UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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: 7/31
Date of reporting period: 1/31/22
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.) A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.
Your
Fund’s
Expenses
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
1
franklintempleton.com
Semiannual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
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.”
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
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
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
184/365
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)
Beginning
Account
Value
8/1/21
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
a
Annualized
Expense
Ratio
2
$1,000
$960.38
$0.00
$1,025.21
$0.00
0.00%
Your
Fund’s
Expenses
Franklin
International
Core
Equity
(IU)
Fund
2
franklintempleton.com
Semiannual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
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.”
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
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
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
184/365
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)
Beginning
Account
Value
8/1/21
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
a
Annualized
Expense
Ratio
2
$1,000
$976.59
$0.00
$1,025.21
$0.00
0.00%
Your
Fund’s
Expenses
Franklin
U.S.
Core
Equity
(IU)
Fund
3
franklintempleton.com
Semiannual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
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.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
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.”
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
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
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
184/365
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)
Beginning
Account
Value
8/1/21
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
Ending
Account
Value
1/31/22
Expenses
Paid
During
Period
8/1/21–1/31/22
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,027.23
$0.00
$1,025.21
$0.00
0.00%
Franklin
Fund
Allocator
Series
Financial
Highlights
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Year
Ended
July
31,
2020
a
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$11.83
$10.57
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.16
0.28
0.33
Net
realized
and
unrealized
gains
(losses)
....................................
(0.63)
1.34
0.45
Total
from
investment
operations
.............................................
(0.47)
1.62
0.78
Less
distributions
from:
Net
investment
income
...................................................
(0.20)
(0.36)
(0.21)
Net
realized
gains
......................................................
—
—
(—)
d
Total
distributions
........................................................
(0.20)
(0.36)
(0.21)
Net
asset
value,
end
of
period
...............................................
$11.16
$11.83
$10.57
Total
return
e
............................................................
(3.96)%
15.57%
7.96%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.............
0.15%
0.14%
0.17%
Expenses
net
of
waiver
and
payments
by
affiliates
................................
—%
—%
0.01%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..............
—%
—%
g
—%
Net
investment
income
....................................................
2.71%
2.41%
3.44%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$123,456
$116,643
$138,590
Portfolio
turnover
rate
.....................................................
53.51%
108.13%
102.39%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
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
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,
except
for
non-recurring
expenses,
if
any.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited),
January
31,
2022
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
95.4%
Auto
Components
0.2%
Balkrishna
Industries
Ltd.
...............................
India
8,744
$
275,825
Automobiles
1.0%
BYD
Co.
Ltd.,
H
......................................
China
18,500
547,183
Kia
Corp.
...........................................
South
Korea
10,522
733,523
1,280,706
Banks
13.0%
Akbank
TAS
.........................................
Turkey
632,906
381,122
Al
Rajhi
Bank
........................................
Saudi
Arabia
83,099
3,300,077
Banco
Santander
Brasil
SA
..............................
Brazil
22,500
139,281
Bank
Central
Asia
Tbk
.
PT
..............................
Indonesia
942,000
501,047
Bank
of
Beijing
Co.
Ltd.,
A
...............................
China
291,100
206,210
Bank
Polska
Kasa
Opieki
SA
.............................
Poland
5,654
188,406
BDO
Unibank
,
Inc.
....................................
Philippines
123,910
328,717
China
Merchants
Bank
Co.
Ltd.,
A
.........................
China
33,900
263,995
Commercial
Bank
PSQC
(The)
...........................
Qatar
255,768
502,263
Hana
Financial
Group,
Inc.
..............................
South
Korea
59,925
2,257,475
Huaxia
Bank
Co.
Ltd.,
A
................................
China
177,100
157,423
ICICI
Bank
Ltd.
.......................................
India
83,389
896,421
Industrial
Bank
Co.
Ltd.,
A
...............................
China
276,006
914,665
KB
Financial
Group,
Inc.
................................
South
Korea
30,731
1,522,748
a
Moneta
Money
Bank
A/S,
144A,
Reg
S
.....................
Czech
Republic
28,206
121,692
b
OTP
Bank
Nyrt
.
.......................................
Hungary
7,167
415,693
Shinhan
Financial
Group
Co.
Ltd.
.........................
South
Korea
46,805
1,498,859
Taishin
Financial
Holding
Co.
Ltd.
.........................
Taiwan
1,261,000
902,498
a
TCS
Group
Holding
plc,
GDR,
Reg
S
......................
Russia
2,199
158,516
Woori
Financial
Group,
Inc.
..............................
South
Korea
116,656
1,434,889
16,091,997
Beverages
2.1%
Arca
Continental
SAB
de
CV
.............................
Mexico
102,800
608,347
b
Chongqing
Brewery
Co.
Ltd.,
A
...........................
China
6,000
125,829
Cia
Cervecerias
Unidas
SA
..............................
Chile
33,900
280,954
a
Nongfu
Spring
Co.
Ltd.,
H,
144A,
Reg
S
....................
China
236,800
1,433,748
b
United
Spirits
Ltd.
.....................................
India
11,547
134,952
2,583,830
Biotechnology
0.4%
a,b
3SBio,
Inc.,
144A,
Reg
S
................................
China
301,500
238,729
Chongqing
Zhifei
Biological
Products
Co.
Ltd.,
A
..............
China
14,300
240,523
479,252
Capital
Markets
1.8%
a
China
International
Capital
Corp.
Ltd.,
H,
144A,
Reg
S
.........
China
168,800
459,820
GF
Securities
Co.
Ltd.,
A
................................
China
84,300
278,935
Guotai
Junan
Securities
Co.
Ltd.,
A
........................
China
106,500
297,559
Haitong
Securities
Co.
Ltd.,
A
............................
China
134,800
244,733
Haitong
Securities
Co.
Ltd.,
H
............................
China
634,400
570,913
b
Korea
Investment
Holdings
Co.
Ltd.
.......................
South
Korea
4,998
306,419
Samsung
Securities
Co.
Ltd.
.............................
South
Korea
3,312
111,811
2,270,190
Chemicals
3.4%
Dongyue
Group
Ltd.
...................................
China
376,000
460,197
Guangzhou
Tinci
Materials
Technology
Co.
Ltd.,
A
.............
China
14,600
220,203
Hoshine
Silicon
Industry
Co.
Ltd.,
A
........................
China
6,600
109,994
b
Kumho
Petrochemical
Co.
Ltd.
...........................
South
Korea
3,424
424,992
a
PhosAgro
PJSC,
GDR,
Reg
S
............................
Russia
32,072
643,376
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Chemicals
(continued)
Sahara
International
Petrochemical
Co.
.....................
Saudi
Arabia
82,128
$
950,014
b
Sasol
Ltd.
...........................................
South
Africa
14,604
328,815
Satellite
Chemical
Co.
Ltd.,
A
............................
China
23,100
154,030
Shandong
Hualu
Hengsheng
Chemical
Co.
Ltd.,
A
.............
China
30,640
147,860
Shanghai
Putailai
New
Energy
Technology
Co.
Ltd.,
A
..........
China
10,300
233,238
Wanhua
Chemical
Group
Co.
Ltd.,
A
.......................
China
38,600
557,634
4,230,353
Communications
Equipment
0.2%
China
Zhenhua
Group
Science
&
Technology
Co.
Ltd.,
A
........
China
7,800
139,420
Yealink
Network
Technology
Corp.
Ltd.,
A
...................
China
12,100
148,944
288,364
Construction
Materials
0.3%
ACC
Ltd.
............................................
India
9,833
303,400
Consumer
Finance
0.8%
360
DigiTech
,
Inc.,
ADR
................................
China
12,700
251,333
Krungthai
Card
PCL
...................................
Thailand
205,500
374,205
Srisawad
Corp.
PCL
...................................
Thailand
172,500
314,810
940,348
Containers
&
Packaging
0.3%
Yunnan
Energy
New
Material
Co.
Ltd.
......................
China
7,700
309,890
Diversified
Financial
Services
0.3%
Far
East
Horizon
Ltd.
..................................
China
385,000
329,353
Diversified
Telecommunication
Services
0.2%
Hellenic
Telecommunications
Organization
SA
................
Greece
11,024
214,296
Electric
Utilities
0.5%
Inter
RAO
UES
PJSC
..................................
Russia
8,434,300
423,829
Manila
Electric
Co.
....................................
Philippines
29,310
192,635
616,464
Electrical
Equipment
1.3%
Contemporary
Amperex
Technology
Co.
Ltd.,
A
...............
China
5,600
541,259
Havells
India
Ltd.
.....................................
India
39,656
634,271
Suzhou
Maxwell
Technologies
Co.
Ltd.,
A
...................
China
1,600
125,773
TBEA
Co.
Ltd.,
A
......................................
China
55,900
167,459
Xinjiang
Goldwind
Science
&
Technology
Co.
Ltd.,
H
...........
China
82,400
143,656
1,612,418
Electronic
Equipment,
Instruments
&
Components
1.0%
Foxconn
Industrial
Internet
Co.
Ltd.,
A
......................
China
95,000
167,049
Kingboard
Holdings
Ltd.
................................
China
159,000
767,618
Sunny
Optical
Technology
Group
Co.
Ltd.
...................
China
11,900
307,233
1,241,900
Entertainment
1.0%
NetEase
,
Inc.
........................................
China
58,400
1,219,378
Food
&
Staples
Retailing
0.1%
Wal-Mart
de
Mexico
SAB
de
CV
..........................
Mexico
37,900
128,934
Food
Products
4.0%
a
China
Feihe
Ltd.,
144A,
Reg
S
...........................
China
419,000
581,061
a
Dali
Foods
Group
Co.
Ltd.,
144A,
Reg
S
....................
China
465,000
268,761
Grupo
Bimbo
SAB
de
CV,
A
..............................
Mexico
307,400
963,013
JBS
SA
.............................................
United
States
216,900
1,433,351
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Food
Products
(continued)
Nestle
Malaysia
Bhd.
..................................
Malaysia
16,300
$
515,050
Uni
-President
China
Holdings
Ltd.
.........................
China
291,000
275,036
Want
Want
China
Holdings
Ltd.
...........................
China
973,000
954,639
4,990,911
Gas
Utilities
0.6%
Adani
Total
Gas
Ltd.
...................................
India
15,780
385,370
Indraprastha
Gas
Ltd.
..................................
India
66,617
352,740
738,110
Health
Care
Providers
&
Services
0.6%
Apollo
Hospitals
Enterprise
Ltd.
...........................
India
3,222
193,715
Dr.
Sulaiman
Al
Habib
Medical
Services
Group
Co.
............
Saudi
Arabia
11,343
501,139
694,854
Hotels,
Restaurants
&
Leisure
0.3%
Yum
China
Holdings,
Inc.
...............................
China
8,600
414,262
Industrial
Conglomerates
0.2%
b
LG
Corp.
............................................
South
Korea
1,820
112,531
Turkiye
Sise
ve
Cam
Fabrikalari
A/S
.......................
Turkey
116,576
120,714
233,245
Insurance
5.8%
Cathay
Financial
Holding
Co.
Ltd.
.........................
Taiwan
1,213,000
2,815,839
b
DB
Insurance
Co.
Ltd.
..................................
South
Korea
9,857
493,650
Fubon
Financial
Holding
Co.
Ltd.
..........................
Taiwan
954,400
2,635,765
PICC
Property
&
Casualty
Co.
Ltd.,
H
......................
China
1,278,000
1,190,795
7,136,049
Interactive
Media
&
Services
5.9%
b
Baidu,
Inc.,
ADR
......................................
China
3,000
479,220
Hello
Group,
Inc.,
ADR
.................................
China
37,800
367,794
a,b
Kuaishou
Technology,
144A,
Reg
S
........................
China
14,100
161,176
Tencent
Holdings
Ltd.
..................................
China
100,300
6,285,107
7,293,297
Internet
&
Direct
Marketing
Retail
4.5%
b
Alibaba
Group
Holding
Ltd.
..............................
China
220,700
3,459,200
b,c
JD.com,
Inc.,
A
.......................................
China
4,776
181,019
a,b
Meituan
Dianping
,
B,
144A,
Reg
S
........................
China
49,000
1,461,902
Naspers
Ltd.,
N
.......................................
South
Africa
2,135
345,165
b
Vipshop
Holdings
Ltd.,
ADR
.............................
China
15,600
145,236
5,592,522
IT
Services
6.0%
b
Chinasoft
International
Ltd.
..............................
China
212,000
212,145
HCL
Technologies
Ltd.
.................................
India
31,646
469,945
Infosys
Ltd.
..........................................
India
78,852
1,856,368
a
Larsen
&
Toubro
Infotech
Ltd.,
144A,
Reg
S
.................
India
1,980
167,680
Tata
Consultancy
Services
Ltd.
...........................
India
49,430
2,490,647
Tech
Mahindra
Ltd.
....................................
India
52,698
1,052,601
Wipro
Ltd.
...........................................
India
155,630
1,202,351
7,451,737
Life
Sciences
Tools
&
Services
1.5%
Divi's
Laboratories
Ltd.
.................................
India
7,763
421,809
a
WuXi
AppTec
Co.
Ltd.,
H,
144A,
Reg
S
.....................
China
40,440
580,049
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
(continued)
a,b
Wuxi
Biologics
Cayman,
Inc.,
144A,
Reg
S
..................
China
80,000
$
801,832
1,803,690
Marine
2.2%
Evergreen
Marine
Corp.
Taiwan
Ltd.
.......................
Taiwan
278,000
1,180,413
b
HMM
Co.
Ltd.
........................................
South
Korea
21,724
404,386
Wan
Hai
Lines
Ltd.
....................................
Taiwan
81,900
449,315
b
Yang
Ming
Marine
Transport
Corp.
........................
Taiwan
176,000
652,405
2,686,519
Media
0.1%
Cheil
Worldwide,
Inc.
..................................
South
Korea
6,708
123,487
Metals
&
Mining
4.8%
China
Hongqiao
Group
Ltd.
..............................
China
528,000
596,610
China
Northern
Rare
Earth
Group
High-Tech
Co.
Ltd.,
A
........
China
24,300
144,700
Impala
Platinum
Holdings
Ltd.
............................
South
Africa
18,819
290,169
MMC
Norilsk
Nickel
PJSC
...............................
Russia
3,482
977,692
Novolipetsk
Steel
PJSC
................................
Russia
356,400
985,713
POSCO
............................................
South
Korea
5,221
1,167,695
Severstal
PAO
.......................................
Russia
39,035
761,516
Sibanye
Stillwater
Ltd.
..................................
South
Africa
38,395
143,132
Tata
Steel
Ltd.
........................................
India
35,196
519,308
Zijin
Mining
Group
Co.
Ltd.,
H
............................
China
208,000
270,031
5,856,566
Oil,
Gas
&
Consumable
Fuels
3.1%
Adaro
Energy
Tbk
.
PT
..................................
Indonesia
783,300
122,651
Exxaro
Resources
Ltd.
.................................
South
Africa
50,567
546,407
MOL
Hungarian
Oil
&
Gas
plc
............................
Hungary
89,992
784,419
Polski
Koncern
Naftowy
ORLEN
SA
.......................
Poland
62,109
1,085,548
Reliance
Industries
Ltd.
.................................
India
24,163
779,193
United
Tractors
Tbk
.
PT
................................
Indonesia
293,700
474,866
3,793,084
Personal
Products
0.7%
Marico
Ltd.
..........................................
India
122,930
798,146
Pharmaceuticals
3.0%
Aspen
Pharmacare
Holdings
Ltd.
.........................
South
Africa
54,790
737,714
China
Medical
System
Holdings
Ltd.
.......................
China
307,000
514,087
CSPC
Pharmaceutical
Group
Ltd.
.........................
China
1,255,600
1,526,063
Kalbe
Farma
Tbk
.
PT
..................................
Indonesia
2,587,100
295,011
Sino
Biopharmaceutical
Ltd.
.............................
Hong
Kong
945,000
651,731
3,724,606
Real
Estate
Management
&
Development
1.1%
Aldar
Properties
PJSC
.................................
United
Arab
Emirates
853,825
963,611
Land
&
Houses
PCL
...................................
Thailand
806,300
238,685
Powerlong
Real
Estate
Holdings
Ltd.
.......................
China
338,000
188,666
1,390,962
Semiconductors
&
Semiconductor
Equipment
10.0%
b
Daqo
New
Energy
Corp.,
ADR
...........................
China
13,800
553,656
Gigadevice
Semiconductor
Beijing,
Inc.,
A
...................
China
6,200
138,322
a,b
Hua
Hong
Semiconductor
Ltd.,
144A,
Reg
S
.................
China
25,000
121,701
Ingenic
Semiconductor
Co.
Ltd.,
A
.........................
China
6,300
110,201
MediaTek
,
Inc.
.......................................
Taiwan
13,000
516,758
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Semiconductors
&
Semiconductor
Equipment
(continued)
Novatek
Microelectronics
Corp.
...........................
Taiwan
65,000
$
1,144,011
Realtek
Semiconductor
Corp.
............................
Taiwan
25,000
485,388
SG
Micro
Corp.,
A
.....................................
China
3,600
157,649
Silergy
Corp.
.........................................
China
2,000
270,543
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
...............
Taiwan
374,000
8,654,471
Unigroup
Guoxin
Microelectronics
Co.
Ltd.,
A
................
China
3,600
122,951
Zhejiang
Jingsheng
Mechanical
&
Electrical
Co.
Ltd.,
A
.........
China
12,700
116,347
12,391,998
Specialty
Retail
0.8%
JUMBO
SA
..........................................
Greece
8,301
123,482
Mr
Price
Group
Ltd.
....................................
South
Africa
9,547
126,637
a
Topsports
International
Holdings
Ltd.,
144A,
Reg
S
............
China
365,000
329,804
Zhongsheng
Group
Holdings
Ltd.
.........................
China
50,000
384,111
964,034
Technology
Hardware,
Storage
&
Peripherals
4.9%
Lenovo
Group
Ltd.
....................................
China
1,042,000
1,129,239
Samsung
Electronics
Co.
Ltd.
............................
South
Korea
78,169
4,861,174
5,990,413
Textiles,
Apparel
&
Luxury
Goods
3.2%
ANTA
Sports
Products
Ltd.
..............................
China
25,000
375,387
Bosideng
International
Holdings
Ltd.
.......................
China
836,000
407,502
Li
Ning
Co.
Ltd.
.......................................
China
214,000
2,088,239
Page
Industries
Ltd.
...................................
India
1,276
729,297
Titan
Co.
Ltd.
........................................
India
11,836
377,641
3,978,066
Thrifts
&
Mortgage
Finance
0.5%
Housing
Development
Finance
Corp.
Ltd.
...................
India
19,266
657,782
Transportation
Infrastructure
1.3%
b
Grupo
Aeroportuario
del
Pacifico
SAB
de
CV,
B
...............
Mexico
16,100
221,468
Grupo
Aeroportuario
del
Sureste
SAB
de
CV,
B
...............
Mexico
17,115
346,715
International
Container
Terminal
Services,
Inc.
................
Philippines
212,100
832,783
Westports
Holdings
Bhd.
................................
Malaysia
243,900
223,767
1,624,733
Wireless
Telecommunication
Services
2.4%
Advanced
Info
Service
PCL
..............................
Thailand
202,100
1,345,287
DiGi.Com
Bhd.
.......................................
Malaysia
343,000
311,842
Mobile
TeleSystems
PJSC,
ADR
..........................
Russia
31,800
242,952
b
MTN
Group
Ltd.
......................................
South
Africa
72,281
909,122
Turkcell
Iletisim
Hizmetleri
A/S
............................
Turkey
146,000
205,800
3,015,003
Total
Common
Stocks
(Cost
$104,582,394)
.....................................
117,760,974
Preferred
Stocks
3.6%
Banks
3.0%
d
Banco
Bradesco
SA,
4.47%
.............................
Brazil
133,890
574,900
d
Itau
Unibanco
Holding
SA,
3.45%
.........................
Brazil
672,800
3,209,451
3,784,351
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Preferred
Stocks
(continued)
Metals
&
Mining
0.6%
d
Gerdau
SA,
11.03%
...................................
Brazil
134,100
$
703,085
Total
Preferred
Stocks
(Cost
$3,966,748)
.......................................
4,487,436
Total
Long
Term
Investments
(Cost
$108,549,142)
...............................
122,248,410
a
Short
Term
Investments
0.9%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
0.9%
e,f
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
1,172,307
1,172,307
Total
Money
Market
Funds
(Cost
$1,172,307)
...................................
1,172,307
Total
Short
Term
Investments
(Cost
$1,172,307
)
.................................
1,172,307
a
Total
Investments
(Cost
$109,721,449)
99.9%
...................................
$123,420,717
Other
Assets,
less
Liabilities
0.1%
.............................................
34,831
Net
Assets
100.0%
...........................................................
$123,455,548
See
Abbreviations
on
page
39
.
a
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
January
31,
2022,
the
aggregate
value
of
these
securities
was
$7,529,847,
representing
6.1%
of
net
assets.
b
Non-income
producing.
c
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(b).
d
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
e
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
f
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
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International
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Semiannual
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a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Year
Ended
July
31,
2020
a
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$13.09
$10.31
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.18
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
....................................
(0.49)
2.80
0.30
Total
from
investment
operations
.............................................
(0.31)
3.15
0.55
Less
distributions
from:
Net
investment
income
...................................................
(0.26)
(0.37)
(0.24)
Net
realized
gains
......................................................
(0.57)
—
—
Total
distributions
........................................................
(0.83)
(0.37)
(0.24)
Net
asset
value,
end
of
period
...............................................
$11.95
$13.09
$10.31
Total
return
d
............................................................
(2.34)%
31.00%
5.58%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.............
0.03%
0.04%
0.08%
Expenses
net
of
waiver
and
payments
by
affiliates
...............................
—%
—%
0.01%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..............
—%
—%
f
—%
Net
investment
income
....................................................
2.81%
2.93%
2.57%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$438,375
$360,375
$281,150
Portfolio
turnover
rate
.....................................................
37.48%
103.80%
94.98%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
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
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited),
January
31,
2022
Franklin
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Core
Equity
(IU)
Fund
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12
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.2%
Air
Freight
&
Logistics
2.3%
Deutsche
Post
AG
.....................................
Germany
169,522
$
10,202,845
Auto
Components
0.1%
Bridgestone
Corp.
.....................................
Japan
10,800
472,966
Automobiles
1.4%
Bayerische
Motoren
Werke
AG
...........................
Germany
31,981
3,385,264
Toyota
Motor
Corp.
....................................
Japan
109,100
2,156,256
Yamaha
Motor
Co.
Ltd.
.................................
Japan
27,600
657,282
6,198,802
Banks
10.8%
Banco
Bilbao
Vizcaya
Argentaria
SA
.......................
Spain
826,655
5,278,356
Bank
Leumi
Le-Israel
BM
...............................
Israel
142,395
1,524,945
Barclays
plc
.........................................
United
Kingdom
1,129,221
3,029,610
BNP
Paribas
SA
......................................
France
22,793
1,627,324
Commonwealth
Bank
of
Australia
.........................
Australia
66,624
4,442,511
DBS
Group
Holdings
Ltd.
...............................
Singapore
283,400
7,443,756
ING
Groep
NV
.......................................
Netherlands
384,519
5,687,198
Mitsubishi
UFJ
Financial
Group,
Inc.
.......................
Japan
314,100
1,903,931
Raiffeisen
Bank
International
AG
..........................
Austria
50,334
1,414,876
Societe
Generale
SA
...................................
France
202,034
7,500,234
Standard
Chartered
plc
.................................
United
Kingdom
78,150
569,169
Sumitomo
Mitsui
Financial
Group,
Inc.
......................
Japan
187,200
6,743,419
47,165,329
Beverages
0.9%
a
Coca-Cola
HBC
AG,
DI
.................................
Russia
14,351
475,332
Pernod
Ricard
SA
.....................................
France
16,910
3,617,361
4,092,693
Biotechnology
0.8%
CSL
Ltd.
............................................
Australia
18,394
3,406,873
Building
Products
4.0%
AGC,
Inc.
...........................................
Japan
78,100
3,584,586
Cie
de
Saint-Gobain
...................................
France
82,696
5,596,328
Geberit
AG
..........................................
Switzerland
12,242
8,317,141
17,498,055
Capital
Markets
5.2%
3i
Group
plc
.........................................
United
Kingdom
377,961
7,039,336
Partners
Group
Holding
AG
..............................
Switzerland
5,726
7,982,752
UBS
Group
AG
.......................................
Switzerland
407,765
7,563,451
22,585,539
Chemicals
3.7%
BASF
SE
...........................................
Germany
14,010
1,073,106
b
Covestro
AG,
144A,
Reg
S
..............................
Germany
75,526
4,531,435
Mitsubishi
Chemical
Holdings
Corp.
.......................
Japan
154,000
1,208,057
Mitsui
Chemicals,
Inc.
..................................
Japan
72,700
1,944,420
Nitto
Denko
Corp.
.....................................
Japan
57,000
4,438,192
Sumitomo
Chemical
Co.
Ltd.
.............................
Japan
261,000
1,316,294
Tosoh
Corp.
.........................................
Japan
104,000
1,627,306
16,138,810
Construction
Materials
0.2%
James
Hardie
Industries
plc,
CDI
.........................
United
States
20,026
673,884
Franklin
Fund
Allocator
Series
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Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
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a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Diversified
Financial
Services
2.7%
EXOR
NV
...........................................
Netherlands
4,913
$
411,996
Investor
AB,
B
........................................
Sweden
424,965
9,226,812
Sofina
SA
...........................................
Belgium
6,011
2,393,481
12,032,289
Diversified
Telecommunication
Services
4.5%
Deutsche
Telekom
AG
..................................
Germany
206,340
3,895,836
Nippon
Telegraph
&
Telephone
Corp.
......................
Japan
325,000
9,301,168
Telefonica
SA
........................................
Spain
1,397,581
6,515,500
19,712,504
Electric
Utilities
1.2%
Electricite
de
France
SA
................................
France
170,104
1,636,241
Red
Electrica
Corp.
SA
.................................
Spain
171,195
3,451,294
5,087,535
Electrical
Equipment
1.1%
Mitsubishi
Electric
Corp.
................................
Japan
386,300
4,838,000
Electronic
Equipment,
Instruments
&
Components
0.5%
Keyence
Corp.
.......................................
Japan
3,300
1,692,718
Shimadzu
Corp.
......................................
Japan
11,400
411,350
2,104,068
Entertainment
0.8%
Nintendo
Co.
Ltd.
.....................................
Japan
6,900
3,381,434
Equity
Real
Estate
Investment
Trusts
(REITs)
2.9%
Goodman
Group
......................................
Australia
282,847
4,669,631
Segro
plc
...........................................
United
Kingdom
465,423
8,205,605
12,875,236
Food
&
Staples
Retailing
2.7%
Jeronimo
Martins
SGPS
SA
.............................
Portugal
61,145
1,469,509
Koninklijke
Ahold
Delhaize
NV
............................
Netherlands
292,051
9,470,483
Lawson,
Inc.
.........................................
Japan
19,000
832,789
11,772,781
Food
Products
1.5%
Nestle
SA
...........................................
Switzerland
50,958
6,580,278
Gas
Utilities
1.3%
Osaka
Gas
Co.
Ltd.
...................................
Japan
149,300
2,539,165
Tokyo
Gas
Co.
Ltd.
....................................
Japan
155,500
3,139,953
5,679,118
Health
Care
Equipment
&
Supplies
3.7%
Alcon,
Inc.
...........................................
Switzerland
5,566
429,163
DiaSorin
SpA
........................................
Italy
5,378
829,154
Fisher
&
Paykel
Healthcare
Corp.
Ltd.
......................
New
Zealand
68,481
1,259,950
Hoya
Corp.
..........................................
Japan
45,700
5,926,101
Olympus
Corp.
.......................................
Japan
56,300
1,259,882
Smith
&
Nephew
plc
...................................
United
Kingdom
26,936
458,117
Sonova
Holding
AG
....................................
Switzerland
11,601
4,132,518
Straumann
Holding
AG
.................................
Switzerland
1,278
2,117,640
16,412,525
Health
Care
Providers
&
Services
0.2%
Fresenius
SE
&
Co.
KGaA
...............................
Germany
15,858
654,682
Franklin
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Allocator
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Investments
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Franklin
International
Core
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Fund
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The
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financial
statements.
14
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Health
Care
Providers
&
Services
(continued)
Sonic
Healthcare
Ltd.
..................................
Australia
15,520
$
417,899
1,072,581
Health
Care
Technology
0.1%
M3,
Inc.
............................................
Japan
8,400
322,965
Hotels,
Restaurants
&
Leisure
0.8%
Aristocrat
Leisure
Ltd.
..................................
Australia
58,513
1,695,921
b
La
Francaise
des
Jeux
SAEM,
144A,
Reg
S
.................
France
38,486
1,593,601
3,289,522
Household
Durables
1.8%
Barratt
Developments
plc
...............................
United
Kingdom
229,905
1,912,201
Iida
Group
Holdings
Co.
Ltd.
.............................
Japan
58,000
1,206,721
Panasonic
Corp.
......................................
Japan
40,400
444,803
Persimmon
plc
.......................................
United
Kingdom
14,119
460,007
Sekisui
House
Ltd.
....................................
Japan
158,900
3,219,480
Taylor
Wimpey
plc
.....................................
United
Kingdom
369,718
758,527
8,001,739
Industrial
Conglomerates
0.7%
CK
Hutchison
Holdings
Ltd.
..............................
United
Kingdom
239,000
1,698,672
Hitachi
Ltd.
..........................................
Japan
28,500
1,481,382
3,180,054
Insurance
1.5%
Assicurazioni
Generali
SpA
..............................
Italy
178,789
3,762,905
Dai-ichi
Life
Holdings,
Inc.
...............................
Japan
22,000
495,230
NN
Group
NV
........................................
Netherlands
39,363
2,203,032
6,461,167
Interactive
Media
&
Services
0.1%
b
Auto
Trader
Group
plc,
144A,
Reg
S
.......................
United
Kingdom
57,533
521,363
Internet
&
Direct
Marketing
Retail
0.3%
ZOZO,
Inc.
..........................................
Japan
52,200
1,391,057
IT
Services
0.9%
Fujitsu
Ltd.
..........................................
Japan
26,600
3,516,630
SCSK
Corp.
.........................................
Japan
24,400
412,901
3,929,531
Leisure
Products
0.1%
Shimano,
Inc.
........................................
Japan
1,600
358,803
Life
Sciences
Tools
&
Services
0.7%
Eurofins
Scientific
SE
..................................
Luxembourg
9,013
905,012
Sartorius
Stedim
Biotech
................................
France
5,393
2,365,102
3,270,114
Machinery
1.8%
CNH
Industrial
NV
.....................................
United
Kingdom
84,013
1,280,648
a
Iveco
Group
NV
......................................
Italy
16,803
178,784
MISUMI
Group,
Inc.
...................................
Japan
109,300
3,546,052
NGK
Insulators
Ltd.
....................................
Japan
28,300
478,226
Techtronic
Industries
Co.
Ltd.
............................
Hong
Kong
137,000
2,260,543
7,744,253
Marine
2.4%
AP
Moller
-
Maersk
A/S,
A
...............................
Denmark
1,120
3,752,512
Franklin
Fund
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Core
Equity
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a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Marine
(continued)
AP
Moller
-
Maersk
A/S,
B
...............................
Denmark
1,082
$
3,886,937
Nippon
Yusen
KK
.....................................
Japan
12,900
1,011,319
SITC
International
Holdings
Co.
Ltd.
.......................
China
517,000
1,970,612
10,621,380
Media
0.7%
CyberAgent
,
Inc.
......................................
Japan
139,100
1,622,006
Vivendi
SE
..........................................
France
102,649
1,345,372
2,967,378
Metals
&
Mining
2.4%
Anglo
American
plc
....................................
South
Africa
27,947
1,232,103
ArcelorMittal
SA
......................................
Luxembourg
162,769
4,835,328
BHP
Group
Ltd.
......................................
Australia
17,330
547,038
BHP
Group
plc
.......................................
Australia
237
7,481
BlueScope
Steel
Ltd.
...................................
Australia
92,956
1,218,188
Evraz
plc
...........................................
Russia
198,597
1,349,243
Fortescue
Metals
Group
Ltd.
.............................
Australia
99,810
1,401,345
10,590,726
Multiline
Retail
0.7%
Next
plc
............................................
United
Kingdom
31,609
3,220,627
Multi-Utilities
0.6%
E.ON
SE
............................................
Germany
197,639
2,726,174
Oil,
Gas
&
Consumable
Fuels
4.2%
BP
plc
..............................................
United
Kingdom
1,099,598
5,700,444
Equinor
ASA
.........................................
Norway
123,590
3,406,591
Lundin
Energy
AB
.....................................
Sweden
81,448
3,312,318
TotalEnergies
SE
.....................................
France
103,641
5,894,325
18,313,678
Personal
Products
3.6%
L'Oreal
SA
..........................................
France
25,979
11,097,832
Unilever
plc
..........................................
United
Kingdom
95,041
4,874,063
15,971,895
Pharmaceuticals
6.5%
Astellas
Pharma,
Inc.
..................................
Japan
75,300
1,215,438
Bayer
AG
...........................................
Germany
18,325
1,113,413
Ipsen
SA
............................................
France
14,400
1,401,256
Novo
Nordisk
A/S,
B
...................................
Denmark
89,856
8,938,364
Orion
OYJ,
B
........................................
Finland
43,276
1,759,877
Otsuka
Holdings
Co.
Ltd.
...............................
Japan
51,100
1,743,472
Roche
Holding
AG
....................................
Switzerland
23,549
9,112,957
Roche
Holding
AG,
BR
.................................
Switzerland
1,134
466,952
Sanofi
..............................................
France
23,381
2,444,983
Sumitomo
Dainippon
Pharma
Co.
Ltd.
......................
Japan
37,900
412,530
28,609,242
Professional
Services
2.8%
Adecco
Group
AG
.....................................
Switzerland
49,316
2,348,954
Experian
plc
.........................................
United
Kingdom
10,268
428,889
Persol
Holdings
Co.
Ltd.
................................
Japan
35,800
924,246
Randstad
NV
........................................
Netherlands
44,056
2,866,260
RELX
plc
...........................................
United
Kingdom
67,354
2,071,913
Franklin
Fund
Allocator
Series
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of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Professional
Services
(continued)
Wolters
Kluwer
NV
....................................
Netherlands
35,338
$
3,596,972
12,237,234
Real
Estate
Management
&
Development
1.2%
CK
Asset
Holdings
Ltd.
.................................
Hong
Kong
230,500
1,538,701
LEG
Immobilien
SE
....................................
Germany
29,108
3,861,775
5,400,476
Road
&
Rail
0.3%
Nippon
Express
Holdings,
Inc.
............................
Japan
25,500
1,511,291
Semiconductors
&
Semiconductor
Equipment
2.5%
ASML
Holding
NV
.....................................
Netherlands
6,062
4,106,124
Disco
Corp.
..........................................
Japan
1,500
412,448
STMicroelectronics
NV
.................................
Singapore
8,803
413,961
Tokyo
Electron
Ltd.
....................................
Japan
12,300
6,016,599
10,949,132
Software
0.7%
a
Check
Point
Software
Technologies
Ltd.
....................
Israel
12,000
1,452,120
Oracle
Corp.
Japan
....................................
Japan
15,200
1,136,867
Trend
Micro,
Inc.
......................................
Japan
8,200
435,050
3,024,037
Specialty
Retail
1.1%
Kingfisher
plc
........................................
United
Kingdom
826,222
3,705,213
Yamada
Holdings
Co.
Ltd.
...............................
Japan
279,000
941,628
4,646,841
Technology
Hardware,
Storage
&
Peripherals
0.8%
Brother
Industries
Ltd.
..................................
Japan
67,400
1,241,297
Canon,
Inc.
..........................................
Japan
91,800
2,171,231
3,412,528
Textiles,
Apparel
&
Luxury
Goods
0.9%
Burberry
Group
plc
....................................
United
Kingdom
21,540
546,468
Hermes
International
...................................
France
1,252
1,879,943
Pandora
A/S
.........................................
Denmark
13,628
1,481,995
3,908,406
Tobacco
0.4%
Imperial
Brands
plc
....................................
United
Kingdom
64,875
1,538,235
Trading
Companies
&
Distributors
3.8%
Ferguson
plc
.........................................
United
States
12,006
1,888,501
ITOCHU
Corp.
.......................................
Japan
15,400
494,769
Marubeni
Corp.
.......................................
Japan
588,700
6,057,953
Mitsubishi
Corp.
......................................
Japan
247,700
8,410,384
16,851,607
Wireless
Telecommunication
Services
1.3%
KDDI
Corp.
..........................................
Japan
174,800
5,584,878
Total
Common
Stocks
(Cost
$393,094,521)
.....................................
430,540,478
Preferred
Stocks
0.7%
Automobiles
0.5%
c
Bayerische
Motoren
Werke
AG,
2.49%
.....................
Germany
22,283
1,928,680
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Preferred
Stocks
(continued)
Health
Care
Equipment
&
Supplies
0.2%
c
Sartorius
AG,
0.15%
...................................
Germany
1,822
$
983,744
Total
Preferred
Stocks
(Cost
$3,054,884)
.......................................
2,912,424
Total
Long
Term
Investments
(Cost
$396,149,405)
...............................
433,452,902
a
Short
Term
Investments
1.1%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
1.1%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
4,774,687
4,774,687
Total
Money
Market
Funds
(Cost
$4,774,687)
...................................
4,774,687
Total
Short
Term
Investments
(Cost
$4,774,687
)
.................................
4,774,687
a
Total
Investments
(Cost
$400,924,092)
100.0%
..................................
$438,227,589
Other
Assets,
less
Liabilities
0.0%
†
............................................
147,776
Net
Assets
100.0%
...........................................................
$438,375,365
See
Abbreviations
on
page
39
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
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
January
31,
2022,
the
aggregate
value
of
these
securities
was
$6,646,399,
representing
1.5%
of
net
assets.
c
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
d
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
Series
Financial
Highlights
Franklin
U.S.
Core
Equity
(IU)
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Year
Ended
July
31,
2020
a
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..........................................
$14.99
$11.31
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
..................................................
0.11
0.21
0.21
Net
realized
and
unrealized
gains
(losses)
....................................
0.31
3.74
1.27
Total
from
investment
operations
.............................................
0.42
3.95
1.48
Less
distributions
from:
Net
investment
income
...................................................
(0.09)
(0.20)
(0.17)
Net
realized
gains
......................................................
(1.10)
(0.07)
—
Total
distributions
........................................................
(1.19)
(0.27)
(0.17)
Net
asset
value,
end
of
period
...............................................
$14.22
$14.99
$11.31
Total
return
d
............................................................
2.72%
35.39%
15.09%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.............
0.01%
0.01%
0.03%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..............
—%
—%
f
—%
f
Net
investment
income
....................................................
1.46%
1.60%
2.12%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.............................................
$1,363,398
$1,316,677
$722,523
Portfolio
turnover
rate
.....................................................
57.26%
98.39%
60.94%
a
For
the
period
August
19,
2019
(commencement
of
operations)
to
July
31,
2020.
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
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited),
January
31,
2022
Franklin
U.S.
Core
Equity
(IU)
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Shares
a
Value
a
Common
Stocks
99.1%
Aerospace
&
Defense
0.8%
General
Dynamics
Corp.
..............................................
20,911
$
4,435,223
Northrop
Grumman
Corp.
.............................................
9,086
3,360,911
Raytheon
Technologies
Corp.
..........................................
17,130
1,544,955
Textron,
Inc.
.......................................................
19,579
1,332,547
10,673,636
Air
Freight
&
Logistics
0.6%
United
Parcel
Service,
Inc.,
B
..........................................
41,522
8,396,164
Automobiles
0.6%
a
Tesla,
Inc.
.........................................................
9,229
8,644,989
a
Banks
0.6%
Citigroup,
Inc.
......................................................
21,762
1,417,141
JPMorgan
Chase
&
Co.
...............................................
48,508
7,208,289
8,625,430
Beverages
1.5%
PepsiCo,
Inc.
......................................................
115,771
20,088,584
Biotechnology
4.2%
AbbVie,
Inc.
.......................................................
57,422
7,860,497
Gilead
Sciences,
Inc.
................................................
442,609
30,398,386
a
Moderna
,
Inc.
......................................................
9,823
1,663,329
a
Regeneron
Pharmaceuticals,
Inc.
.......................................
24,656
15,005,395
a
Vertex
Pharmaceuticals,
Inc.
...........................................
7,416
1,802,459
56,730,066
Building
Products
0.6%
A
O
Smith
Corp.
....................................................
17,537
1,340,178
a
Builders
FirstSource
,
Inc.
.............................................
46,482
3,160,311
Owens
Corning
.....................................................
48,313
4,285,363
8,785,852
Capital
Markets
7.7%
Bank
of
New
York
Mellon
Corp.
(The)
....................................
25,300
1,499,278
Blackstone,
Inc.
....................................................
65,865
8,692,204
Carlyle
Group,
Inc.
(The)
..............................................
79,288
4,047,652
Cboe
Global
Markets,
Inc.
.............................................
10,751
1,274,316
Evercore
,
Inc.,
A
....................................................
19,056
2,378,570
FactSet
Research
Systems,
Inc.
........................................
2,958
1,247,950
Goldman
Sachs
Group,
Inc.
(The)
.......................................
76,826
27,248,646
Janus
Henderson
Group
plc
...........................................
81,600
3,011,040
Jefferies
Financial
Group,
Inc.
..........................................
105,072
3,849,838
Lazard
Ltd.,
A
......................................................
49,134
2,144,208
Moody's
Corp.
......................................................
3,548
1,216,964
MSCI,
Inc.
.........................................................
10,507
5,633,013
S&P
Global,
Inc.
....................................................
64,376
26,730,203
SEI
Investments
Co.
.................................................
23,247
1,362,507
T
Rowe
Price
Group,
Inc.
.............................................
92,618
14,302,998
104,639,387
Chemicals
1.0%
Celanese
Corp.
.....................................................
9,158
1,425,992
LyondellBasell
Industries
NV,
A
.........................................
40,034
3,872,489
Mosaic
Co.
(The)
...................................................
61,981
2,476,141
Olin
Corp.
.........................................................
72,363
3,666,633
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Chemicals
(continued)
Westlake
Chemical
Corp.
.............................................
16,507
$
1,628,416
13,069,671
Commercial
Services
&
Supplies
0.7%
Cintas
Corp.
.......................................................
3,283
1,285,393
Republic
Services,
Inc.
...............................................
61,239
7,817,771
9,103,164
Communications
Equipment
0.1%
Cisco
Systems,
Inc.
.................................................
25,277
1,407,171
Consumer
Finance
1.2%
Ally
Financial,
Inc.
...................................................
36,223
1,728,562
Capital
One
Financial
Corp.
...........................................
73,043
10,717,599
SLM
Corp.
........................................................
139,651
2,561,199
Synchrony
Financial
.................................................
30,949
1,318,118
16,325,478
Distributors
0.2%
Genuine
Parts
Co.
..................................................
10,822
1,441,815
LKQ
Corp.
........................................................
25,790
1,415,613
2,857,428
Diversified
Financial
Services
0.1%
a
Berkshire
Hathaway,
Inc.,
B
............................................
5,010
1,568,230
a
Electric
Utilities
0.5%
Exelon
Corp.
.......................................................
40,719
2,359,666
NRG
Energy,
Inc.
...................................................
113,618
4,536,767
6,896,433
Electrical
Equipment
2.2%
Emerson
Electric
Co.
................................................
278,585
25,615,891
nVent
Electric
plc
...................................................
78,677
2,721,437
Rockwell
Automation,
Inc.
.............................................
4,123
1,192,454
29,529,782
Electronic
Equipment,
Instruments
&
Components
0.8%
a
Arrow
Electronics,
Inc.
...............................................
34,377
4,262,748
Jabil,
Inc.
.........................................................
69,659
4,283,332
a
Keysight
Technologies,
Inc.
............................................
7,671
1,295,018
Vontier
Corp.
.......................................................
59,608
1,675,581
11,516,679
Entertainment
0.2%
Electronic
Arts,
Inc.
..................................................
11,159
1,480,353
a
Netflix,
Inc.
........................................................
2,159
922,195
2,402,548
Equity
Real
Estate
Investment
Trusts
(REITs)
2.6%
Cousins
Properties,
Inc.
..............................................
36,712
1,415,615
Extra
Space
Storage,
Inc.
.............................................
8,224
1,629,915
Public
Storage
.....................................................
70,920
25,426,948
Simon
Property
Group,
Inc.
............................................
9,567
1,408,262
Weyerhaeuser
Co.
..................................................
147,785
5,974,947
35,855,687
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Food
&
Staples
Retailing
3.4%
Albertsons
Cos.,
Inc.,
A
...............................................
70,804
$
1,993,133
Costco
Wholesale
Corp.
..............................................
2,873
1,451,238
Kroger
Co.
(The)
....................................................
358,813
15,640,659
Walmart,
Inc.
......................................................
192,915
26,971,446
46,056,476
Food
Products
2.1%
Archer-Daniels-Midland
Co.
...........................................
129,908
9,743,100
Hershey
Co.
(The)
..................................................
31,041
6,117,250
Tyson
Foods,
Inc.,
A
.................................................
140,143
12,737,597
28,597,947
Gas
Utilities
0.5%
National
Fuel
Gas
Co.
................................................
42,417
2,575,984
UGI
Corp.
.........................................................
102,928
4,667,785
7,243,769
Health
Care
Equipment
&
Supplies
0.7%
a
Edwards
Lifesciences
Corp.
...........................................
12,918
1,410,646
a
Hologic
,
Inc.
.......................................................
19,103
1,341,795
a
IDEXX
Laboratories,
Inc.
..............................................
10,666
5,410,862
a
Quidel
Corp.
.......................................................
17,554
1,814,381
9,977,684
Health
Care
Providers
&
Services
1.0%
a
Laboratory
Corp.
of
America
Holdings
....................................
22,899
6,213,873
Quest
Diagnostics,
Inc.
...............................................
59,650
8,053,943
14,267,816
Health
Care
Technology
1.0%
Cerner
Corp.
.......................................................
143,891
13,122,859
Hotels,
Restaurants
&
Leisure
2.1%
Choice
Hotels
International,
Inc.
........................................
9,657
1,384,814
Domino's
Pizza,
Inc.
.................................................
17,482
7,948,191
McDonald's
Corp.
...................................................
22,684
5,885,364
Yum!
Brands,
Inc.
...................................................
104,934
13,134,589
28,352,958
Household
Products
0.8%
Colgate-Palmolive
Co.
...............................................
107,480
8,861,726
Procter
&
Gamble
Co.
(The)
...........................................
9,870
1,583,641
10,445,367
Insurance
1.5%
American
Financial
Group,
Inc.
.........................................
31,323
4,080,760
Assured
Guaranty
Ltd.
...............................................
28,307
1,508,480
Chubb
Ltd.
........................................................
7,724
1,523,791
Fidelity
National
Financial,
Inc.
.........................................
129,317
6,511,111
First
American
Financial
Corp.
..........................................
50,327
3,749,865
Old
Republic
International
Corp.
........................................
136,828
3,506,902
20,880,909
Interactive
Media
&
Services
9.4%
a
Alphabet,
Inc.,
A
....................................................
17,332
46,901,605
a
Alphabet,
Inc.,
C
....................................................
18,769
50,938,503
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
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Semiannual
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The
accompanying
notes
are
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integral
part
of
these
financial
statements.
22
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Interactive
Media
&
Services
(continued)
a
Meta
Platforms,
Inc.,
A
...............................................
97,778
$
30,629,936
128,470,044
Internet
&
Direct
Marketing
Retail
1.3%
a
Amazon.com,
Inc.
...................................................
5,936
17,757,366
a
IT
Services
3.4%
Accenture
plc,
A
....................................................
98,012
34,655,083
Amdocs
Ltd.
.......................................................
47,334
3,592,177
Cognizant
Technology
Solutions
Corp.,
A
..................................
18,168
1,551,911
a
Gartner,
Inc.
.......................................................
20,425
6,002,703
45,801,874
Life
Sciences
Tools
&
Services
3.6%
Agilent
Technologies,
Inc.
.............................................
32,520
4,530,686
Danaher
Corp.
.....................................................
32,552
9,303,036
a
Mettler
-Toledo
International,
Inc.
........................................
10,958
16,137,627
Thermo
Fisher
Scientific,
Inc.
..........................................
15,305
8,896,797
a
Waters
Corp.
......................................................
29,864
9,560,064
West
Pharmaceutical
Services,
Inc.
......................................
3,131
1,231,172
49,659,382
Machinery
0.5%
Crane
Co.
.........................................................
14,359
1,486,300
Snap-on,
Inc.
......................................................
24,768
5,157,936
6,644,236
Media
0.2%
Interpublic
Group
of
Cos.,
Inc.
(The)
.....................................
84,497
3,003,023
Metals
&
Mining
1.7%
Nucor
Corp.
.......................................................
145,799
14,784,019
Steel
Dynamics,
Inc.
.................................................
93,648
5,199,337
United
States
Steel
Corp.
.............................................
129,431
2,681,810
22,665,166
Multiline
Retail
0.9%
Kohl's
Corp.
.......................................................
71,405
4,263,593
Target
Corp.
.......................................................
37,703
8,310,872
12,574,465
Multi-Utilities
1.1%
DTE
Energy
Co.
....................................................
88,046
10,603,380
MDU
Resources
Group,
Inc.
...........................................
50,908
1,495,168
NiSource,
Inc.
......................................................
90,789
2,649,223
14,747,771
Oil,
Gas
&
Consumable
Fuels
3.9%
APA
Corp.
.........................................................
176,450
5,859,904
Chevron
Corp.
.....................................................
73,754
9,686,113
ConocoPhillips
.....................................................
66,434
5,887,381
Continental
Resources,
Inc.
...........................................
31,139
1,617,360
Coterra
Energy,
Inc.
.................................................
69,344
1,518,634
Devon
Energy
Corp.
.................................................
33,960
1,717,357
EOG
Resources,
Inc.
................................................
162,417
18,106,247
Exxon
Mobil
Corp.
...................................................
80,544
6,118,122
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
HollyFrontier
Corp.
..................................................
69,644
$
2,448,683
52,959,801
Paper
&
Forest
Products
0.1%
Louisiana-Pacific
Corp.
...............................................
21,212
1,409,325
Personal
Products
0.2%
a
Herbalife
Nutrition
Ltd.
...............................................
51,242
2,178,297
a
Pharmaceuticals
2.8%
Johnson
&
Johnson
.................................................
53,964
9,297,457
Merck
&
Co.,
Inc.
...................................................
91,104
7,423,154
Organon
&
Co.
.....................................................
122,501
3,909,007
Pfizer,
Inc.
.........................................................
329,578
17,365,465
37,995,083
Professional
Services
0.5%
a
CACI
International,
Inc.,
A
.............................................
5,343
1,322,179
Robert
Half
International,
Inc.
..........................................
53,340
6,041,288
7,363,467
Real
Estate
Management
&
Development
1.7%
a
CBRE
Group,
Inc.,
A
.................................................
161,045
16,320,300
a
Jones
Lang
LaSalle,
Inc.
..............................................
25,167
6,311,632
22,631,932
Road
&
Rail
1.0%
AMERCO
.........................................................
4,284
2,608,742
JB
Hunt
Transport
Services,
Inc.
........................................
7,251
1,396,108
Knight-Swift
Transportation
Holdings,
Inc.
.................................
76,392
4,322,259
Landstar
System,
Inc.
................................................
8,224
1,315,840
Old
Dominion
Freight
Line,
Inc.
.........................................
9,318
2,813,384
Ryder
System,
Inc.
..................................................
25,192
1,843,802
14,300,135
Semiconductors
&
Semiconductor
Equipment
5.5%
Applied
Materials,
Inc.
................................................
33,457
4,623,088
Broadcom,
Inc.
.....................................................
2,636
1,544,380
Intel
Corp.
.........................................................
264,643
12,919,871
Lam
Research
Corp.
.................................................
2,039
1,202,847
NVIDIA
Corp.
......................................................
17,746
4,345,285
QUALCOMM,
Inc.
...................................................
113,942
20,026,446
Teradyne,
Inc.
......................................................
10,375
1,218,336
Texas
Instruments,
Inc.
...............................................
163,730
29,387,898
75,268,151
Software
12.0%
a
Adobe,
Inc.
........................................................
34,923
18,659,359
a
Cadence
Design
Systems,
Inc.
.........................................
63,248
9,622,550
a
Fair
Isaac
Corp.
....................................................
3,926
1,943,331
Intuit,
Inc.
.........................................................
46,439
25,784,326
a
Manhattan
Associates,
Inc.
............................................
8,877
1,188,364
Microsoft
Corp.
.....................................................
318,762
99,128,607
Oracle
Corp.
.......................................................
70,570
5,727,461
a
Teradata
Corp.
.....................................................
31,926
1,287,895
163,341,893
Franklin
Fund
Allocator
Series
Statement
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
See
Abbreviations
on
page
39
.
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Specialty
Retail
2.5%
a
AutoNation,
Inc.
....................................................
21,861
$
2,382,849
a
AutoZone,
Inc.
.....................................................
897
1,781,756
Best
Buy
Co.,
Inc.
...................................................
16,156
1,603,968
Dick's
Sporting
Goods,
Inc.
............................................
30,907
3,566,668
Foot
Locker,
Inc.
....................................................
32,547
1,454,200
Home
Depot,
Inc.
(The)
...............................................
42,035
15,426,004
Lithia
Motors,
Inc.,
A
.................................................
8,437
2,464,701
a
O'Reilly
Automotive,
Inc.
..............................................
2,334
1,521,184
Penske
Automotive
Group,
Inc.
.........................................
15,285
1,553,415
Williams-Sonoma,
Inc.
...............................................
14,454
2,320,445
34,075,190
Technology
Hardware,
Storage
&
Peripherals
6.0%
Apple,
Inc.
........................................................
400,830
70,057,067
HP,
Inc.
...........................................................
321,011
11,790,734
81,847,801
Thrifts
&
Mortgage
Finance
0.3%
MGIC
Investment
Corp.
...............................................
162,730
2,470,242
New
York
Community
Bancorp,
Inc.
......................................
115,711
1,349,190
3,819,432
Tobacco
0.9%
Philip
Morris
International,
Inc.
.........................................
120,926
12,437,239
Trading
Companies
&
Distributors
0.2%
Fastenal
Co.
.......................................................
23,427
1,327,843
WW
Grainger,
Inc.
...................................................
3,003
1,486,815
2,814,658
Wireless
Telecommunication
Services
0.1%
a
T-Mobile
US,
Inc.
...................................................
12,739
1,377,978
a
Total
Common
Stocks
(Cost
$1,112,589,145)
....................................
1,351,205,873
a
a
a
a
Short
Term
Investments
0.9%
a
Money
Market
Funds
0.9%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
...................
12,832,100
12,832,100
Total
Money
Market
Funds
(Cost
$12,832,100)
..................................
12,832,100
Total
Short
Term
Investments
(Cost
$12,832,100
)
................................
12,832,100
a
Total
Investments
(Cost
$1,125,421,245)
100
.0%
................................
$1,364,037,973
Other
Assets,
less
Liabilities
(0.0)%
†
..........................................
(639,929)
Net
Assets
100.0%
...........................................................
$1,363,398,044
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
January
31,
2022
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$108,549,142
$396,149,405
$1,112,589,145
Cost
-
Non-controlled
affiliates
(Note
3
d
)
......................
1,172,307
4,774,687
12,832,100
Value
-
Unaffiliated
issuers
................................
$122,248,410
$433,452,902
$1,351,205,873
Value
-
Non-controlled
affiliates
(Note
3
d
)
.....................
1,172,307
4,774,687
12,832,100
Cash
..................................................
9
—
2,042
Foreign
currency,
at
value
(cost
$52,
$1,912
and
$–
respectively)
.....
52
1,920
—
Receivables:
Investment
securities
sold
.................................
—
9,563
—
Capital
shares
sold
......................................
1,926
5,124,170
42,499,999
Dividends
.............................................
320,854
879,816
783,239
European
Union
tax
reclaims
(Note
1
d
)
.......................
—
107,946
—
Affiliates
..............................................
31,301
20,648
20,666
Total
assets
........................................
123,774,859
444,371,652
1,407,343,919
Liabilities:
Payables:
Investment
securities
purchased
............................
—
5,797,269
43,892,777
Capital
shares
redeemed
.................................
—
124,171
—
Custody
fees
..........................................
62,744
22,922
4,256
Reports
to
shareholders
fees
..............................
4,845
6,519
10,409
Professional
fees
.......................................
40,387
44,459
38,433
Trustees'
fees
and
expenses
...............................
1,102
947
—
Deferred
tax
.............................................
210,233
—
—
Total
liabilities
.......................................
319,311
5,996,287
43,945,875
Net
assets,
at
value
...............................
$123,455,548
$438,375,365
$1,363,398,044
Net
assets
consist
of:
Paid-in
capital
...........................................
$113,663,513
$397,428,117
$1,104,777,896
Total
distributable
earnings
(losses)
...........................
9,792,035
40,947,248
258,620,148
Net
assets,
at
value
...............................
$123,455,548
$438,375,365
$1,363,398,044
Shares
outstanding
.......................................
11,061,258
36,675,008
95,905,077
Net
asset
value
per
share
..................................
$11.16
$11.95
$14.22
Franklin
Fund
Allocator
Series
Financial
Statements
Statements
of
Operations
for
the
period
ended
January
31,
2022
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$226,840,
$382,637
and
$–,
respectively)
Unaffiliated
issuers:
Paid
in
cash
..........................................
$1,572,057
$4,541,223
$10,076,651
Non-cash
dividends
....................................
—
1,008,482
—
Non-controlled
affiliates
(Note
3
d
)
...........................
61
217
731
Other
income
a,b
..........................................
1,010
9,323
12,208
Total
investment
income
.................................
1,573,128
5,559,245
10,089,590
Expenses:
Custodian
fees
(Note
4
)
....................................
34,746
12,402
2,416
Reports
to
shareholders
fees
................................
1,831
1,232
—
Registration
and
filing
fees
..................................
414
379
440
Professional
fees
.........................................
43,058
42,644
35,129
Trustees'
fees
and
expenses
................................
1,567
2,446
4,887
Pricing
fees
.............................................
2,885
3,817
4,334
Other
..................................................
3,440
4,116
3,705
Total
expenses
.......................................
87,941
67,036
50,911
Expenses
waived/paid
by
affiliates
(Note
3
d
and
3
e
)
............
(87,941)
(67,036)
(50,911)
Net
expenses
.......................................
—
—
—
Net
investment
income
..............................
1,573,128
5,559,245
10,089,590
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$167,501,
$–
and
$–
respectively)
Unaffiliated
issuers
....................................
(2,236,877)
8,542,760
38,264,362
Foreign
currency
transactions
..............................
27,443
274,002
—
Net
realized
gain
(loss)
................................
(2,209,434)
8,816,762
38,264,362
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
(3,848,427)
(24,514,817)
(6,982,875)
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
(8,163)
(19,269)
—
Change
in
deferred
taxes
on
unrealized
appreciation
.............
233,138
—
—
Net
change
in
unrealized
appreciation
(depreciation)
..........
(3,623,452)
(24,534,086)
(6,982,875)
Net
realized
and
unrealized
gain
(loss)
..........................
(5,832,886)
(15,717,324)
31,281,487
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$(4,259,758)
$(10,158,079)
$41,371,077
a
Other
income
includes
payments
by
Advisers
for
acquired
fund
fees
and
expenses
(See
Note
3e).
b
For
Franklin
International
Core
Equity
(IU)
fund,
it
also
includes
income
from
EU
reclaims
(See
Note
1d).
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
27
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$1,573,128
$3,319,305
$5,559,245
$9,329,418
Net
realized
gain
(loss)
............
(2,209,434)
12,103,612
8,816,762
24,003,767
Net
change
in
unrealized
appreciation
(depreciation)
.................
(3,623,452)
5,860,767
(24,534,086)
50,825,451
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
(4,259,758)
21,283,684
(10,158,079)
84,158,636
Distributions
to
shareholders
.........
(2,009,369)
(4,129,235)
(26,015,545)
(9,874,237)
Capital
share
transactions
(Note
2
)
.....
13,081,516
(39,101,774)
114,173,639
4,940,723
Net
increase
(decrease)
in
net
assets
.....................
6,812,389
(21,947,325)
78,000,015
79,225,122
Net
assets:
Beginning
of
period
................
116,643,159
138,590,484
360,375,350
281,150,228
End
of
period
.....................
$123,455,548
$116,643,159
$438,375,365
$360,375,350
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.
28
Franklin
U.S.
Core
Equity
(IU)
Fund
Six
Months
Ended
January
31,
2022
(unaudited)
Year
Ended
July
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$10,089,590
$13,449,131
Net
realized
gain
(loss)
.................................................
38,264,362
87,253,053
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(6,982,875)
156,834,679
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
41,371,077
257,536,863
Distributions
to
shareholders
..............................................
(106,499,109)
(17,301,985)
Capital
share
transactions
(Note
2
)
..........................................
111,848,971
353,919,187
Net
increase
(decrease)
in
net
assets
...................................
46,720,939
594,154,065
Net
assets:
Beginning
of
period
.....................................................
1,316,677,105
722,523,040
End
of
period
..........................................................
$1,363,398,044
$1,316,677,105
Franklin
Fund
Allocator
Series
29
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
eighteen
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
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
and
exchange
traded
funds
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.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
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
January
31,
2022,
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.
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
30
franklintempleton.com
Semiannual
Report
b.
Securities
Purchased
on
a
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
c.
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.
d.
Income
and
Deferred
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.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
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
January
31,
2022,
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).
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
31
franklintempleton.com
Semiannual
Report
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.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
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.
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)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
32
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
January
31,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds’
shares
were
as
follows:
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
trustees
of
the
following
subsidiaries:
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Shares
Amount
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
January
31,
2022
Shares
sold
...................................
1,596,395
$17,971,388
8,501,502
$108,421,764
Shares
issued
in
reinvestment
of
distributions
..........
179,690
2,009,369
2,153,845
26,015,545
Shares
redeemed
...............................
(576,208)
(6,899,241)
(1,521,327)
(20,263,670)
Net
increase
(decrease)
..........................
1,199,877
$13,081,516
9,134,020
$114,173,639
Year
ended
July
31,
2021
Shares
sold
...................................
427,047
$4,782,057
1,596,753
$20,522,251
Shares
issued
in
reinvestment
of
distributions
..........
364,815
4,129,235
838,534
9,874,237
Shares
redeemed
...............................
(4,048,308)
(48,013,066)
(2,169,981)
(25,455,765)
Net
increase
(decrease)
..........................
(3,256,446)
$(39,101,774)
265,306
$4,940,723
Franklin
U.S.
Core
Equity
(IU)
Fund
Shares
Amount
Class
A
Class
A
Shares:
Six
Months
ended
January
31,
2022
Shares
sold
...................................
7,748,452
$113,105,336
Shares
issued
in
reinvestment
of
distributions
..........
7,448,001
106,499,109
Shares
redeemed
...............................
(7,123,924)
(107,755,474)
Net
increase
(decrease)
..........................
8,072,529
$111,848,971
Year
ended
July
31,
2021
Shares
sold
...................................
27,745,453
$401,283,967
Shares
issued
in
reinvestment
of
distributions
..........
1,368,212
17,301,985
Shares
redeemed
...............................
(5,164,118)
(64,666,765)
Net
increase
(decrease)
..........................
23,949,547
$353,919,187
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
33
franklintempleton.com
Semiannual
Report
a.
Management
Fees
Advisers
provides
investment
management
services
to
the
Funds.
The
Funds
do
not
pay
a
fee
for
these
services.
Advisers
and
its
affiliates,
receive
compensation
from
the
investment
companies
that
invest
in
the
Funds.
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.
Transfer
Agent
Fees
Investor
Services
provides
shareholder
services
to
the
Funds.
The
Funds
do
not
pay
a
fee
for
these
services.
d.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
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
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Advisers
has
contractually
agreed
to
reimburse
expenses
of
the
Funds
in
an
amount
equal
to
fees
indirectly
borne
by
the
Funds
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations.
During
the
period
ended
January
31,
2022,
investments
in
affiliated
management
investment
companies
were
as
follows:
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
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
1,279,965
$
22,058,369
$
(22,166,027)
$
—
$
—
$
1,172,307
1,172,307
$
61
Total
Affiliated
Securities
...
$1,279,965
$22,058,369
$(22,166,027)
$—
$—
$1,172,307
$61
Franklin
International
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
5,932,836
$
112,627,997
$
(113,786,146)
$
—
$
—
$
4,774,687
4,774,687
$
217
Total
Affiliated
Securities
...
$5,932,836
$112,627,997
$(113,786,146)
$—
$—
$4,774,687
$217
Franklin
U.S.
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$
14,712,778
$
155,567,254
$
(157,447,932)
$
—
$
—
$
12,832,100
12,832,100
$
731
Total
Affiliated
Securities
...
$14,712,778
$155,567,254
$(157,447,932)
$—
$—
$12,832,100
$731
3.
Transactions
with
Affiliates
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
e.
Waiver
and
Expense
Reimbursements
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
Funds
so
that
the
operating expenses
(excluding
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations),
interest
expense
and
acquired
fund
fees
and
expenses
of
the
Funds
do not
exceed
0.00%
based
on
the
average
net
assets
of
each
class
until
November
30,
2022.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds’
fiscal
year
end.
Acquired
fund
fees
and
expenses
are
indirect
expenses,
and
therefore
Advisers
may
make
payments,
if
necessary,
to
the
Funds
to
offset
these
estimated
indirect
expenses.
Payments
by
Advisers
for
the
period
ended
January
31,
2022,
are
reflected
as
other
income
in
the
Statements
of
Operations.
f.
Other
Affiliated
Transactions
At
January
31,
2022,
Franklin
Fund
Allocator
Series
owned
a
percentage
of
the
Funds’
outstanding
shares
as
follows:
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
January
31,
2022,
there
were
no
credits
earned.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
July
31,
2021,
the
capital
loss
carryforwards
were
as
follows:
Shares
Percentage
of
Outstanding
Shares
a
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
Conservative
Allocation
Fund
1,293,777
11.7%
Franklin
Moderate
Allocation
Fund
3,599,110
32.5%
Franklin
Growth
Allocation
Fund
3,631,116
32.8%
Franklin
International
Core
Equity
(IU)
Fund
Franklin
Conservative
Allocation
Fund
5,134,403
14.0%
Franklin
Moderate
Allocation
Fund
12,279,320
33.5%
Franklin
Growth
Allocation
Fund
11,801,381
32.2%
Franklin
U.S.
Core
Equity
(IU)
Fund
Franklin
Conservative
Allocation
Fund
16,493,627
17.2%
Franklin
Moderate
Allocation
Fund
36,150,230
37.7%
Franklin
Growth
Allocation
Fund
27,432,020
28.6%
a
Investment
activities
of
significant
shareholders
could
have
a
material
impact
on
the
Fund.
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
484,105
3.
Transactions
with
Affiliates
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
At
January
31,
2022,
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
treatment
of
foreign
currency
transactions,
passive
foreign
investment
company
shares,
foreign
capital
gains
tax,
corporate
actions,
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
for
the
period
ended
January
31,
2022,
were
as
follows:
7.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
Investing
in
China
A
shares
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities.
In
general,
A
shares
are
issued
by
companies
incorporated
in
the
People’s
Republic
of
China
(PRC)
and
listed
on
the
Shanghai
and
Shenzhen
Stock
Exchanges
and
available
for
investment
by
domestic
(Chinese)
investors
and
holders
of
a
QFII
license
and,
in
the
case
of
certain
eligible
A
shares,
through
the
Shanghai
and
Shenzhen
Stock
Connect
programs.
The
Shanghai
and
Shenzhen
Stock
Exchanges
are,
however,
substantially
smaller,
less
liquid
and
more
volatile
than
the
major
securities
markets
in
the
United
States.
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
a
a
a
a
Cost
of
investments
.......................
$110,587,742
$402,664,106
$1,126,313,599
Unrealized
appreciation
.....................
$20,762,597
$49,094,699
$260,548,751
Unrealized
depreciation
.....................
(7,929,622)
(13,531,216)
(22,824,377)
Net
unrealized
appreciation
(depreciation)
.......
$12,832,975
$35,563,483
$237,724,374
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Purchases
..............................
$74,494,390
$238,922,539
$793,794,271
Sales
..................................
$61,388,937
$143,222,024
$774,578,254
5.
Income
Taxes
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
8.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Funds
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board
of
Trustees.
9.
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.
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
January
31,
2022,
in
valuing
the
Funds’
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Auto
Components
......................
$
—
$
275,825
$
—
$
275,825
Automobiles
..........................
—
1,280,706
—
1,280,706
Banks
...............................
763,236
15,328,761
—
16,091,997
Beverages
...........................
734,176
1,849,654
—
2,583,830
Biotechnology
.........................
—
479,252
—
479,252
Capital
Markets
........................
—
2,270,190
—
2,270,190
Chemicals
...........................
—
4,230,353
—
4,230,353
Communications
Equipment
..............
148,944
139,420
—
288,364
Construction
Materials
..................
—
303,400
—
303,400
Consumer
Finance
.....................
251,333
689,015
—
940,348
Containers
&
Packaging
.................
—
309,890
—
309,890
Diversified
Financial
Services
.............
329,353
—
—
329,353
Diversified
Telecommunication
Services
.....
—
214,296
—
214,296
Electric
Utilities
........................
—
616,464
—
616,464
Electrical
Equipment
....................
—
1,612,418
—
1,612,418
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Electronic
Equipment,
Instruments
&
Components
........................
$
—
$
1,241,900
$
—
$
1,241,900
Entertainment
.........................
—
1,219,378
—
1,219,378
Food
&
Staples
Retailing
.................
128,934
—
—
128,934
Food
Products
........................
2,396,364
2,594,547
—
4,990,911
Gas
Utilities
..........................
385,370
352,740
—
738,110
Health
Care
Providers
&
Services
..........
—
694,854
—
694,854
Hotels,
Restaurants
&
Leisure
.............
414,262
—
—
414,262
Industrial
Conglomerates
................
120,714
112,531
—
233,245
Insurance
............................
—
7,136,049
—
7,136,049
Interactive
Media
&
Services
..............
847,014
6,446,283
—
7,293,297
Internet
&
Direct
Marketing
Retail
..........
145,236
5,447,286
—
5,592,522
IT
Services
...........................
—
7,451,737
—
7,451,737
Life
Sciences
Tools
&
Services
............
—
1,803,690
—
1,803,690
Marine
..............................
—
2,686,519
—
2,686,519
Media
...............................
—
123,487
—
123,487
Metals
&
Mining
.......................
—
5,856,566
—
5,856,566
Oil,
Gas
&
Consumable
Fuels
.............
546,407
3,246,677
—
3,793,084
Personal
Products
.....................
—
798,146
—
798,146
Pharmaceuticals
.......................
1,032,725
2,691,881
—
3,724,606
Real
Estate
Management
&
Development
....
—
1,390,962
—
1,390,962
Semiconductors
&
Semiconductor
Equipment
.
553,656
11,838,342
—
12,391,998
Specialty
Retail
........................
126,637
837,397
—
964,034
Technology
Hardware,
Storage
&
Peripherals
.
—
5,990,413
—
5,990,413
Textiles,
Apparel
&
Luxury
Goods
..........
—
3,978,066
—
3,978,066
Thrifts
&
Mortgage
Finance
...............
—
657,782
—
657,782
Transportation
Infrastructure
..............
791,950
832,783
—
1,624,733
Wireless
Telecommunication
Services
.......
242,952
2,772,051
—
3,015,003
Preferred
Stocks
........................
4,487,436
—
—
4,487,436
Short
Term
Investments
...................
1,172,307
—
—
1,172,307
Total
Investments
in
Securities
...........
$15,619,006
$107,801,711
a
$—
$123,420,717
Franklin
International
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Air
Freight
&
Logistics
...................
—
10,202,845
—
10,202,845
Auto
Components
......................
—
472,966
—
472,966
Automobiles
..........................
—
6,198,802
—
6,198,802
Banks
...............................
—
47,165,329
—
47,165,329
Beverages
...........................
—
4,092,693
—
4,092,693
Biotechnology
.........................
—
3,406,873
—
3,406,873
Building
Products
......................
—
17,498,055
—
17,498,055
Capital
Markets
........................
—
22,585,539
—
22,585,539
Chemicals
...........................
—
16,138,810
—
16,138,810
Construction
Materials
..................
—
673,884
—
673,884
Diversified
Financial
Services
.............
—
12,032,289
—
12,032,289
Diversified
Telecommunication
Services
.....
—
19,712,504
—
19,712,504
Electric
Utilities
........................
—
5,087,535
—
5,087,535
Electrical
Equipment
....................
—
4,838,000
—
4,838,000
Electronic
Equipment,
Instruments
&
Components
........................
—
2,104,068
—
2,104,068
Entertainment
.........................
—
3,381,434
—
3,381,434
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
12,875,236
—
12,875,236
10.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
International
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Food
&
Staples
Retailing
.................
$
—
$
11,772,781
$
—
$
11,772,781
Food
Products
........................
—
6,580,278
—
6,580,278
Gas
Utilities
..........................
—
5,679,118
—
5,679,118
Health
Care
Equipment
&
Supplies
.........
—
16,412,525
—
16,412,525
Health
Care
Providers
&
Services
..........
—
1,072,581
—
1,072,581
Health
Care
Technology
.................
—
322,965
—
322,965
Hotels,
Restaurants
&
Leisure
.............
—
3,289,522
—
3,289,522
Household
Durables
....................
—
8,001,739
—
8,001,739
Industrial
Conglomerates
................
—
3,180,054
—
3,180,054
Insurance
............................
—
6,461,167
—
6,461,167
Interactive
Media
&
Services
..............
—
521,363
—
521,363
Internet
&
Direct
Marketing
Retail
..........
—
1,391,057
—
1,391,057
IT
Services
...........................
—
3,929,531
—
3,929,531
Leisure
Products
.......................
—
358,803
—
358,803
Life
Sciences
Tools
&
Services
............
—
3,270,114
—
3,270,114
Machinery
............................
178,784
7,565,469
—
7,744,253
Marine
..............................
—
10,621,380
—
10,621,380
Media
...............................
—
2,967,378
—
2,967,378
Metals
&
Mining
.......................
554,519
10,036,207
—
10,590,726
Multiline
Retail
........................
—
3,220,627
—
3,220,627
Multi-Utilities
..........................
—
2,726,174
—
2,726,174
Oil,
Gas
&
Consumable
Fuels
.............
—
18,313,678
—
18,313,678
Personal
Products
.....................
—
15,971,895
—
15,971,895
Pharmaceuticals
.......................
—
28,609,242
—
28,609,242
Professional
Services
...................
—
12,237,234
—
12,237,234
Real
Estate
Management
&
Development
....
—
5,400,476
—
5,400,476
Road
&
Rail
..........................
—
1,511,291
—
1,511,291
Semiconductors
&
Semiconductor
Equipment
.
—
10,949,132
—
10,949,132
Software
.............................
1,452,120
1,571,917
—
3,024,037
Specialty
Retail
........................
—
4,646,841
—
4,646,841
Technology
Hardware,
Storage
&
Peripherals
.
—
3,412,528
—
3,412,528
Textiles,
Apparel
&
Luxury
Goods
..........
—
3,908,406
—
3,908,406
Tobacco
.............................
—
1,538,235
—
1,538,235
Trading
Companies
&
Distributors
..........
—
16,851,607
—
16,851,607
Wireless
Telecommunication
Services
.......
—
5,584,878
—
5,584,878
Preferred
Stocks
........................
—
2,912,424
—
2,912,424
Short
Term
Investments
...................
4,774,687
—
—
4,774,687
Total
Investments
in
Securities
...........
$6,960,110
$431,267,479
b
$—
$438,227,589
Franklin
U.S.
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
c
Common
Stocks
........................
1,351,205,873
—
—
1,351,205,873
Short
Term
Investments
...................
12,832,100
—
—
12,832,100
Total
Investments
in
Securities
...........
$1,364,037,973
$—
$—
$1,364,037,973
a
Includes
foreign
securities
valued
at
$107,801,711,
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.
b
Includes
foreign
securities
valued
at
$431,267,479,
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.
c
For
detailed
categories,
see
the
accompanying
Statement
of
Investments.
10.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
39
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,
other
than
those
already
disclosed
in
the
financial
statements.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
CDI
CREST
Depository
Interest
GDR
Global
Depositary
Receipt
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
(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 Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
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 March 29, 2022
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 March 29, 2022
By S\Christopher Kings________________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date March 29, 2022