

Net

asset

value,

end

of

period

........................................................................

$11.21

Total

return

e

.....................................................................................

12.46%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.......................................................

8.66%

Expenses

net

of

waiver

and

payments

by

affiliates

g

........................................................

0.20%

Net

investment

income

d

.............................................................................

1.04%

Supplemental

data

Net

assets,

end

of

period

(000’s)

......................................................................

$35

Portfolio

turnover

rate

..............................................................................

52.73%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.27%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

a

Period

Ended

June

30,

2021

(unaudited)

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

...................................................................

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

..........................................................................

0.04

Net

realized

and

unrealized

gains

(losses)

.............................................................

1.21

Total

from

investment

operations

......................................................................

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

Net

asset

value,

end

of

period

........................................................................

$11.21

Total

return

e

.....................................................................................

12.47%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.......................................................

8.84%

Expenses

net

of

waiver

and

payments

by

affiliates

g

........................................................

0.16%

Net

investment

income

d

.............................................................................

0.92%

Supplemental

data

Net

assets,

end

of

period

(000’s)

......................................................................

$12

Portfolio

turnover

rate

..............................................................................

52.73%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.27%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

121

a

Period

Ended

June

30,

2021

(unaudited)

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

...................................................................

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

..........................................................................

0.04

Net

realized

and

unrealized

gains

(losses)

.............................................................

1.21

Total

from

investment

operations

......................................................................

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

Net

asset

value,

end

of

period

........................................................................

$11.21

Total

return

e

.....................................................................................

12.45%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.......................................................

10.14%

Expenses

net

of

waiver

and

payments

by

affiliates

g

........................................................

0.20%

Net

investment

income

d

.............................................................................

0.88%

Supplemental

data

Net

assets,

end

of

period

(000’s)

......................................................................

$1,076

Portfolio

turnover

rate

..............................................................................

52.73%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.27%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

300

$

5,986

Domestic

Equity

63.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

3,162

122,610

a

Franklin

Growth

Fund,

Class

R6

........................................

1,433

217,212

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

2,017

86,348

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

21,802

319,186

iShares

Core

S&P

U.S.

Value

ETF

......................................

947

68,146

813,502

Domestic

Fixed

Income

0.5%

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

505

6,116

Foreign

Equity

34.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

5,008

63,403

a

Franklin

FTSE

Europe

ETF

............................................

555

16,012

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

10,740

140,044

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,378

31,373

iShares

MSCI

EAFE

Value

ETF

.........................................

899

46,532

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

2,370

64,504

a

Templeton

Foreign

Fund,

Class

R6

......................................

10,024

77,885

439,753

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,172,091)

.................................................................

1,265,357

a

a

a

a

Short

Term

Investments

0.5%

a

Money

Market

Funds

0.5%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

6,869

6,869

Total

Money

Market

Funds

(Cost

$6,869)

.......................................

6,869

Total

Short

Term

Investments

(Cost

$6,869

)

....................................

6,869

a

Total

Investments

(Cost

$1,178,960)

99.2%

.....................................

$1,272,226

Other

Assets,

less

Liabilities

0.8%

.............................................

9,246

Net

Assets

100.0%

...........................................................

$1,281,472

See

Abbreviations

on

page

170

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

123

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$19,266,333

$3,912,453

$12,743,805

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

39,224,454

37,363,277

113,726,882

Cost

-

Unaffiliated

repurchase

agreements

....................

—

68,514

214,543

Value

-

Unaffiliated

issuers

................................

$19,864,369

$3,877,469

$12,583,519

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

40,433,235

43,577,099

139,221,888

Value

-

Unaffiliated

repurchase

agreements

....................

—

68,514

214,543

Cash

..................................................

7,433

346

556

Receivables:

Investment

securities

sold

.................................

7,211,810

1,444,017

4,953,576

Capital

shares

sold

......................................

109,103

584,993

92,498

Dividends

and

interest

...................................

95,422

35,188

93,381

Affiliates

..............................................

65,979

67,891

35,822

Other

assets

............................................

—

—

9,683

Total

assets

........................................

67,787,351

49,655,517

157,205,466

Liabilities:

Payables:

Investment

securities

purchased

............................

7,472,049

1,935,967

5,096,902

Capital

shares

redeemed

.................................

5,097

2,735

154,739

Management

&

Asset

allocation

fees

.........................

19,984

9,681

31,123

Distribution

fees

........................................

16,768

13,160

41,428

Transfer

agent

fees

......................................

6,203

7,878

16,006

Accrued

expenses

and

other

liabilities

.........................

8,218

23,194

8,285

Total

liabilities

.......................................

7,528,319

1,992,615

5,348,483

Net

assets,

at

value

...............................

$60,259,032

$47,662,902

$151,856,983

Net

assets

consist

of:

Paid-in

capital

...........................................

$57,134,769

$39,753,496

$117,899,913

Total

distributable

earnings

(losses)

...........................

3,124,263

7,909,406

33,957,070

Net

assets,

at

value

...............................

$60,259,032

$47,662,902

$151,856,983

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$42,730,016

$34,140,749

$107,429,201

Shares

outstanding

......................................

3,629,101

2,518,258

7,383,040

Net

asset

value

per

share

a

................................

$11.77

$13.56

$14.55

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$12.46

$14.35

$15.40

Class

C:

Net

assets,

at

value

.....................................

$8,808,332

$7,180,113

$22,027,763

Shares

outstanding

......................................

757,400

533,406

1,542,593

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.63

$13.46

$14.28

Class

R:

Net

assets,

at

value

.....................................

$2,083,135

$697,173

$2,978,389

Shares

outstanding

......................................

177,438

51,439

205,484

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.74

$13.55

$14.49

Class

R6:

Net

assets,

at

value

.....................................

$4,288,544

$4,868,087

$16,538,454

Shares

outstanding

......................................

362,579

357,981

1,132,638

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.83

$13.60

$14.60

Advisor

Class:

Net

assets,

at

value

.....................................

$2,349,005

$776,780

$2,883,176

Shares

outstanding

......................................

198,776

57,103

197,639

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.82

$13.60

$14.59

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

125

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$6,956,426

$13,580,060

$6,244,277

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

60,469,399

111,975,403

48,939,351

Cost

-

Unaffiliated

repurchase

agreements

....................

317,952

242,557

173,053

Value

-

Unaffiliated

issuers

................................

$6,831,954

$13,291,364

$6,097,435

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

74,113,641

144,646,242

62,917,010

Value

-

Unaffiliated

repurchase

agreements

....................

317,952

242,557

173,053

Cash

..................................................

659

87

26

Receivables:

Investment

securities

sold

.................................

2,635,538

5,047,197

2,286,493

Capital

shares

sold

......................................

93,152

375,754

261,861

Dividends

.............................................

37,469

50,569

13,683

Affiliates

..............................................

59,188

102,876

81,340

Other

assets

............................................

—

9,467

—

Total

assets

........................................

84,089,553

163,766,113

71,830,901

Liabilities:

Payables:

Investment

securities

purchased

............................

2,911,875

5,390,299

2,649,055

Capital

shares

redeemed

.................................

7,216

100,260

196,392

Management

&

Asset

allocation

fees

.........................

16,545

84,650

14,104

Distribution

fees

........................................

18,380

39,007

12,899

Transfer

agent

fees

......................................

11,486

12,782

8,488

Accrued

expenses

and

other

liabilities

.........................

16,472

8,492

36,849

Total

liabilities

.......................................

2,981,974

5,635,490

2,917,787

Net

assets,

at

value

...............................

$81,107,579

$158,130,623

$68,913,114

Net

assets

consist

of:

Paid-in

capital

...........................................

$63,631,442

$114,503,739

$50,798,804

Total

distributable

earnings

(losses)

...........................

17,476,137

43,626,884

18,114,310

Net

assets,

at

value

...............................

$81,107,579

$158,130,623

$68,913,114

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$41,328,773

$93,082,899

$29,361,681

Shares

outstanding

......................................

2,681,929

5,719,393

1,769,024

Net

asset

value

per

share

a

................................

$15.41

$16.27

$16.60

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$16.31

$17.22

$17.57

Class

C:

Net

assets,

at

value

.....................................

$11,527,159

$22,232,619

$7,681,419

Shares

outstanding

......................................

758,305

1,403,367

471,720

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$15.20

$15.84

$16.28

Class

R:

Net

assets,

at

value

.....................................

$1,321,016

$4,071,069

$1,603,818

Shares

outstanding

......................................

85,855

250,294

96,702

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.39

$16.27

$16.59

Class

R6:

Net

assets,

at

value

.....................................

$25,452,579

$34,811,643

$29,452,794

Shares

outstanding

......................................

1,644,344

2,120,879

1,761,326

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.48

$16.41

$16.72

Advisor

Class:

Net

assets,

at

value

.....................................

$1,478,052

$3,932,393

$813,402

Shares

outstanding

......................................

95,578

239,274

48,739

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.46

$16.43

$16.69

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

127

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$9,972,977

$5,674,565

$3,394,807

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

77,411,353

43,134,343

27,193,763

Cost

-

Unaffiliated

repurchase

agreements

....................

460,219

47,049

—

Value

-

Unaffiliated

issuers

................................

$9,704,941

$5,523,562

$3,303,771

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

104,707,555

56,892,786

34,526,775

Value

-

Unaffiliated

repurchase

agreements

....................

460,219

47,049

—

Cash

..................................................

31

30

54,220

Receivables:

Investment

securities

sold

.................................

3,673,206

1,699,538

1,066,384

Capital

shares

sold

......................................

69,241

24,593

25,246

Dividends

and

interest

...................................

3,920

—

—

Affiliates

..............................................

109,870

88,335

101,328

Total

assets

........................................

118,728,983

64,275,893

39,077,724

Liabilities:

Payables:

Investment

securities

purchased

............................

3,806,390

1,964,116

1,137,616

Capital

shares

redeemed

.................................

81,544

7,964

5,753

Management

&

Asset

allocation

fees

.........................

67,600

12,768

7,745

Distribution

fees

........................................

27,413

12,612

8,173

Transfer

agent

fees

......................................

14,381

6,852

15,273

Accrued

expenses

and

other

liabilities

.........................

28,879

40,138

38,950

Total

liabilities

.......................................

4,026,207

2,044,450

1,213,510

Net

assets,

at

value

...............................

$114,702,776

$62,231,443

$37,864,214

Net

assets

consist

of:

Paid-in

capital

...........................................

$78,505,143

$44,702,562

$28,753,775

Total

distributable

earnings

(losses)

...........................

36,197,633

17,528,881

9,110,439

Net

assets,

at

value

...............................

$114,702,776

$62,231,443

$37,864,214

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$67,537,188

$24,329,801

$15,720,439

Shares

outstanding

......................................

3,914,138

1,410,109

1,068,321

Net

asset

value

per

share

a

................................

$17.25

$17.25

$14.72

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$18.25

$18.25

$15.58

Class

C:

Net

assets,

at

value

.....................................

$15,087,792

$8,197,999

$5,703,591

Shares

outstanding

......................................

903,566

480,582

395,101

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$16.70

$17.06

$14.44

Class

R:

Net

assets,

at

value

.....................................

$2,969,409

$2,120,571

$825,597

Shares

outstanding

......................................

172,854

122,825

56,325

Net

asset

value

and

maximum

offering

price

per

share

...........

$17.18

$17.27

$14.66

Class

R6:

Net

assets,

at

value

.....................................

$27,816,322

$26,726,419

$15,148,273

Shares

outstanding

......................................

1,598,277

1,538,649

1,027,488

Net

asset

value

and

maximum

offering

price

per

share

...........

$17.40

$17.37

$14.74

Advisor

Class:

Net

assets,

at

value

.....................................

$1,292,065

$856,653

$466,314

Shares

outstanding

......................................

74,244

49,317

31,660

Net

asset

value

and

maximum

offering

price

per

share

...........

$17.40

$17.37

$14.73

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

129

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$117,838

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

1,061,122

Value

-

Unaffiliated

issuers

..................................................................

$114,678

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

1,157,548

Receivables:

Investment

securities

sold

...................................................................

37,697

Affiliates

................................................................................

44,438

Other

assets

..............................................................................

36,966

Total

assets

..........................................................................

1,391,327

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

32,082

Management

fees

.........................................................................

258

Transfer

agent

fees

........................................................................

21

Professional

fees

.........................................................................

9,509

Offering

costs

.............................................................................

62,791

Accrued

expenses

and

other

liabilities

...........................................................

5,194

Total

liabilities

.........................................................................

109,855

Net

assets,

at

value

.................................................................

$1,281,472

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$1,158,227

Total

distributable

earnings

(losses)

.............................................................

123,245

Net

assets,

at

value

.................................................................

$1,281,472

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$135,277

Shares

outstanding

........................................................................

12,064

Net

asset

value

per

share

a

..................................................................

$11.21

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$11.86

Class

C:

Net

assets,

at

value

.......................................................................

$22,641

Shares

outstanding

........................................................................

2,020

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$11.21

Class

R:

Net

assets,

at

value

.......................................................................

$35,211

Shares

outstanding

........................................................................

3,141

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.21

Class

R6:

Net

assets,

at

value

.......................................................................

$12,264

Shares

outstanding

........................................................................

1,094

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.21

Advisor

Class:

Net

assets,

at

value

.......................................................................

$1,076,079

Shares

outstanding

........................................................................

96,000

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$11.21

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

131

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$194,219

$53,208

$163,962

Non-controlled

affiliates

(Note

3

f

)

...........................

449,678

300,195

885,549

Interest:

Unaffiliated

issuers

......................................

194,277

8

30

Total

investment

income

.................................

838,174

353,411

1,049,541

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

72,761

56,841

181,115

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

51,016

39,490

126,671

    Class

C

..............................................

45,117

35,681

108,642

    Class

R

..............................................

4,866

2,550

7,591

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

30,708

18,289

60,952

    Class

C

..............................................

6,793

4,135

13,125

    Class

R

..............................................

1,547

590

1,830

    Class

R6

.............................................

1,072

948

2,257

    Advisor

Class

..........................................

1,671

408

1,683

Custodian

fees

(Note

4

)

....................................

317

54

47

Reports

to

shareholders

....................................

5,843

5,446

10,986

Registration

and

filing

fees

..................................

38,300

36,036

40,100

Professional

fees

.........................................

31,836

22,147

22,791

Trustees'

fees

and

expenses

................................

586

460

912

Other

..................................................

2,171

1,991

2,509

Total

expenses

.......................................

294,604

225,066

581,211

Expense

reductions

(Note

4

)

.............................

(1)

—

—

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(180,076)

(100,353)

(193,726)

Net

expenses

.......................................

114,527

124,713

387,485

Net

investment

income

..............................

723,647

228,698

662,056

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

975,040

629,333

1,976,104

Non-controlled

affiliates

(Note

3

f

)

..........................

2,030,403

1,477,335

7,561,322

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

—

8,504

22,280

Net

realized

gain

(loss)

................................

3,005,443

2,115,172

9,559,706

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

115,221

(278,221)

(855,729)

Non-controlled

affiliates

(Note

3

f

)

..........................

(1,982,133)

592,471

765,731

Net

change

in

unrealized

appreciation

(depreciation)

..........

(1,866,912)

314,250

(89,998)

Net

realized

and

unrealized

gain

(loss)

..........................

1,138,531

2,429,422

9,469,708

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$1,862,178

$2,658,120

$10,131,764

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$82,373

$162,797

$73,537

Non-controlled

affiliates

(Note

3

f

)

...........................

429,576

747,173

274,412

Interest:

Unaffiliated

issuers

......................................

12

25

9

Total

investment

income

.................................

511,961

909,995

347,958

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

95,539

187,177

79,100

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

47,024

109,808

33,723

    Class

C

..............................................

55,993

107,875

35,591

    Class

R

..............................................

3,012

11,545

4,069

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

33,729

66,995

36,216

    Class

C

..............................................

10,058

16,464

9,558

    Class

R

..............................................

1,081

3,549

2,185

    Class

R6

.............................................

3,176

4,551

3,496

    Advisor

Class

..........................................

1,304

2,824

826

Custodian

fees

(Note

4

)

....................................

116

26

11

Reports

to

shareholders

....................................

6,916

10,796

6,428

Registration

and

filing

fees

..................................

36,616

39,190

36,163

Professional

fees

.........................................

22,420

22,766

22,353

Trustees'

fees

and

expenses

................................

637

914

512

Other

..................................................

2,092

2,647

1,972

Total

expenses

.......................................

319,713

587,127

272,203

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(142,272)

(221,414)

(142,937)

Net

expenses

.......................................

177,441

365,713

129,266

Net

investment

income

..............................

334,520

544,282

218,692

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

1,114,181

2,127,596

983,598

Non-controlled

affiliates

(Note

3

f

)

..........................

3,441,124

10,155,953

3,523,395

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

8,936

12,054

3,254

Net

realized

gain

(loss)

................................

4,564,241

12,295,603

4,510,247

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(485,582)

(980,495)

(414,158)

Non-controlled

affiliates

(Note

3

f

)

..........................

1,804,386

1,514,652

2,076,167

Net

change

in

unrealized

appreciation

(depreciation)

..........

1,318,804

534,157

1,662,009

Net

realized

and

unrealized

gain

(loss)

..........................

5,883,045

12,829,760

6,172,256

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$6,217,565

$13,374,042

$6,390,948

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

133

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$132,556

$73,403

$43,742

Non-controlled

affiliates

(Note

3

f

)

...........................

381,007

198,684

116,726

Interest:

Unaffiliated

issuers

......................................

10

6

—

Total

investment

income

.................................

513,573

272,093

160,468

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

134,560

72,768

42,656

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

79,575

27,857

17,511

    Class

C

..............................................

72,622

38,585

26,355

    Class

R

..............................................

6,853

6,595

1,753

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

67,608

38,848

47,146

    Class

C

..............................................

15,493

13,467

17,760

    Class

R

..............................................

2,930

4,613

2,357

    Class

R6

.............................................

3,287

3,285

2,152

    Advisor

Class

..........................................

1,273

1,380

1,379

Custodian

fees

(Note

4

)

....................................

16

10

5

Reports

to

shareholders

....................................

10,845

7,793

7,603

Registration

and

filing

fees

..................................

38,657

36,463

36,186

Professional

fees

.........................................

22,506

22,258

21,674

Trustees'

fees

and

expenses

................................

755

475

436

Other

..................................................

2,274

1,961

1,800

Total

expenses

.......................................

459,254

276,358

226,773

Expense

reductions

(Note

4

)

.............................

—

—

(1)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(203,486)

(153,798)

(151,996)

Net

expenses

.......................................

255,768

122,560

74,776

Net

investment

income

..............................

257,805

149,533

85,692

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

1,791,876

1,017,462

584,798

Non-controlled

affiliates

(Note

3

f

)

..........................

8,013,590

3,283,266

1,475,935

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

..........................

12,860

2,013

1,195

Net

realized

gain

(loss)

................................

9,818,326

4,302,741

2,061,928

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(839,443)

(447,359)

(246,793)

Non-controlled

affiliates

(Note

3

f

)

..........................

2,387,584

2,399,728

1,846,721

Net

change

in

unrealized

appreciation

(depreciation)

..........

1,548,141

1,952,369

1,599,928

Net

realized

and

unrealized

gain

(loss)

..........................

11,366,467

6,255,110

3,661,856

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$11,624,272

$6,404,643

$3,747,548

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

134

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$1,428

Non-controlled

affiliates

(Note

3

f

)

.............................................................

3,744

Total

investment

income

...................................................................

5,172

Expenses:

Management

fees

(Note

3

a

)

...................................................................

1,204

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

25

    Class

C

................................................................................

4

    Class

R

................................................................................

5

    Class

R6

...............................................................................

4

    Advisor

Class

............................................................................

301

Reports

to

shareholders

......................................................................

2,172

Professional

fees

...........................................................................

13,581

Organization

costs

(Note

1f)

...................................................................

12,254

Amortization

of

offering

costs

(Note

1f

)

...........................................................

54,037

Other

....................................................................................

3,370

Total

expenses

.........................................................................

86,957

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(86,006)

Net

expenses

.........................................................................

951

Net

investment

income

................................................................

4,221

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

14,823

Non-controlled

affiliates

(Note

3

f

)

............................................................

14,956

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3

f

)

............................................................

39

Net

realized

gain

(loss)

..................................................................

29,818

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(3,160)

Non-controlled

affiliates

(Note

3

f

)

............................................................

96,426

Net

change

in

unrealized

appreciation

(depreciation)

............................................

93,266

Net

realized

and

unrealized

gain

(loss)

............................................................

123,084

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$127,305

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

135

)

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$723,647

$1,786,002

$228,698

$610,606

Net

realized

gain

(loss)

............

3,005,443

859,056

2,115,172

626,102

Net

change

in

unrealized

appreciation

(depreciation)

.................

(1,866,912)

1,779,713

314,250

2,334,384

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

1,862,178

4,424,771

2,658,120

3,571,092

Distributions

to

shareholders:

Class

A

........................

(761,565)

(1,431,728)

(509,212)

(579,093)

Class

C

........................

(132,927)

(310,829)

(90,739)

(91,739)

Class

R

........................

(36,368)

(75,140)

(9,518)

(13,764)

Class

R6

.......................

(83,456)

(126,010)

(80,740)

(118,084)

Advisor

Class

...................

(44,716)

(81,732)

(12,561)

(15,234)

Total

distributions

to

shareholders

.....

(1,059,032)

(2,025,439)

(702,770)

(817,914)

Capital

share

transactions:

(Note

2

)

Class

A

........................

1,820,467

4,280,624

2,524,933

1,395,022

Class

C

........................

(667,196)

(1,558,006)

(242,293)

(177,758)

Class

R

........................

(52,016)

(316,845)

(139,179)

(10,195)

Class

R6

.......................

137,950

1,865,913

(206,090)

(2,898,275)

Advisor

Class

...................

297,763

63,117

61,529

(100,804)

Total

capital

share

transactions

.......

1,536,968

4,334,803

1,998,900

(1,792,010)

Net

increase

(decrease)

in

net

assets

.....................

2,340,114

6,734,135

3,954,250

961,168

Net

assets:

Beginning

of

period

................

57,918,918

51,184,783

43,708,652

42,747,484

End

of

period

.....................

$60,259,032

$57,918,918

$47,662,902

$43,708,652

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

136

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$662,056

$1,826,080

$334,520

$888,705

Net

realized

gain

(loss)

............

9,559,706

2,155,334

4,564,241

615,220

Net

change

in

unrealized

appreciation

(depreciation)

.................

(89,998)

8,475,037

1,318,804

5,500,376

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

10,131,764

12,456,451

6,217,565

7,004,301

Distributions

to

shareholders:

Class

A

........................

(1,765,854)

(3,138,792)

(507,233)

(807,598)

Class

C

........................

(313,106)

(618,884)

(116,757)

(200,244)

Class

R

........................

(45,622)

(111,129)

(14,867)

(29,298)

Class

R6

.......................

(289,506)

(559,279)

(346,003)

(664,249)

Advisor

Class

...................

(52,442)

(73,032)

(19,685)

(37,401)

Total

distributions

to

shareholders

.....

(2,466,530)

(4,501,116)

(1,004,545)

(1,738,790)

Capital

share

transactions:

(Note

2

)

Class

A

........................

5,101,485

5,186,019

4,760,792

4,231,485

Class

C

........................

(1,105,182)

(2,618,700)

(160,626)

918,822

Class

R

........................

(300,094)

(967,437)

52,957

25,856

Class

R6

.......................

(410,233)

591,525

5,479

23,761

Advisor

Class

...................

(141,206)

1,186,713

(168,619)

425,860

Total

capital

share

transactions

.......

3,144,770

3,378,120

4,489,983

5,625,784

Net

increase

(decrease)

in

net

assets

.....................

10,810,004

11,333,455

9,703,003

10,891,295

Net

assets:

Beginning

of

period

................

141,046,979

129,713,524

71,404,576

60,513,281

End

of

period

.....................

$151,856,983

$141,046,979

$81,107,579

$71,404,576

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

137

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$544,282

$1,664,747

$218,692

$666,546

Net

realized

gain

(loss)

............

12,295,603

3,082,389

4,510,247

1,332,860

Net

change

in

unrealized

appreciation

(depreciation)

.................

534,157

11,892,209

1,662,009

5,896,778

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

13,374,042

16,639,345

6,390,948

7,896,184

Distributions

to

shareholders:

Class

A

........................

(1,791,515)

(2,987,236)

(537,505)

(703,811)

Class

C

........................

(368,720)

(693,308)

(121,474)

(157,724)

Class

R

........................

(72,338)

(172,276)

(27,331)

(48,153)

Class

R6

.......................

(709,131)

(1,170,436)

(572,044)

(802,620)

Advisor

Class

...................

(79,379)

(117,157)

(15,350)

(14,462)

Total

distributions

to

shareholders

.....

(3,021,083)

(5,140,413)

(1,273,704)

(1,726,770)

Capital

share

transactions:

(Note

2

)

Class

A

........................

2,991,445

4,709,793

2,370,752

2,863,001

Class

C

........................

(587,375)

(1,419,278)

242,478

516,299

Class

R

........................

(803,005)

(856,195)

(74,082)

(199,753)

Class

R6

.......................

2,541,549

(745,308)

1,827,660

634,184

Advisor

Class

...................

238,499

1,045,342

257,833

311,307

Total

capital

share

transactions

.......

4,381,113

2,734,354

4,624,641

4,125,038

Net

increase

(decrease)

in

net

assets

.....................

14,734,072

14,233,286

9,741,885

10,294,452

Net

assets:

Beginning

of

period

................

143,396,551

129,163,265

59,171,229

48,876,777

End

of

period

.....................

$158,130,623

$143,396,551

$68,913,114

$59,171,229

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

138

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$257,805

$1,026,483

$149,533

$554,196

Net

realized

gain

(loss)

............

9,818,326

2,548,837

4,302,741

1,192,234

Net

change

in

unrealized

appreciation

(depreciation)

.................

1,548,141

10,128,466

1,952,369

5,771,640

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

11,624,272

13,703,786

6,404,643

7,518,070

Distributions

to

shareholders:

Class

A

........................

(1,337,191)

(2,266,459)

(465,150)

(560,602)

Class

C

........................

(276,903)

(508,543)

(141,199)

(158,983)

Class

R

........................

(56,172)

(129,183)

(36,598)

(68,720)

Class

R6

.......................

(583,429)

(959,318)

(541,518)

(660,907)

Advisor

Class

...................

(26,808)

(39,718)

(17,191)

(21,331)

Total

distributions

to

shareholders

.....

(2,280,503)

(3,903,221)

(1,201,656)

(1,470,543)

Capital

share

transactions:

(Note

2

)

Class

A

........................

2,192,716

2,576,701

1,643,065

1,755,282

Class

C

........................

(671,250)

(150,475)

510,249

571,449

Class

R

........................

111,013

(2,355,016)

(609,586)

(202,010)

Class

R6

.......................

2,112,900

1,037,663

1,668,262

2,628,556

Advisor

Class

...................

97,970

183,396

66,073

21,276

Total

capital

share

transactions

.......

3,843,349

1,292,269

3,278,063

4,774,553

Net

increase

(decrease)

in

net

assets

.....................

13,187,118

11,092,834

8,481,050

10,822,080

Net

assets:

Beginning

of

period

................

101,515,658

90,422,824

53,750,393

42,928,313

End

of

period

.....................

$114,702,776

$101,515,658

$62,231,443

$53,750,393

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

139

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Period

Ended

June

30,

2021

(unaudited)

a

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

..............................

$85,692

$290,756

$4,221

Net

realized

gain

(loss)

..............................

2,061,928

532,338

29,818

Net

change

in

unrealized

appreciation

(depreciation)

........

1,599,928

3,531,937

93,266

Net

increase

(decrease)

in

net

assets

resulting

from

operations

...................................

3,747,548

4,355,031

127,305

Distributions

to

shareholders:

Class

A

..........................................

(256,894)

(243,069)

(434)

Class

C

..........................................

(83,432)

(80,496)

(73)

Class

R

..........................................

(12,947)

(12,920)

(114)

Class

R6

.........................................

(266,078)

(258,075)

(40)

Advisor

Class

.....................................

(8,086)

(5,555)

(3,399)

Total

distributions

to

shareholders

.......................

(627,437)

(600,115)

(4,060)

Capital

share

transactions:

(Note

2

)

Class

A

..........................................

2,026,508

2,616,597

130,383

Class

C

..........................................

149,904

917,117

21,477

Class

R

..........................................

183,038

(51,701)

33,590

Class

R6

.........................................

1,867,673

3,228,549

11,073

Advisor

Class

.....................................

51,678

215,067

961,704

Total

capital

share

transactions

.........................

4,278,801

6,925,629

1,158,227

Net

increase

(decrease)

in

net

assets

................

7,398,912

10,680,545

1,281,472

Net

assets:

Beginning

of

period

..................................

30,465,302

19,784,757

—

End

of

period

.......................................

$37,864,214

$30,465,302

$1,281,472

a

For

the

period

January

29,

2021

(commencement

of

op

erations)

to

June

30,

2021.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

140

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twenty-

one

separate

funds, ten

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

Effective

January

29,

2021,

the

Trust

began

offering

shares

of

the

Franklin

LifeSmart

™

2060

Retirement

Target

Fund.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

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.

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

141

franklintempleton.com

Semiannual

Report

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Statements

of

Investments,

had

been

entered

into

on

June

30,

2021.

c.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

d.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2021, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

The

Franklin

LifeSmart

TM

Retirement

Income

Fund

employs

a

managed

distribution

policy.

Under

this

policy,

the

Fund

will

distribute

level

monthly

distributions

in

any

given

year

regardless

of

the

performance

of

the

Fund;

however,

the

twelfth

monthly

payment

may

be

greater

than

the

initially

anticipated

amount

if

additional

income

or

capital

gains

are

required

to

be

distributed.

These

distributions

may

include

income

and

capital

gains

generated

by

the

Underlying

Funds,

as

well

as

a

possible

return

of

capital

component,

if

necessary,

to

meet

the

annual

distribution

rate.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year

in

response

to

market

conditions.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Joint

Repurchase

Agreement

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

142

franklintempleton.com

Semiannual

Report

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Organization

and

Offering

Costs

Organization

costs

were

expensed

as

incurred.

Offering

costs

are

amortized

on

a

straight

line

basis

over

twelve

months.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

143

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

378,417

$4,394,584

412,400

$5,470,141

Shares

issued

in

reinvestment

of

distributions

..........

64,800

752,659

37,509

507,857

Shares

redeemed

...............................

(286,555)

(3,326,776)

(260,792)

(3,453,065)

Net

increase

(decrease)

..........................

156,662

$1,820,467

189,117

$2,524,933

Year

ended

December

31,

2020

Shares

sold

a

...................................

999,176

$10,949,641

521,618

$6,272,385

Shares

issued

in

reinvestment

of

distributions

..........

128,732

1,412,523

48,098

575,850

Shares

redeemed

...............................

(737,552)

(8,081,540)

(460,593)

(5,453,213)

Net

increase

(decrease)

..........................

390,356

$4,280,624

109,123

$1,395,022

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

58,985

$677,002

56,310

$738,282

Shares

issued

in

reinvestment

of

distributions

..........

11,210

128,587

6,700

90,183

Shares

redeemed

a

..............................

(128,081)

(1,472,785)

(80,783)

(1,070,758)

Net

increase

(decrease)

..........................

(57,886)

$(667,196)

(17,773)

$(242,293)

Year

ended

December

31,

2020

Shares

sold

...................................

95,645

$1,037,510

137,168

$1,602,207

Shares

issued

in

reinvestment

of

distributions

..........

27,449

297,040

7,712

91,371

Shares

redeemed

a

..............................

(267,615)

(2,892,556)

(156,863)

(1,871,336)

Net

increase

(decrease)

..........................

(144,521)

$(1,558,006)

(11,983)

$(177,758)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

9,490

$109,466

30,469

$401,543

Shares

issued

in

reinvestment

of

distributions

..........

3,140

36,368

703

9,517

Shares

redeemed

...............................

(17,142)

(197,850)

(40,274)

(550,239)

Net

increase

(decrease)

..........................

(4,512)

$(52,016)

(9,102)

$(139,179)

Year

ended

December

31,

2020

Shares

sold

...................................

54,509

$611,878

30,130

$367,112

Shares

issued

in

reinvestment

of

distributions

..........

5,534

60,616

1,155

13,764

Shares

redeemed

...............................

(88,384)

(989,339)

(32,037)

(391,071)

Net

increase

(decrease)

..........................

(28,341)

$(316,845)

(752)

$(10,195)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

144

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

134,013

$1,571,327

33,835

$451,722

Shares

issued

in

reinvestment

of

distributions

..........

24

279

3

48

Shares

redeemed

...............................

(122,035)

(1,433,656)

(48,468)

(657,860)

Net

increase

(decrease)

..........................

12,002

$137,950

(14,630)

$(206,090)

Year

ended

December

31,

2020

Shares

sold

...................................

217,344

$2,400,375

170,728

$2,049,625

Shares

issued

in

reinvestment

of

distributions

..........

—

—

1

8

Shares

redeemed

...............................

(49,147)

(534,462)

(407,102)

(4,947,908)

Net

increase

(decrease)

..........................

168,197

$1,865,913

(236,373)

$(2,898,275)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

28,794

$336,723

10,875

$145,025

Shares

issued

in

reinvestment

of

distributions

..........

3,643

42,484

925

12,560

Shares

redeemed

...............................

(6,939)

(81,444)

(7,278)

(96,056)

Net

increase

(decrease)

..........................

25,498

$297,763

4,522

$61,529

Year

ended

December

31,

2020

Shares

sold

...................................

47,082

$522,691

30,068

$362,458

Shares

issued

in

reinvestment

of

distributions

..........

7,099

78,129

1,273

15,234

Shares

redeemed

...............................

(48,424)

(537,703)

(39,825)

(478,496)

Net

increase

(decrease)

..........................

5,757

$63,117

(8,484)

$(100,804)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

875,441

$12,444,507

545,943

$8,146,213

Shares

issued

in

reinvestment

of

distributions

..........

120,639

1,753,878

32,801

504,916

Shares

redeemed

...............................

(639,522)

(9,096,900)

(259,754)

(3,890,337)

Net

increase

(decrease)

..........................

356,558

$5,101,485

318,990

$4,760,792

Year

ended

December

31,

2020

Shares

sold

a

...................................

1,391,393

$17,778,097

645,574

$8,463,985

Shares

issued

in

reinvestment

of

distributions

..........

247,921

3,124,391

62,213

807,054

Shares

redeemed

...............................

(1,245,619)

(15,716,469)

(396,048)

(5,039,554)

Net

increase

(decrease)

..........................

393,695

$5,186,019

311,739

$4,231,485

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

145

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

141,269

$1,968,514

123,127

$1,809,711

Shares

issued

in

reinvestment

of

distributions

..........

21,910

313,102

7,667

116,690

Shares

redeemed

a

..............................

(242,021)

(3,386,798)

(141,526)

(2,087,027)

Net

increase

(decrease)

..........................

(78,842)

$(1,105,182)

(10,732)

$(160,626)

Year

ended

December

31,

2020

Shares

sold

...................................

292,316

$3,644,257

176,304

$2,254,235

Shares

issued

in

reinvestment

of

distributions

..........

49,297

609,582

15,634

200,178

Shares

redeemed

a

..............................

(558,064)

(6,872,539)

(119,569)

(1,535,591)

Net

increase

(decrease)

..........................

(216,451)

$(2,618,700)

72,369

$918,822

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

13,151

$185,607

12,559

$187,360

Shares

issued

in

reinvestment

of

distributions

..........

3,148

45,622

965

14,867

Shares

redeemed

...............................

(37,521)

(531,323)

(10,138)

(149,270)

Net

increase

(decrease)

..........................

(21,222)

$(300,094)

3,386

$52,957

Year

ended

December

31,

2020

Shares

sold

...................................

69,441

$872,096

21,792

$281,999

Shares

issued

in

reinvestment

of

distributions

..........

8,860

110,702

2,275

29,298

Shares

redeemed

...............................

(155,589)

(1,950,235)

(21,390)

(285,441)

Net

increase

(decrease)

..........................

(77,288)

$(967,437)

2,677

$25,856

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

151,332

$2,171,765

308,116

$4,647,161

Shares

issued

in

reinvestment

of

distributions

..........

612

8,914

64

997

Shares

redeemed

...............................

(181,593)

(2,590,912)

(304,353)

(4,642,679)

Net

increase

(decrease)

..........................

(29,649)

$(410,233)

3,827

$5,479

Year

ended

December

31,

2020

Shares

sold

...................................

466,207

$6,033,871

554,467

$7,153,865

Shares

issued

in

reinvestment

of

distributions

..........

1,044

13,267

14

189

Shares

redeemed

...............................

(435,342)

(5,455,613)

(568,388)

(7,130,293)

Net

increase

(decrease)

..........................

31,909

$591,525

(13,907)

$23,761

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

146

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

46,558

$650,150

12,626

$191,286

Shares

issued

in

reinvestment

of

distributions

..........

3,353

48,841

1,268

19,576

Shares

redeemed

...............................

(59,905)

(840,197)

(25,348)

(379,481)

Net

increase

(decrease)

..........................

(9,994)

$(141,206)

(11,454)

$(168,619)

Year

ended

December

31,

2020

Shares

sold

...................................

98,827

$1,296,987

36,337

$479,768

Shares

issued

in

reinvestment

of

distributions

..........

5,188

66,372

2,858

37,315

Shares

redeemed

...............................

(14,119)

(176,646)

(6,949)

(91,223)

Net

increase

(decrease)

..........................

89,896

$1,186,713

32,246

$425,860

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

553,407

$8,769,536

289,162

$4,656,040

Shares

issued

in

reinvestment

of

distributions

..........

109,419

1,782,479

32,514

540,418

Shares

redeemed

...............................

(477,624)

(7,560,570)

(174,649)

(2,825,706)

Net

increase

(decrease)

..........................

185,202

$2,991,445

147,027

$2,370,752

Year

ended

December

31,

2020

Shares

sold

a

...................................

984,096

$13,596,049

497,483

$6,570,044

Shares

issued

in

reinvestment

of

distributions

..........

218,158

2,973,830

52,134

704,076

Shares

redeemed

...............................

(863,437)

(11,860,086)

(332,166)

(4,411,119)

Net

increase

(decrease)

..........................

338,817

$4,709,793

217,451

$2,863,001

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

99,717

$1,543,404

57,333

$906,153

Shares

issued

in

reinvestment

of

distributions

..........

23,266

368,714

7,455

121,497

Shares

redeemed

a

..............................

(161,361)

(2,499,493)

(50,161)

(785,172)

Net

increase

(decrease)

..........................

(38,378)

$(587,375)

14,627

$242,478

Year

ended

December

31,

2020

Shares

sold

...................................

268,130

$3,553,214

123,874

$1,590,076

Shares

issued

in

reinvestment

of

distributions

..........

51,755

685,266

11,857

157,724

Shares

redeemed

a

..............................

(430,290)

(5,657,758)

(95,131)

(1,231,501)

Net

increase

(decrease)

..........................

(110,405)

$(1,419,278)

40,600

$516,299

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

147

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

48,370

$766,683

14,884

$239,657

Shares

issued

in

reinvestment

of

distributions

..........

4,218

68,646

1,647

27,331

Shares

redeemed

...............................

(100,956)

(1,638,334)

(20,608)

(341,070)

Net

increase

(decrease)

..........................

(48,368)

$(803,005)

(4,077)

$(74,082)

Year

ended

December

31,

2020

Shares

sold

...................................

93,384

$1,230,778

21,891

$290,820

Shares

issued

in

reinvestment

of

distributions

..........

12,258

165,884

3,609

48,153

Shares

redeemed

...............................

(163,649)

(2,252,857)

(35,947)

(538,726)

Net

increase

(decrease)

..........................

(58,007)

$(856,195)

(10,447)

$(199,753)

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

255,201

$4,117,840

285,664

$4,658,992

Shares

issued

in

reinvestment

of

distributions

..........

113

1,856

363

6,080

Shares

redeemed

...............................

(98,743)

(1,578,147)

(177,084)

(2,837,412)

Net

increase

(decrease)

..........................

156,571

$2,541,549

108,943

$1,827,660

Year

ended

December

31,

2020

Shares

sold

...................................

430,880

$5,884,018

378,906

$5,090,496

Shares

issued

in

reinvestment

of

distributions

..........

152

2,104

582

7,964

Shares

redeemed

...............................

(496,277)

(6,631,430)

(333,835)

(4,464,276)

Net

increase

(decrease)

..........................

(65,245)

$(745,308)

45,653

$634,184

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

13,016

$205,074

16,520

$267,554

Shares

issued

in

reinvestment

of

distributions

..........

4,689

77,130

789

13,194

Shares

redeemed

...............................

(2,746)

(43,705)

(1,481)

(22,915)

Net

increase

(decrease)

..........................

14,959

$238,499

15,828

$257,833

Year

ended

December

31,

2020

Shares

sold

...................................

75,674

$1,103,938

23,274

$324,325

Shares

issued

in

reinvestment

of

distributions

..........

8,190

113,188

1,061

14,462

Shares

redeemed

...............................

(12,035)

(171,784)

(1,967)

(27,480)

Net

increase

(decrease)

..........................

71,829

$1,045,342

22,368

$311,307

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

148

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

344,391

$5,744,530

193,543

$3,237,256

Shares

issued

in

reinvestment

of

distributions

..........

76,771

1,326,456

26,915

465,085

Shares

redeemed

...............................

(291,147)

(4,878,270)

(124,008)

(2,059,276)

Net

increase

(decrease)

..........................

130,015

$2,192,716

96,450

$1,643,065

Year

ended

December

31,

2020

Shares

sold

a

...................................

595,211

$8,286,188

305,277

$4,167,208

Shares

issued

in

reinvestment

of

distributions

..........

162,012

2,250,820

40,845

560,509

Shares

redeemed

...............................

(576,915)

(7,960,307)

(226,302)

(2,972,435)

Net

increase

(decrease)

..........................

180,308

$2,576,701

119,820

$1,755,282

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

77,506

$1,256,282

77,017

$1,250,822

Shares

issued

in

reinvestment

of

distributions

..........

16,540

276,507

8,262

141,196

Shares

redeemed

a

..............................

(136,652)

(2,204,039)

(53,919)

(881,769)

Net

increase

(decrease)

..........................

(42,606)

$(671,250)

31,360

$510,249

Year

ended

December

31,

2020

Shares

sold

...................................

150,974

$2,042,530

110,367

$1,505,401

Shares

issued

in

reinvestment

of

distributions

..........

37,615

503,738

11,812

158,976

Shares

redeemed

a

..............................

(202,957)

(2,696,743)

(79,660)

(1,092,928)

Net

increase

(decrease)

..........................

(14,368)

$(150,475)

42,519

$571,449

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

23,407

$393,707

19,703

$323,659

Shares

issued

in

reinvestment

of

distributions

..........

3,104

53,385

2,117

36,598

Shares

redeemed

...............................

(20,146)

(336,079)

(55,553)

(969,843)

Net

increase

(decrease)

..........................

6,365

$111,013

(33,733)

$(609,586)

Year

ended

December

31,

2020

Shares

sold

...................................

38,249

$525,037

32,563

$444,531

Shares

issued

in

reinvestment

of

distributions

..........

9,145

123,980

5,064

68,720

Shares

redeemed

...............................

(221,575)

(3,004,033)

(49,817)

(715,261)

Net

increase

(decrease)

..........................

(174,181)

$(2,355,016)

(12,190)

$(202,010)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

149

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

202,032

$3,436,975

191,731

$3,238,332

Shares

issued

in

reinvestment

of

distributions

..........

48

835

32

554

Shares

redeemed

...............................

(78,852)

(1,324,910)

(92,665)

(1,570,624)

Net

increase

(decrease)

..........................

123,228

$2,112,900

99,098

$1,668,262

Year

ended

December

31,

2020

Shares

sold

...................................

389,524

$5,397,365

405,186

$5,532,677

Shares

issued

in

reinvestment

of

distributions

..........

18

285

13

199

Shares

redeemed

...............................

(307,199)

(4,359,987)

(211,312)

(2,904,320)

Net

increase

(decrease)

..........................

82,343

$1,037,663

193,887

$2,628,556

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

11,747

$193,249

3,010

$49,747

Shares

issued

in

reinvestment

of

distributions

..........

1,538

26,808

988

17,191

Shares

redeemed

...............................

(7,366)

(122,087)

(51)

(865)

Net

increase

(decrease)

..........................

5,919

$97,970

3,947

$66,073

Year

ended

December

31,

2020

Shares

sold

...................................

19,633

$296,010

6,539

$88,953

Shares

issued

in

reinvestment

of

distributions

..........

2,819

39,717

1,546

21,331

Shares

redeemed

...............................

(11,049)

(152,331)

(6,491)

(89,008)

Net

increase

(decrease)

..........................

11,403

$183,396

1,594

$21,276

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

b

Shares

sold

a

...................................

234,775

$3,321,792

22,796

$239,947

Shares

issued

in

reinvestment

of

distributions

..........

17,442

256,862

35

398

Shares

redeemed

...............................

(109,491)

(1,552,146)

(10,767)

(109,962)

Net

increase

(decrease)

..........................

142,726

$2,026,508

12,064

$130,383

Year

ended

December

31,

2020

Shares

sold

a

...................................

366,475

$4,201,261

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

21,021

243,053

—

—

Shares

redeemed

...............................

(158,030)

(1,827,717)

—

—

Net

increase

(decrease)

..........................

229,466

$2,616,597

—

$—

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

150

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2021

b

Shares

sold

...................................

68,368

$952,714

2,017

$21,440

Shares

issued

in

reinvestment

of

distributions

..........

5,776

83,416

3

37

Shares

redeemed

a

..............................

(64,789)

(886,226)

—

—

Net

increase

(decrease)

..........................

9,355

$149,904

2,020

$21,477

Year

ended

December

31,

2020

Shares

sold

...................................

118,761

$1,355,736

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

7,215

80,424

—

—

Shares

redeemed

a

..............................

(45,018)

(519,043)

—

—

Net

increase

(decrease)

..........................

80,958

$917,117

—

$—

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

b

Shares

sold

...................................

15,509

$218,322

3,134

$33,512

Shares

issued

in

reinvestment

of

distributions

..........

883

12,947

7

78

Shares

redeemed

...............................

(3,448)

(48,231)

—

—

Net

increase

(decrease)

..........................

12,944

$183,038

3,141

$33,590

Year

ended

December

31,

2020

Shares

sold

...................................

25,592

$295,783

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

1,149

12,920

—

—

Shares

redeemed

...............................

(28,943)

(360,404)

—

—

Net

increase

(decrease)

..........................

(2,202)

$(51,701)

—

$—

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2021

b

Shares

sold

...................................

197,604

$2,808,058

1,094

$11,073

Shares

issued

in

reinvestment

of

distributions

..........

47

697

—

—

Shares

redeemed

...............................

(65,163)

(941,082)

—

—

Net

increase

(decrease)

..........................

132,488

$1,867,673

1,094

$11,073

Year

ended

December

31,

2020

Shares

sold

...................................

404,086

$4,666,387

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

14

171

—

—

Shares

redeemed

...............................

(123,550)

(1,438,009)

—

—

Net

increase

(decrease)

..........................

280,550

$3,228,549

—

$—

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

151

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Management

and

Asset

Allocation

Fees

The

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

LifeSmart

TM

Retirement

Income

Fund pays

an

investment

management

fee

to Advisers of

0.25%

per

year

of

the

average

daily

net

assets

of

the

Fund. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

b

Shares

sold

...................................

6,001

$87,265

96,000

$961,704

Shares

issued

in

reinvestment

of

distributions

..........

549

8,086

—

—

Shares

redeemed

...............................

(3,035)

(43,673)

—

—

Net

increase

(decrease)

..........................

3,515

$51,678

96,000

$961,704

Year

ended

December

31,

2020

Shares

sold

...................................

19,447

$244,925

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

463

5,555

—

—

Shares

redeemed

...............................

(3,037)

(35,413)

—

—

Net

increase

(decrease)

..........................

16,873

$215,067

—

$—

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

b

For

the

period

January

29,

2021

(commencement

of

operations)

to

June

30,

2021

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

(formerly

Franklin

Templeton

Distributors,

Inc.)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

152

franklintempleton.com

Semiannual

Report

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

Class

A

..................................................................................

0.35%

Class

C

..................................................................................

1.00%

Class

R

..................................................................................

0.50%

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$7,001

$4,954

$13,811

CDSC

retained

............................................

$194

$252

$1,193

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$11,101

$14,275

$8,333

CDSC

retained

............................................

$1,963

$1,367

$589

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/

dealers

..................................................

$12,928

$8,755

$9,515

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

153

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2021,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

CDSC

retained

............................................

$1,055

$1,131

$1,057

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$77

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Transfer

agent

fees

.........................................

$28,462

$18,123

$66,818

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Transfer

agent

fees

.........................................

$42,414

$87,295

$48,326

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Transfer

agent

fees

.........................................

$84,579

$61,400

$62,959

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

154

franklintempleton.com

Semiannual

Report

f.

Investments

in

Underlying

Funds

The

Funds

invest

in

FT

Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

FT

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

and

asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund. 

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2021,

were

as

follows:

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Transfer

agent

fees

...........................................................................

$781

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

—

$

580,901

$

—

$

—

$

13,659

$

594,560

50,948

$

4,504

Franklin

Income

Fund,

Class

R6

.

11,942,166

53,949

(11,891,359)

717,949

(822,705)

—

a

—

53,949

Franklin

International

Growth

Fund,

Class

R6

................

2,809,700

—

(2,946,802)

485,848

(348,746)

—

a

—

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,128,022

2,439,528

—

—

11,433

3,578,983

134,827

50,022

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,085,024

142,100

(15,764)

(287)

(19,727)

1,191,346

47,464

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

5,137,342

545,578

(1,283,996)

(63,642)

(115,431)

4,219,851

161,063

72,115

Franklin

Liberty

Senior

Loan

ETF

—

2,397,618

(429,931)

(610)

3,357

1,970,434

79,007

27,793

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

11,529,824

4,146,029

(7,497,330)

(109,458)

(242,623)

7,826,442

306,799

150,963

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

2,864,210

569,652

(55,730)

(3,083)

(95,850)

3,279,199

135,949

26,604

Franklin

LibertyQ

U.S.

Equity

ETF

3,520,625

—

(3,590,129)

783,117

(713,613)

—

a

—

7,059

Franklin

U.S.

Core

Equity

(IU)

Fund

3,140,134

12,846

(623,029)

168,347

343,219

3,041,517

207,754

12,846

Franklin

U.S.

Government

Securities

Fund,

Class

R6

.....

3,944,487

976,453

(1,399,743)

3,755

(95,743)

3,429,209

575,371

43,799

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

1,298,368

20,862,078

(21,359,083)

—

—

801,363

801,363

24

3.

Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

155

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Templeton

Developing

Markets

Trust,

Class

R6

............

$

616,505

$

—

$

(68,485)

$

12,194

$

38,288

$

598,502

21,988

$

—

Templeton

Foreign

Fund,

Class

R6

1,273,505

2,694,575

(178,151)

36,273

62,349

3,888,551

500,457

—

Western

Asset

Income

Fund,

Class

IS

.....................

—

6,013,278

—

—

—

6,013,278

976,182

—

Total

Non-Controlled

Affiliates

$50,289,912

$41,434,585

$(51,339,532)

$2,030,403

$(1,982,133)

$40,433,235

$449,678

Total

Affiliated

Securities

....

$50,289,912

$41,434,585

$(51,339,532)

$2,030,403

$(1,982,133)

$40,433,235

$449,678

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

1,170,938

—

—

9,015

1,179,953

101,110

8,612

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

2,732,210

—

—

217,450

2,949,660

76,081

12,710

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,009,327

32,405

(423,750)

65,002

21,153

704,137

55,619

4,014

Franklin

FTSE

China

ETF

.....

193,240

5,548

(198,531)

542

(799)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

675,662

32,644

(496,207)

93,036

(20,905)

284,230

9,852

6,066

Franklin

FTSE

Japan

ETF

.....

349,736

381,168

(742,144)

83,254

(72,014)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

4,577,804

221,949

(495,168)

30,217

487,891

4,822,693

31,816

—

Franklin

International

Core

Equity

(IU)

Fund

................

2,107,449

562,330

(303,712)

29,214

158,432

2,553,713

195,837

23,481

Franklin

International

Growth

Fund,

Class

R6

................

702,671

17,844

(191,905)

36,802

(237)

565,175

24,832

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

568,443

1,381,247

(272,629)

(1,482)

7,772

1,683,351

63,415

36,865

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,481,610

255,279

(528,234)

(8,435)

(21,624)

1,178,596

46,956

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,532,130

663,240

(823,646)

(39,557)

(15,276)

1,316,891

50,263

17,100

Franklin

Liberty

Senior

Loan

ETF

—

1,439,999

(136,305)

(374)

(4,794)

1,298,526

52,066

16,076

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

1,457,794

35,961

(1,488,273)

(4,336)

(1,146)

—

a

—

2,548

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

187,254

45,591

—

—

2,163

235,008

11,777

2,809

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

9,134,692

2,652,549

(3,060,803)

(53,837)

(184,761)

8,487,840

332,726

91,414

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,878,488

651,567

(958,767)

(50,050)

(13,519)

1,507,719

62,507

12,448

Franklin

LibertyQ

U.S.

Equity

ETF

3,349,931

357,212

(2,178,955)

355,771

(25,662)

1,858,297

43,408

20,647

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

156

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

$

1,679,031

$

3,663

$

(1,684,317)

$

20,534

$

(18,911)

$

—

a

—

$

5,208

Franklin

Rising

Dividends

Fund,

Class

R6

................

2,381,190

102,022

(2,573,667)

929,863

(839,408)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

4,102,258

2,685,246

(79,913)

430

739,337

7,447,358

508,699

17,204

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

153,283

7,776,338

(7,571,571)

—

—

358,050

358,050

14

Templeton

Developing

Markets

Trust,

Class

R6

............

812,524

34,817

(196,403)

19,071

42,133

712,142

26,162

—

Templeton

Foreign

Fund,

Class

R6

970,861

461,805

(119,946)

10,318

96,950

1,419,988

182,753

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

430,004

18,717

(430,072)

(38,648)

19,999

—

a

—

7,241

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

1,873,999

—

—

12,096

1,886,095

155,747

15,482

b

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

2,260,219

(1,129,678)

—

(2,864)

1,127,677

286,941

8,760

Total

Non-Controlled

Affiliates

$39,735,382

$27,856,507

$(26,084,596)

$1,477,335

$592,471

$43,577,099

$308,699

Total

Affiliated

Securities

....

$39,735,382

$27,856,507

$(26,084,596)

$1,477,335

$592,471

$43,577,099

$308,699

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

2,966,370

—

—

39,086

3,005,456

257,537

22,228

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

9,714,849

—

—

757,394

10,472,243

270,112

44,521

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

3,947,628

15,309

(876,283)

149,130

195,912

3,431,696

271,066

15,309

Franklin

FTSE

China

ETF

.....

744,331

—

(746,284)

5,030

(3,077)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

2,496,942

—

(1,780,739)

354,314

(42,159)

1,028,358

35,645

23,191

Franklin

FTSE

Japan

ETF

.....

1,323,870

933,465

(2,303,075)

306,837

(261,097)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

18,306,866

24,957

(3,100,510)

293,319

1,636,380

17,161,012

113,214

—

Franklin

International

Core

Equity

(IU)

Fund

................

8,007,443

1,563,269

(780,672)

94,041

620,065

9,504,146

728,846

88,125

Franklin

International

Growth

Fund,

Class

R6

................

2,721,050

—

(727,278)

165,942

(25,997)

2,133,717

93,749

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,440,834

3,863,547

(903,152)

(4,083)

21,641

4,418,787

166,464

99,304

Franklin

Liberty

International

Aggregate

Bond

ETF

........

3,666,985

320,354

(886,135)

(14,172)

(55,354)

3,031,678

120,784

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

3,774,470

1,302,041

(1,492,633)

(62,509)

(64,541)

3,456,828

131,940

47,856

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

157

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Liberty

Senior

Loan

ETF

$

—

$

3,750,619

$

(308,339)

$

(899)

$

(12,779)

$

3,428,602

137,474

$

42,134

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

3,604,988

—

(3,591,604)

(10,330)

(3,054)

—

a

—

6,309

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

586,336

155,596

—

—

6,114

748,046

37,487

8,940

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

24,272,456

5,276,865

(6,673,236)

(144,793)

(449,531)

22,281,761

873,452

243,384

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

4,894,923

2,282,997

(3,059,565)

(157,942)

(2,648)

3,957,765

164,081

28,695

Franklin

LibertyQ

U.S.

Equity

ETF

12,582,170

345,414

(7,589,446)

1,532,675

(258,124)

6,612,689

154,466

76,588

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

4,390,545

9,573

(4,404,425)

88,720

(84,413)

—

a

—

13,670

Franklin

Rising

Dividends

Fund,

Class

R6

................

9,108,959

186,317

(9,646,102)

5,033,039

(4,682,213)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

15,790,078

7,940,878

—

—

2,770,636

26,501,592

1,810,218

64,596

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

910,873

14,525,996

(14,001,032)

—

—

1,435,837

1,435,837

47

Templeton

Developing

Markets

Trust,

Class

R6

............

3,147,351

314,368

(277,881)

42,251

198,931

3,425,020

125,827

—

Templeton

Foreign

Fund,

Class

R6

3,783,721

1,367,739

(248,679)

25,226

356,508

5,284,515

680,118

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,346,867

22,269

(1,311,932)

(134,474)

77,270

—

a

—

22,269

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

4,912,674

—

—

38,277

4,950,951

408,832

42,921

b

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

4,293,584

(1,334,899)

—

(7,496)

2,951,189

750,939

17,742

Total

Non-Controlled

Affiliates

$130,849,686

$66,089,050

$(66,043,901)

$7,561,322

$765,731

$139,221,888

$907,829

Total

Affiliated

Securities

....

$130,849,686

$66,089,050

$(66,043,901)

$7,561,322

$765,731

$139,221,888

$907,829

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

1,186,598

—

—

12,049

1,198,647

102,712

8,801

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

5,819,503

—

—

454,246

6,273,749

161,820

26,820

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,499,782

9,694

(556,072)

87,430

131,012

2,171,846

171,552

9,694

Franklin

FTSE

China

ETF

.....

502,964

69,268

(572,853)

2,991

(2,370)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

1,466,324

—

(1,009,698)

206,753

(18,812)

644,567

22,342

14,536

Franklin

FTSE

Japan

ETF

.....

731,665

977,296

(1,742,194)

177,244

(144,011)

—

a

—

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

158

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart���

2030

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Growth

Fund,

Class

R6

.

$

10,345,578

$

503,182

$

(1,668,556)

$

172,737

$

1,018,565

$

10,371,506

68,423

$

—

Franklin

International

Core

Equity

(IU)

Fund

................

4,684,093

1,551,223

(667,383)

66,775

347,524

5,982,232

458,760

52,101

Franklin

International

Growth

Fund,

Class

R6

................

1,506,778

48,096

(297,220)

50,730

28,691

1,337,075

58,747

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

523,376

1,859,686

(610,774)

(1,643)

6,941

1,777,586

66,965

43,459

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,252,548

369,681

(389,275)

(6,503)

(17,183)

1,209,268

48,178

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,368,125

337,238

(269,067)

(10,968)

(34,711)

1,390,617

53,077

20,385

Franklin

Liberty

Senior

Loan

ETF

—

1,379,590

—

—

(4,997)

1,374,593

55,116

14,391

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

1,336,287

—

(1,331,326)

(3,830)

(1,131)

—

a

—

2,339

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

284,567

108,773

—

—

4,499

397,839

19,937

4,755

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

8,612,136

3,160,323

(2,576,991)

(74,261)

(156,687)

8,964,520

351,412

108,761

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,734,123

630,445

(714,412)

(37,377)

(20,637)

1,592,142

66,007

12,295

Franklin

LibertyQ

U.S.

Equity

ETF

7,291,097

244,792

(4,300,134)

823,029

(83,833)

3,974,951

92,851

45,298

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

1,566,968

3,427

(1,572,014)

48,336

(46,717)

—

a

—

4,960

Franklin

Rising

Dividends

Fund,

Class

R6

................

5,244,910

193,387

(5,660,900)

1,980,736

(1,758,133)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

9,352,120

5,035,599

(100,764)

4,689

1,638,585

15,930,229

1,088,130

38,259

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

461,257

12,385,189

(12,087,464)

—

—

758,982

758,982

24

Templeton

Developing

Markets

Trust,

Class

R6

............

2,067,967

90,259

(58,741)

6,148

157,785

2,263,418

83,153

—

Templeton

Foreign

Fund,

Class

R6

2,171,717

1,173,804

(275,618)

5,042

252,400

3,327,345

428,230

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

663,118

93,398

(726,015)

(56,934)

26,433

—

a

—

11,904

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

1,973,785

—

—

17,879

1,991,664

164,464

18,119

b

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

159

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

1,183,866

$

—

$

—

$

(3,001)

$

1,180,865

300,474

$

1,611

Total

Non-Controlled

Affiliates

$65,667,500

$40,388,102

$(37,187,471)

$3,441,124

$1,804,386

$74,113,641

$438,512

Total

Affiliated

Securities

....

$65,667,500

$40,388,102

$(37,187,471)

$3,441,124

$1,804,386

$74,113,641

$438,512

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

1,914,604

—

—

28,655

1,943,259

166,517

14,433

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

12,368,292

—

—

954,887

13,323,179

343,647

56,371

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

6,231,816

24,166

(1,319,186)

201,868

343,337

5,482,001

433,017

24,166

Franklin

FTSE

China

ETF

.....

1,174,547

—

(1,177,628)

7,937

(4,856)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

3,285,049

55,051

(2,301,610)

449,041

(26,769)

1,460,762

50,633

31,701

Franklin

FTSE

Japan

ETF

.....

1,741,892

1,694,669

(3,493,342)

371,576

(314,795)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

22,993,541

112,939

(3,457,841)

923,832

1,621,630

22,194,101

146,418

—

Franklin

International

Core

Equity

(IU)

Fund

................

10,556,792

2,789,588

(1,200,000)

145,283

769,343

13,061,006

1,001,611

114,082

Franklin

International

Growth

Fund,

Class

R6

................

3,316,469

133,618

(709,410)

182,756

(7,399)

2,916,034

128,121

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

744,748

3,091,346

(1,447,665)

981

12,780

2,402,190

90,495

64,612

Franklin

Liberty

International

Aggregate

Bond

ETF

........

2,040,407

230,207

(273,807)

(4,331)

(32,417)

1,960,059

78,090

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,950,538

269,352

(280,656)

(9,642)

(50,345)

1,879,247

71,727

27,618

Franklin

Liberty

Senior

Loan

ETF

—

2,335,546

(472,258)

(1,301)

(6,800)

1,855,187

74,386

25,250

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

1,924,575

—

(1,917,430)

(5,771)

(1,374)

—

a

—

3,368

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

577,980

190,444

—

—

5,383

773,807

38,778

9,248

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

11,028,501

5,368,960

(4,007,474)

(75,627)

(205,426)

12,108,934

474,674

137,413

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

2,391,313

1,289,861

(1,449,299)

(76,845)

(3,455)

2,151,575

89,200

14,800

Franklin

LibertyQ

U.S.

Equity

ETF

16,257,690

84,651

(9,469,356)

2,000,278

(420,814)

8,452,449

197,441

96,586

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

2,225,009

4,866

(2,232,174)

34,331

(32,032)

—

a

—

7,042

Franklin

Rising

Dividends

Fund,

Class

R6

................

11,680,863

—

(12,070,198)

6,121,810

(5,732,475)

—

a

—

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

160

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

U.S.

Core

Equity

(IU)

Fund

$

20,803,766

$

9,445,935

$

—

$

—

$

3,624,841

$

33,874,542

2,313,835

$

85,106

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

150,290

16,204,856

(14,637,945)

—

—

1,717,201

1,717,201

46

Templeton

Developing

Markets

Trust,

Class

R6

............

5,118,546

68,154

(49,379)

4,515

399,185

5,541,021

203,564

—

Templeton

Foreign

Fund,

Class

R6

4,681,872

2,062,105

—

—

520,516

7,264,493

934,941

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

1,350,909

22,336

(1,315,869)

(114,738)

57,362

—

a

—

22,336

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

2,671,737

—

—

19,740

2,691,477

222,252

22,874

b

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

1,597,768

—

—

(4,050)

1,593,718

405,526

2,175

Total

Non-Controlled

Affiliates

$132,227,113

$64,031,051

$(63,282,527)

$10,155,953

$1,514,652

$144,646,242

$759,227

Total

Affiliated

Securities

....

$132,227,113

$64,031,051

$(63,282,527)

$10,155,953

$1,514,652

$144,646,242

$759,227

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

6,000,971

—

—

435,365

6,436,336

166,013

26,629

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,703,240

10,483

(221,424)

33,439

205,403

2,731,141

215,730

10,483

Franklin

FTSE

China

ETF

.....

508,944

108,733

(617,915)

2,342

(2,104)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

1,505,969

—

(998,802)

193,242

(1,402)

699,007

24,229

15,763

Franklin

FTSE

Japan

ETF

.....

803,196

873,805

(1,705,589)

177,769

(149,181)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

10,560,384

298,850

(1,484,997)

195,117

979,671

10,549,025

69,594

—

Franklin

International

Core

Equity

(IU)

Fund

................

4,999,128

1,646,736

(612,216)

63,134

364,319

6,461,101

495,483

53,521

Franklin

International

Growth

Fund,

Class

R6

................

1,580,855

131,771

(375,830)

76,640

14,827

1,428,263

62,753

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

189,800

1,107,111

(654,422)

958

3,561

647,008

24,374

20,168

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

496,944

111,462

(87,351)

(3,223)

(11,700)

506,132

19,318

7,091

Franklin

Liberty

Senior

Loan

ETF

—

650,187

(146,043)

(377)

(1,800)

501,967

20,127

7,020

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

488,325

—

(486,513)

(1,569)

(243)

—

a

—

855

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

242,300

94,673

—

—

1,999

338,972

16,987

4,051

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

2,884,293

1,966,601

(1,519,906)

(27,056)

(45,565)

3,258,367

127,729

36,016

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

161

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

$

609,526

$

341,522

$

(351,203)

$

(18,565)

$

(1,778)

$

579,502

24,025

$

3,959

Franklin

LibertyQ

U.S.

Equity

ETF

7,510,669

177,374

(4,380,395)

863,326

(106,164)

4,064,810

94,950

46,122

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

567,043

1,240

(568,869)

8,030

(7,444)

—

a

—

1,795

Franklin

Rising

Dividends

Fund,

Class

R6

................

5,240,035

221,186

(5,684,646)

1,890,226

(1,666,801)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

9,792,410

5,050,377

(246,715)

14,136

1,680,249

16,290,457

1,112,736

39,313

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

137,383

10,861,838

(10,089,596)

—

—

909,625

909,625

22

Templeton

Developing

Markets

Trust,

Class

R6

............

2,174,948

662,479

(245,253)

39,667

134,618

2,766,459

101,633

—

Templeton

Foreign

Fund,

Class

R6

2,153,890

1,853,000

(681,780)

16,159

251,425

3,592,694

462,380

—

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

724,918

—

—

8

724,926

59,862

4,270

b

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

432,314

—

—

(1,096)

431,218

109,725

588

Total

Non-Controlled

Affiliates

$55,149,282

$33,327,631

$(31,159,465)

$3,523,395

$2,076,167

$62,917,010

$277,666

Total

Affiliated

Securities

....

$55,149,282

$33,327,631

$(31,159,465)

$3,523,395

$2,076,167

$62,917,010

$277,666

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

10,517,082

—

—

799,736

11,316,818

291,896

47,736

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

5,125,258

395,051

(535,960)

29,563

433,049

5,446,961

430,250

19,875

Franklin

FTSE

China

ETF

.....

966,198

91,014

(1,058,828)

5,610

(3,994)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

2,648,329

103,124

(1,826,058)

334,094

11,209

1,270,698

44,045

28,656

Franklin

FTSE

Japan

ETF

.....

1,342,125

2,147,444

(3,535,562)

289,109

(243,116)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

19,573,768

127,703

(3,016,558)

770,866

1,399,619

18,855,398

124,392

—

Franklin

International

Core

Equity

(IU)

Fund

................

8,702,913

3,322,308

(972,891)

110,424

633,060

11,795,814

904,587

94,249

Franklin

International

Growth

Fund,

Class

R6

................

2,798,056

233,835

(560,274)

108,163

56,010

2,635,790

115,808

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

414,809

144,081

—

—

3,736

562,626

28,195

6,724

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

1,614,658

2,725,725

(2,293,952)

(13,526)

(29,885)

2,003,020

78,519

24,118

Franklin

LibertyQ

U.S.

Equity

ETF

13,815,338

—

(7,878,525)

1,629,818

(274,376)

7,292,255

170,340

82,609

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

162

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Rising

Dividends

Fund,

Class

R6

................

$

9,742,984

$

154,346

$

(10,321,191)

$

4,723,981

$

(4,300,120)

$

—

a

—

$

—

Franklin

U.S.

Core

Equity

(IU)

Fund

17,842,471

7,702,363

—

—

3,104,954

28,649,788

1,956,953

72,992

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

57,646

11,179,572

(10,359,916)

—

—

877,302

877,302

32

Templeton

Developing

Markets

Trust,

Class

R6

............

4,089,916

1,105,055

(85,531)

1,056

324,565

5,435,061

199,672

—

Templeton

Foreign

Fund,

Class

R6

4,023,269

2,849,433

(811,575)

24,432

473,105

6,558,664

844,101

—

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

2,007,328

—

—

32

2,007,360

165,761

16,876

b

Total

Non-Controlled

Affiliates

$92,757,738

$44,805,464

$(43,256,821)

$8,013,590

$2,387,584

$104,707,555

$393,867

Total

Affiliated

Securities

....

$92,757,738

$44,805,464

$(43,256,821)

$8,013,590

$2,387,584

$104,707,555

$393,867

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

5,870,223

—

—

430,223

6,300,446

162,508

26,201

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

2,749,839

436,743

(343,509)

6,352

246,535

3,095,960

244,547

10,664

Franklin

FTSE

China

ETF

.....

558,248

13,693

(573,267)

4,600

(3,274)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

1,526,769

148,196

(1,150,575)

202,613

3,248

730,251

25,312

16,093

Franklin

FTSE

Japan

ETF

.....

772,464

1,145,761

(1,939,789)

165,787

(144,223)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

10,032,925

476,042

(1,422,920)

171,680

993,262

10,250,989

67,628

—

Franklin

International

Core

Equity

(IU)

Fund

................

5,008,274

1,970,720

(591,750)

47,432

382,101

6,816,777

522,759

54,418

Franklin

International

Growth

Fund,

Class

R6

................

1,525,111

597,827

(703,381)

61,576

49,996

1,531,129

67,273

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

208,879

96,389

—

—

3,034

308,302

15,450

3,685

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

347,612

704,125

(1,041,572)

3,449

(13,614)

—

a

—

2,558

Franklin

LibertyQ

U.S.

Equity

ETF

7,526,545

215,519

(4,242,572)

775,727

(9,716)

4,265,503

99,638

45,973

Franklin

Rising

Dividends

Fund,

Class

R6

................

5,121,977

454,070

(5,791,678)

1,799,506

(1,583,875)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

9,397,730

4,768,395

(340,999)

19,273

1,628,745

15,473,144

1,056,909

38,445

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

7,828,149

(6,934,506)

—

—

893,643

893,643

18

Templeton

Developing

Markets

Trust,

Class

R6

............

2,163,284

910,599

(144,917)

12,754

160,435

3,102,155

113,966

—

Templeton

Foreign

Fund,

Class

R6

2,197,341

1,759,291

(415,789)

12,517

256,846

3,810,206

490,374

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

163

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

$

—

$

314,276

$

—

$

—

$

5

$

314,281

25,952

$

2,642

b

Total

Non-Controlled

Affiliates

$49,136,998

$27,710,018

$(25,637,224)

$3,283,266

$2,399,728

$56,892,786

$200,697

Total

Affiliated

Securities

....

$49,136,998

$27,710,018

$(25,637,224)

$3,283,266

$2,399,728

$56,892,786

$200,697

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

3,487,802

—

—

251,181

3,738,983

96,440

15,462

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,532,282

339,770

(152,012)

2,198

142,247

1,864,485

147,274

6,242

Franklin

FTSE

China

ETF

.....

314,018

21,747

(336,370)

2,555

(1,950)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

837,553

153,124

(653,861)

107,381

10,854

455,051

15,773

9,724

Franklin

FTSE

Japan

ETF

.....

434,996

689,332

(1,137,150)

91,598

(78,776)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

5,738,706

413,453

(444,377)

17,387

671,529

6,396,698

42,200

—

Franklin

International

Core

Equity

(IU)

Fund

................

2,803,333

1,405,879

(309,453)

9,081

235,394

4,144,234

317,809

31,671

Franklin

International

Growth

Fund,

Class

R6

................

863,616

383,363

(396,810)

32,317

44,351

926,837

40,722

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

111,075

70,197

—

—

1,694

182,966

9,169

2,187

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

224,001

383,712

(601,989)

1,362

(7,086)

—

a

—

1,466

Franklin

LibertyQ

U.S.

Equity

ETF

4,237,997

315,524

(2,446,195)

362,212

85,705

2,555,243

59,688

27,381

Franklin

Rising

Dividends

Fund,

Class

R6

................

2,867,319

352,461

(3,346,885)

840,470

(713,365)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

5,291,921

3,194,486

—

—

957,946

9,444,353

645,106

22,207

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

222,738

5,786,708

(5,591,355)

—

—

418,091

418,091

13

Templeton

Developing

Markets

Trust,

Class

R6

............

1,207,703

603,333

—

—

97,610

1,908,646

70,119

—

Templeton

Foreign

Fund,

Class

R6

1,298,745

1,203,727

(356,552)

9,374

149,383

2,304,677

296,612

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

164

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

$

—

$

186,507

$

—

$

—

$

4

$

186,511

15,401

$

1,568

b

Total

Non-Controlled

Affiliates

$27,986,003

$18,991,125

$(15,773,009)

$1,475,935

$1,846,721

$34,526,775

$117,921

Total

Affiliated

Securities

....

$27,986,003

$18,991,125

$(15,773,009)

$1,475,935

$1,846,721

$34,526,775

$117,921

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

114,438

—

—

8,172

122,610

3,162

498

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

—

69,967

(9,208)

(104)

2,748

63,403

5,008

192

Franklin

FTSE

Europe

ETF

....

—

37,330

(25,356)

2,569

1,469

16,012

555

319

Franklin

Growth

Fund,

Class

R6

.

—

234,376

(41,309)

(869)

25,014

217,212

1,433

—

Franklin

International

Core

Equity

(IU)

Fund

................

—

142,864

(11,469)

98

8,551

140,044

10,740

1,023

Franklin

International

Growth

Fund,

Class

R6

................

—

46,203

(17,578)

567

2,181

31,373

1,378

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

—

5,972

—

—

14

5,986

300

72

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

—

17,890

(17,780)

(110)

—

—

a

—

31

Franklin

LibertyQ

U.S.

Equity

ETF

—

169,755

(100,355)

5,708

11,240

86,348

2,017

887

Franklin

Rising

Dividends

Fund,

Class

R6

................

—

114,360

(120,722)

6,362

—

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

—

314,995

(26,803)

303

30,691

319,186

21,802

710

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

206,697

(199,828)

—

—

6,869

6,869

—

Templeton

Developing

Markets

Trust,

Class

R6

............

—

66,031

(2,674)

(102)

1,249

64,504

2,370

—

Templeton

Foreign

Fund,

Class

R6

—

89,271

(17,017)

534

5,097

77,885

10,024

—

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

6,116

—

—

—

6,116

505

51

b

Total

Non-Controlled

Affiliates

$—

$1,636,265

$(590,099)

$14,956

$96,426

$1,157,548

$3,783

Total

Affiliated

Securities

....

$—

$1,636,265

$(590,099)

$14,956

$96,426

$1,157,548

$3,783

a

As

of

June

30,

2021,

no

longer

held

by

the

fund.

b

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statement

of

Operations.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

165

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

operating expenses

(excluding

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

does

not

exceed

0.05%

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

expenses

(including

acquired

fund

fees

and

expenses

but

excluding

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

do not

exceed

0.45%

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds’

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.00%

based

on

the

average

net

assets

of

the

class

until

April

30,

2022.

h.

Other

Affiliated

Transactions

At

June

30,

2021,

Templeton

International

Inc.

owned

87.47%

of

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund’s

outstanding

shares.

Investment

activities

of

this

investment

company

could

have

a

material

impact

on

the

Fund.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the period

ended

June

30,

2021, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

................................................................................

$

—

Long

term

................................................................................

1,334,004

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

166

franklintempleton.com

Semiannual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

return

of

capital

distributions,

short

term

capital

gains

distributions

from

Underlying

Funds,

and

wash

sales.

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

a

a

a

a

Cost

of

investments

........................................

$58,738,844

$41,770,424

$127,734,212

Unrealized

appreciation

......................................

$2,131,104

$6,380,158

$25,952,481

Unrealized

depreciation

......................................

(572,343)

(627,500)

(1,666,744)

Net

unrealized

appreciation

(depreciation)

........................

$1,558,761

$5,752,658

$24,285,737

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

a

a

a

a

Cost

of

investments

........................................

$68,388,736

$126,900,296

$55,600,196

Unrealized

appreciation

......................................

$13,849,737

$33,015,078

$14,066,075

Unrealized

depreciation

......................................

(974,926)

(1,735,212)

(478,772)

Net

unrealized

appreciation

(depreciation)

........................

$12,874,811

$31,279,866

$13,587,303

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

a

a

a

a

Cost

of

investments

........................................

$88,474,223

$49,240,855

$30,784,900

Unrealized

appreciation

......................................

$27,407,268

$13,811,942

$7,360,070

Unrealized

depreciation

......................................

(1,008,776)

(589,399)

(314,425)

Net

unrealized

appreciation

(depreciation)

........................

$26,398,492

$13,222,543

$7,045,645

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

a

Cost

of

investments

..........................................................................

$1,178,960

Unrealized

appreciation

........................................................................

$96,426

Unrealized

depreciation

........................................................................

(3,160)

Net

unrealized

appreciation

(depreciation)

..........................................................

$93,266

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

167

franklintempleton.com

Semiannual

Report

6.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

period

ended

June

30,

2021,

were

as

follows:

7. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

8.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

4,

2022.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Purchases

...............................................

$41,991,690

$26,683,034

$71,166,474

Sales

...................................................

$40,001,330

$25,183,710

$69,879,136

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Purchases

...............................................

$39,309,998

$67,278,199

$34,013,796

Sales

...................................................

$35,405,771

$65,458,831

$30,470,004

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Purchases

...............................................

$48,905,463

$28,603,356

$18,866,113

Sales

...................................................

$46,714,091

$26,413,048

$15,127,808

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Purchases

.................................................................................

$1,738,570

Sales

.....................................................................................

$596,519

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

168

franklintempleton.com

Semiannual

Report

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2021,

the

Funds

did

not

use

the

Global

Credit

Facility.

9.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2021,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

53,356,884

$

—

$

—

$

53,356,884

Index-Linked

Notes

......................

—

6,139,357

—

6,139,357

Short

Term

Investments

...................

801,363

—

—

801,363

Total

Investments

in

Securities

...........

$54,158,247

$6,139,357

$—

$60,297,604

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

47,096,518

—

—

47,096,518

Short

Term

Investments

...................

358,050

68,514

—

426,564

Total

Investments

in

Securities

...........

$47,454,568

$68,514

$—

$47,523,082

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

150,369,570

—

—

150,369,570

Short

Term

Investments

...................

1,435,837

214,543

—

1,650,380

Total

Investments

in

Securities

...........

$151,805,407

$214,543

$—

$152,019,950

8.

Credit

Facility

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

169

franklintempleton.com

Semiannual

Report

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

80,186,613

$

—

$

—

$

80,186,613

Short

Term

Investments

...................

758,982

317,952

—

1,076,934

Total

Investments

in

Securities

...........

$80,945,595

$317,952

$—

$81,263,547

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

156,220,405

—

—

156,220,405

Short

Term

Investments

...................

1,717,201

242,557

—

1,959,758

Total

Investments

in

Securities

...........

$157,937,606

$242,557

$—

$158,180,163

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

68,104,820

—

—

68,104,820

Short

Term

Investments

...................

909,625

173,053

—

1,082,678

Total

Investments

in

Securities

...........

$69,014,445

$173,053

$—

$69,187,498

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

113,535,194

—

—

113,535,194

Short

Term

Investments

...................

877,302

460,219

—

1,337,521

Total

Investments

in

Securities

...........

$114,412,496

$460,219

$—

$114,872,715

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

61,522,705

—

—

61,522,705

Short

Term

Investments

...................

893,643

47,049

—

940,692

Total

Investments

in

Securities

...........

$62,416,348

$47,049

$—

$62,463,397

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

37,412,455

—

—

37,412,455

Short

Term

Investments

...................

418,091

—

—

418,091

Total

Investments

in

Securities

...........

$37,830,546

$—

$—

$37,830,546

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,265,357

—

—

1,265,357

Short

Term

Investments

...................

6,869

—

—

6,869

Total

Investments

in

Securities

...........

$1,272,226

$—

$—

$1,272,226

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

9.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

170

franklintempleton.com

Semiannual

Report

10.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

and

2023. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

11.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure,

except

for

the

following:

On

July

14,

2021,

the

Board

approved

a

change

to

the

automatic

conversion

feature

for

Class

C

that

will

convert

shareholders’

Class

C

shares

into

Class

A

after

they

have

been

held

for

8

years.

The

change

will

become

effective

August

2,

2021.

Further

details

are

disclosed

in

the

Funds’

Prospectus.

Abbreviations

Selected

Portfolio

ETF

Exchange-Traded

Fund

Franklin

Fund

Allocator

Series

Shareholder

Information

171

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

LifeSmart

Retirement

Income

Fund

Franklin

LifeSmart

2020

Retirement

Target

Fund

Franklin

LifeSmart

2025

Retirement

Target

Fund

Franklin

LifeSmart

2030

Retirement

Target

Fund

Franklin

LifeSmart

2035

Retirement

Target

Fund

Franklin

LifeSmart

2040

Retirement

Target

Fund

Franklin

LifeSmart

2045

Retirement

Target

Fund

Franklin

LifeSmart

2050

Retirement

Target

Fund

Franklin

LifeSmart

2055

Retirement

Target

Fund

(each

a

Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

(Independent

Trustees)

as

defined

in

the

Investment

Company

Act

of

1940

(1940

Act),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

each

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

U.S.

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

Franklin

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Allocator

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franklintempleton.com

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The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Overall,

the

Board

recalled

the

historic

conservative

nature

of

the

LifeSmart

Retirement

Funds

generally

and

the

performance

of

the

funds

in

which

they

invest.

The

Board

discussed

with

management

its

ongoing

evaluation

of

the

Funds

and

noted

that,

effective

May

1,

2019,

each

Fund

(except

for

the

Franklin

LifeSmart

Retirement

Income

Fund)

made

changes

to

its

glide

path

and

asset

allocation

which

are

characterized

by

both

a

more

aggressive

equity

allocation

in

the

early

years

as

well

as

continuing

to

adjust

its

allocation

mix

through

retirement

to

its

final

landing

point

at

5

years

post-retirement.

The

Board

also

noted

that,

effective

January

29,

2021,

the

Franklin

LifeSmart

Retirement

Income

Fund

changed

its

asset

allocation

to

align

its

portfolio

with

the

landing

point

of

the

glide

paths

of

the

other

LifeSmart

Retirement

Funds

and

that

the

other

LifeSmart

Retirement

Funds

modified

the

landing

point

of

their

glide

paths

to

be

in

line

with

the

new

required

distribution

age

of

72.

Franklin

LifeSmart

Retirement

Income

Fund,

Franklin

LifeSmart

2025

Retirement

Target

Fund

and

Franklin

LifeSmart

2035

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Franklin

LifeSmart

Retirement

Income

Fund

included

the

Fund

and

all

retail

and

institutional

retirement

income

funds.

The

Performance

Universe

for

each

of

the

Franklin

LifeSmart

2025

Retirement

Target

Fund

and

Franklin

LifeSmart

2035

Retirement

Target

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2025

or

2035

funds,

respectively.

The

Board

noted

that

the

Funds’

annualized

total

returns

for

the

one-,

three-,

five-

and

10-year

periods

were

below

the

medians

of

their

respective

Performance

Universes.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

each

Fund’s

(except

for

the

Franklin

LifeSmart

Retirement

Income

Fund)

glide

path

was

one

of

the

most

conservative

amongst

its

peers.

Management

further

explained

that,

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Funds’

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Funds.

Management

also

explained

that,

during

the

one-year

period,

the

glide

path

for

the

Funds

shifted

to

a

“defensive”

glide

path,

reducing

exposure

to

equity

securities

in

April

2020,

and

then

shifted

back

to

a

“neutral”

glide

path

in

July

2020.

Management

further

explained

that

the

April

2020

shift

away

from

equity

securities

adversely

impacted

the

Funds’

performance

versus

peers

as

the

S&P

500

Index

rallied

by

approximately

23%

over

the

period

the

Funds’

implemented

the

“defensive”

glide

path.

The

Board

noted

management’s

steps

to

address

the

Funds’

underperformance,

including

the

implementation

of

the

revised

glide

path

and

investment

strategies,

and

concluded

that

each

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2020

Retirement

Target

Fund

and

Franklin

LifeSmart

2030

Retirement

Target

Fund

-

The

Performance

Universe

for

each

of

the

Franklin

LifeSmart

2020

Retirement

Target

Fund

and

Franklin

LifeSmart

2030

Retirement

Target

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2020

or

2030

funds,

respectively.

The

Funds

commenced

operations

on

July

1,

2013,

and

thus

have

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Funds’

annualized

total

Franklin

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Allocator

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Shareholder

Information

173

franklintempleton.com

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Report

returns

for

the

one-,

three-

and

five-year

periods

were

below

the

medians

of

their

respective

Performance

Universes.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

each

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers.

Management

further

explained

that,

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Funds’

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Funds.

Management

also

explained

that,

during

the

one-year

period,

the

glide

path

for

these

Funds

shifted

to

a

“defensive”

glide

path,

reducing

exposure

to

equity

securities

in

April

2020,

and

then

shifted

back

to

a

“neutral”

glide

path

in

July

2020.

Management

further

explained

that

the

April

2020

shift

away

from

equity

securities

adversely

impacted

the

Funds’

performance

versus

peers

as

the

S&P

500

Index

rallied

by

approximately

23%

over

the

period

the

Funds’

implemented

the

“defensive”

glide

path.

The

Board

noted

management’s

steps

to

address

the

Funds’

underperformance,

including

the

implementation

of

the

revised

glide

path

and

investment

strategies,

and

concluded

that

each

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2040

Retirement

Target

Fund,

Franklin

LifeSmart

2050

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

-

The

Performance

Universe

for

each

of

the

Franklin

LifeSmart

2040

Retirement

Target

Fund,

Franklin

LifeSmart

2050

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2040,

2050

or

2055

funds,

respectively.

The

Franklin

LifeSmart

2040

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

commenced

operations

on

July

1,

2013

and

the

Franklin

LifeSmart

2055

Retirement

Target

Fund

commenced

operations

on

May

1,

2015,

thus

each

Fund

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Funds’

annualized

total

returns

for

the

three-

and

five-year

periods

were

below

the

medians

of

their

respective

Performance

Universes,

but

for

the

one-year

period

were

above

the

medians

of

their

respective

Performance

Universes.

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Franklin

LifeSmart

2045

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2045

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

ten-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

funds

with

multiple

classes

of

shares.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

LifeSmart

Retirement

Income

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund,

one

other

retirement

income

fund

and

nine

mixed-asset

target

today

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

of

its

Expense

Group.

The

Board

also

noted

that

the

Fund’s

investment

management

agreement

permits

the

Fund

to

pay

fees

for

services

other

than

asset

allocation

services,

including

in

order

for

the

Fund

to

employ

an

income

generation

strategy

to

generate

income

for

its

managed

distribution

policy.

The

Board

further

noted

that

the

Fund

invests

in

third-party

mutual

funds

or

exchange-traded

funds

in

excess

of

the

statutory

limitations

under

the

1940

Act

by

relying

on

exemptive

relief

provided

by

the

U.S.

Securities

Franklin

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Information

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franklintempleton.com

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and

Exchange

Commission

(SEC)

to

each

underlying

fund.

Pursuant

to

the

conditions

of

the

exemptive

relief,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

Management

Rate

paid

by

the

Fund

is

based

on

services

provided

that

are

in

addition

to,

rather

than

duplicative

of,

the

services

provided

under

the

investment

management

agreements

of

the

underlying

funds

in

which

the

Fund

invests.

The

Board

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

2020

Retirement

Target

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund

and

seven

other

mixed-asset

target

2020

funds.

The

Board

noted

that

the

Management

Rate

was

equal

to

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

actual

total

expense

ratio

for

the

Fund

was

above

the

median

of

its

Expense

Group,

but

reflected

a

fee

waiver

from

management.

The

Board

further

noted

the

small

size

of

the

Management

Rate

Expense

Group

and

that

the

Management

Rate

paid

by

the

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

2025

Retirement

Target

Fund,

Franklin

LifeSmart

2030

Retirement

Target

Fund,

Franklin

LifeSmart

2035

Retirement

Target

Fund,

Franklin

LifeSmart

2040

Retirement

Target

Fund,

Franklin

LifeSmart

2045

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

-

The

Expense

Group

for

each

of

the

Franklin

LifeSmart

2025

Retirement

Target

Fund,

Franklin

LifeSmart

2030

Retirement

Target

Fund,

Franklin

LifeSmart

2035

Retirement

Target

Fund,

Franklin

LifeSmart

2040

Retirement

Target

Fund,

Franklin

LifeSmart

2045

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

included

the

Fund

and

seven

or

eight

other

mixed-

asset

target

2025,

2030,

2035,

2040,

2045

or

2050

funds,

respectively.

The

Board

noted

that

the

Management

Rates

for

these

Funds

were

below

the

medians

of

their

respective

Expense

Groups,

but

their

actual

total

expense

ratios

were

above

the

medians

of

their

respective

Expense

Groups.

The

Board

also

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

the

small

size

of

each

Fund’s

Management

Rate

Expense

Group

and

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

each

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Franklin

LifeSmart

2055

Retirement

Target

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund

and

seven

other

mixed-asset

target

2055

funds.

The

Board

noted

that

the

Management

Rate

and

the

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

of

its

Expense

Group

and

reflected

a

fee

waiver

from

management.

The

Board

further

noted

the

small

size

of

the

Management

Rate

Expense

Group

and

that

the

Management

Rate

paid

by

the

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

U.S.

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

Franklin

Fund

Allocator

Series

Shareholder

Information

175

franklintempleton.com

Semiannual

Report

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

SEC

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Funds

are

not

of

a

sufficient

size

to

likely

be

able

to

realize

economies

of

scale

and

that

the

asset

allocation

services

covered

by

the

current

Management

Rate

may

be

less

likely

to

experience

economies

of

scale

as

assets

grow.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

LifeSmart

T

M

2060

Retirement

Target

Fund

(Fund)

At

a

meeting

held

on

July

15,

2020

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

a

new

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

an

initial

two-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

Management

Agreement.

In

considering

the

approval

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

in

connection

with

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

to

be

provided

by

the

Manager;

(ii)

the

costs

of

the

services

to

be

provided

by

the

Manager;

and

(iii)

the

extent

to

which

economies

of

scale

may

be

realized

as

the

Fund

grows.

The

Board

also

reviewed

and

considered

the

form

of

Management

Agreement

and

the

terms

of

the

Management

Agreement

which

were

discussed

at

the

Meeting,

noting

that

the

form

of

Management

Agreement

was

substantially

the

same

as

the

standard

forms

of

investment

management

agreement

(that

include

administration

services)

for

the

other

funds

in

the

Franklin

Templeton

(FT)

family

of

funds

(other

than

the

existing

retirement

target

funds

that

are

series

of

the

Trust

(Existing

Target

Funds)).

Management

explained

that

while

the

Existing

Target

Funds

currently

have

a

more

antiquated

investment

management

and

asset

allocation

agreement

that

limits

the

Manager’s

investment

management

fee

to

asset

allocation

services

(not

general

investment

management

services),

the

level

of

investment

management

fees

to

be

paid

by

the

Fund

and

the

nature,

extent

and

quality

of

services

to

be

provided

to

the

Fund,

will

be

the

same

as

those

for

the

Existing

Target

Funds.

In

approving

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

proposed

Management

Agreement

are

fair

and

reasonable

and

that

the

approval

of

such

Management

Agreement

is

in

the

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

to

be

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

management’s

explanation

that,

in

light

of

increased

investor

inquiries,

management

is

proposing

to

create

the

Fund

to

be

an

extension

of

the

Trust’s

suite

of

Existing

Target

Funds

to

remain

competitive

in

the

retirement

target

fund

marketplace;

the

Fund’s

proposed

investment

goal

and

strategies,

glide

path,

eligible

underlying

funds

Franklin

Fund

Allocator

Series

Shareholder

Information

176

franklintempleton.com

Semiannual

Report

and

service

providers,

which

are

expected

to

be

the

same

as

the

Existing

Target

Funds;

the

qualifications,

background

and

experience

of

the

investment

personnel

that

will

be

responsible

for

the

day-to-day

portfolio

management

of

the

Fund;

the

Manager’s

experience

as

the

manager

of

other

funds

and

accounts,

including

other

series

of

the

Trust

and

other

funds

in

the

FT

family

of

funds;

the

Manager’s

strength

and

reputation

within

the

industry;

the

personnel,

operations,

financial

condition,

and

investment

management

capabilities,

methodologies

and

resources

of

the

Manager;

and

the

Manager’s

compliance

capabilities,

as

demonstrated

by,

among

other

things,

its

policies

and

procedures

reasonably

designed

to

prevent

violations

of

the

Federal

Securities

Laws

(as

defined

in

Rule

38a-1

of

the

Investment

Company

Act

of

1940).

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

to

be

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

noted

that,

as

the

Fund

had

not

yet

commenced

investment

operations,

there

was

no

investment

performance

for

the

Fund.

The

Board

considered

the

proposed

performance

benchmark

for

the

Fund

and

how

such

benchmark

would

be

utilized

to

measure

performance

of

the

Manager.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

estimated

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

considered

the

estimated

total

expense

ratio

and,

separately,

the

proposed

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

proposed

for

the

Fund

(Expense

Group)

as

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

organization.

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report

(excluding

the

Fund),

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

estimated

total

expense

ratio

was

shown

for

Class

A

shares

of

the

Fund

and

the

actual

total

expense

ratio

was

shown

for

Class

A

shares

of

each

of

the

other

funds

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

the

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

seven

other

mixed-asset

target

2060

funds.

The

Board

noted

that

the

proposed

Management

Rate

and

estimated

total

expense

ratio

were

below

the

medians

of

the

Fund’s

Expense

Group.

The

Board

further

noted

that

the

Fund

invests

in

third-party

mutual

funds

or

exchange-traded

funds

in

excess

of

the

statutory

limitations

under

the

Investment

Company

Act

of

1940

by

relying

on

exemptive

relief

provided

by

the

U.S.

Securities

and

Exchange

Commission

to

each

underlying

fund.

Pursuant

to

the

conditions

of

the

exemptive

relief,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

Management

Rate

paid

by

the

Fund

is

based

on

services

provided

that

are

in

addition

to,

rather

than

duplicative

of,

the

services

provided

under

the

investment

management

agreements

of

the

underlying

funds

in

which

the

Fund

invests.

The

Board

concluded

that

the

Management

Rate

to

be

charged

to

the

Fund

is

reasonable.

In

doing

so,

the

Board

noted

that

the

Fund’s

estimated

total

expense

ratio

reflected

a

fee

waiver

from

management.

Profitability

The

Board

then

noted

that

the

Manager

(and

its

affiliates)

could

not

report

any

financial

results

from

their

relationships

with

the

Fund

because

the

Fund

has

not

yet

commenced

investment

operations,

and

thus,

the

Board

could

not

evaluate

the

Manager’s

(or

its

affiliates’)

profitability

with

respect

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale

in

the

future,

the

Board

noted

that

it

is

not

anticipated

that

the

Fund

will

generate

significant,

if

any,

profit

for

the

Manager

and/or

its

affiliates

for

some

time.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board,

including

a

majority

of

the

Independent

Trustees,

approved

the

Management

Agreement

for

the

Fund

for

an

initial

two-year

period.

Franklin

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Allocator

Series

Shareholder

Information

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Liquidity

Risk

Management

Program-

Funds

no

HLIM

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2021,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2020.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Trust

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

Franklin

Fund

Allocator

Series

Shareholder

Information

178

franklintempleton.com

Semiannual

Report

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

RTF

S

08/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

June

30,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

June

30,

2021,

the

U.S.

economy

continued

to

recover

from

the

effects

of

the

coronavirus

(COVID-19)

pandemic.

The

recovery

accelerated

in

2021’s

first

quarter,

with

total

U.S.

economic

output

nearly

reaching

pre-pandemic

levels.

The

lifting

of

restrictions,

solid

vaccination

rates,

additional

fiscal

stimulus

measures

and

steady

improvement

in

consumer

confidence

drove

spending

higher

and

fueled

optimism

about

the

ongoing

recovery.

During

the

period,

the

U.S.

Federal

Reserve

held

the

federal

funds

rate

unchanged

at

0.25%

to

support

credit

markets

and

U.S.

economic

activity,

and

it

continued

broad

quantitative

easing

and

its

policy

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

Rebounding

global

economic

activity,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

lockdown

restrictions

and

the

implementation

of

vaccination

programs

globally

led

many

equity

markets

to

reach

all-time

price

highs.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+14.41%

(the

index

increasing

from

3,756.07

to

4,297.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+12.16%

(the

index

increasing

from

2,690.044

to

3,017.228).

2,3

Investment-

grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.60%

total

return

(an

index

decrease

from

2,392.02

to

2,353.64),

which

includes

reinvestment

of

income

and

distributions.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

semiannual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2021

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

+15.25%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

8,942.78)

and

MSCI

World

Index

+13.33%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

13,174.277).

4.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

Conservative

Allocation

Fund

4

Franklin

Moderate

Allocation

Fund

9

Franklin

Growth

Allocation

Fund

14

Financial

Highlights

and

Statements

of

Investments

19

Financial

Statements

40

Notes

to

Financial

Statements

45

Shareholder

Information

60

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+12.30%

total

return

for

the

six

months

ended

June

30,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

rebounding

economic

activity

and

easing

novel

coronavirus

(COVID-19)

pandemic

restrictions

in

many

regions.

The

implementation

of

vaccination

programs

and

additional

fiscal

stimulus

measures

led

many

equity

markets

to

reach

new

all-time

price

highs.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

an

accommodative

monetary

policy,

additional

fiscal

stimulus

measures

and

ongoing

vaccination

programs.

The

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

also

supported

the

economy.

Gross

domestic

product

(GDP)

growth

accelerated

in

2021’s

first

quarter,

with

total

economic

output

nearly

reaching

pre-

pandemic

levels.

The

rebound

in

corporate

earnings

and

progress

toward

a

bipartisan

infrastructure

plan

further

bolstered

investor

sentiment.

The

U.S.

Federal

Reserve

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%

and

continued

its

program

of

open-ended

bond

purchases

to

help

keep

markets

functioning.

The

economic

recovery

in

the

eurozone

was

relatively

weak,

as

quarter-over-quarter

GDP

growth

contracted

during

2021’s

first

quarter.

GDP

growth

rates

were

mostly

negative

among

the

region’s

largest

economies

amid

renewed

lockdowns,

delays

in

COVID-19

vaccine

distribution

and

weak

consumer

spending.

Nevertheless,

optimism

that

successful

vaccine

programs

would

lift

global

growth

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+11.80%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

+4.54%

total

return

for

the

six-month

period.

1

The

region’s

economic

recovery

was

pressured

by

weak

domestic

demand,

most

notably

in

China,

despite

improvement

in

manufacturing

and

exports.

Asian

equity

markets

experienced

volatility

near

period-end

due

to

inflation

concerns,

rising

COVID-19

infection

rates

in

many

countries,

especially

India,

and

renewed

lockdowns.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

+7.45%

total

return

for

the

six

months

under

review.

1

The

recovery

in

oil

and

industrial

metals

prices

supported

global

emerging

market

equities.

Late

in

the

period,

higher

COVID-19

cases

in

some

countries,

limited

vaccine

rollouts

and

concerns

about

rising

interest

rates

and

inflation

amid

higher

commodity

prices

dampened

investor

enthusiasm

in

global

emerging

market

equities.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

June

30,

2021

.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Semiannual

Report

Franklin

Conservative

Allocation

Fund

This

semiannual

report

for

Franklin

Conservative

Allocation

Fund

covers

the

period

ended

June

30,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

lower

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+4.91%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Conservative

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+2.95%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

We

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-

weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed

income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

fixed

income

funds

and

40%

equity

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

primarily

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

to

its

allocation

among

equity

and

fixed

income

securities

and

to

the

actual

performance

of

the

fund

investments.

At

period-end,

Franklin

Conservative

Allocation

Fund

allocated

53.6%

of

total

net

assets

to

fixed

income

and

45.4%

to

equity.

Domestic

fixed

income

exposure

was

95.3%

of

the

total

fixed

income

weighting,

with

the

balance

represented

by

foreign

fixed

income.

Franklin

Liberty

U.S.

Core

Bond

ETF

was

our

largest

fixed

income

fund

weighting

at

21.9%

of

the

Fund’s

total

net

assets.

On

the

equity

side,

domestic

exposure

was

78.0%

of

the

Fund’s

total

equity

weighting,

with

the

balance

represented

by

foreign

equity.

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Fixed

Income

51.1%

Domestic

Equity

35.4%

Foreign

Equity

10.0%

Foreign

Fixed

Income

2.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.5%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continuous

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

24

.

Franklin

Conservative

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

The

Portfolio

was

diversified

across

capitalization

sizes

and

investment

styles,

and

on

June

30,

2021,

we

held

shares

in

equity

funds

that

invest

in

large-,

mid-

and

small-

capitalization

equity

securities

and

represent

both

growth

and

value

styles.

Franklin

U.S.

Core

Equity

(IU)

Fund

was

our

largest

equity

fund

weighting

at

14.4%

of

total

net

assets.

During

the

six-month

reporting

period,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

Conservative

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

21.9%

Franklin

U.S.

Cor

e

Equity

(IU)

Fund

14.4%

Franklin

Growth

Fund,

Class

R6

9.2%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.6%

Western

Asset

Core

Plus

Bond

Fund,

Class

S

4.9%

Franklin

Liberty

High

Yield

Corporate

ETF

4.4%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

3.9%

Schwab

U.S.

TIPS

ETF

3.9%

Franklin

International

Core

Equity

(IU)

Fund

3.6%

Franklin

LibertyQ

U.S.

Equity

ETF

3.5%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2021

Franklin

Conservative

Allocation

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+4.91%

-0.86%

1-Year

+15.00%

+8.69%

5-Year

+42.48%

+6.13%

10-Year

+67.75%

+4.71%

Advisor

6-Month

+5.03%

+5.03%

1-Year

+15.29%

+15.29%

5-Year

+44.36%

+7.62%

10-Year

+72.09%

+5.58%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Conservative

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Total

A

$0.0691

$0.0637

$0.1328

C

$0.0232

$0.0637

$0.0869

R

$0.0508

$0.0637

$0.1145

R6

$0.0911

$0.0637

$0.1548

Advisor

$0.0867

$0.0637

$0.1504

Total

Annual

Operating

Expenses

5

Share

Class

A

0.87%

Advisor

0.62%

Your

Fund’s

Expenses

Franklin

Conservative

Allocation

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,049.10

$3.12

$1,021.75

$3.08

0.61%

C

$1,000

$1,045.60

$6.92

$1,018.03

$6.83

1.36%

R

$1,000

$1,048.70

$4.39

$1,020.51

$4.33

0.86%

R6

$1,000

$1,051.30

$1.48

$1,023.35

$1.46

0.29%

Advisor

$1,000

$1,050.30

$1.86

$1,022.98

$1.84

0.37%

9

franklintempleton.com

Semiannual

Report

Franklin

Moderate

Allocation

Fund

This

semiannual

report

for

Franklin

Moderate

Allocation

Fund

covers

the

period

ended

June

30,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

moderate

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+7.67%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Moderate

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+6.00%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

11

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

We

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-

weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

equity

funds

and

40%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

primarily

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

to

its

allocation

among

equity

and

fixed

income

securities

and

to

the

actual

performance

of

the

fund

investments.

At

period-end,

Franklin

Moderate

Allocation

Fund

allocated

65.3%

of

total

net

assets

to

equity

and

33.3%

to

fixed

income.

Domestic

equity

exposure

was

76.3%

of

the

Fund’s

total

equity

weighting,

with

the

balance

represented

by

foreign

equity.

The

Portfolio

was

diversified

across

capitalization

sizes

and

investment

styles,

and

on

June

30,

2021,

we

held

shares

in

equity

funds

that

invest

in

large-,

mid-

and

small-capitalization

equity

securities

and

represent

both

growth

and

value

styles.

Franklin

U.S.

Core

Equity

(IU)

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

49.8%

Domestic

Fixed

Income

31.8%

Foreign

Equity

15.5%

Foreign

Fixed

Income

1.5%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.9%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continuous

basis.

2.

Source:

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

31

.

Franklin

Moderate

Allocation

Fund

10

franklintempleton.com

Semiannual

Report

Fund

was

our

largest

equity

fund

weighting

at

20.2%

of

total

net

assets.

On

the

fixed

income

side,

domestic

exposure

was

95.5%

of

the

Fund’s

total

fixed

income

weighting,

with

the

balance

represented

by

foreign

fixed

income.

Franklin

Liberty

U.S.

Core

Bond

ETF

was

our

largest

fixed

income

fund

weighting

at

13.7%

of

the

Fund’s

total

net

assets.

During

the

six-month

reporting

period,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

Moderate

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

20.2%

Franklin

Liberty

U.S.

Core

Bond

ETF

13.7%

Franklin

Growth

Fund,

Class

R6

12.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

7.8%

Franklin

International

Core

Equity

(IU)

Fund

5.3%

Franklin

LibertyQ

U.S.

Equity

ETF

5.0%

iShares

Core

S&P

U.S.

Value

ETF

3.9%

Western

Asset

Core

Plus

Bond

Fund,

Class

S

3.1%

Templeton

Foreign

Fund,

Class

R6

3.0%

Franklin

Liberty

High

Yield

Corporate

ETF

2.7%

Performance

Summary

as

of

June

30,

2021

Franklin

Moderate

Allocation

Fund

11

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+7.67%

+1.75%

1-Year

+22.23%

+15.53%

5-Year

+60.80%

+8.73%

10-Year

+97.89%

+6.46%

Advisor

6-Month

+7.78%

+7.78%

1-Year

+22.58%

+22.58%

5-Year

+62.86%

+10.25%

10-Year

+103.05%

+7.34%

See

page

12

for

Performance

Summary

footnotes.

Franklin

Moderate

Allocation

Fund

Performance

Summary

12

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Smaller

or

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Bond

prices

gen-

erally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0612

$0.0672

$0.1611

$0.2895

C

$0.0063

$0.0672

$0.1611

$0.2346

R

$0.0413

$0.0672

$0.1611

$0.2696

R6

$0.0860

$0.0672

$0.1611

$0.3143

Advisor

$0.0808

$0.0672

$0.1611

$0.3091

Total

Annual

Operating

Expenses

5

Share

Class

A

0.88%

Advisor

0.63%

Your

Fund’s

Expenses

Franklin

Moderate

Allocation

Fund

13

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,076.70

$3.19

$1,021.72

$3.11

0.62%

C

$1,000

$1,071.90

$7.04

$1,018.00

$6.85

1.37%

R

$1,000

$1,074.90

$4.48

$1,020.48

$4.36

0.87%

R6

$1,000

$1,078.20

$1.54

$1,023.32

$1.50

0.30%

Advisor

$1,000

$1,077.80

$1.91

$1,022.96

$1.86

0.37%

14

franklintempleton.com

Semiannual

Report

Franklin

Growth

Allocation

Fund

This

semiannual

report

for

Franklin

Growth

Allocation

Fund

covers

the

period

ended

June

30,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

higher

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+10.35%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Growth

Allocation

Fund

Index-NR

(Blended

Benchmark-NR)

posted

a

+9.12%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index-NR

(ACWI-NR),

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Barclays

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-2.95%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

16

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

We

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-

weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

80%

equity

funds

and

20%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

primarily

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

performance

can

be

attributed

to

its

allocation

among

equity

and

fixed

income

securities

and

to

the

actual

performance

of

the

fund

investments.

At

period-end,

Franklin

Growth

Allocation

Fund

allocated

85.1%

of

total

net

assets

to

equity

and

13.5%

to

fixed

income.

Domestic

equity

exposure

was

75.0%

of

the

Fund’s

total

equity

weighting,

with

the

balance

represented

by

foreign

equity.

The

Portfolio

was

diversified

across

capitalization

sizes

and

investment

styles,

and

on

June

30,

2021,

we

held

shares

in

equity

funds

that

invest

in

large-,

mid-

and

small-capitalization

equity

securities

and

represent

both

growth

and

value

styles.

Franklin

U.S.

Core

Equity

(IU)

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

63.8%

Foreign

Equity

21.3%

Domestic

Fixed

Income

12.5%

Foreign

Fixed

Income

1.0%

Alternative

Strategies

0.5%

Short-Term

Investments

&

Other

Net

Assets

0.9%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continuous

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

38

.

Franklin

Growth

Allocation

Fund

15

franklintempleton.com

Semiannual

Report

Fund

was

our

largest

equity

fund

weighting

at

25.1%

of

total

net

assets.

On

the

fixed

income

side,

domestic

exposure

was

92.6%

of

the

Fund’s

total

fixed

income

weighting,

with

the

balance

represented

by

foreign

fixed

income.

Franklin

Liberty

U.S.

Core

Bond

ETF

was

our

largest

fixed

income

fund

weighting

at

5.2%

of

the

Fund’s

total

net

assets.

During

the

six-month

reporting

period,

our

largest

domestic

equity

fund

holding,

Franklin

U.S.

Core

Equity

(IU)

Fund,

outperformed

the

MSCI

ACWI-NR,

while

our

largest

foreign

equity

fund

holding,

Franklin

International

Core

Equity

(IU)

Fund,

underperformed

the

index.

On

the

fixed

income

side,

our

largest

domestic

fixed

income

fund

holding,

Franklin

Liberty

U.S.

Core

Bond

ETF,

and

our

largest

foreign

fixed

income

fund

holding,

Franklin

Liberty

International

Aggregate

Bond

ETF,

performed

better

than

the

Bloomberg

Barclays

Multiverse

Index.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/21

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

25.1%

Franklin

Growth

Fund,

Class

R6

17.2%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

10.0%

Franklin

International

Core

Equity

(IU)

Fund

7.3%

Franklin

LibertyQ

U.S.

Equity

ETF

6.4%

Franklin

Liberty

U.S.

Core

Bond

ETF

5.2%

iShares

Core

S&P

U.S.

Value

ETF

5.1%

Templeton

Foreign

Fund,

Class

R6

4.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.5%

Templeton

Developing

Markets

Trust,

Class

R6

2.5%

Performance

Summary

as

of

June

30,

2021

Franklin

Growth

Allocation

Fund

16

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+10.35%

+4.30%

1-Year

+29.81%

+22.68%

5-Year

+79.33%

+11.13%

10-Year

+132.93%

+8.21%

Advisor

6-Month

+10.46%

+10.46%

1-Year

+30.15%

+30.15%

5-Year

+81.59%

+12.67%

10-Year

+138.92%

+9.10%

See

page

17

for

Performance

Summary

footnotes.

Franklin

Growth

Allocation

Fund

Performance

Summary

17

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0506

$0.1103

$0.2615

$0.4224

C

$0.0092

$0.1103

$0.2615

$0.3810

R

$0.0268

$0.1103

$0.2615

$0.3986

R6

$0.0836

$0.1103

$0.2615

$0.4554

Advisor

$0.0743

$0.1103

$0.2615

$0.4461

Total

Annual

Operating

Expenses

5

Share

Class

A

0.93%

Advisor

0.68%

Your

Fund’s

Expenses

Franklin

Growth

Allocation

Fund

18

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

ex

penses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,103.50

$3.38

$1,021.58

$3.25

0.65%

C

$1,000

$1,099.90

$7.28

$1,017.86

$6.99

1.40%

R

$1,000

$1,102.20

$4.68

$1,020.34

$4.50

0.90%

R6

$1,000

$1,105.20

$1.57

$1,023.30

$1.51

0.30%

Advisor

$1,000

$1,104.60

$2.08

$1,022.82

$2.00

0.40%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.95

$14.08

$13.33

$14.86

$13.74

$13.40

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.22

0.32

0.39

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

0.65

1.05

1.43

(0.90)

1.25

0.45

Total

from

investment

operations

........

0.73

1.27

1.75

(0.51)

1.45

0.59

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.23)

(0.33)

(0.38)

(0.24)

(0.15)

Net

realized

gains

.................

(0.06)

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...................

(0.13)

(0.40)

(1.00)

(1.02)

(0.33)

(0.25)

Net

asset

value,

end

of

period

..........

$15.55

$14.95

$14.08

$13.33

$14.86

$13.74

Total

return

d

.......................

4.91%

9.30%

13.25%

(3.44)%

10.58%

4.39%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.62%

0.63%

0.63%

h

0.63%

h

0.63%

0.63%

Net

investment

income

c

...............

1.04%

1.54%

2.25%

2.57%

1.37%

1.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,008,848

$941,777

$839,134

$778,221

$800,141

$809,039

Portfolio

turnover

rate

................

49.86%

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.62

$13.77

$13.06

$14.57

$13.47

$13.15

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.10

0.20

0.24

0.09

0.04

Net

realized

and

unrealized

gains

(losses)

0.64

1.05

1.40

(0.84)

1.23

0.43

Total

from

investment

operations

........

0.66

1.15

1.60

(0.60)

1.32

0.47

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.02)

(0.13)

(0.22)

(0.27)

(0.13)

(0.05)

Net

realized

gains

.................

(0.06)

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...................

(0.08)

(0.30)

(0.89)

(0.91)

(0.22)

(0.15)

Net

asset

value,

end

of

period

..........

$15.20

$14.62

$13.77

$13.06

$14.57

$13.47

Total

return

d

.......................

4.56%

8.51%

12.35%

(4.14)%

9.80%

3.55%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

1.37%

1.38%

1.38%

h

1.38%

h

1.38%

1.37%

Net

investment

income

c

...............

0.28%

0.76%

1.50%

1.82%

0.62%

0.27%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$207,172

$212,656

$252,407

$285,547

$423,890

$470,582

Portfolio

turnover

rate

................

49.86%

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.88

$14.02

$13.28

$14.80

$13.69

$13.35

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.06

0.18

0.28

0.33

0.16

0.10

Net

realized

and

unrealized

gains

(losses)

0.66

1.05

1.42

(0.87)

1.24

0.45

Total

from

investment

operations

........

0.72

1.23

1.70

(0.54)

1.40

0.55

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.20)

(0.29)

(0.34)

(0.20)

(0.11)

Net

realized

gains

.................

(0.06)

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...................

(0.11)

(0.37)

(0.96)

(0.98)

(0.29)

(0.21)

Net

asset

value,

end

of

period

..........

$15.49

$14.88

$14.02

$13.28

$14.80

$13.69

Total

return

d

.......................

4.87%

8.98%

12.93%

(3.64)%

10.25%

4.15%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.87%

0.88%

0.88%

h

0.88%

h

0.88%

0.88%

Net

investment

income

c

...............

0.78%

1.28%

2.00%

2.32%

1.12%

0.76%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$63,579

$66,208

$71,153

$80,338

$103,629

$124,018

Portfolio

turnover

rate

................

49.86%

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.92

$14.06

$13.31

$14.84

$13.72

$13.39

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.10

0.26

0.36

0.44

0.25

0.18

Net

realized

and

unrealized

gains

(losses)

0.65

1.05

1.44

(0.90)

1.25

0.44

Total

from

investment

operations

........

0.75

1.31

1.80

(0.46)

1.50

0.62

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.09)

(0.28)

(0.38)

(0.43)

(0.29)

(0.19)

Net

realized

gains

.................

(0.06)

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...................

(0.15)

(0.45)

(1.05)

(1.07)

(0.38)

(0.29)

Net

asset

value,

end

of

period

..........

$15.52

$14.92

$14.06

$13.31

$14.84

$13.72

Total

return

d

.......................

5.13%

9.61%

13.64%

(3.11)%

10.99%

4.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.40%

0.40%

0.42%

0.40%

0.32%

0.30%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.29%

0.30%

0.31%

g

0.29%

g

0.28%

0.28%

Net

investment

income

c

...............

1.38%

1.86%

2.57%

2.91%

1.72%

1.36%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,774

$2,537

$2,364

$2,253

$2,149

$2,197

Portfolio

turnover

rate

................

49.86%

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.95

$14.08

$13.33

$14.86

$13.74

$13.39

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.10

0.25

0.36

0.43

0.25

0.17

Net

realized

and

unrealized

gains

(losses)

0.65

1.06

1.43

(0.90)

1.24

0.45

Total

from

investment

operations

........

0.75

1.31

1.79

(0.47)

1.49

0.62

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.09)

(0.27)

(0.37)

(0.42)

(0.28)

(0.17)

Net

realized

gains

.................

(0.06)

(0.17)

(0.67)

(0.64)

(0.09)

(0.10)

Total

distributions

...................

(0.15)

(0.44)

(1.04)

(1.06)

(0.37)

(0.27)

Net

asset

value,

end

of

period

..........

$15.55

$14.95

$14.08

$13.33

$14.86

$13.74

Total

return

d

.......................

5.03%

9.58%

13.53%

(3.19)%

10.88%

4.69%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.37%

0.38%

0.38%

h

0.38%

h

0.38%

0.38%

Net

investment

income

c

...............

1.30%

1.79%

2.50%

2.82%

1.62%

1.26%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$53,479

$48,041

$44,022

$38,031

$38,934

$27,578

Portfolio

turnover

rate

................

49.86%

48.36%

86.76%

30.70%

17.99%

34.83%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

Conservative

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.5%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

330,398

$

6,593,026

Domestic

Equity

35.4%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

1,915,883

74,278,777

a

Franklin

Growth

Fund,

Class

R6

........................................

807,309

122,371,885

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

1,079,878

46,229,577

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

13,151,144

192,532,752

iShares

Core

S&P

U.S.

Value

ETF

......................................

510,093

36,706,292

472,119,283

Domestic

Fixed

Income

51.1%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

2,837,572

33,114,468

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

2,192,237

58,192,931

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,738,144

45,539,373

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

1,808,137

45,094,937

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

11,488,399

293,069,058

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,158,389

52,062,069

Schwab

U.S.

TIPS

ETF

...............................................

829,926

51,878,674

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

5,377,916

65,126,561

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

9,888,312

38,861,066

682,939,137

Foreign

Equity

10.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

1,093,694

13,846,166

a

Franklin

FTSE

Europe

ETF

............................................

179,521

5,179,181

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

3,671,194

47,872,376

a

Franklin

International

Growth

Fund,

Class

R6

..............................

472,114

10,745,323

iShares

MSCI

EAFE

Value

ETF

.........................................

308,673

15,976,914

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

493,225

13,425,578

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,425,771

26,618,238

133,663,776

Foreign

Fixed

Income

2.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

1,330,673

33,399,892

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,141,549,870)

..............................................................

1,328,715,114

a

a

a

a

Short

Term

Investments

0.7%

a

Money

Market

Funds

0.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

8,899,365

8,899,365

Total

Money

Market

Funds

(Cost

$8,899,365)

...................................

8,899,365

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$757,436)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$552,731)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$84,106)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$120,599)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$773,122)

.........................................

$

757,436

$

757,436

Total

Repurchase

Agreements

(Cost

$757,436)

..................................

757,436

Total

Short

Term

Investments

(Cost

$9,656,801

)

.................................

9,656,801

a

Total

Investments

(Cost

$1,151,206,671)

100.2%

................................

$1,338,371,915

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(2,520,548)

Net

Assets

100.0%

...........................................................

$1,335,851,367

See

abbreviations

on

page

59

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.17

$15.08

$14.06

$16.11

$14.86

$14.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.19

0.28

0.34

0.20

0.14

Net

realized

and

unrealized

gains

(losses)

1.17

1.60

2.15

(1.11)

2.01

0.56

Total

from

investment

operations

........

1.24

1.79

2.43

(0.77)

2.21

0.70

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.22)

(0.28)

(0.33)

(0.29)

(0.12)

Net

realized

gains

.................

(0.23)

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...................

(0.29)

(0.70)

(1.41)

(1.28)

(0.96)

(0.33)

Net

asset

value,

end

of

period

..........

$17.12

$16.17

$15.08

$14.06

$16.11

$14.86

Total

return

d

.......................

7.67%

12.37%

17.40%

(4.82)%

14.98%

4.94%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.62%

0.64%

0.63%

0.63%

0.66%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.62%

g

0.64%

g,h

0.63%

g,h

0.63%

g

0.65%

0.63%

g

Net

investment

income

c

...............

0.80%

1.29%

1.78%

2.02%

1.23%

0.93%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,686,647

$1,573,566

$1,456,531

$1,318,198

$1,407,956

$1,416,532

Portfolio

turnover

rate

................

40.15%

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.64

$14.60

$13.65

$15.66

$14.48

$14.12

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

—

d

0.07

0.15

0.17

0.07

0.03

Net

realized

and

unrealized

gains

(losses)

1.13

1.56

2.09

(1.02)

1.94

0.55

Total

from

investment

operations

........

1.13

1.63

2.24

(0.85)

2.01

0.58

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.01)

(0.11)

(0.16)

(0.21)

(0.16)

(0.01)

Net

realized

gains

.................

(0.23)

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...................

(0.24)

(0.59)

(1.29)

(1.16)

(0.83)

(0.22)

Net

asset

value,

end

of

period

..........

$16.53

$15.64

$14.60

$13.65

$15.66

$14.48

Total

return

e

.......................

7.19%

11.57%

16.52%

(5.54)%

14.10%

4.25%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..........................

1.37%

1.39%

1.38%

1.38%

1.41%

1.37%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

1.37%

h

1.39%

h,i

1.38%

h,i

1.38%

h

1.40%

1.37%

h

Net

investment

income

c

...............

0.03%

0.50%

1.03%

1.27%

0.48%

0.19%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$275,156

$289,283

$339,845

$375,494

$568,280

$595,911

Portfolio

turnover

rate

................

40.15%

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.15

$15.05

$14.04

$16.08

$14.82

$14.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.15

0.23

0.27

0.14

0.10

Net

realized

and

unrealized

gains

(losses)

1.17

1.61

2.15

(1.07)

2.02

0.57

Total

from

investment

operations

........

1.21

1.76

2.38

(0.80)

2.16

0.67

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

(0.18)

(0.24)

(0.29)

(0.23)

(0.08)

Net

realized

gains

.................

(0.23)

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...................

(0.27)

(0.66)

(1.37)

(1.24)

(0.90)

(0.29)

Net

asset

value,

end

of

period

..........

$17.09

$16.15

$15.05

$14.04

$16.08

$14.82

Total

return

d

.......................

7.49%

12.17%

17.05%

(5.04)%

14.69%

4.71%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.87%

0.89%

0.88%

0.88%

0.91%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.87%

g

0.89%

g,h

0.88%

g,h

0.88%

g

0.90%

0.88%

g

Net

investment

income

c

...............

0.54%

1.01%

1.53%

1.77%

0.98%

0.68%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$70,436

$68,789

$78,999

$87,277

$119,920

$158,192

Portfolio

turnover

rate

................

40.15%

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.17

$15.08

$14.06

$16.11

$14.86

$14.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.24

0.34

0.41

0.26

0.19

Net

realized

and

unrealized

gains

(losses)

1.18

1.60

2.15

(1.12)

2.01

0.57

Total

from

investment

operations

........

1.27

1.84

2.49

(0.71)

2.27

0.76

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.09)

(0.27)

(0.34)

(0.39)

(0.35)

(0.18)

Net

realized

gains

.................

(0.23)

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...................

(0.32)

(0.75)

(1.47)

(1.34)

(1.02)

(0.39)

Net

asset

value,

end

of

period

..........

$17.12

$16.17

$15.08

$14.06

$16.11

$14.86

Total

return

d

.......................

7.82%

12.76%

17.81%

(4.49)%

15.40%

5.34%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.33%

0.33%

0.34%

0.35%

0.30%

0.28%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.30%

g

0.29%

g

0.29%

0.28%

0.28%

h

Net

investment

income

c

...............

1.11%

1.61%

2.12%

2.36%

1.60%

1.28%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,571

$6,767

$6,666

$5,141

$4,492

$5,106

Portfolio

turnover

rate

................

40.15%

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.19

$15.09

$14.07

$16.12

$14.88

$14.50

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.23

0.32

0.39

0.26

0.17

Net

realized

and

unrealized

gains

(losses)

1.17

1.61

2.15

(1.11)

1.98

0.58

Total

from

investment

operations

........

1.26

1.84

2.47

(0.72)

2.24

0.75

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.26)

(0.32)

(0.38)

(0.33)

(0.16)

Net

realized

gains

.................

(0.23)

(0.48)

(1.13)

(0.95)

(0.67)

(0.21)

Total

distributions

...................

(0.31)

(0.74)

(1.45)

(1.33)

(1.00)

(0.37)

Net

asset

value,

end

of

period

..........

$17.14

$16.19

$15.09

$14.07

$16.12

$14.88

Total

return

d

.......................

7.78%

12.72%

17.68%

(4.57)%

15.20%

5.26%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.37%

0.39%

0.38%

0.38%

0.41%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.37%

g

0.39%

g,h

0.38%

g,h

0.38%

g

0.40%

0.38%

g

Net

investment

income

c

...............

1.06%

1.53%

2.03%

2.27%

1.48%

1.18%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$74,453

$66,421

$61,026

$55,052

$52,575

$39,052

Portfolio

turnover

rate

................

40.15%

44.49%

71.70%

33.65%

16.86%

29.22%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.25%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.1%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

521,000

$

10,396,451

Domestic

Equity

49.8%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

4,272,087

165,628,807

a

Franklin

Growth

Fund,

Class

R6

........................................

1,796,757

272,352,411

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

2,445,960

104,711,548

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

29,099,897

426,022,493

iShares

Core

S&P

U.S.

Value

ETF

......................................

1,137,592

81,861,120

1,050,576,379

Domestic

Fixed

Income

31.8%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

2,684,092

31,323,353

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

2,177,846

57,810,922

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,727,066

45,249,129

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

1,793,036

44,718,318

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

11,378,928

290,276,453

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,142,773

51,685,399

Schwab

U.S.

TIPS

ETF

...............................................

822,995

51,445,417

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

5,338,995

64,655,225

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

9,774,919

38,415,430

675,579,646

Foreign

Equity

15.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

2,996,509

37,935,800

a

Franklin

FTSE

Europe

ETF

............................................

437,388

12,618,644

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

8,631,657

112,556,808

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,116,620

25,414,272

iShares

MSCI

EAFE

Value

ETF

.........................................

730,934

37,833,144

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,360,511

37,033,111

a

Templeton

Foreign

Fund,

Class

R6

......................................

8,112,233

63,032,050

326,423,829

Foreign

Fixed

Income

1.5%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

1,258,989

31,600,624

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,678,533,255)

..............................................................

2,094,576,929

a

a

a

a

Short

Term

Investments

0.6%

a

Money

Market

Funds

0.6%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

12,211,396

12,211,396

Total

Money

Market

Funds

(Cost

$12,211,396)

..................................

12,211,396

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$1,278,040)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$932,636)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$141,914)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$203,490)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$1,304,507)

........................................

$

1,278,039

$

1,278,039

Total

Repurchase

Agreements

(Cost

$1,278,039)

................................

1,278,039

Total

Short

Term

Investments

(Cost

$13,489,435

)

................................

13,489,435

a

Total

Investments

(Cost

$1,692,022,690)

99.7%

..................................

$2,108,066,364

Other

Assets,

less

Liabilities

0.3%

.............................................

5,196,968

Net

Assets

100.0%

...........................................................

$2,113,263,332

See

Abbreviations

on

page

59

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.64

$18.13

$16.54

$19.34

$17.43

$17.01

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.19

0.25

0.30

0.22

0.14

Net

realized

and

unrealized

gains

(losses)

1.98

2.32

3.36

(1.54)

3.12

0.75

Total

from

investment

operations

........

2.03

2.51

3.61

(1.24)

3.34

0.89

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.22)

(0.25)

(0.30)

(0.32)

(0.14)

Net

realized

gains

.................

(0.37)

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...................

(0.42)

(1.00)

(2.02)

(1.56)

(1.43)

(0.47)

Net

asset

value,

end

of

period

..........

$21.25

$19.64

$18.13

$16.54

$19.34

$17.43

Total

return

d

.......................

10.35%

14.58%

21.90%

(6.45)%

19.45%

5.36%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.65%

0.68%

0.68%

0.67%

0.70%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.65%

g

0.67%

g,h

0.65%

h

0.65%

h

0.65%

h

0.65%

Net

investment

income

c

...............

0.50%

1.07%

1.32%

1.48%

1.14%

0.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,174,107

$1,074,822

$974,391

$837,327

$873,011

$822,833

Portfolio

turnover

rate

................

41.29%

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.03

$17.62

$16.12

$18.81

$16.99

$16.59

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.03)

0.05

0.10

0.10

0.07

0.02

Net

realized

and

unrealized

gains

(losses)

1.92

2.25

3.27

(1.43)

3.04

0.72

Total

from

investment

operations

........

1.89

2.30

3.37

(1.33)

3.11

0.74

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.01)

(0.11)

(0.10)

(0.10)

(0.18)

(0.01)

Net

realized

gains

.................

(0.37)

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...................

(0.38)

(0.89)

(1.87)

(1.36)

(1.29)

(0.34)

Net

asset

value,

end

of

period

..........

$20.54

$19.03

$17.62

$16.12

$18.81

$16.99

Total

return

d

.......................

9.99%

13.74%

20.95%

(7.13)%

18.56%

4.59%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.40%

1.42%

1.43%

1.42%

1.45%

1.43%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.40%

g

1.42%

g,h

1.40%

h

1.40%

h

1.40%

h

1.39%

Net

investment

income

(loss)

c

..........

(0.26)%

0.28%

0.57%

0.73%

0.39%

0.09%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$181,730

$186,526

$202,689

$206,933

$311,640

$308,736

Portfolio

turnover

rate

................

41.29%

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.38

$17.89

$16.34

$19.10

$17.22

$16.80

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.14

0.18

0.22

0.15

0.09

Net

realized

and

unrealized

gains

(losses)

1.95

2.30

3.33

(1.49)

3.11

0.75

Total

from

investment

operations

........

1.97

2.44

3.51

(1.27)

3.26

0.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.17)

(0.19)

(0.23)

(0.27)

(0.09)

Net

realized

gains

.................

(0.37)

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...................

(0.40)

(0.95)

(1.96)

(1.49)

(1.38)

(0.42)

Net

asset

value,

end

of

period

..........

$20.95

$19.38

$17.89

$16.34

$19.10

$17.22

Total

return

d

.......................

10.22%

14.30%

21.56%

(6.68)%

19.17%

5.12%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.90%

0.92%

0.93%

0.92%

0.95%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.90%

g

0.92%

g,h

0.90%

h

0.90%

h

0.90%

h

0.90%

Net

investment

income

c

...............

0.25%

0.77%

1.07%

1.23%

0.89%

0.58%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$57,084

$54,297

$62,973

$72,100

$100,258

$112,272

Portfolio

turnover

rate

................

41.29%

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.73

$18.20

$16.60

$19.40

$17.48

$17.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.26

0.32

0.40

0.31

0.22

Net

realized

and

unrealized

gains

(losses)

1.99

2.34

3.37

(1.57)

3.12

0.74

Total

from

investment

operations

........

2.07

2.60

3.69

(1.17)

3.43

0.96

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.29)

(0.32)

(0.37)

(0.40)

(0.21)

Net

realized

gains

.................

(0.37)

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...................

(0.45)

(1.07)

(2.09)

(1.63)

(1.51)

(0.54)

Net

asset

value,

end

of

period

..........

$21.35

$19.73

$18.20

$16.60

$19.40

$17.48

Total

return

d

.......................

10.52%

15.06%

22.30%

(6.07)%

19.90%

5.77%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.34%

0.35%

0.37%

0.36%

0.31%

0.30%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.30%

g

0.27%

g

0.28%

g

0.25%

g

0.26%

Net

investment

income

c

...............

0.83%

1.44%

1.70%

1.85%

1.54%

1.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,870

$5,592

$4,806

$4,224

$3,364

$2,822

Portfolio

turnover

rate

................

41.29%

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

37

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.76

$18.22

$16.61

$19.42

$17.49

$17.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.24

0.30

0.36

0.26

0.18

Net

realized

and

unrealized

gains

(losses)

1.97

2.34

3.38

(1.56)

3.15

0.76

Total

from

investment

operations

........

2.05

2.58

3.68

(1.20)

3.41

0.94

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.26)

(0.30)

(0.35)

(0.37)

(0.18)

Net

realized

gains

.................

(0.37)

(0.78)

(1.77)

(1.26)

(1.11)

(0.33)

Total

distributions

...................

(0.44)

(1.04)

(2.07)

(1.61)

(1.48)

(0.51)

Net

asset

value,

end

of

period

..........

$21.37

$19.76

$18.22

$16.61

$19.42

$17.49

Total

return

d

.......................

10.46%

14.90%

22.22%

(6.23)%

19.77%

5.60%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.40%

0.43%

0.43%

0.42%

0.45%

0.44%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.40%

g

0.42%

g,h

0.40%

h

0.40%

h

0.40%

h

0.40%

Net

investment

income

c

...............

0.75%

1.32%

1.57%

1.73%

1.39%

1.08%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$57,527

$51,693

$44,684

$38,685

$38,912

$39,211

Portfolio

turnover

rate

................

41.29%

39.22%

63.65%

30.79%

16.90%

30.19%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.26%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

Growth

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

99.1%

Alternative

Strategies

0.5%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

362,937

$

7,242,335

Domestic

Equity

63.8%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

3,818,076

148,026,821

a

Franklin

Growth

Fund,

Class

R6

........................................

1,673,189

253,622,027

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

2,193,100

93,886,611

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

25,246,369

369,606,840

iShares

Core

S&P

U.S.

Value

ETF

......................................

1,048,576

75,455,529

940,597,828

Domestic

Fixed

Income

12.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

1,247,196

14,554,774

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

575,663

15,280,974

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

456,899

11,970,754

a

Franklin

Liberty

Senior

Loan

ETF

.......................................

470,956

11,745,643

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

2,988,773

76,243,599

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

564,696

13,620,919

Schwab

U.S.

TIPS

ETF

...............................................

216,166

13,512,537

a

Western

Asset

Core

Plus

Bond

Fund,

Class

S

..............................

1,407,001

17,038,781

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

2,567,467

10,090,145

184,058,126

Foreign

Equity

21.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

2,962,380

37,503,730

a

Franklin

FTSE

Europe

ETF

............................................

422,897

12,200,578

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

8,263,883

107,761,030

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,069,448

24,340,635

iShares

MSCI

EAFE

Value

ETF

.........................................

703,879

36,432,777

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,353,898

36,853,108

a

Templeton

Foreign

Fund,

Class

R6

......................................

7,805,928

60,652,063

315,743,921

Foreign

Fixed

Income

1.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

584,688

14,675,669

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,085,793,657)

..............................................................

1,462,317,879

a

a

a

a

Short

Term

Investments

0.8%

a

Money

Market

Funds

0.8%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

10,972,111

10,972,111

Total

Money

Market

Funds

(Cost

$10,972,111)

...................................

10,972,111

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

c

Joint

Repurchase

Agreement,

0.033%,

7/01/21

(Maturity

Value

$555,906)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$405,667)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$61,728)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$88,511)

Collateralized

by

U.S.

Government

Agency

Securities,

2.5%

-

5%,

6/20/47

-

3/20/51;

U.S.

Treasury

Bond,

Index

Linked,

2.38%,

1/15/25;

and

U.S.

Treasury

Note,

1.88%,

4/30/22

(valued

at

$567,418)

.........................................

$

555,905

$

555,905

Total

Repurchase

Agreements

(Cost

$555,905)

..................................

555,905

Total

Short

Term

Investments

(Cost

$11,528,016

)

................................

11,528,016

a

Total

Investments

(Cost

$1,097,321,673)

99.9%

..................................

$1,473,845,895

Other

Assets,

less

Liabilities

0.1%

.............................................

1,472,759

Net

Assets

100.0%

...........................................................

$1,475,318,654

See

Abbreviations

on

page

59

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$105,044,873

$173,377,931

$128,138,249

Cost

-

Controlled

affiliates

(Note

3f)

..........................

33,750,636

545,175,213

547,435,489

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

1,011,653,726

972,191,507

421,192,030

Cost

-

Unaffiliated

repurchase

agreements

....................

757,436

1,278,039

555,905

Value

-

Unaffiliated

issuers

................................

$104,561,880

$171,139,681

$125,400,843

Value

-

Controlled

affiliates

(Note

3f)

.........................

33,399,892

661,187,724

675,098,999

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

1,199,652,707

1,274,460,920

672,790,148

Value

-

Unaffiliated

repurchase

agreements

....................

757,436

1,278,039

555,905

Receivables:

Investment

securities

sold

.................................

48,041,491

82,404,136

52,895,282

Capital

shares

sold

......................................

1,119,549

1,222,820

802,384

Dividends

and

interest

...................................

1,227,401

1,218,933

320,163

Total

assets

........................................

1,388,760,356

2,192,912,253

1,527,863,724

Liabilities:

Payables:

Investment

securities

purchased

............................

47,558,241

76,018,700

47,817,927

Capital

shares

redeemed

.................................

4,394,414

2,137,260

3,645,467

Asset

allocation

fees

.....................................

271,431

433,084

359,723

Distribution

fees

........................................

405,373

600,311

413,218

Transfer

agent

fees

......................................

212,635

305,028

208,344

Accrued

expenses

and

other

liabilities

.........................

66,895

154,538

100,391

Total

liabilities

.......................................

52,908,989

79,648,921

52,545,070

Net

assets,

at

value

...............................

$1,335,851,367

$2,113,263,332

$1,475,318,654

Net

assets

consist

of:

Paid-in

capital

...........................................

$1,085,215,100

$1,539,124,594

$968,559,936

Total

distributable

earnings

(losses)

...........................

250,636,267

574,138,738

506,758,718

Net

assets,

at

value

...............................

$1,335,851,367

$2,113,263,332

$1,475,318,654

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

41

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Class

A:

Net

assets,

at

value

.....................................

$1,008,848,258

$1,686,646,970

$1,174,107,006

Shares

outstanding

......................................

64,868,752

98,525,227

55,243,186

Net

asset

value

per

share

a

................................

$15.55

$17.12

$21.25

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%,

94.50%

and

94.50%,

respectively)

..........................

$16.46

$18.12

$22.49

Class

C:

Net

assets,

at

value

.....................................

$207,171,662

$275,156,486

$181,730,223

Shares

outstanding

......................................

13,632,018

16,641,676

8,845,511

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$15.20

$16.53

$20.54

Class

R:

Net

assets,

at

value

.....................................

$63,579,139

$70,436,433

$57,084,017

Shares

outstanding

......................................

4,105,526

4,122,342

2,724,700

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.49

$17.09

$20.95

Class

R6:

Net

assets,

at

value

.....................................

$2,773,632

$6,570,582

$4,870,112

Shares

outstanding

......................................

178,586

383,849

228,099

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.52

$17.12

$21.35

Advisor

Class:

Net

assets,

at

value

.....................................

$53,478,676

$74,452,861

$57,527,296

Shares

outstanding

......................................

3,438,519

4,344,814

2,691,727

Net

asset

value

and

maximum

offering

price

per

share

...........

$15.55

$17.14

$21.37

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$1,319,419

$2,181,742

$1,546,066

Controlled

affiliates

(Note

3f)

...............................

—

1,910,066

3,145,860

Non-controlled

affiliates

(Note

3

f

)

...........................

9,412,725

10,374,586

3,399,084

Interest:

Unaffiliated

issuers

......................................

266

383

251

Total

investment

income

.................................

10,732,410

14,466,777

8,091,261

Expenses:

Asset

allocation

fees

(Note

3

a

)

...............................

1,619,143

2,545,792

1,763,269

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

1,211,733

2,019,233

1,391,808

    Class

C

..............................................

1,039,302

1,383,428

907,658

    Class

R

..............................................

163,494

171,885

138,152

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

459,955

826,003

710,142

    Class

C

..............................................

98,676

141,607

115,891

    Class

R

..............................................

31,046

35,170

35,261

    Class

R6

.............................................

1,601

2,036

1,870

    Advisor

Class

..........................................

23,752

35,400

34,899

Custodian

fees

(Note

4

)

....................................

361

524

287

Reports

to

shareholders

....................................

43,241

68,067

54,703

Registration

and

filing

fees

..................................

63,292

70,604

55,185

Professional

fees

.........................................

27,283

28,460

26,444

Trustees'

fees

and

expenses

................................

4,799

8,205

5,556

Other

..................................................

12,278

17,119

12,129

Total

expenses

.......................................

4,799,956

7,353,533

5,253,254

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(20,248)

(7,227)

(6,863)

Net

expenses

.......................................

4,779,708

7,346,306

5,246,391

Net

investment

income

..............................

5,952,702

7,120,471

2,844,870

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

12,647,312

27,794,529

22,307,901

Controlled

affiliates

(Note

3f)

.............................

(347,485)

731,772

5,205,029

Non-controlled

affiliates

(Note

3

f

)

..........................

54,909,165

135,458,277

104,373,885

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3f)

..........................

293,360

290,745

76,145

Net

realized

gain

(loss)

................................

67,502,352

164,275,323

131,962,960

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(5,913,983)

(13,669,550)

(9,953,521)

Controlled

affiliates

(Note

3f)

.............................

(764,905)

58,921,070

62,407,628

Non-controlled

affiliates

(Note

3

f

)

..........................

(4,219,908)

(66,183,369)

(47,746,304)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(10,898,796)

(20,931,849)

4,707,803

Net

realized

and

unrealized

gain

(loss)

..........................

56,603,556

143,343,474

136,670,763

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$62,556,258

$150,463,945

$139,515,633

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$5,952,702

$16,508,856

$7,120,471

$21,486,860

Net

realized

gain

(loss)

............

67,502,352

10,828,385

164,275,323

52,084,951

Net

change

in

unrealized

appreciation

(depreciation)

.................

(10,898,796)

76,644,464

(20,931,849)

138,741,590

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

62,556,258

103,981,705

150,463,945

212,313,401

Distributions

to

shareholders:

Class

A

........................

(8,559,008)

(24,460,840)

(28,101,148)

(66,300,133)

Class

C

........................

(1,180,245)

(4,684,059)

(3,855,558)

(11,584,805)

Class

R

........................

(484,219)

(1,713,261)

(1,099,393)

(2,947,776)

Class

R6

.......................

(27,306)

(74,133)

(118,633)

(313,717)

Advisor

Class

...................

(513,674)

(1,362,987)

(1,324,620)

(2,816,703)

Total

distributions

to

shareholders

.....

(10,764,452)

(32,295,280)

(34,499,352)

(83,963,134)

Capital

share

transactions:

(Note

2

)

Class

A

........................

28,163,582

48,852,200

21,056,767

14,400,299

Class

C

........................

(13,660,915)

(51,518,295)

(29,826,288)

(67,957,576)

Class

R

........................

(5,217,619)

(8,637,502)

(2,269,849)

(14,331,710)

Class

R6

.......................

131,234

34,192

(571,364)

(347,017)

Advisor

Class

...................

3,422,736

1,723,435

4,084,234

1,643,642

Total

capital

share

transactions

.......

12,839,018

(9,545,970)

(7,526,500)

(66,592,362)

Net

increase

(decrease)

in

net

assets

.....................

64,630,824

62,140,455

108,438,093

61,757,905

Net

assets:

Beginning

of

period

................

1,271,220,543

1,209,080,088

2,004,825,239

1,943,067,334

End

of

period

.....................

$1,335,851,367

$1,271,220,543

$2,113,263,332

$2,004,825,239

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Franklin

Growth

Allocation

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$2,844,870

$11,739,021

Net

realized

gain

(loss)

.................................................

131,962,960

46,788,174

Net

change

in

unrealized

appreciation

(depreciation)

...........................

4,707,803

113,453,268

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

139,515,633

171,980,463

Distributions

to

shareholders:

Class

A

.............................................................

(22,929,447)

(53,202,026)

Class

C

.............................................................

(3,325,851)

(9,062,162)

Class

R

.............................................................

(1,073,463)

(2,836,088)

Class

R6

............................................................

(121,901)

(285,717)

Advisor

Class

........................................................

(1,187,365)

(2,550,980)

Total

distributions

to

shareholders

..........................................

(28,638,027)

(67,936,973)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

11,630,716

17,198,516

Class

C

.............................................................

(18,901,424)

(29,089,134)

Class

R

.............................................................

(1,553,115)

(12,578,352)

Class

R6

............................................................

(1,164,012)

361,275

Advisor

Class

........................................................

1,499,263

3,451,500

Total

capital

share

transactions

............................................

(8,488,572)

(20,656,195)

Net

increase

(decrease)

in

net

assets

...................................

102,389,034

83,387,295

Net

assets:

Beginning

of

period

.....................................................

1,372,929,620

1,289,542,325

End

of

period

..........................................................

$1,475,318,654

$1,372,929,620

Franklin

Fund

Allocator

Series

45

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twenty-one

separate

funds, three

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6,

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

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.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Statements

of

Investments,

had

been

entered

into

on

June

30,

2021.

c.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

46

franklintempleton.com

Semiannual

Report

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2021, each

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

by

Underlying

Funds

and

ETFs

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

47

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

6,566,867

$99,675,548

7,657,789

$127,824,105

Shares

issued

in

reinvestment

of

distributions

..........

539,726

8,353,966

1,618,586

27,687,405

Shares

redeemed

...............................

(5,246,707)

(79,865,932)

(8,038,727)

(134,454,743)

Net

increase

(decrease)

..........................

1,859,886

$28,163,582

1,237,648

$21,056,767

Year

ended

December

31,

2020

Shares

sold

a

...................................

15,526,759

$217,187,515

16,087,915

$240,074,630

Shares

issued

in

reinvestment

of

distributions

..........

1,720,058

23,883,961

4,393,981

65,269,069

Shares

redeemed

...............................

(13,852,905)

(192,219,276)

(19,774,427)

(290,943,400)

Net

increase

(decrease)

..........................

3,393,912

$48,852,200

707,469

$14,400,299

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

1,496,073

$22,177,465

1,629,044

$26,214,800

Shares

issued

in

reinvestment

of

distributions

..........

77,142

1,171,784

232,023

3,833,628

Shares

redeemed

a

..............................

(2,488,109)

(37,010,164)

(3,717,909)

(59,874,716)

Net

increase

(decrease)

..........................

(914,894)

$(13,660,915)

(1,856,842)

$(29,826,288)

Year

ended

December

31,

2020

Shares

sold

...................................

2,831,903

$38,694,729

3,106,938

$44,933,627

Shares

issued

in

reinvestment

of

distributions

..........

338,542

4,582,765

797,453

11,434,271

Shares

redeemed

a

..............................

(6,952,067)

(94,795,789)

(8,683,113)

(124,325,474)

Net

increase

(decrease)

..........................

(3,781,622)

$(51,518,295)

(4,778,722)

$(67,957,576)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

255,585

$3,871,038

293,555

$4,871,266

Shares

issued

in

reinvestment

of

distributions

..........

31,362

484,126

64,307

1,098,010

Shares

redeemed

...............................

(629,481)

(9,572,783)

(495,992)

(8,239,125)

Net

increase

(decrease)

..........................

(342,534)

$(5,217,619)

(138,130)

$(2,269,849)

Year

ended

December

31,

2020

Shares

sold

...................................

658,070

$9,185,072

554,405

$8,325,068

Shares

issued

in

reinvestment

of

distributions

..........

124,089

1,712,015

199,063

2,943,699

Shares

redeemed

...............................

(1,410,247)

(19,534,589)

(1,740,928)

(25,600,477)

Net

increase

(decrease)

..........................

(628,088)

$(8,637,502)

(987,460)

$(14,331,710)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

48

franklintempleton.com

Semiannual

Report

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

17,205

$260,727

12,874

$215,720

Shares

issued

in

reinvestment

of

distributions

..........

1,769

27,306

6,935

118,633

Shares

redeemed

...............................

(10,400)

(156,799)

(54,444)

(905,717)

Net

increase

(decrease)

..........................

8,574

$131,234

(34,635)

$(571,364)

Year

ended

December

31,

2020

Shares

sold

...................................

30,722

$427,486

35,359

$530,086

Shares

issued

in

reinvestment

of

distributions

..........

5,350

74,133

21,167

313,717

Shares

redeemed

...............................

(34,257)

(467,427)

(80,124)

(1,190,820)

Net

increase

(decrease)

..........................

1,815

$34,192

(23,598)

$(347,017)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

596,822

$9,090,365

760,897

$12,737,423

Shares

issued

in

reinvestment

of

distributions

..........

26,625

411,597

69,027

1,182,246

Shares

redeemed

...............................

(399,218)

(6,079,226)

(587,986)

(9,835,435)

Net

increase

(decrease)

..........................

224,229

$3,422,736

241,938

$4,084,234

Year

ended

December

31,

2020

Shares

sold

...................................

1,451,176

$20,585,073

1,414,029

$21,622,666

Shares

issued

in

reinvestment

of

distributions

..........

80,865

1,121,419

167,041

2,486,628

Shares

redeemed

...............................

(1,445,219)

(19,983,057)

(1,521,155)

(22,465,652)

Net

increase

(decrease)

..........................

86,822

$1,723,435

59,915

$1,643,642

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

49

franklintempleton.com

Semiannual

Report

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

3,980,639

$82,089,220

Shares

issued

in

reinvestment

of

distributions

..........

1,066,186

22,655,207

Shares

redeemed

...............................

(4,526,639)

(93,113,711)

Net

increase

(decrease)

..........................

520,186

$11,630,716

Year

ended

December

31,

2020

Shares

sold

a

...................................

7,827,793

$137,912,306

Shares

issued

in

reinvestment

of

distributions

..........

2,978,278

52,583,144

Shares

redeemed

...............................

(9,837,040)

(173,296,934)

Net

increase

(decrease)

..........................

969,031

$17,198,516

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

758,661

$15,090,366

Shares

issued

in

reinvestment

of

distributions

..........

161,482

3,317,869

Shares

redeemed

a

..............................

(1,875,363)

(37,309,659)

Net

increase

(decrease)

..........................

(955,220)

$(18,901,424)

Year

ended

December

31,

2020

Shares

sold

...................................

1,578,098

$27,019,417

Shares

issued

in

reinvestment

of

distributions

..........

527,853

8,970,791

Shares

redeemed

a

..............................

(3,807,271)

(65,079,342)

Net

increase

(decrease)

..........................

(1,701,320)

$(29,089,134)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

131,005

$2,666,616

Shares

issued

in

reinvestment

of

distributions

..........

50,973

1,067,742

Shares

redeemed

...............................

(260,538)

(5,287,473)

Net

increase

(decrease)

..........................

(78,560)

$(1,553,115)

Year

ended

December

31,

2020

Shares

sold

...................................

307,850

$5,319,186

Shares

issued

in

reinvestment

of

distributions

..........

162,900

2,822,972

Shares

redeemed

...............................

(1,188,034)

(20,720,510)

Net

increase

(decrease)

..........................

(717,284)

$(12,578,352)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

50

franklintempleton.com

Semiannual

Report

3.Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Asset

Allocation

Fees

The

Funds

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

17,726

$362,583

Shares

issued

in

reinvestment

of

distributions

..........

5,710

121,900

Shares

redeemed

...............................

(78,823)

(1,648,495)

Net

increase

(decrease)

..........................

(55,387)

$(1,164,012)

Year

ended

December

31,

2020

Shares

sold

...................................

33,463

$596,260

Shares

issued

in

reinvestment

of

distributions

..........

16,075

285,716

Shares

redeemed

...............................

(30,104)

(520,701)

Net

increase

(decrease)

..........................

19,434

$361,275

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

380,315

$7,861,033

Shares

issued

in

reinvestment

of

distributions

..........

49,140

1,050,109

Shares

redeemed

...............................

(355,710)

(7,411,879)

Net

increase

(decrease)

..........................

73,745

$1,499,263

Year

ended

December

31,

2020

Shares

sold

...................................

730,397

$13,350,224

Shares

issued

in

reinvestment

of

distributions

..........

120,323

2,143,621

Shares

redeemed

...............................

(685,572)

(12,042,345)

Net

increase

(decrease)

..........................

165,148

$3,451,500

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(

Distributors)

(formerly

Franklin

Templeton

Distributors,

Inc.)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

51

franklintempleton.com

Semiannual

Report

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

year:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2021,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$93,089

$137,375

$126,622

CDSC

retained

...........................

$6,405

$11,092

$13,017

3.Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

52

franklintempleton.com

Semiannual

Report

f.

Investments

in

FT

Underlying

Funds

The Funds

invest in Underlying

Funds

which

are

managed

by

Franklin

Advisers,

Inc.

(Advisers),

an

affiliate

of

FT

Services

or

by

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2021,

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Transfer

agent

fees

........................

$300,386

$610,489

$573,555

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

Controlled

Affiliates

Franklin

Liberty

International

Aggregate

Bond

ETF

........

$61,041,693

$428,711

$(26,958,122)

$

(347,485)

$

(764,905)

$

33,399,892

1,330,673

$

—

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

—

$

32,603,573

$

—

$

—

$

510,895

$

33,114,468

2,837,572

$

246,360

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

—

77,504,578

(10,114,749)

625,786

6,263,162

74,278,777

1,915,883

369,077

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

16,123,784

62,526

(3,748,498)

663,150

745,204

13,846,166

1,093,694

62,526

Franklin

FTSE

China

ETF

.....

3,114,896

89,404

(3,211,569)

20,146

(12,877)

—

a

—

—

Franklin

FTSE

Europe

ETF

....

12,816,076

—

(8,764,593)

1,324,416

(196,718)

5,179,181

179,521

116,797

Franklin

FTSE

Japan

ETF

.....

6,956,102

2,975,155

(10,060,528)

1,036,948

(907,677)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

126,745,749

—

(17,834,017)

4,032,820

9,427,333

122,371,885

807,309

—

Franklin

International

Core

Equity

(IU)

Fund

................

40,844,001

2,883,639

—

—

4,144,736

47,872,376

3,671,194

498,476

Franklin

International

Growth

Fund,

Class

R6

................

13,392,110

—

(3,336,734)

1,084,962

(395,015)

10,745,323

472,114

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

19,092,902

45,707,553

(6,679,123)

(41,633)

113,232

58,192,931

2,192,237

1,151,373

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

49,886,647

7,100,780

(9,812,441)

(406,932)

(1,228,681)

45,539,373

1,738,144

680,616

Franklin

Liberty

Senior

Loan

ETF

—

45,264,200

—

—

(169,263)

45,094,937

1,808,137

478,020

3.Transactions

with

Affiliates

(continued)

e.

Transfer

Agent

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

53

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

$

48,743,931

$

—

$

(48,562,962)

$

(154,368)

$

(26,601)

$

—

a

—

$

85,306

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

5,277,512

1,219,910

—

—

95,604

6,593,026

330,398

78,796

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

302,240,393

82,527,273

(83,815,017)

(392,425)

(7,491,166)

293,069,058

11,488,399

3,101,001

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

60,704,285

10,019,090

(16,619,060)

(858,320)

(1,183,926)

52,062,069

2,158,389

455,108

Franklin

LibertyQ

U.S.

Equity

ETF

93,294,463

13,206,636

(69,454,934)

11,362,387

(2,178,975)

46,229,577

1,079,878

547,724

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

55,875,006

122,193

(56,054,928)

473,865

(416,136)

—

a

—

176,877

Franklin

Rising

Dividends

Fund,

Class

R6

................

66,873,189

—

(68,799,427)

37,223,819

(35,297,581)

—

a

—

—

Franklin

U.S.

Core

Equity

(IU)

Fund

114,063,795

58,529,205

—

—

19,939,752

192,532,752

13,151,144

466,625

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

5,871,512

96,935,301

(93,907,448)

—

—

8,899,365

8,899,365

377

Templeton

Developing

Markets

Trust,

Class

R6

............

13,251,691

—

(869,091)

133,176

909,802

13,425,578

493,225

—

Templeton

Foreign

Fund,

Class

R6

18,026,683

6,784,157

—

—

1,807,398

26,618,238

3,425,771

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

12,325,096

203,783

(12,005,404)

(1,350,484)

827,009

—

a

—

203,783

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

74,452,137

(10,056,685)

131,852

599,257

65,126,561

5,377,916

646,445

b

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

90,057,853

(51,098,111)

—

(98,676)

38,861,066

9,888,312

340,798

Total

Non-Controlled

Affiliates

$1,085,519,823

$648,248,946

$(584,805,319)

$54,909,165

$(4,219,908)

$1,199,652,707

$9,706,085

Total

Affiliated

Securities

....

$1,146,561,516

$648,677,657

$(611,763,441)

$54,561,680

$(4,984,813)

$1,233,052,599

$9,706,085

Franklin

Moderate

Allocation

Fund

Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

$—

$153,515,964

$—

—

12,112,843

165,628,807

4,272,087

693,130

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$40,977,794

$158,908

$(6,795,351)

1,108,560

2,485,889

37,935,800

2,996,509

158,908

Franklin

Liberty

International

Aggregate

Bond

ETF

........

$60,473,317

$524,119

$(28,279,764)

(376,788)

(740,260)

31,600,624

1,258,989

—

Franklin

U.S.

Core

Equity

(IU)

Fund

$258,629,036

$122,330,859

$—

—

45,062,598

426,022,493

29,099,897

1,058,028

Total

Controlled

Affiliates

....

$360,080,147

$276,529,850

$(35,075,115)

$731,772

$58,921,070

$661,187,724

$1,910,066

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

31,000,247

—

—

323,106

31,323,353

2,684,092

230,140

3.Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

54

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Moderate

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

FTSE

China

ETF

.....

$

7,797,976

$

2,292,275

$

(10,087,578)

$

29,564

$

(32,237)

$

—

a

—

$

—

Franklin

FTSE

Europe

ETF

....

30,926,256

368,218

(21,983,238)

3,709,185

(401,777)

12,618,644

437,388

276,263

Franklin

FTSE

Japan

ETF

.....

15,981,407

3,621,102

(19,904,278)

2,208,268

(1,906,499)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

284,751,290

—

(43,532,577)

16,178,357

14,955,341

272,352,411

1,796,757

—

Franklin

International

Core

Equity

(IU)

Fund

................

101,306,605

1,336,385

(433,381)

29,549

10,317,650

112,556,808

8,631,657

1,236,386

Franklin

International

Growth

Fund,

Class

R6

................

33,224,578

—

(9,454,652)

3,065,382

(1,421,036)

25,414,272

1,116,620

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

18,947,477

45,237,980

(6,519,559)

(40,638)

185,662

57,810,922

2,177,846

1,244,144

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

50,810,800

7,393,838

(11,405,462)

(454,727)

(1,095,320)

45,249,129

1,727,066

756,706

Franklin

Liberty

Senior

Loan

ETF

—

44,888,655

—

—

(170,337)

44,718,318

1,793,036

492,239

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

48,229,275

—

(48,050,217)

(156,176)

(22,882)

—

a

—

84,405

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

8,282,421

2,024,658

—

—

89,372

10,396,451

521,000

124,252

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

295,876,084

56,225,759

(54,510,312)

(95,335)

(7,219,743)

290,276,453

11,378,928

3,361,629

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

59,426,589

3,878,599

(9,613,753)

(502,840)

(1,503,196)

51,685,399

2,142,773

503,858

Franklin

LibertyQ

U.S.

Equity

ETF

204,062,468

31,231,537

(152,207,333)

26,547,429

(4,922,553)

104,711,548

2,445,960

1,210,707

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

54,722,180

119,672

(54,898,391)

527,390

(470,851)

—

a

—

173,227

Franklin

Rising

Dividends

Fund,

Class

R6

................

145,564,206

—

(150,002,629)

86,378,516

(81,940,093)

—

a

—

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

133,320,911

(121,109,515)

—

—

12,211,396

12,211,396

512

Templeton

Developing

Markets

Trust,

Class

R6

............

33,342,978

1,057,500

—

—

2,632,633

37,033,111

1,360,511

—

Templeton

Foreign

Fund,

Class

R6

44,361,410

15,540,467

(1,635,597)

218,394

4,547,376

63,032,050

8,112,233

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

19,342,865

319,814

(18,841,144)

(2,197,026)

1,375,491

—

a

—

319,814

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

65,094,965

(1,046,865)

12,985

594,140

64,655,225

5,338,995

598,630

b

3.Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

55

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Moderate

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

38,513,046

$

—

$

—

$

(97,616)

$

38,415,430

9,774,919

$

52,419

Total

Non-Controlled

Affiliates

$1,456,956,865

$483,465,628

$(735,236,481)

$135,458,277

$(66,183,369)

$1,274,460,920

$10,665,331

Total

Affiliated

Securities

....

$1,817,037,012

$759,995,478

$(770,311,596)

$136,190,049

$(7,262,299)

$1,935,648,644

$12,575,397

Franklin

Growth

Allocation

Fund

Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

$—

$146,773,675

$(9,798,680)

188,099

10,863,727

148,026,821

3,818,076

616,183

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$42,192,366

$163,618

$(8,544,635)

1,305,307

2,387,074

37,503,730

2,962,380

163,618

Franklin

FTSE

Europe

ETF

....

$29,700,957

$466,548

$(21,549,261)

3,701,887

(119,553)

12,200,578

422,897

264,618

Franklin

International

Core

Equity

(IU)

Fund

................

$96,794,122

$1,226,682

$(142,792)

9,736

9,873,282

107,761,030

8,263,883

1,181,313

Franklin

U.S.

Core

Equity

(IU)

Fund

$224,920,106

$105,283,636

$—

—

39,403,098

369,606,840

25,246,369

920,128

Total

Controlled

Affiliates

....

$393,607,551

$253,914,159

$(40,035,368)

$5,205,029

$62,407,628

$675,098,999

$3,145,860

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

—

14,230,478

—

—

324,296

14,554,774

1,247,196

110,085

Franklin

FTSE

China

ETF

.....

7,953,840

2,494,440

(10,443,975)

28,577

(32,882)

—

a

—

—

Franklin

FTSE

Japan

ETF

.....

14,977,315

3,228,547

(18,471,133)

1,719,910

(1,454,639)

—

a

—

—

Franklin

Growth

Fund,

Class

R6

.

248,864,005

—

(22,897,016)

4,054,374

23,600,664

253,622,027

1,673,189

—

Franklin

International

Growth

Fund,

Class

R6

................

31,172,245

—

(8,350,144)

2,675,839

(1,157,305)

24,340,635

1,069,448

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

5,437,401

22,501,167

(12,744,151)

13,668

72,889

15,280,974

575,663

462,259

Franklin

Liberty

International

Aggregate

Bond

ETF

........

18,704,049

863,700

(4,557,461)

(60,610)

(274,009)

14,675,669

584,688

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

13,319,310

1,295,873

(2,232,624)

(83,883)

(327,922)

11,970,754

456,899

193,723

Franklin

Liberty

Senior

Loan

ETF

—

14,177,485

(2,379,813)

(6,111)

(45,918)

11,745,643

470,956

158,136

Franklin

Liberty

Short

Duration

U.S.

Government

ETF

...........

13,416,969

—

(13,367,156)

(38,460)

(11,353)

—

a

—

23,481

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

5,628,429

1,556,306

—

—

57,600

7,242,335

362,937

86,556

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

79,864,061

24,076,788

(25,707,889)

60,149

(2,049,510)

76,243,599

2,988,773

800,419

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

17,377,414

11,396,475

(14,519,274)

(790,108)

156,412

13,620,919

564,696

187,818

Franklin

LibertyQ

U.S.

Equity

ETF

179,207,916

26,214,245

(130,373,801)

22,276,196

(3,437,945)

93,886,611

2,193,100

1,074,035

3.Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

56

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

Franklin

Growth

Allocation

Fund

so

that

the

operating expenses

(excluding

distribution

fees,

and

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.45%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2022.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

period ended

June

30,

2021,

there

were

no

credits

earned.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Growth

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Franklin

Low

Duration

Total

Return

Fund,

Class

R6

............

$

14,927,981

$

32,646

$

(14,976,050)

$

166,008

$

(150,585)

$

—

a

—

$

47,256

Franklin

Rising

Dividends

Fund,

Class

R6

................

123,829,549

—

(128,460,585)

75,672,210

(71,041,174)

—

a

—

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

100,628,160

(89,656,049)

—

—

10,972,111

10,972,111

371

Templeton

Developing

Markets

Trust,

Class

R6

............

33,686,403

1,276,070

(814,323)

115,362

2,589,596

36,853,108

1,353,898

—

Templeton

Foreign

Fund,

Class

R6

42,607,247

14,414,224

(959,557)

82,756

4,507,393

60,652,063

7,805,928

—

Templeton

Global

Total

Return

Fund,

Class

R6

............

13,148,651

217,399

(12,807,597)

(1,511,992)

953,539

—

a

—

217,399

Western

Asset

Core

Plus

Bond

Fund,

Class

S

.............

—

17,038,592

—

—

189

17,038,781

1,407,001

99,923

b

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

10,115,785

—

—

(25,640)

10,090,145

2,567,467

13,768

Total

Non-Controlled

Affiliates

$864,122,785

$265,758,380

$(513,718,598)

$104,373,885

$(47,746,304)

$672,790,148

$3,475,229

Total

Affiliated

Securities

....

$1,257,730,336

$519,672,539

$(553,753,966)

$109,578,914

$14,661,324

$1,347,889,147

$6,621,089

a

As

of

June

30,

2021,

no

longer

held

by

the

fund.

b

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

the

Statement

of

Operations.

3.Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

57

franklintempleton.com

Semiannual

Report

5.

Income

Taxes

At

June

30,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

return

of

capital

distributions

and

short

term

capital

gains

distributions

from

Underlying

Funds.

6.

Investment

Transactions

Purchases

and

sales

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

period

ended

June

30,

2021,

were

as

follows:

7. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

8.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

4,

2022.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2021,

the

Funds

did

not

use

the

Global

Credit

Facility.

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

a

a

a

a

Cost

of

investments

.......................

$1,156,559,118

$1,699,238,084

$1,099,342,076

Unrealized

appreciation

.....................

$193,075,232

$426,027,907

$382,039,503

Unrealized

depreciation

.....................

(11,262,435)

(17,199,627)

(7,535,684)

Net

unrealized

appreciation

(depreciation)

.......

$181,812,797

$408,828,280

$374,503,819

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Purchases

..............................

$655,739,503

$813,852,038

$579,047,156

Sales

..................................

$642,453,611

$850,361,486

$616,739,085

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

58

franklintempleton.com

Semiannual

Report

9.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2021,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

10.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provides

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

and

2023. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

Level

1

Level

2

Level

3

Total

Franklin

Conservative

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

1,328,715,114

$

—

$

—

$

1,328,715,114

Short

Term

Investments

...................

8,899,365

757,436

—

9,656,801

Total

Investments

in

Securities

...........

$1,337,614,479

$757,436

$—

$1,338,371,915

Franklin

Moderate

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

2,094,576,929

—

—

2,094,576,929

Short

Term

Investments

...................

12,211,396

1,278,039

—

13,489,435

Total

Investments

in

Securities

...........

$2,106,788,325

$1,278,039

$—

$2,108,066,364

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,462,317,879

—

—

1,462,317,879

Short

Term

Investments

...................

10,972,111

555,905

—

11,528,016

Total

Investments

in

Securities

...........

$1,473,289,990

$555,905

$—

$1,473,845,895

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

59

franklintempleton.com

Semiannual

Report

11.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure,

except

for

the

following:

On

July

14,

2021,

the

Board

approved

a

change

to

the

automatic

conversion

feature

for

Class

C

that

will

convert

shareholders’

Class

C

shares

into

Class

A

after

they

have

been

held

for

8

years.

The

change

will

become

effective

August

2,

2021.

Further

details

are

disclosed

in

the

Fund’s

Prospectus.

Abbreviations

Selected

Portfolio

ETF

Exchange-Traded

Fund

Franklin

Fund

Allocator

Series

Shareholder

Information

60

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

(each

a

Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

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business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Franklin

Conservative

Allocation

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

conservative

funds.

The

Performance

Universe

for

the

Franklin

Moderate

Allocation

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

moderate

funds.

The

Performance

Universe

for

the

Franklin

Growth

Allocation

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-

asset

target

allocation

growth

funds.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

10-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

the

other

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Franklin

Conservative

Allocation

Fund

included

the

Fund,

three

other

mixed-asset

target

allocation

conservative

funds,

and

four

mixed-asset

target

allocation

moderate

funds.

The

Expense

Group

for

the

Franklin

Moderate

Allocation

Fund

included

the

Fund,

two

other

mixed-asset

target

allocation

moderate

funds,

two

mixed-asset

target

allocation

conservative

funds,

and

four

mixed-asset

target

allocation

growth

funds.

The

Expense

Group

for

the

Franklin

Growth

Allocation

Fund

included

the

Fund,

four

other

mixed-asset

target

allocation

growth

funds,

two

mixed-asset

target

allocation

moderate

funds,

and

one

mixed-asset

target

allocation

aggressive

growth

fund.

The

Board

noted

that

the

Management

Rates

and

the

actual

total

expense

ratios

for

the

Funds

were

above

the

medians

and

in

the

fourth

and

fifth

(most

expensive)

quintiles

of

their

respective

Expense

Groups.

The

Board

discussed

these

expenses

with

management

and

management

noted

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

is

reasonable.

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Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that,

due

to

the

use

of

the

Management

Rate

for

allocation

services,

the

Funds

would

not

likely

experience

economies

of

scale.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program-

Funds

no

HLIM

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

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exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2021,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2020.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

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of

the

Trust’s

proxy

voting

records

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available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Trust

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

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the

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of

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and

Prospectuses

You

will

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or

receive

notice

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availability

of,

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Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

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identify

related

shareholders

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household

and

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called

“householding,”

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please

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At

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prospectuses

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If

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choose,

you

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electronic

delivery.

FAS

S

08/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

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summary

prospectus

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prospectus.

Investors

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a

fund’s

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goals,

risks,

charges

and

expenses

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investing.

A

prospectus

contains

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and

other

information;

please

read

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investing.

To

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quality

service,

all

calls

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and

from

our

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areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

June

30,

2021

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Formerly,

Franklin

Founding

Funds

Allocation

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Not

part

of

the

semiannual

report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

June

30,

2021,

the

U.S.

economy

continued

to

recover

from

the

effects

of

the

coronavirus

(COVID-19)

pandemic.

The

recovery

accelerated

in

2021’s

first

quarter,

with

total

U.S.

economic

output

nearly

reaching

pre-pandemic

levels.

The

lifting

of

restrictions,

solid

vaccination

rates,

additional

fiscal

stimulus

measures

and

steady

improvement

in

consumer

confidence

drove

spending

higher

and

fueled

optimism

about

the

ongoing

recovery.

During

the

period,

the

U.S.

Federal

Reserve

held

the

federal

funds

rate

unchanged

at

0.25%

to

support

credit

markets

and

U.S.

economic

activity,

and

it

continued

broad

quantitative

easing

and

its

policy

to

allow

more

flexibility

to

keep

interest

rates

low,

while

maintaining

a

2%

average

inflation

target.

Rebounding

global

economic

activity,

ongoing

monetary

and

fiscal

stimulus

measures,

easing

lockdown

restrictions

and

the

implementation

of

vaccination

programs

globally

led

many

equity

markets

to

reach

all-time

price

highs.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

+14.41%

(the

index

increasing

from

3,756.07

to

4,297.50).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

+12.16%

(the

index

increasing

from

2,690.044

to

3,017.228).

2,3

Investment-

grade

bonds,

as

measured

by

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-1.60%

total

return

(an

index

decrease

from

2,392.02

to

2,353.64),

which

includes

reinvestment

of

income

and

distributions.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well-

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

semiannual

report

includes

more

detail

about

prevailing

conditions

and

a

discussion

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

assisting

your

future

investment

plans.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2021

,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2021,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

+15.25%

(index

total

return

resulting

in

an

increase

from

7,759.35

to

8,942.78)

and

MSCI

World

Index

+13.33%

(index

total

return

resulting

in

an

increase

from

11,625.199

to

13,174.277).

4.

Sources:

Morningstar

and

Bloomberg

Barclays

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

Corefolio

Allocation

Fund

4

Franklin

Global

Allocation

Fund

8

Financial

Highlights

and

Statements

of

Investments

13

Financial

Statements

33

Notes

to

Financial

Statements

37

Shareholder

Information

51

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

+12.30%

total

return

for

the

six

months

ended

June

30,

2021.

1

Global

equities

benefited

from

monetary

and

fiscal

stimulus

measures,

rebounding

economic

activity

and

easing

novel

coronavirus

(COVID-19)

pandemic

restrictions

in

many

regions.

The

implementation

of

vaccination

programs

and

additional

fiscal

stimulus

measures

led

many

equity

markets

to

reach

new

all-time

price

highs.

In

the

U.S.,

the

economy

continued

to

recover

and

equities

rallied

amid

an

accommodative

monetary

policy,

additional

fiscal

stimulus

measures

and

ongoing

vaccination

programs.

The

lifting

of

many

COVID-19

restrictions

and

strong

consumer

spending

also

supported

the

economy.

Gross

domestic

product

(GDP)

growth

accelerated

in

2021’s

first

quarter,

with

total

economic

output

nearly

reaching

pre-

pandemic

levels.

The

rebound

in

corporate

earnings

and

progress

toward

a

bipartisan

infrastructure

plan

further

bolstered

investor

sentiment.

The

U.S.

Federal

Reserve

kept

the

federal

funds

target

rate

at

a

record-low

range

of

0.00%–0.25%

and

continued

its

program

of

open-ended

bond

purchases

to

help

keep

markets

functioning.

The

economic

recovery

in

the

eurozone

was

relatively

weak,

as

quarter-over-quarter

GDP

growth

contracted

during

2021’s

first

quarter.

GDP

growth

rates

were

mostly

negative

among

the

region’s

largest

economies

amid

renewed

lockdowns,

delays

in

COVID-19

vaccine

distribution

and

weak

consumer

spending.

Nevertheless,

optimism

that

successful

vaccine

programs

would

lift

global

growth

helped

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

to

post

a

+11.80%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

+4.54%

total

return

for

the

six-month

period.

1

The

region’s

economic

recovery

was

pressured

by

weak

domestic

demand,

most

notably

in

China,

despite

improvement

in

manufacturing

and

exports.

Asian

equity

markets

experienced

volatility

near

period-end

due

to

inflation

concerns,

rising

COVID-19

infection

rates

in

many

countries,

especially

India,

and

renewed

lockdowns.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

+7.45%

total

return

for

the

six

months

under

review.

1

The

recovery

in

oil

and

industrial

metals

prices

supported

global

emerging

market

equities.

Late

in

the

period,

higher

COVID-19

cases

in

some

countries,

limited

vaccine

rollouts

and

concerns

about

rising

interest

rates

and

inflation

amid

higher

commodity

prices

dampened

investor

enthusiasm

in

global

emerging

market

equities.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

June

30,

2021.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source.

Morningstar.

4

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

This

semiannual

report

for

Franklin

Corefolio

Allocation

Fund

covers

the

period

ended

June

30,

2021

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

through

investments

in

a

combination

of

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+12.16%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

benchmarks,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+15.25%

cumulative

total

return,

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+13.33%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

The

Fund

invests

its

assets

allocated

approximately

25%

each

in

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

These

underlying

funds,

in

turn,

invest

primarily

in

U.S.

and

foreign

equity

securities

and,

to

a

lesser

extent,

fixed

income

and

money

market

securities.

As

market

conditions

affect

the

underlying

funds,

we

rebalance

the

Fund’s

allocations

to

maintain

the

predetermined

weightings

in

each

underlying

fund

whenever

the

actual

allocations

exceed

plus

or

minus

3%

of

the

fixed

allocation

percentages.

Portfolio

Review

The

Fund’s

performance

can

be

attributed

largely

to

maintaining

a

relatively

static

allocation

among

domestic

and

foreign

equities,

fixed

income

securities,

and

short-

term

investments

and

other

net

assets,

and

to

the

actual

performance

of

the

selected

underlying

funds.

During

the

period

under

review,

Franklin

Growth

Fund

–

Class

R6

and

Franklin

Growth

Opportunities

Fund

–

Class

R6

underperformed

the

S&P

500,

while

Franklin

Mutual

Shares

Fund

–

Class

R6

outperformed

the

index.

Templeton

Growth

Fund

–

Class

R6

underperformed

the

MSCI

World

Index.

Thank

you

for

your

continued

participation

in

Franklin

Corefolio

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Domestic

Equity

75.9%

Foreign

Equity

24.1%

Short-Term

Investments

&

Other

Net

Assets

—%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

distributions.

It

does

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

18

.

Performance

Summary

as

of

June

30,

2021

Franklin

Corefolio

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

6-Month

+12.16%

+5.97%

1-Year

+38.36%

+30.73%

5-Year

+101.83%

+13.79%

10-Year

+188.92%

+10.56%

Advisor

6-Month

+12.26%

+12.26%

1-Year

+38.71%

+38.71%

5-Year

+104.29%

+15.36%

10-Year

+196.69%

+11.49%

See

page

6

for

Performance

Summary

footnotes.

Franklin

Corefolio

Allocation

Fund

Performance

Summary

6

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

the

Fund

invests

in

underlying

funds

that

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

this

fund

of

funds

may

be

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility,

and

political

or

social

instability;

risks

which

are

height-

ened

in

developing

countries.

The

Fund

includes

investments

in

specialized

industry

sectors

such

as

the

technology

sector,

which

has

been

among

the

most

volatile

in

the

market.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0029

$0.6628

$0.6657

C

$0.0029

$0.6628

$0.6657

R

$0.0029

$0.6628

$0.6657

R6

$0.0029

$0.6628

$0.6657

Advisor

$0.0029

$0.6628

$0.6657

Total

Annual

Operating

Expenses

4

Share

Class

A

1.06%

Advisor

0.81%

Your

Fund’s

Expenses

Franklin

Corefolio

Allocation

Fund

7

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,121.60

$2.10

$1,022.81

$2.00

0.40%

C

$1,000

$1,117.10

$6.03

$1,019.10

$5.75

1.15%

R

$1,000

$1,120.10

$3.38

$1,021.61

$3.22

0.64%

R6

$1,000

$1,123.20

$0.45

$1,024.37

$0.43

0.09%

Advisor

$1,000

$1,122.60

$0.79

$1,024.05

$0.75

0.15%

8

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

Formerly,

Franklin

Founding

Funds

Allocation

Fund

This

semiannual

report

for

Franklin

Global

Allocation

Fund

covers

the

period

ended

June

30,

2021.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

that

is

consistent

with

an

acceptable

level

of

risk.

Under

normal

market

conditions,

the

Fund

invests

in

a

diversified

portfolio

of

debt

and

equity

securities

and,

to

a

lesser

extent,

alternative

strategies.

*The

portfolio

composition

is

based

on

the

Statement

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

**Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

SOI,

which

can

be

found

later

in

this

report.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+6.88%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

new

primary

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+12.30%

cumulative

total

return.

The

Fund’s

old

primary

benchmark,

the

Standard

&

Poor’s

500

Index

(S&P

500),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+15.25%

cumulative

total

return.

The

investment

manager

believes

the

composition

of

the

MSCI

ACWI-NR

more

accurately

reflects

the

Fund’s

holdings.

The

Fund’s

new

Custom

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Barclays

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents

(Blended

Benchmark)

posted

a

+6.24%

cumulative

total

return.

The

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+13.33%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

10

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

The

equity

securities

in

which

the

Fund

invests

are

primarily

common

stock

of

companies

in

any

economic

sector

or

market

capitalization.

The

debt

securities

in

which

the

Fund

may

invest

include

all

varieties

of

fixed,

floating

and

variable

rate

instruments.

Bond

investments

may

include

U.S.

and

foreign

corporate

debt,

U.S.

Treasuries

and

foreign

government

bonds.

The

Fund

will

invest

no

more

than

15%

of

its

assets

in

alternative

strategies,

which

may

include

investments

that

provide

exposure

to

commodities

such

as

commodity

future

and

commodity

exchange

traded

funds

(ETFs).

Manager’s

Discussion

From

January

1,

2021,

through

January

31,

2021,

the

Fund

followed

its

original

investment

strategies.

For

this

period,

the

Fund’s

performance

can

be

attributed

largely

to

maintaining

a

relatively

static

allocation

among

domestic

and

foreign

equities,

fixed

income

securities,

and

short-

term

investments

and

other

net

assets,

and

to

the

actual

performance

of

the

selected

underlying

funds.

For

the

first

month

of

the

period

under

review,

Franklin

Income

Fund

–

Class

R6

and

Franklin

Mutual

Shares

Fund

–

Class

R6

outperformed

the

S&P

500.

Templeton

Growth

Fund

–

Class

R6

underperformed

the

MSCI

World

Index.

Portfolio

Composition*

6/30/21

%

of

Total

Net

Assets

Diversified

Financial

Services

13.6%

Capital

Markets

10.9%

Banks

7.3%

Software

5.1%

Semiconductors

&

Semiconductor

Equipment

5.0%

Pharmaceuticals

4.2%

Oil,

Gas

&

Consumable

Fuels

3.3%

Interactive

Media

&

Services

3.1%

Specialty

Retail

2.9%

Metals

&

Mining

2.5%

Internet

&

Direct

Marketing

Retail

2.5%

IT

Services

2.3%

Insurance

2.1%

Other**

30.9%

Short-Term

Investments

&

Other

Net

Assets

4.3%

1.

Source:

FactSet.

The

Blended

Benchmark

was

calculated

internally.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Statement

of

Investments

(SOI).

The

SOI

begins

on

page

18

.

Franklin

Global

Allocation

Fund

9

franklintempleton.com

Semiannual

Report

Because

of

its

change

in

investment

strategy,

the

Fund

generally

held

different

investments

and

had

a

different

investment

profile

starting

on

February

1,

2021.

The

new

strategy

outperformed

its

Blended

Benchmark

during

the

five-month

period

of

February

through

June,

driven

by

our

overweighted

allocation

to

equity

markets

and

to

a

lesser

extent

our

underweighting

in

fixed

income.

On

an

absolute

basis,

equities

contributed

to

returns,

while

fixed

income

detracted

slightly.

The

Fund’s

holdings

in

global

equity

securities

performed

strongly,

led

by

our

holdings

in

the

U.S.

and

Europe,

while

emerging

market

equities

did

not

perform

well.

Individual

contributors

included

financial

institutions

Bank

of

America

and

JPMorgan

Chase,

energy

company

Canadian

Natural

Resources,

and

information

technology

companies

Microsoft,

Alphabet

and

Facebook.

Individual

detractors

were

concentrated

in

Chinese

equity

holdings

including

Alibaba

Group,

Tencent

Holdings

and

JD.com

amid

uncertainty

around

how

evolving

Chinese

regulation

might

impact

these

global

technology

companies.

Other

detractors

included

Japanese

video

game

developer

Nexon

and

global

IT

services

provider

Cognizant

Technology

Solutions.

Fixed

income

holdings

detracted

from

performance

as

our

holdings

in

developed

government

bonds

had

negative

returns

during

the

period,

particularly

Japanese

government

bonds

and

select

European

government

bonds,

more

than

offsetting

mildly

positive

returns

in

our

corporate

credit

holdings.

Thank

you

for

your

continued

participation

in

Franklin

Global

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Edward

D.

Perks,

CFA

Todd

Brighton,

CFA

Eugene

Podkaminer,

CFA

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2021,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

June

30,

2021

Franklin

Global

Allocation

Fund

10

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/21

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+6.88%

+0.97%

1-Year

+27.37%

+20.38%

5-Year

+41.80%

+6.02%

10-Year

+86.76%

+5.84%

Advisor

6-Month

+7.03%

+7.03%

1-Year

+27.65%

+27.65%

5-Year

+43.59%

+7.50%

10-Year

+91.42%

+6.71%

See

page

11

for

Performance

Summary

footnotes.

Franklin

Global

Allocation

Fund

Performance

Summary

11

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bonds

are

affected

by

changes

in

interest

rates

and

the

creditworthiness

of

their

issu-

ers.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Higher-yielding,

lower-rated

corporate

bonds

entail

a

greater

degree

of

credit

risk

compared

to

investment-grade

securities.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investments

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

In

addition

to

risks

associated

with

more

traditional

investments

(e.g.,

market

risk,

credit

risk,

etc.),

the

Fund’s

investments

in

alternative

strategies

may

expose

the

Fund

to

potentially

significant

fluctuations

in

value.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/22.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/21–6/30/21)

Share

Class

Net

Investment

Income

A

$0.1189

C

$0.0667

R

$0.1033

R6

$0.1404

Advisor

$0.1353

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.98%

1.02%

Advisor

0.73%

0.77%

Your

Fund’s

Expenses

Franklin

Global

Allocation

Fund

12

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/21

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

Ending

Account

Value

6/30/21

Expenses

Paid

During

Period

1/1/21–6/30/21

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,068.80

$4.27

$1,020.67

$4.17

0.83%

C

$1,000

$1,065.40

$8.08

$1,016.97

$7.90

1.58%

R

$1,000

$1,068.20

$5.55

$1,019.43

$5.42

1.08%

R6

$1,000

$1,070.60

$2.53

$1,022.35

$2.47

0.49%

Advisor

$1,000

$1,070.30

$2.98

$1,021.91

$2.91

0.58%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$21.92

$20.04

$17.32

$19.68

$17.06

$16.80

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.05)

0.12

0.20

0.17

0.17

0.14

Net

realized

and

unrealized

gains

(losses)

2.71

3.32

4.17

(1.51)

3.23

1.07

Total

from

investment

operations

........

2.66

3.44

4.37

(1.34)

3.40

1.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.18)

(0.20)

(0.15)

(0.18)

(0.17)

Net

realized

gains

.................

(0.66)

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...................

(0.66)

(1.56)

(1.65)

(1.02)

(0.78)

(0.95)

Net

asset

value,

end

of

period

..........

$23.92

$21.92

$20.04

$17.32

$19.68

$17.06

Total

return

e

.......................

12.16%

18.28%

25.79%

(7.10)%

20.07%

7.64%

Ratios

to

average

net

assets

f

Expenses

g

,h

........................

0.40%

0.43%

0.44%

0.41%

0.47%

0.45%

Net

investment

income

(loss)

..........

(0.40)%

0.64%

1.02%

0.76%

0.90%

0.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$901,952

$812,250

$717,806

$593,983

$579,707

$507,530

Portfolio

turnover

rate

................

—%

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$21.57

$19.76

$17.10

$19.43

$16.85

$16.61

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.13)

(0.03)

0.04

(0.10)

0.02

0.01

Net

realized

and

unrealized

gains

(losses)

2.65

3.25

4.12

(1.35)

3.19

1.05

Total

from

investment

operations

........

2.52

3.22

4.16

(1.45)

3.21

1.06

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.03)

(0.05)

(0.01)

(0.03)

(0.04)

Net

realized

gains

.................

(0.66)

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...................

(0.66)

(1.41)

(1.50)

(0.88)

(0.63)

(0.82)

Net

asset

value,

end

of

period

..........

$23.43

$21.57

$19.76

$17.10

$19.43

$16.85

Total

return

e

.......................

11.71%

17.41%

24.83%

(7.76)%

19.20%

6.82%

Ratios

to

average

net

assets

f

Expenses

g

,h

........................

1.15%

1.18%

1.19%

1.16%

1.22%

1.20%

Net

investment

income

(loss)

..........

(1.15)%

(0.18)%

0.27%

0.01%

0.15%

0.08%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$77,388

$73,513

$75,745

$72,124

$170,218

$160,729

Portfolio

turnover

rate

................

—%

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$21.95

$20.07

$17.34

$19.68

$17.06

$16.81

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.07)

0.07

0.14

0.10

0.12

0.10

Net

realized

and

unrealized

gains

(losses)

2.70

3.32

4.19

(1.48)

3.23

1.06

Total

from

investment

operations

........

2.63

3.39

4.33

(1.38)

3.35

1.16

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.13)

(0.15)

(0.09)

(0.13)

(0.13)

Net

realized

gains

.................

(0.66)

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...................

(0.66)

(1.51)

(1.60)

(0.96)

(0.73)

(0.91)

Net

asset

value,

end

of

period

..........

$23.92

$21.95

$20.07

$17.34

$19.68

$17.06

Total

return

e

.......................

12.01%

18.00%

25.51%

(7.30)%

19.79%

7.33%

Ratios

to

average

net

assets

f

Expenses

g

,h

........................

0.64%

0.67%

0.67%

0.65%

0.72%

0.70%

Net

investment

income

(loss)

..........

(0.64)%

0.38%

0.79%

0.52%

0.65%

0.58%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,620

$1,498

$1,387

$1,412

$1,629

$1,461

Portfolio

turnover

rate

................

—%

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.................

$21.97

$20.07

$17.34

$19.67

$19.18

Income

from

investment

operations

b

Net

investment

income

(loss)

c

,d

....................

(0.01)

0.21

0.70

0.27

0.26

Net

realized

and

unrealized

gains

(losses)

...........

2.71

3.31

3.75

(1.52)

0.73

Total

from

investment

operations

....................

2.70

3.52

4.45

(1.25)

0.99

Less

distributions

from:

Net

investment

income

..........................

(—)

e

(0.24)

(0.27)

(0.21)

(0.25)

Net

realized

gains

.............................

(0.66)

(1.38)

(1.45)

(0.87)

(0.25)

Total

distributions

...............................

(0.66)

(1.62)

(1.72)

(1.08)

(0.50)

Net

asset

value,

end

of

period

......................

$24.01

$21.97

$20.07

$17.34

$19.67

Total

return

f

....................................

12.32%

18.69%

26.24%

(6.78)%

5.28%

Ratios

to

average

net

assets

g

Expenses

before

waiver

and

payments

by

affiliates

h

.....

0.12%

0.13%

0.12%

0.23%

3.47%

Expenses

net

of

waiver

and

payments

by

affiliates

h

......

0.09%

0.09%

0.09%

0.09%

0.08%

Net

investment

income

(loss)

......................

(0.09)%

1.05%

1.37%

1.08%

1.29%

Supplemental

data

Net

assets,

end

of

period

(000’s)

....................

$5,106

$4,393

$3,385

$75

$5

Portfolio

turnover

rate

............................

—%

9.29%

2.12%

3.94%

0.71%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

e

Amount

rounds

to

less

than

$0.01

per

share.

f

Total

return

is

not

annualized

for

periods

less

than

one

year.

g

Ratios

are

annualized

for

periods

less

than

one

year.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$21.98

$20.08

$17.35

$19.71

$17.08

$16.82

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.02)

0.17

0.27

0.24

0.25

0.21

Net

realized

and

unrealized

gains

(losses)

2.71

3.34

4.16

(1.53)

3.21

1.04

Total

from

investment

operations

........

2.69

3.51

4.43

(1.29)

3.46

1.25

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.23)

(0.25)

(0.20)

(0.23)

(0.21)

Net

realized

gains

.................

(0.66)

(1.38)

(1.45)

(0.87)

(0.60)

(0.78)

Total

distributions

...................

(0.66)

(1.61)

(1.70)

(1.07)

(0.83)

(0.99)

Net

asset

value,

end

of

period

..........

$24.01

$21.98

$20.08

$17.35

$19.71

$17.08

Total

return

e

.......................

12.26%

18.59%

26.10%

(6.85)%

20.40%

7.90%

Ratios

to

average

net

assets

f

Expenses

g

,h

........................

0.15%

0.18%

0.19%

0.16%

0.22%

0.20%

Net

investment

income

(loss)

..........

(0.15)%

0.90%

1.27%

1.01%

1.15%

1.08%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$66,691

$61,166

$52,512

$40,399

$33,607

$22,721

Portfolio

turnover

rate

................

—%

9.29%

2.12%

3.94%

0.71%

0.40%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63

%

for

the

period

ended

June

30,

2021.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

100.0%

Domestic

Equity

75.9%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,753,790

$

265,839,420

a

Franklin

Growth

Opportunities

Fund,

C

lass

R6

.............................

3,943,689

268,249,760

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

8,918,385

264,162,561

798,251,741

Foreign

Equity

24.1%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

10,021,366

254,041,621

Total

Investments

In

Underlying

Funds

(Cost

$597,776,103)

......................

1,052,293,362

a

a

a

a

Short

Term

Investments

0.0%

†

a

Money

Market

Funds

0.0%

†

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

...................

4

4

Total

Money

Market

Funds

(Cost

$4)

...........................................

4

Total

Short

Term

Investments

(Cost

$4

)

........................................

4

a

Total

Investments

(Cost

$597,776,107)

100.0%

..................................

$1,052,293,366

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

464,304

Net

Assets

100.0%

...........................................................

$1,052,757,670

See

Abbreviations

on

page

50

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.49

$14.43

$12.63

$14.54

$13.47

$12.14

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.10

0.34

0.42

0.41

0.40

0.36

Net

realized

and

unrealized

gains

(losses)

0.83

(0.27)

1.82

(1.82)

1.10

1.26

Total

from

investment

operations

........

0.93

0.07

2.24

(1.41)

1.50

1.62

Less

distributions

from:

Net

investment

income

..............

(0.12)

(0.47)

(0.44)

(0.50)

(0.43)

(0.29)

Net

realized

gains

.................

—

(0.54)

—

—

—

—

Total

distributions

...................

(0.12)

(1.01)

(0.44)

(0.50)

(0.43)

(0.29)

Net

asset

value,

end

of

period

..........

$14.30

$13.49

$14.43

$12.63

$14.54

$13.47

Total

return

d

.......................

6.88%

1.55%

17.81%

(9.82)%

11.20%

13.52%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.90%

0.42%

0.40%

0.39%

0.43%

0.42%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.83%

0.42%

g

0.40%

g

0.39%

g

0.43%

g

0.42%

g

Net

investment

income

c

...............

1.50%

2.73%

2.99%

2.66%

2.81%

2.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,966,135

$2,952,287

$3,397,662

$3,209,751

$3,300,005

$3,310,397

Portfolio

turnover

rate

................

85.75%

h

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.14%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

note

8.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.40

$14.33

$12.54

$14.33

$13.27

$11.96

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.05

0.23

0.29

0.18

0.28

0.26

Net

realized

and

unrealized

gains

(losses)

0.83

(0.26)

1.82

(1.67)

1.10

1.25

Total

from

investment

operations

........

0.88

(0.03)

2.11

(1.49)

1.38

1.51

Less

distributions

from:

Net

investment

income

..............

(0.07)

(0.36)

(0.32)

(0.30)

(0.32)

(0.20)

Net

realized

gains

.................

—

(0.54)

—

—

—

—

Total

distributions

...................

(0.07)

(0.90)

(0.32)

(0.30)

(0.32)

(0.20)

Net

asset

value,

end

of

period

..........

$14.21

$13.40

$14.33

$12.54

$14.33

$13.27

Total

return

d

.......................

6.54%

0.79%

16.91%

(10.54)%

10.43%

12.71%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.65%

1.17%

1.15%

1.14%

1.18%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.58%

1.17%

g

1.15%

g

1.14%

g

1.18%

g

1.17%

g

Net

investment

income

c

...............

0.75%

1.85%

2.24%

1.91%

2.06%

2.12%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$184,023

$201,506

$300,699

$362,833

$1,261,997

$1,402,623

Portfolio

turnover

rate

................

85.75%

h

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.14%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

note

8.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.54

$14.48

$12.68

$14.58

$13.49

$12.16

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.31

0.37

0.34

0.34

0.33

Net

realized

and

unrealized

gains

(losses)

0.83

(0.28)

1.83

(1.78)

1.13

1.26

Total

from

investment

operations

........

0.92

0.03

2.20

(1.44)

1.47

1.59

Less

distributions

from:

Net

investment

income

..............

(0.10)

(0.43)

(0.40)

(0.46)

(0.38)

(0.26)

Net

realized

gains

.................

—

(0.54)

—

—

—

—

Total

distributions

...................

(0.10)

(0.97)

(0.40)

(0.46)

(0.38)

(0.26)

Net

asset

value,

end

of

period

..........

$14.36

$13.54

$14.48

$12.68

$14.58

$13.49

Total

return

d

.......................

6.82%

1.28%

17.44%

(10.01)%

10.97%

13.22%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.15%

0.67%

0.65%

0.64%

0.68%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.08%

0.67%

g

0.65%

g

0.64%

g

0.68%

g

0.67%

g

Net

investment

income

c

...............

1.25%

2.47%

2.74%

2.41%

2.56%

2.62%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$5,117

$4,975

$5,699

$5,513

$7,843

$10,776

Portfolio

turnover

rate

................

85.75%

h

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.14%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

note

8.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.................

$13.89

$14.81

$12.95

$14.62

$14.46

Income

from

investment

operations

b

:

Net

investment

income

c,d

........................

0.13

0.96

0.46

0.37

0.30

Net

realized

and

unrealized

gains

(losses)

...........

0.85

(0.83)

1.88

(1.75)

0.06

Total

from

investment

operations

....................

0.98

0.13

2.34

(1.38)

0.36

Less

distributions

from:

Net

investment

income

..........................

(0.14)

(0.51)

(0.48)

(0.29)

(0.20)

Net

realized

gains

.............................

—

(0.54)

—

—

—

Total

distributions

...............................

(0.14)

(1.05)

(0.48)

(0.29)

(0.20)

Net

asset

value,

end

of

period

......................

$14.73

$13.89

$14.81

$12.95

$14.62

Total

return

e

...................................

7.06%

1.94%

18.18%

(9.57)%

2.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

.....

0.62%

0.21%

3.23%

0.08%

4.28%

Expenses

net

of

waiver

and

payments

by

affiliates

g

......

0.49%

0.07%

0.07%

0.07%

0.06%

Net

investment

income

...........................

1.85%

7.33%

3.32%

2.98%

3.18%

Supplemental

data

Net

assets,

end

of

period

(000’s)

....................

$517

$631

$5

$4

$5

Portfolio

turnover

rate

............................

85.75%

h

4.07%

0.29%

0.73%

0.48%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.14%

for

the

period

ended

June

30,

2021.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

note

8.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

2019

2018

2017

2016

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.58

$14.52

$12.71

$14.63

$13.54

$12.20

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.12

0.37

0.45

0.43

0.46

0.40

Net

realized

and

unrealized

gains

(losses)

0.84

(0.27)

1.83

(1.81)

1.10

1.26

Total

from

investment

operations

........

0.96

0.10

2.28

(1.38)

1.56

1.66

Less

distributions

from:

Net

investment

income

..............

(0.14)

(0.50)

(0.47)

(0.54)

(0.47)

(0.32)

Net

realized

gains

.................

—

(0.54)

—

—

—

—

Total

distributions

...................

(0.14)

(1.04)

(0.47)

(0.54)

(0.47)

(0.32)

Net

asset

value,

end

of

period

..........

$14.40

$13.58

$14.52

$12.71

$14.63

$13.54

Total

return

d

.......................

7.03%

1.79%

18.06%

(9.60)%

11.58%

13.82%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.65%

0.17%

0.15%

0.14%

0.18%

0.17%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.58%

0.17%

g

0.15%

g

0.14%

g

0.18%

g

0.17%

g

Net

investment

income

c

...............

1.75%

2.89%

3.24%

2.91%

3.06%

3.12%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$120,642

$123,049

$156,275

$145,522

$174,219

$131,368

Portfolio

turnover

rate

................

85.75%

h

4.07%

0.29%

0.73%

0.48%

0.06%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.14%

for

the

period

ended

June

30,

2021.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

See

note

8.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited),

June

30,

2021

Franklin

Global

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

67.3%

Aerospace

&

Defense

0.8%

Raytheon

Technologies

Corp.

............................

United

States

312,000

$

26,616,720

Air

Freight

&

Logistics

1.0%

Deutsche

Post

AG

.....................................

Germany

260,000

17,708,720

United

Parcel

Service,

Inc.,

B

............................

United

States

64,600

13,434,862

31,143,582

Automobiles

1.1%

Daimler

AG

..........................................

Germany

187,000

16,711,474

Toyota

Motor

Corp.

....................................

Japan

227,400

19,879,755

36,591,229

Banks

4.9%

Banco

Bilbao

Vizcaya

Argentaria

SA

.......................

Spain

3,620,000

22,456,707

Bank

of

America

Corp.

.................................

United

States

820,100

33,812,723

Citigroup,

Inc.

........................................

United

States

79,300

5,610,475

Commonwealth

Bank

of

Australia

.........................

Australia

175,000

13,101,842

HSBC

Holdings

plc

....................................

United

Kingdom

1,470,000

8,484,731

JPMorgan

Chase

&

Co.

.................................

United

States

275,300

42,820,162

Royal

Bank

of

Canada

.................................

Canada

118,000

11,953,717

US

Bancorp

.........................................

United

States

419,000

23,870,430

162,110,787

Beverages

1.5%

Coca-Cola

Co.

(The)

...................................

United

States

338,000

18,289,180

Constellation

Brands,

Inc.,

A

.............................

United

States

56,700

13,261,563

PepsiCo,

Inc.

........................................

United

States

117,000

17,335,890

48,886,633

Biotechnology

0.9%

AbbVie,

Inc.

.........................................

United

States

272,000

30,638,080

Building

Products

0.5%

Trane

Technologies

plc

.................................

United

States

85,000

15,651,900

Capital

Markets

1.6%

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

82,000

4,881,410

Morgan

Stanley

.......................................

United

States

285,000

26,131,650

S&P

Global,

Inc.

......................................

United

States

50,700

20,809,815

51,822,875

Chemicals

0.8%

BASF

SE

...........................................

Germany

177,000

13,973,518

Linde

plc

............................................

United

Kingdom

44,000

12,720,400

26,693,918

Communications

Equipment

0.4%

Cisco

Systems,

Inc.

...................................

United

States

242,500

12,852,500

Diversified

Telecommunication

Services

0.3%

Verizon

Communications,

Inc.

............................

United

States

200,500

11,234,015

Electric

Utilities

1.8%

Duke

Energy

Corp.

....................................

United

States

260,000

25,667,200

Iberdrola

SA

.........................................

Spain

1,040,000

12,683,514

NextEra

Energy,

Inc.

...................................

United

States

132,000

9,672,960

Southern

Co.

(The)

....................................

United

States

184,000

11,133,840

59,157,514

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electrical

Equipment

0.5%

Mitsubishi

Electric

Corp.

................................

Japan

1,132,600

$

16,443,705

Electronic

Equipment,

Instruments

&

Components

0.4%

TE

Connectivity

Ltd.

...................................

United

States

93,000

12,574,530

Entertainment

1.2%

Electronic

Arts,

Inc.

....................................

United

States

87,000

12,513,210

Nexon

Co.

Ltd.

.......................................

Japan

330,500

7,355,780

Nintendo

Co.

Ltd.

.....................................

Japan

32,100

18,577,076

38,446,066

Equity

Real

Estate

Investment

Trusts

(REITs)

1.1%

Alexander's,

Inc.

......................................

United

States

12,678

3,397,070

American

Tower

Corp.

..................................

United

States

61,500

16,613,610

Prologis,

Inc.

.........................................

United

States

136,000

16,256,080

36,266,760

Food

&

Staples

Retailing

0.6%

Walmart,

Inc.

........................................

United

States

140,200

19,771,004

Food

Products

1.0%

Mondelez

International,

Inc.,

A

............................

United

States

250,000

15,610,000

Nestle

SA

...........................................

Switzerland

137,641

17,156,549

32,766,549

Health

Care

Equipment

&

Supplies

0.7%

Danaher

Corp.

.......................................

United

States

46,000

12,344,560

Medtronic

plc

........................................

United

States

98,000

12,164,740

24,509,300

Health

Care

Providers

&

Services

1.6%

Anthem,

Inc.

.........................................

United

States

46,900

17,906,420

UnitedHealth

Group,

Inc.

................................

United

States

84,000

33,636,960

51,543,380

Hotels,

Restaurants

&

Leisure

0.4%

McDonald's

Corp.

.....................................

United

States

53,000

12,242,470

Household

Durables

0.6%

Sony

Group

Corp.

.....................................

Japan

192,000

18,619,391

Household

Products

0.9%

Procter

&

Gamble

Co.

(The)

.............................

United

States

208,000

28,065,440

Industrial

Conglomerates

1.7%

Hitachi

Ltd.

..........................................

Japan

284,000

16,276,704

Honeywell

International,

Inc.

.............................

United

States

110,500

24,238,175

Siemens

AG

.........................................

Germany

95,697

15,195,935

55,710,814

Insurance

2.0%

AIA

Group

Ltd.

.......................................

Hong

Kong

897,000

11,127,733

Allianz

SE

...........................................

Germany

25,000

6,239,450

MetLife,

Inc.

.........................................

United

States

273,300

16,357,005

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

..

Germany

38,000

10,415,188

Ping

An

Insurance

Group

Co.

of

China

Ltd.,

H

................

China

950,000

9,286,568

Sun

Life

Financial,

Inc.

.................................

Canada

253,000

13,044,372

66,470,316

Interactive

Media

&

Services

2.9%

a

Alphabet,

Inc.,

A

......................................

United

States

16,900

41,266,251

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Interactive

Media

&

Services

(continued)

a

Baidu,

Inc.,

ADR

......................................

China

45,000

$

9,175,500

a

Facebook,

Inc.,

A

.....................................

United

States

82,000

28,512,220

Tencent

Holdings

Ltd.

..................................

China

230,000

17,317,166

96,271,137

Internet

&

Direct

Marketing

Retail

2.3%

a

Alibaba

Group

Holding

Ltd.,

ADR

.........................

China

82,400

18,686,672

a

Amazon.com,

Inc.

.....................................

United

States

13,000

44,722,080

a

JD.com,

Inc.,

ADR

.....................................

China

151,100

12,059,291

75,468,043

IT

Services

2.3%

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

274,200

18,991,092

Fujitsu

Ltd.

..........................................

Japan

107,000

20,021,390

Mastercard

,

Inc.,

A

....................................

United

States

66,000

24,095,940

Visa,

Inc.,

A

..........................................

United

States

54,000

12,626,280

75,734,702

Life

Sciences

Tools

&

Services

0.4%

a

Illumina,

Inc.

.........................................

United

States

29,000

13,723,090

Machinery

1.5%

Deere

&

Co.

.........................................

United

States

65,000

22,926,150

Stanley

Black

&

Decker,

Inc.

.............................

United

States

68,300

14,000,817

Volvo

AB,

B

..........................................

Sweden

490,000

11,809,547

48,736,514

Marine

0.5%

AP

Moller

-

Maersk

A/S,

B

...............................

Denmark

5,655

16,281,922

Media

0.4%

Comcast

Corp.,

A

.....................................

United

States

217,700

12,413,254

Metals

&

Mining

2.4%

Agnico

Eagle

Mines

Ltd.

................................

Canada

210,000

12,697,399

BHP

Group

plc

.......................................

Australia

665,000

19,679,420

Fortescue

Metals

Group

Ltd.

.............................

Australia

380,000

6,636,864

Newmont

Corp.

.......................................

United

States

220,000

13,943,600

Rio

Tinto

plc

.........................................

Australia

322,000

26,595,106

79,552,389

Multiline

Retail

0.8%

a

Dollar

Tree,

Inc.

......................................

United

States

76,900

7,651,550

Target

Corp.

.........................................

United

States

78,000

18,855,720

26,507,270

Multi-Utilities

0.6%

Dominion

Energy,

Inc.

..................................

United

States

150,000

11,035,500

RWE

AG

............................................

Germany

275,000

9,971,571

21,007,071

Oil,

Gas

&

Consumable

Fuels

2.9%

Canadian

Natural

Resources

Ltd.

.........................

Canada

612,000

22,214,156

Chevron

Corp.

.......................................

United

States

305,000

31,945,700

Eni

SpA

............................................

Italy

1,850,000

22,556,255

TotalEnergies

SE

.....................................

France

410,000

18,575,304

95,291,415

Personal

Products

0.3%

Unilever

plc

..........................................

United

Kingdom

187,000

10,927,871

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Pharmaceuticals

4.0%

AstraZeneca

plc

......................................

United

Kingdom

207,000

$

24,871,652

Bristol-Myers

Squibb

Co.

................................

United

States

260,000

17,373,200

Eisai

Co.

Ltd.

........................................

Japan

236,000

23,195,523

Eli

Lilly

&

Co.

........................................

United

States

27,800

6,380,656

Johnson

&

Johnson

...................................

United

States

100,000

16,474,000

Novo

Nordisk

A/S,

B

...................................

Denmark

215,000

17,999,225

Pfizer,

Inc.

...........................................

United

States

305,000

11,943,800

Takeda

Pharmaceutical

Co.

Ltd.

..........................

Japan

399,500

13,408,657

131,646,713

Road

&

Rail

1.2%

Canadian

National

Railway

Co.

...........................

Canada

135,000

14,242,105

Union

Pacific

Corp.

....................................

United

States

107,000

23,532,510

37,774,615

Semiconductors

&

Semiconductor

Equipment

5.0%

Analog

Devices,

Inc.

...................................

United

States

100,000

17,216,000

Applied

Materials,

Inc.

..................................

United

States

145,000

20,648,000

Broadcom,

Inc.

.......................................

United

States

35,000

16,689,400

Lam

Research

Corp.

...................................

United

States

17,000

11,061,900

NVIDIA

Corp.

........................................

United

States

20,000

16,002,000

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

250,000

30,040,000

Texas

Instruments,

Inc.

.................................

United

States

158,100

30,402,630

Tokyo

Electron

Ltd.

....................................

Japan

47,500

20,540,107

162,600,037

Software

5.1%

a

Adobe,

Inc.

..........................................

United

States

39,000

22,839,960

Intuit,

Inc.

...........................................

United

States

38,000

18,626,460

Microsoft

Corp.

.......................................

United

States

225,000

60,952,500

Oracle

Corp.

.........................................

United

States

186,000

14,478,240

a

salesforce.com,

Inc.

...................................

United

States

47,000

11,480,690

a

ServiceNow

,

Inc.

......................................

United

States

25,000

13,738,750

a

Synopsys,

Inc.

.......................................

United

States

50,000

13,789,500

a

Workday,

Inc.,

A

......................................

United

States

51,000

12,175,740

168,081,840

Specialty

Retail

2.9%

Home

Depot,

Inc.

(The)

.................................

United

States

59,000

18,814,510

Lowe's

Cos.,

Inc.

......................................

United

States

114,000

22,112,580

a

O'Reilly

Automotive,

Inc.

................................

United

States

28,000

15,853,880

TJX

Cos.,

Inc.

(The)

...................................

United

States

232,700

15,688,634

Tractor

Supply

Co.

....................................

United

States

118,000

21,955,080

94,424,684

Technology

Hardware,

Storage

&

Peripherals

1.3%

Apple,

Inc.

..........................................

United

States

300,000

41,088,000

Textiles,

Apparel

&

Luxury

Goods

0.8%

NIKE,

Inc.,

B

.........................................

United

States

164,000

25,336,360

Trading

Companies

&

Distributors

0.6%

ITOCHU

Corp.

.......................................

Japan

625,600

18,053,128

Wireless

Telecommunication

Services

0.8%

KDDI

Corp.

..........................................

Japan

418,300

13,033,597

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Wireless

Telecommunication

Services

(continued)

Vodafone

Group

plc

...................................

United

Kingdom

7,250,000

$

12,152,096

25,185,693

Total

Common

Stocks

(Cost

$2,006,562,397)

....................................

2,202,935,226

Management

Investment

Companies

9.1%

Capital

Markets

9.1%

iShares

Core

MSCI

Emerging

Markets

ETF

..................

United

States

1,700,000

113,883,000

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

.........

United

States

280,000

31,488,800

b

Templeton

Global

Bond

Fund,

Class

R6

....................

United

States

13,256,436

122,754,598

VanEck

Vectors

J.P.

Morgan

EM

Local

Currency

Bond

ETF

......

United

States

985,000

30,909,300

299,035,698

Total

Management

Investment

Companies

(Cost

$305,172,097)

...................

299,035,698

Principal

Amount

*

Corporate

Bonds

4.1%

Automobiles

0.1%

Ford

Motor

Co.

,

Senior

Note

,

4.346

%

,

12/08/26

..............

United

States

1,207,000

1,294,520

Banks

1.5%

c

Australia

&

New

Zealand

Banking

Group

Ltd.

,

Sub.

Bond

,

144A,

2.57%

to

11/25/30,

FRN

thereafter

,

11/25/35

................

Australia

6,687,000

6,503,977

d

Bank

of

America

Corp.

,

U

,

Junior

Sub.

Bond

,

5.2%

to

6/01/23,

FRN

thereafter

,

Perpetual

.................................

United

States

3,994,000

4,157,255

Bank

of

Montreal

,

Senior

Note

,

1.85

%

,

5/01/25

...............

Canada

1,524,000

1,573,230

Barclays

plc

,

Senior

Note

,

2.852%

to

5/07/25,

FRN

thereafter

,

5/07/26

...........................................

United

Kingdom

6,250,000

6,606,453

HSBC

Holdings

plc

,

Sub.

Bond

,

4.25

%

,

8/18/25

...............

United

Kingdom

6,128,000

6,792,351

d

JPMorgan

Chase

&

Co.

,

Q

,

Junior

Sub.

Bond

,

5.15%

to

5/01/23,

FRN

thereafter

,

Perpetual

.............................

United

States

4,045,000

4,181,519

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Bond

,

3.287

%

,

7/25/27

Japan

1,690,000

1,861,274

c

Societe

Generale

SA

,

Senior

Note

,

144A,

2.625

%

,

1/22/25

......

France

6,354,000

6,633,146

Sumitomo

Mitsui

Financial

Group,

Inc.

,

Sub.

Bond

,

3.202

%

,

9/17/29

Japan

1,464,000

1,561,682

Toronto-Dominion

Bank

(The)

,

Sub.

Bond

,

3.105%

to

4/22/25,

FRN

thereafter

,

4/22/30

...................................

Canada

4,900,000

CAD

4,164,773

d

Wells

Fargo

&

Co.

,

S

,

Junior

Sub.

Bond

,

5.9%

to

6/15/24,

FRN

thereafter

,

Perpetual

.................................

United

States

1,504,000

1,621,500

Westpac

Banking

Corp.

,

Sub.

Bond

,

2.894%

to

2/04/25,

FRN

thereafter

,

2/04/30

...................................

Australia

1,503,000

1,560,745

47,217,905

Biotechnology

0.0%

†

c

Grifols

SA

,

Senior

Note

,

144A,

3.2

%

,

5/01/25

................

Spain

527,000

EUR

631,234

Capital

Markets

0.2%

Nomura

Holdings,

Inc.

,

Senior

Bond

,

3.103

%

,

1/16/30

..........

Japan

6,225,000

6,542,577

Chemicals

0.1%

c

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

1,258,000

1,313,931

c

INEOS

Quattro

Finance

1

plc

,

Senior

Note

,

144A,

3.75

%

,

7/15/26

United

Kingdom

1,051,000

EUR

1,284,575

2,598,506

Communications

Equipment

0.0%

†

c

CommScope

Technologies

LLC

,

Senior

Note

,

144A,

5

%

,

3/15/27

.

United

States

954,000

977,850

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

0.1%

c,d

Volkswagen

International

Finance

NV

,

Senior

Bond

,

Reg

S,

3.5%

to

6/17/25,

FRN

thereafter

,

Perpetual

.......................

Germany

3,200,000

EUR

$

4,104,692

Containers

&

Packaging

0.1%

c

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note

,

144A,

7.25%,

4/15/25

......................

United

States

954,000

936,828

Senior

Secured

Note,

144A,

5.5%,

4/15/24

................

United

States

313,000

316,521

c

Trivium

Packaging

Finance

BV

,

Senior

Secured

Note

,

144A,

3.75

%

,

8/15/26

...........................................

Netherlands

521,000

EUR

628,195

1,881,544

Diversified

Telecommunication

Services

0.1%

c

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

1,243,000

1,239,495

c

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp.

,

Senior

Bond

,

144A,

4.5

%

,

8/15/30

.................................

United

States

300,000

312,739

1,552,234

Health

Care

Providers

&

Services

0.1%

Centene

Corp.

,

Senior

Note

,

3.375

%

,

2/15/30

...............

United

States

1,523,000

1,594,086

c

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

950,000

996,916

Senior

Note,

144A,

6.875%,

4/01/28

.....................

United

States

687,000

680,525

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

1,162,000

1,253,525

4,525,052

Hotels,

Restaurants

&

Leisure

0.0%

†

c

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/25

.................................

United

States

915,000

987,550

Household

Products

0.2%

c

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

6,180,000

6,137,698

Independent

Power

and

Renewable

Electricity

Producers

0.0%

†

c

Calpine

Corp.

,

Senior

Secured

Note

,

144A,

4.5

%

,

2/15/28

.......

United

States

306,000

312,502

Insurance

0.1%

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.375%

to

5/15/25,

FRN

thereafter

,

5/15/45

...................................

United

States

4,060,000

4,505,359

Interactive

Media

&

Services

0.2%

c

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

......

China

6,290,000

6,274,085

Internet

&

Direct

Marketing

Retail

0.2%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond,

3.4%,

12/06/27

...........................

China

6,300,000

6,888,435

Senior

Bond,

2.125%,

2/09/31

..........................

China

750,000

738,009

7,626,444

Media

0.1%

DISH

DBS

Corp.

,

Senior

Note

,

5.875

%

,

11/15/24

.............

United

States

1,226,000

1,317,950

c

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

6/01/27

.....................................

United

States

1,210,000

1,312,608

c

Ziggo

BV

,

Senior

Secured

Bond

,

144A,

4.875

%

,

1/15/30

........

Netherlands

1,219,000

1,251,084

3,881,642

Metals

&

Mining

0.1%

c

Cleveland-Cliffs,

Inc.

,

Senior

Secured

Note

,

144A,

9.875

%

,

10/17/25

United

States

356,000

417,681

c

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Note

,

144A,

5.125

%

,

5/15/24

...........................................

Australia

3,217,000

3,506,530

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Metals

&

Mining

(continued)

Freeport-McMoRan,

Inc.

,

Senior

Note

,

4.125

%

,

3/01/28

.........

United

States

600,000

$

627,000

4,551,211

Oil,

Gas

&

Consumable

Fuels

0.2%

c

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note

,

144A,

11

%

,

4/15/25

........................

United

States

1,249,000

1,361,666

Occidental

Petroleum

Corp.

,

Senior

Note

,

5.55

%

,

3/15/26

.......

United

States

3,900,000

4,320,557

5,682,223

Paper

&

Forest

Products

0.2%

Suzano

Austria

GmbH

,

Senior

Bond

,

3.75

%

,

1/15/31

...........

Brazil

4,805,000

5,045,250

Pharmaceuticals

0.2%

AstraZeneca

plc

,

Senior

Bond

,

1.375

%

,

8/06/30

..............

United

Kingdom

4,595,000

4,351,931

c

Bausch

Health

Cos.,

Inc.

,

Senior

Bond

,

144A,

6.125

%

,

4/15/25

...

United

States

900,000

923,625

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

2.8

%

,

7/21/23

...........................................

Israel

970,000

967,808

6,243,364

Road

&

Rail

0.2%

c

Ashtead

Capital,

Inc.

,

Senior

Note

,

144A,

4

%

,

5/01/28

..........

United

Kingdom

6,220,000

6,554,325

Tobacco

0.1%

BAT

Capital

Corp.

,

Senior

Bond

,

2.726

%

,

3/25/31

.............

United

Kingdom

4,350,000

4,299,085

Total

Corporate

Bonds

(Cost

$134,203,460)

.....................................

133,426,852

a

Foreign

Government

and

Agency

Securities

8.0%

c

Australia

Government

Bond,

Reg

S,

1.5%,

6/21/31

............

Australia

12,170,000

AUD

9,138,789

c

Belgium

Government

Bond,

Reg

S,

4%,

3/28/32

..............

Belgium

3,150,000

EUR

5,311,001

c

Bundesrepublik

Deutschland,

Reg

S,

2%,

1/04/22

.............

Germany

6,455,000

EUR

7,760,235

Canada

Government

Bond

,

0.25%,

2/01/23

.....................................

Canada

4,100,000

CAD

3,300,107

5.75%,

6/01/33

.....................................

Canada

2,640,000

CAD

3,102,775

c

Canada

Housing

Trust

No.

1,

Senior

Bond,

144A,

2.65%,

12/15/28

Canada

18,100,000

CAD

15,734,408

European

Investment

Bank,

Senior

Bond,

2.125%,

4/13/26

......

Supranational

e

14,750,000

15,643,743

c

Finland

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

0.75%,

4/15/31

................

Finland

1,892,000

EUR

2,417,722

Senior

Bond,

144A,

Reg

S,

1.375%,

4/15/47

...............

Finland

1,567,000

EUR

2,270,287

c

France

Government

Bond

,

Reg

S,

Zero

Cpn

.,

2/25/22

.............................

France

6,530,000

EUR

7,777,525

Reg

S,

8.25%,

4/25/22

................................

France

2,484,897

EUR

3,161,602

Reg

S,

2.5%,

5/25/30

.................................

France

4,120,000

EUR

5,996,681

Reg

S,

Zero

Cpn

.,

11/25/30

............................

France

4,350,000

EUR

5,143,447

Reg

S,

1.5%,

5/25/31

.................................

France

4,410,000

EUR

5,973,373

c

Italy

Buoni

Poliennali

del

Tesoro

,

Reg

S,

5%,

3/01/22

..................................

Italy

6,133,000

EUR

7,540,349

Senior

Bond,

144A,

Reg

S,

4.75%,

9/01/44

................

Italy

1,860,000

EUR

3,529,846

Senior

Bond,

144A,

Reg

S,

3.25%,

9/01/46

................

Italy

1,884,000

EUR

2,934,625

Senior

Bond,

144A,

Reg

S,

1.7%,

9/01/51

.................

Italy

2,786,000

EUR

3,201,649

Japan

Government

Bond

,

2.3%,

9/20/26

......................................

Japan

7,580,000,000

JPY

76,790,090

0.5%,

9/20/46

......................................

Japan

1,435,000,000

JPY

12,686,935

Mexico

Government

Bond,

Senior

Bond,

4.125%,

1/21/26

.......

Mexico

13,950,000

15,780,101

c

Netherlands

Government

Bond

,

144A,

Reg

S,

Zero

Cpn

.,

1/15/22

........................

Netherlands

5,528,000

EUR

6,578,293

144A,

Reg

S,

0.5%,

1/15/40

............................

Netherlands

1,410,000

EUR

1,764,648

144A,

Reg

S,

3.75%,

1/15/42

...........................

Netherlands

865,000

EUR

1,761,267

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

Spain

Bonos

Y

Obligaciones

del

Estado

,

c

Senior

Bond,

144A,

Reg

S,

5.85%,

1/31/22

................

Spain

5,904,000

EUR

$

7,265,255

c

Senior

Bond,

144A,

Reg

S,

1.95%,

4/30/26

................

Spain

2,563,000

EUR

3,363,047

6%,

1/31/29

........................................

Spain

3,760,000

EUR

6,451,039

c

Senior

Bond,

144A,

Reg

S,

2.9%,

10/31/46

................

Spain

1,610,000

EUR

2,579,278

c

United

Kingdom

Gilt

,

Reg

S,

4%,

3/07/22

..................................

United

Kingdom

7,727,000

GBP

10,980,723

Reg

S,

1.5%,

7/22/47

.................................

United

Kingdom

5,110,000

GBP

7,481,131

Total

Foreign

Government

and

Agency

Securities

(Cost

$273,125,964)

............

263,419,971

U.S.

Government

and

Agency

Securities

4.6%

U.S.

Treasury

Notes

,

0.125%,

12/31/22

....................................

United

States

55,000,000

54,963,477

0.375%,

12/31/25

....................................

United

States

13,000,000

12,755,742

0.875%,

11/15/30

....................................

United

States

13,000,000

12,364,219

f

0.125%,

1/15/31

.....................................

United

States

63,000,000

71,187,418

Total

U.S.

Government

and

Agency

Securities

(Cost

$152,769,868)

................

151,270,856

Mortgage-Backed

Securities

2.6%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

2.6%

GNMA

II,

Single-family,

30

Year,

3%,

12/20/50

................

United

States

40,502,758

42,400,261

GNMA

II,

Single-family,

30

Year,

3%,

1/20/51

.................

United

States

40,582,863

42,460,433

84,860,694

Total

Mortgage-Backed

Securities

(Cost

$86,330,922)

............................

84,860,694

Total

Long

Term

Investments

(Cost

$2,958,164,708)

.............................

3,134,949,297

a

Short

Term

Investments

3.9%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

3.9%

b,g

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

128,995,085

128,995,085

Total

Money

Market

Funds

(Cost

$128,995,085)

.................................

128,995,085

Total

Short

Term

Investments

(Cost

$128,995,085

)

...............................

128,995,085

a

Total

Investments

(Cost

$3,087,159,793)

99.6%

..................................

$3,263,944,382

Other

Assets,

less

Liabilities

0.4%

.............................................

12,489,384

Net

Assets

100.0%

...........................................................

$3,276,433,766

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

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.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2021,

the

aggregate

value

of

these

securities

was

$186,518,684,

representing

5.7%

of

net

assets.

Franklin

Fund

Allocator

Series

Statement

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

At

June

30,

2021,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

See

Note

7

regardi

ng

other

derivative

information.

d

Perpetual

security

with

no

stated

maturity

date.

e

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

f

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(e).

g

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

British

Pound

......

JPHQ

Sell

53,168,982

75,495,541

8/19/21

$

1,935,670

$

—

Canadian

Dollar

....

BZWS

Sell

119,280,680

99,147,394

8/19/21

2,939,642

—

Euro

.............

BZWS

Sell

83,092,162

101,539,910

8/19/21

2,902,036

—

Hong

Kong

Dollar

...

HSBK

Sell

389,810,445

50,211,240

8/19/21

970

—

Japanese

Yen

......

JPHQ

Sell

14,233,933,951

130,899,749

8/19/21

2,712,185

—

Total

Forward

Exchange

Contracts

...................................................

$10,490,503

$—

Net

unrealized

appreciation

(depreciation)

............................................

$10,490,503

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Abbreviations

on

page

50

.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

..................................................

$—

$2,830,310,141

Cost

-

Non-controlled

affiliates

(Note

3f)

.......................................

597,776,107

256,849,652

Value

-

Unaffiliated

issuers

.................................................

$—

$3,012,194,699

Value

-

Non-controlled

affiliates

(Note

3f)

.......................................

1,052,293,366

251,749,683

Cash

...................................................................

1,090,729

—

Foreign

currency,

at

value

(cost

$–

and

$1,639,381

respectively)

......................

—

1,627,764

Receivables:

Capital

shares

sold

.......................................................

332,349

536,066

Dividends

and

interest

....................................................

—

6,390,588

Unrealized

appreciation

on

OTC

forward

exchange

contracts

.........................

—

10,490,503

Total

assets

.........................................................

1,053,716,444

3,282,989,303

Liabilities:

Payables:

Capital

shares

redeemed

..................................................

532,232

3,509,869

Management

fees

........................................................

—

1,438,705

Administrative

fees

.......................................................

25,375

—

Distribution

fees

.........................................................

246,884

765,209

Transfer

agent

fees

.......................................................

88,499

571,311

Funds

advanced

by

custodian

................................................

—

16,867

Accrued

expenses

and

other

liabilities

..........................................

65,784

253,576

Total

liabilities

........................................................

958,774

6,555,537

Net

assets,

at

value

................................................

$1,052,757,670

$3,276,433,766

Net

assets

consist

of:

Paid-in

capital

............................................................

$606,088,410

$3,210,654,955

Total

distributable

earnings

(losses)

............................................

446,669,260

65,778,811

Net

assets,

at

value

................................................

$1,052,757,670

$3,276,433,766

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Class

A:

Net

assets,

at

value

......................................................

$901,952,055

$2,966,134,943

Shares

outstanding

.......................................................

37,709,667

207,382,261

Net

asset

value

per

share

a

.................................................

$23.92

$14.30

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

...............

$25.31

$15.13

Class

C:

Net

assets,

at

value

......................................................

$77,388,082

$184,022,748

Shares

outstanding

.......................................................

3,302,407

12,952,790

Net

asset

value

and

maximum

offering

price

per

share

a

............................

$23.43

$14.21

Class

R:

Net

assets,

at

value

......................................................

$1,620,108

$5,116,871

Shares

outstanding

.......................................................

67,731

356,391

Net

asset

value

and

maximum

offering

price

per

share

............................

$23.92

$14.36

Class

R6:

Net

assets,

at

value

......................................................

$5,106,156

$517,367

Shares

outstanding

.......................................................

212,665

35,116

Net

asset

value

and

maximum

offering

price

per

share

............................

$24.01

$14.73

Advisor

Class:

Net

assets,

at

value

......................................................

$66,691,269

$120,641,837

Shares

outstanding

.......................................................

2,777,335

8,376,639

Net

asset

value

and

maximum

offering

price

per

share

............................

$24.01

$14.40

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$–

and

$1,445,525,

respectively)

Unaffiliated

issuers

.......................................................

$—

$25,933,520

Non-controlled

affiliates

(Note

3f)

............................................

16

7,761,701

Interest:

Unaffiliated

issuers

.......................................................

—

4,124,983

Total

investment

income

..................................................

16

37,820,204

Expenses:

Management

fees

(Note

3

a

)

..................................................

—

7,747,539

Administrative

fees

(Note

3

b

)

.................................................

148,036

84,291

Distribution

fees:

(Note

3c

)

    Class

A

...............................................................

1,054,054

3,653,192

    Class

C

...............................................................

372,212

949,381

    Class

R

...............................................................

3,797

12,303

Transfer

agent

fees:

(Note

3e

)

    Class

A

...............................................................

400,036

1,653,314

    Class

C

...............................................................

35,301

107,335

    Class

R

...............................................................

729

2,785

    Class

R6

..............................................................

1,522

237

    Advisor

Class

...........................................................

29,891

67,425

Custodian

fees

............................................................

133

3,783

Reports

to

shareholders

.....................................................

42,716

184,720

Registration

and

filing

fees

...................................................

47,619

63,703

Professional

fees

..........................................................

21,062

97,037

Trustees'

fees

and

expenses

.................................................

3,268

13,642

Other

...................................................................

9,563

535,278

Total

expenses

........................................................

2,169,939

15,175,965

Expenses

waived/paid

by

affiliates

(Note

3f

and

3g)

.............................

(902)

(1,130,943)

Net

expenses

........................................................

2,169,037

14,045,022

Net

investment

income

(loss)

...........................................

(2,169,021)

23,775,182

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

.....................................................

—

45,486,506

Non-controlled

affiliates

(Note

3f)

...........................................

355,653

(126,378,763)

Foreign

currency

transactions

...............................................

—

40,903

Forward

exchange

contracts

................................................

—

(2,077,795)

Net

realized

gain

(loss)

.................................................

355,653

(82,929,149)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

.....................................................

—

181,884,558

Non-controlled

affiliates

(Note

3f)

...........................................

116,371,745

84,865,915

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

.............

—

(52,861)

Forward

exchange

contracts

................................................

—

10,490,503

Net

change

in

unrealized

appreciation

(depreciation)

...........................

116,371,745

277,188,115

Net

realized

and

unrealized

gain

(loss)

...........................................

116,727,398

194,258,966

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................

$114,558,377

$218,034,148

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Six

Months

Ended

June

30,

2021

(unaudited)

Year

Ended

December

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

.......

$(2,169,021)

$4,838,645

$23,775,182

$85,361,860

Net

realized

gain

(loss)

............

355,653

55,657,000

(82,929,149)

(23,951,127)

Net

change

in

unrealized

appreciation

(depreciation)

.................

116,371,745

83,876,068

277,188,115

(80,637,415)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

114,558,377

144,371,713

218,034,148

(19,226,682)

Distributions

to

shareholders:

Class

A

........................

(24,448,148)

(55,174,587)

(24,497,459)

(220,704,366)

Class

C

........................

(2,139,471)

(4,778,679)

(862,058)

(15,403,864)

Class

R

........................

(43,850)

(100,418)

(36,557)

(353,284)

Class

R6

.......................

(137,854)

(305,025)

(4,892)

(13,071)

Advisor

Class

...................

(1,813,360)

(4,203,401)

(1,127,709)

(10,088,728)

Total

distributions

to

shareholders

.....

(28,582,683)

(64,562,110)

(26,528,675)

(246,563,313)

Capital

share

transactions:

(Note

2

)

Class

A

........................

16,119,434

25,347,265

(158,966,419)

(218,056,745)

Class

C

........................

(2,370,217)

(7,617,338)

(28,793,470)

(74,351,275)

Class

R

........................

(6,743)

(25,515)

(148,261)

(332,749)

Class

R6

.......................

301,291

614,285

(149,707)

615,942

Advisor

Class

...................

(81,319)

3,855,066

(9,461,850)

(19,978,078)

Total

capital

share

transactions

.......

13,962,446

22,173,763

(197,519,707)

(312,102,905)

Net

increase

(decrease)

in

net

assets

.....................

99,938,140

101,983,366

(6,014,234)

(577,892,900)

Net

assets:

Beginning

of

period

................

952,819,530

850,836,164

3,282,448,000

3,860,340,900

End

of

period

.....................

$1,052,757,670

$952,819,530

$3,276,433,766

$3,282,448,000

Franklin

Fund

Allocator

Series

37

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

twenty-one

separate

funds, two

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

The

Funds

invest

in

affiliated

mutual

funds

managed

by

Franklin

Templeton

(Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

after

they

have

been

held

for

10

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees. 

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

Effective

February

1,

2021,

the

Franklin

Global

Allocation

Fund

(Fund)

repositioned

to

a

direct

investment

fund

with

an

actively

managed

global

multi-asset

strategy,

which

involved

modifying

the

Fund’s

principal

investment

strategies

and

changing

the

name

of

the

Fund

from

Franklin

Founding

Funds

Allocation

Fund

to

Franklin

Global

Allocation

Fund.

The

following

summarizes

the Funds'

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

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.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

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.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Funds' pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

38

franklintempleton.com

Semiannual

Report

fair

value

of

those

instruments.

The

Funds' net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

Trading

in

securities

on

foreign

securities

stock

exchanges

and

OTC

markets

may

be

completed

before

4

p.m.

Eastern

time.

In

addition,

trading

in

certain

foreign

markets

may

not

take

place

on

every

Funds'

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Funds'

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Funds'

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2021,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

inputs

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Funds'

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Funds'

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Funds

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Funds

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Funds

do

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statements

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

Certain

or

all

Funds

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

39

franklintempleton.com

Semiannual

Report

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statements

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statements

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

Certain

or

all

Funds

attempt

to

reduce

their

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Funds

include

failure

of

the

Funds

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statements

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Funds

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

the

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund,

if

any,

is

held

in

segregated

accounts

with

the

Fund’s

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Funds'

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Certain

or

all

Funds

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

7

regarding

other

derivative

information.

d.

Income

Taxes

It

is

each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

Each Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Funds

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

the

Funds

invest.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Funds

invest.

When

a

capital

gain

tax

is

determined

to

apply,

certain

or

all

Funds

record

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2021,

each

Fund

has

determined

that

no

tax

liability

is

required

in

its

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

40

franklintempleton.com

Semiannual

Report

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

gain

distributions

by

Underlying

Funds

are

recorded

on

the

ex-dividend

date.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

41

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds’

shares

were

as

follows:

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

a

...................................

2,160,125

$49,782,899

4,682,823

$65,287,371

Shares

issued

in

reinvestment

of

distributions

..........

1,001,971

23,967,138

1,637,745

23,452,574

Shares

redeemed

...............................

(2,506,992)

(57,630,603)

(17,827,342)

(247,706,364)

Net

increase

(decrease)

..........................

655,104

$16,119,434

(11,506,774)

$(158,966,419)

Year

ended

December

31,

2020

Shares

sold

a

...................................

4,288,799

$83,034,614

10,964,979

$137,069,304

Shares

issued

in

reinvestment

of

distributions

..........

2,771,931

54,092,044

17,872,044

211,606,921

Shares

redeemed

...............................

(5,827,065)

(111,779,393)

(45,445,000)

(566,732,970)

Net

increase

(decrease)

..........................

1,233,665

$25,347,265

(16,607,977)

$(218,056,745)

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

322,060

$7,268,780

648,220

$8,926,877

Shares

issued

in

reinvestment

of

distributions

..........

90,601

2,123,692

60,094

854,542

Shares

redeemed

a

..............................

(518,626)

(11,762,689)

(2,794,226)

(38,574,889)

Net

increase

(decrease)

..........................

(105,965)

$(2,370,217)

(2,085,912)

$(28,793,470)

Year

ended

December

31,

2020

Shares

sold

...................................

622,774

$11,752,863

1,642,788

$20,362,129

Shares

issued

in

reinvestment

of

distributions

..........

248,589

4,702,959

1,288,035

15,022,129

Shares

redeemed

a

..............................

(1,296,579)

(24,073,160)

(8,878,491)

(109,735,533)

Net

increase

(decrease)

..........................

(425,216)

$(7,617,338)

(5,947,668)

$(74,351,275)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

8,714

$200,706

14,560

$202,788

Shares

issued

in

reinvestment

of

distributions

..........

1,833

43,850

2,536

36,440

Shares

redeemed

...............................

(11,052)

(251,299)

(28,080)

(387,489)

Net

increase

(decrease)

..........................

(505)

$(6,743)

(10,984)

$(148,261)

Year

ended

December

31,

2020

Shares

sold

...................................

6,017

$113,110

29,462

$373,841

Shares

issued

in

reinvestment

of

distributions

..........

5,167

100,418

29,366

348,927

Shares

redeemed

...............................

(12,069)

(239,043)

(85,098)

(1,055,517)

Net

increase

(decrease)

..........................

(885)

$(25,515)

(26,270)

$(332,749)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

42

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

10,543

$247,610

442

$6,192

Shares

issued

in

reinvestment

of

distributions

..........

5,577

133,917

273

4,033

Shares

redeemed

...............................

(3,430)

(80,236)

(11,045)

(159,932)

Net

increase

(decrease)

..........................

12,690

$301,291

(10,330)

$(149,707)

Year

ended

December

31,

2020

Shares

sold

...................................

44,395

$864,832

46,224

$629,554

Shares

issued

in

reinvestment

of

distributions

..........

15,272

300,242

798

11,049

Shares

redeemed

...............................

(28,364)

(550,789)

(1,922)

(24,661)

Net

increase

(decrease)

..........................

31,303

$614,285

45,100

$615,942

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2021

Shares

sold

...................................

246,915

$5,688,489

665,557

$9,331,476

Shares

issued

in

reinvestment

of

distributions

..........

67,760

1,627,603

70,480

1,016,321

Shares

redeemed

...............................

(320,506)

(7,397,411)

(1,420,990)

(19,809,647)

Net

increase

(decrease)

..........................

(5,831)

$(81,319)

(684,953)

$(9,461,850)

Year

ended

December

31,

2020

Shares

sold

...................................

652,582

$12,962,590

2,270,973

$30,048,973

Shares

issued

in

reinvestment

of

distributions

..........

187,893

3,699,087

757,696

9,024,083

Shares

redeemed

...............................

(672,367)

(12,806,611)

(4,732,163)

(59,051,134)

Net

increase

(decrease)

..........................

168,108

$3,855,066

(1,703,494)

$(19,978,078)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

(formerly

Franklin

Templeton

Distributors,

Inc.)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

43

franklintempleton.com

Semiannual

Report

a.

Management

Fees

Effective

February

1,

2021,

the

Franklin

Global

Allocation

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund as

follows:

For

the

period

ended

June

30,

2021,

the

annualized

gross

effective

investment

management

fee

rate

was

0.479%

of

the

Fund’s

average

daily

net

assets.

b.

Administrative

Fees

Effective

February

1,

2021,

under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

Franklin

Global

Allocation

Fund.

The

fee

is

paid

by

Advisers

based

on

the

fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

fund.

Prior

to

February

1,

2021,

Franklin

Global

Allocation

Fund

paid

FT

Services

for

administrative

services.

The

fund

paid

administrative

fees

of

0.03%

per

year

of

the

average

daily

net

assets

of

the

fund.

Franklin

Corefolio

Allocation

Fund

pays

an

administrative

fee

to

FT

Services

of

0.03%

per

year

of

the

average

daily

net

assets

of

each

of

the

funds

for

administrative

services

including

monitoring

and

rebalancing

the

percentage

of

each

fund's

investment

in

the

Underlying

Funds.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.600%

Up

to

and

including

$1

billion

0.570%

Over

$1

billion,

up

to

and

including

$5

billion

0.550%

In

excess

of

$5

billion

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

44

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2021,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

f.

Investments

in

Underlying

Funds

The Funds

invest in Underlying

Funds

which

are

managed

by

Advisers,

an

affiliate

of

FT

Services

or

by

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administration

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2021,

were

as

follows:

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$73,324

$72,352

CDSC

retained

...........................

$3,204

$6,114

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Transfer

agent

fees

........................

$313,389

$785,082

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Corefolio

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Growth

Fund,

Class

R6

.

$

240,674,595

$

—

$

(2,698,479)

$

109,300

$

27,754,004

$

265,839,420

1,753,790

$

—

Franklin

Growth

Opportunities

Fund,

Class

R6

............

240,066,441

—

(3,831,563)

421,010

31,593,872

268,249,760

3,943,689

—

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

234,889,839

—

(10,133,107)

(109,806)

39,515,635

264,162,561

8,918,385

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

9,836,617

(9,836,613)

—

—

4

4

16

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

45

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Effective

February

1,

2021,

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Franklin

Global

Allocation

Fund

so

that

the

operating

expenses

(excluding

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

and

acquired

fund

fees

and

expenses

for

each

class

of

the

Fund

do

not

exceed

0.73%,

based

on

the

average

net

assets

until

April

30,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2022.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Corefolio

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

$

237,214,959

$

—

$

(616,721)

$

(64,851)

$

17,508,234

$

254,041,621

10,021,366

$

—

Total

Non-Controlled

Affiliates

$952,845,834

$9,836,617

$(27,116,483)

$355,653

$116,371,745

$1,052,293,366

$16

Total

Affiliated

Securities

....

$952,845,834

$9,836,617

$(27,116,483)

$355,653

$116,371,745

$1,052,293,366

$16

Franklin

Global

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Income

Fund,

Class

R6

.

1,087,143,048

4,911,217

(1,082,679,346)

(76,752,826)

67,377,907

—

a

—

4,911,216

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

1,103,704,998

—

(1,104,695,326)

b

(21,788,732)

22,779,060

—

a

—

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.......

—

896,316,356

(767,321,271)

—

—

128,995,085

128,995,085

4,587

Templeton

Global

Bond

Fund,

Class

R6

................

—

127,854,567

—

—

(5,099,969)

122,754,598

13,256,436

2,845,898

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

1,093,315,104

—

(1,065,286,816)

b

(27,837,205)

(191,083)

—

a

—

—

Total

Non-Controlled

Affiliates

$3,284,163,150

$1,029,082,140

$(4,019,982,759)

$(126,378,763)

$84,865,915

$251,749,683

$7,761,701

Total

Affiliated

Securities

....

$3,284,163,150

$1,029,082,140

$(4,019,982,759)

$(126,378,763)

$84,865,915

$251,749,683

$7,761,701

a

As

of

June

30,

2021,

no

longer

held

by

the

fund.

b

The

fund

sold

shares

of

the

affiliate

through

an

in-kind

transfer

of

common

stocks,

corporate

bonds

and

cash.

See

Note

8.

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

46

franklintempleton.com

Semiannual

Report

4.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

capital

gains

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

short

term

capital

gains

distributions

from

Underlying

Funds

and

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

period

ended

June

30,

2021,

were

as

follows:

Purchases

and

sales

of

investments

for

the

Franklin

Global

Allocation

Fund

exclude

in-kind

transactions

of

$1,831,484,282

and

$—,

respectively.

6.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the

Funds, their ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and their ability

to

achieve their investment

objectives.

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

.............................

$

—

$

10,685,693

Long

term

.............................

—

15,988,532

Total

capital

loss

carryforwards

............

$—

$26,674,225

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

a

a

a

Cost

of

investments

.......................

$603,800,215

$3,097,430,917

Unrealized

appreciation

.....................

$454,517,259

$245,172,633

Unrealized

depreciation

.....................

(6,024,108)

(68,168,665)

Net

unrealized

appreciation

(depreciation)

.......

$448,493,151

$177,003,968

Franklin

Corefolio

Allocation

Fund

Franklin

Global

Allocation

Fund

Purchases

..............................

$—

$2,674,131,315

Sales

..................................

$17,279,870

$4,861,435,693

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

47

franklintempleton.com

Semiannual

Report

7.

Other

Derivative

Information

At

June

30,

2021,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statements

of

Assets

and

Liabilities

as

follows:

For

the

period

ended

June

30,

2021,

the

effect

of

derivative

contracts

in

the

Statements

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2021,

the

average

month

end

contract

value

of

forward

exchange

contracts

was

$357,992,209.

See

Note

1(c) regarding

derivative

financial

instruments. 

8.

Transfer

In-Kind

During

the

period

ended

June

30,

2021,

the

Franklin

Global

Allocation

Fund

realized

$52,973,042

of

net

losses

resulting

from

in-kind

transactions

in

which

the

Fund

redeemed

shares

of

the

Templeton

Growth

Fund,

Inc.

and

Franklin

Mutual

Shares

Fund

for

securities

held

by

the

underlying

funds

rather

than

for

cash.

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

4,

2022.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests. 

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2021,

the

Funds

did

not

use

the

Global

Credit

Facility.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Global

Allocation

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

10,490,503

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

—

Total

....................

$10,490,503

$—

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Global

Allocation

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

$(2,077,795)

Forward

exchange

contracts

$10,490,503

Total

.......................

$(2,077,795)

$10,490,503

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

48

franklintempleton.com

Semiannual

Report

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2021,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Corefolio

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

............

$

1,052,293,362

$

—

$

—

$

1,052,293,362

Short

Term

Investments

...................

4

—

—

4

Total

Investments

in

Securities

...........

$1,052,293,366

$—

$—

$1,052,293,366

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

26,616,720

$

—

$

—

$

26,616,720

Air

Freight

&

Logistics

...................

13,434,862

17,708,720

—

31,143,582

Automobiles

..........................

—

36,591,229

—

36,591,229

Banks

...............................

118,067,507

44,043,280

—

162,110,787

Beverages

...........................

48,886,633

—

—

48,886,633

Biotechnology

.........................

30,638,080

—

—

30,638,080

Building

Products

......................

15,651,900

—

—

15,651,900

Capital

Markets

........................

46,941,465

4,881,410

—

51,822,875

Chemicals

...........................

12,720,400

13,973,518

—

26,693,918

Communications

Equipment

..............

12,852,500

—

—

12,852,500

Diversified

Telecommunication

Services

.....

11,234,015

—

—

11,234,015

Electric

Utilities

........................

46,474,000

12,683,514

—

59,157,514

Electrical

Equipment

....................

—

16,443,705

—

16,443,705

Electronic

Equipment,

Instruments

&

Components

........................

12,574,530

—

—

12,574,530

Entertainment

.........................

12,513,210

25,932,856

—

38,446,066

Equity

Real

Estate

Investment

Trusts

(REITs)

.

36,266,760

—

—

36,266,760

Food

&

Staples

Retailing

.................

19,771,004

—

—

19,771,004

Food

Products

........................

15,610,000

17,156,549

—

32,766,549

Health

Care

Equipment

&

Supplies

.........

24,509,300

—

—

24,509,300

Health

Care

Providers

&

Services

..........

51,543,380

—

—

51,543,380

Hotels,

Restaurants

&

Leisure

.............

12,242,470

—

—

12,242,470

Household

Durables

....................

—

18,619,391

—

18,619,391

Household

Products

....................

28,065,440

—

—

28,065,440

Industrial

Conglomerates

................

24,238,175

31,472,639

—

55,710,814

Insurance

............................

29,401,377

37,068,939

—

66,470,316

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

49

franklintempleton.com

Semiannual

Report

11.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021

and

2023. The

ASUs

are

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022.

Management

has

reviewed

the

requirements

and

believes

the

adoption

of

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements.

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Interactive

Media

&

Services

..............

$

78,953,971

$

17,317,166

$

—

$

96,271,137

Internet

&

Direct

Marketing

Retail

..........

75,468,043

—

—

75,468,043

IT

Services

...........................

55,713,312

20,021,390

—

75,734,702

Life

Sciences

Tools

&

Services

............

13,723,090

—

—

13,723,090

Machinery

............................

36,926,967

11,809,547

—

48,736,514

Marine

..............................

—

16,281,922

—

16,281,922

Media

...............................

12,413,254

—

—

12,413,254

Metals

&

Mining

.......................

26,640,999

52,911,390

—

79,552,389

Multiline

Retail

........................

26,507,270

—

—

26,507,270

Multi-Utilities

..........................

11,035,500

9,971,571

—

21,007,071

Oil,

Gas

&

Consumable

Fuels

.............

54,159,856

41,131,559

—

95,291,415

Personal

Products

.....................

—

10,927,871

—

10,927,871

Pharmaceuticals

.......................

52,171,656

79,475,057

—

131,646,713

Road

&

Rail

..........................

37,774,615

—

—

37,774,615

Semiconductors

&

Semiconductor

Equipment

.

142,059,930

20,540,107

—

162,600,037

Software

.............................

168,081,840

—

—

168,081,840

Specialty

Retail

........................

94,424,684

—

—

94,424,684

Technology

Hardware,

Storage

&

Peripherals

.

41,088,000

—

—

41,088,000

Textiles,

Apparel

&

Luxury

Goods

..........

25,336,360

—

—

25,336,360

Trading

Companies

&

Distributors

..........

—

18,053,128

—

18,053,128

Wireless

Telecommunication

Services

.......

—

25,185,693

—

25,185,693

Management

Investment

Companies

.........

299,035,698

—

—

299,035,698

Corporate

Bonds

........................

—

133,426,852

—

133,426,852

Foreign

Government

and

Agency

Securities

....

—

263,419,971

—

263,419,971

U.S.

Government

and

Agency

Securities

.......

—

151,270,856

—

151,270,856

Mortgage-Backed

Securities

................

—

84,860,694

—

84,860,694

Short

Term

Investments

...................

128,995,085

—

—

128,995,085

Total

Investments

in

Securities

...........

$2,030,763,858

$1,233,180,524

b

$—

$3,263,944,382

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

10,490,503

$

—

$

10,490,503

Total

Other

Financial

Instruments

.........

$—

$10,490,503

$—

$10,490,503

a

For

detailed

categories,

see

the

accompanying

Statement

of

Investments.

b

Includes

foreign

securities

valued

at

$600,202,151,

which

were

categorized

as

Level

2

as

a

result

of

the

application

of

market

level

fair

value

procedures.

See

the

Financial

Instrument

Valuation

note

for

more

information.

10.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

50

franklintempleton.com

Semiannual

Report

12.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure,

except

for

the

following:

On

July

14,

2021,

the

Board

approved

a

change

to

the

automatic

conversion

feature

for

Class

C

that

will

convert

shareholders’

Class

C

shares

into

Class

A

shares

after

they

have

been

held

for

8

years.

The

change

will

become

effective

August

2,

2021. Further

details

are

disclosed

in

the

Funds'

Prospectus.

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

AUD

Australian

Dollar

CAD

Canadian

Dollar

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

Selected

Portfolio

ADR

American

Depositary

Receipt

ETF

Exchange-Traded

Fund

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

Franklin

Fund

Allocator

Series

Shareholder

Information

51

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

Global

Allocation

Fund

(formerly,

Franklin

Founding

Funds

Allocation

Fund)

(Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

through

April

30,

2022.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

The

Board

noted

that

it

initially

approved

the

Management

Agreement

for

the

Fund

at

its

May

13,

2020

Board

meeting

in

connection

with

management’s

proposal

to

reposition

the

Fund

from

a

fund-of-funds

with

a

static

allocation

to

three

actively

managed

underlying

funds,

to

a

direct

investment

fund

with

an

actively

managed

global

multi-asset

strategy

(Repositioning).

The

Board

further

noted

that,

while

the

Management

Agreement

first

became

effective

on

February

1,

2021

for

an

initial

two-year

period

in

connection

with

the

implementation

of

the

Repositioning

and

is

not

technically

required

to

be

reapproved

at

this

time,

management

proposed

that

the

Board

approve

the

continuance

of

the

Management

Agreement

at

this

time

through

April

30,

2022

in

order

to

align

the

approval

cycle

of

the

Management

Agreement

with

the

cycle

for

the

investment

management

agreements

of

the

other

series

of

the

Trust.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Fund.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

Franklin

Fund

Allocator

Series

Shareholder

Information

52

franklintempleton.com

Semiannual

Report

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

While

the

Board

noted

that

it

had

received

at

the

Meeting

the

performance

results

of

the

Fund

compared

to

peers

over

various

time

periods

ended

November

30,

2020,

the

Board

concluded

that

it

did

not

consider

such

performance

of

the

Fund

to

be

a

material

factor

in

its

consideration

of

the

Management

Agreement

given

the

Repositioning

of

the

Fund

occurred

after

November

30,

2020.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

the

information

provided

to

it

at

its

May

13,

2020

Board

meeting

regarding

the

Fund’s

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers

(Management

Rate),

of

the

Fund

in

comparison

to

the

expense

ratios

and

Management

Rates,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

as

the

Fund

selected

by

Broadridge

Financial

Solutions,

Inc.

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Expense

Group

for

the

Fund

included

the

Fund

and

nine

other

mixed-asset

target

allocation

moderate

funds.

The

Board

noted

that

the

Fund’s

Management

Rate

was

above

and

total

expense

ratio

was

in

line

with

the

median

of

its

Expense

Group.

The

Board

further

noted

that

the

Fund’s

total

expense

ratio

reflected

a

fee

waiver

from

management

and

management’s

representation

that

the

Fund’s

gross

and

net

annual

Fund

operating

expenses

are

expected

to

slightly

decrease

because

the

Fund

is

no

longer

primarily

invested

in

underlying

funds,

which

is

expected

to

result

in

a

decrease

in

the

underlying

fund

fees

and

expenses

paid

by

the

Fund.

The

Board

concluded

that

the

Management

Rate

to

be

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

Franklin

Fund

Allocator

Series

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Information

53

franklintempleton.com

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by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

through

April

30,

2022.

Liquidity

Risk

Management

Program-

Funds

no

HLIM

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

Franklin

Fund

Allocator

Series

Shareholder

Information

54

franklintempleton.com

Semiannual

Report

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2021,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2020.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Trust

files

a

complete

statement

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FAS2

S

08/21

©

2021

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.      

N/A

Item 5.  Audit Committee of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-

End Management Investment Companies.                  N/A

Item 8.  Portfolio Managers of Closed-End Management Investment

Companies.                                            N/A

Item 9. Purchases of Equity Securities by Closed-End Management

Investment Company and

Affiliated Purchasers.         N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, 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 Shareholder Report on Form N-CSR, 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 changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12.  Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                       N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

codeofethics

(a) (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

section906

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 FUND ALLOCATOR SERIES

By S\Matthew T. Hinkle__________________________

     Matthew T. Hinkle

     Chief Executive Officer - Finance and Administration

Date August 25, 2021

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\Matthew T. Hinkle____________________________

     Matthew T. Hinkle

     Chief Executive Officer - Finance and Administration

Date August 25, 2021

By S\Robert G. Kubilis_______________________________

     Robert G. Kubilis

     Chief Financial Officer and Chief Accounting Officer

Date August 25, 2021