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

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07851

Franklin Fund Allocator Series

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

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

Date of fiscal year end: 12/31

Date of reporting period: 6/30/22

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.)

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

Not Applicable

.

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

June

30,

2022

Sign

up

for

electronic

delivery

at

franklintempleton.com/edelivery

Franklin

LifeSmart

TM

Retirement

Income

Fund

2020

Retirement

Target

Fund

2025

Retirement

Target

Fund

2030

Retirement

Target

Fund

2035

Retirement

Target

Fund

2040

Retirement

Target

Fund

2045

Retirement

Target

Fund

2050

Retirement

Target

Fund

2055

Retirement

Target

Fund

2060

Retirement

Target

Fund

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

franklintempleton.com

Semiannual

Report

1

SHAREHOLDER

LETTER

Dear

Shareholder:

During

the

six

months

ended

June

30,

2022,

the

U.S.

economy

showed

progress

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

The

U.S.

economy

contracted

in

2022’s

first

quarter

given

a

record

trade

deficit

and

a

decline

in

inventory

investment,

while

consumer

spending

expanded

more

slowly,

helped

by

the

reopening

of

businesses,

widespread

vaccinations

and

federal

assistance

programs.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply

chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

During

the

first

half

of

this

period,

the

U.S.

Federal

Reserve

continued

some

quantitative

easing

measures

to

bolster

credit

markets

and

encourage

economic

activity.

However,

to

support

its

goals

to

maximize

employment

and

return

long-

term

annual

inflation

to

2%,

the

Federal

Reserve

continued

reversing

its

quantitative

easing

measures,

increasing

its

monthly

asset

purchase

tapering

and

ending

purchases

by

March

2022.

The

Federal

Reserve

also

raised

the

federal

funds

rate

by

0.25%

in

March,

0.50%

in

May

and

0.75%

in

June,

for

a

total

of

1.50%,

increasing

the

rate

from

0.25%

to

1.75%

during

the

period.

Additionally,

the

Federal

Reserve

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

increases

to

combat

inflation.

Resilient

consumer

demand

together

with

persistent

supply-

chain

disruptions

contributed

to

higher

inflation

in

numerous

countries,

and

many

central

banks

tightened

monetary

policy.

China

imposed

new

lockdowns

to

mitigate

the

spread

of

COVID-19,

which

pressured

Asian

and

global

emerging

market

stocks.

International

sanctions

on

Russia

in

response

to

its

invasion

of

Ukraine

hindered

companies

doing

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-20.58%

(the

index

decreasing

from

4,766.18

to

3,785.38).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-21.21%

(the

index

decreasing

from

3,231.727

to

2,546.185).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-10.35%

total

return

(an

index

decrease

from

2,355.14

to

2,111.40),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

semiannual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2022,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-19.96%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

7,993.43)

and

MSCI

World

Index

-20.29%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,337.724).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

LifeSmart

™

Retirement

Income

Fund

4

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

10

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

15

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

20

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

25

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

30

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

35

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

40

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

45

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

50

Financial

Highlights

and

Schedules

of

Investments

55

Financial

Statements

121

Notes

to

Financial

Statements

138

Shareholder

Information

167

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

June

30,

2022.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

Retirement

Income

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

Retirement

Income

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

make

monthly

distributions,

while

preserving

the

investors’

capital

over

the

long

term.

The

Fund

employs

an

asset

allocation

strategy,

combined

with

an

income

generation

strategy,

designed

for

investors

in

retirement.

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-12.95%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Under

normal

market

conditions,

40%

of

the

Fund’s

assets

are

allocated

to

equity

investments

and

60%

of

the

Fund’s

assets

are

allocated

to

fixed-income

investments.

The

underlying

funds

and

the

percentage

allocations

to

each

asset

class

may

be

changed

from

time

to

time

by

the

Fund’s

investment

manager

without

the

approval

of

shareholders,

and,

under

normal

market

conditions,

the

percentage

allocations

for

equity

and

fixed-income

funds

may

vary

up

to

10%

from

the

stated

allocations.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

ClearBridge

Tactical

Dividend

Income

Fund

contributed

to

relative

performance

as

the

relative

stability

of

dividend-paying

stocks

were

sought

amidst

market

volatility.

Templeton

Developing

Markets

Trust,

however,

detracted

from

relative

performance

as

international

stocks

underperformed

their

U.S.

counterparts.

Within

fixed

income,

Franklin

U.S.

Government

Securities

Fund

contributed

to

performance

with

investors

favoring

the

relative

safety

of

government-backed

credits.

Meanwhile,

Franklin

Liberty

High

Yield

Corporate

ETF

detracted

from

relative

performance

as

high-yield

spreads

widened.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

57.9%

Domestic

Equity

23.8%

Index-Linked

Notes

10.7%

Foreign

Equity

6.9%

Short-Term

Investments

&

Other

Net

Assets

0.7%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

60

.

Franklin

LifeSmart™

Retirement

Income

Fund

5

franklintempleton.com

Semiannual

Report

The

Fund

holds

two

index-linked

notes

for

their

equity

exposure

and

income

generation.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

Retirement

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Western

Asset

Income

Fund,

Class

IS

14.7%

Global

X

U.S.

Preferred

ETF

11.6%

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

10.5%

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

9.3%

Franklin

Liberty

U.S.

Core

Bond

ETF

9.1%

Franklin

Liberty

Investment

Grade

Corporate

ETF

5.9%

Credit

Suisse

AG,

Senior

Note

5.4%

UBS

AG,

Senior

Note

5.3%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

5.0%

Franklin

Liberty

High

Yield

Corporate

ETF

4.9%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

Retirement

Income

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-12.95%

-17.74%

1-Year

-11.15%

-16.07%

5-Year

+10.60%

+0.89%

10-Year

+42.79%

+3.04%

Advisor

6-Month

-12.78%

-12.78%

1-Year

-10.94%

-10.94%

5-Year

+11.93%

+2.28%

10-Year

+46.61%

+3.90%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

4.14%

4.61%

3.92%

Advisor

4.67%

5.17%

4.44%

See

page

8

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investments

in

equity-linked

notes

(ELNs)

often

have

risks

similar

to

their

underlying

securities,

which

could

include

management,

market,

and,

as

applicable,

foreign

securities

and

currency

risks.

In

addition,

ELNs

are

subject

to

certain

debt

securities

risks,

such

as

interest

rate

and

credit

risks,

as

well

as

counterparty

and

liquidity

risk.

Investments

in

equity

index-linked

notes

(ILNs)

often

have

risks

similar

to

securities

in

the

underlying

index,

which

could

include

management

risk,

market

risk

and,

as

applicable,

foreign

securities

and

currency

risks.

Investments

in

derivatives

involve

costs

and

can

create

economic

leverage,

which

may

result

in

significant

volatility

and

cause

the

fund

to

participate

in

losses

(as

well

as

gains)

that

exceed

the

fund’s

initial

investment.

The

Fund

is

not

guaranteed

to

achieve

its

investment

goal

of

preserving

capital

while

making

monthly

distributions

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

In

addition,

some

of

its

distributions

may

be

treated

in

part

as

a

return

of

capital

which

will

de-

crease

shareholders’

cost

basis

in

the

Fund

and

affect

the

amount

of

any

capital

gain

or

loss

that

shareholders

realize

when

selling

or

exchanging

Fund

shares.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year,

and

could

vary

substantially

over

time.

It

is

possible

for

the

Fund

to

suffer

substantial

investment

losses

and

simultaneously

experience

additional

asset

reductions

as

a

result

of

its

distributions

to

shareholders

under

the

managed

distribution

policy.

Investors

who

hold

the

Fund

within

a

tax-advantaged

retirement

account

should

consult

their

tax

advisors

to

discuss

tax

consequences

of

receiving

cash

distributions.

In

addition,

use

of

the

Fund

or

election

of

the

option

to

receive

distribution

payments

in

cash

may

be

restricted

in

certain

retirement

plans

by

the

terms

of

the

governing

plan

documents

and/or

the

discretion

of

the

plan

administrator.

Investors

are

strongly

advised

to

consult

with

their

financial

advisor

for

assistance

before

selecting

the

appropriate

fund,

based

on

their

goals

and

personal

situations,

including

time

horizon,

retirement

income

needs,

risk

tolerance

and

tax

bracket.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

and

other

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

Net

Asset

Value

Share

Class

6/30/22

12/31/21

Change

A

(FTRAX)

$9.72

$11.50

-$1.78

C

(FRTCX)

$9.60

$11.36

-$1.76

R

(FBRLX)

$9.69

$11.47

-$1.78

R6

(FLMTX)

$9.77

$11.55

-$1.78

Advisor

(FLRDX)

$9.76

$11.55

-$1.79

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.2130

$0.0915

$0.3045

C

$0.1674

$0.0915

$0.2589

R

$0.1986

$0.0915

$0.2901

R6

$0.2310

$0.0915

$0.3225

Advisor

$0.2280

$0.0915

$0.3195

Total

Annual

Operating

Expenses

7

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.57%

1.22%

Advisor

0.32%

0.97%

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

8

franklintempleton.com

Semiannual

Report

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

change

its

strategic

asset

allocation

40%

to

equity

funds

and

60%

to

fixed

income

funds

aligning

it

to

the

landing

point

of

the

glide

path

(the

strate-

gic

asset

allocation

of

a

target

date

fund

over

time)

of

other

Franklin

LifeSmart

retirement

funds.

Previously,

as

of

5/1/16,

the

Fund

changed

its

name

from

Franklin

LifeSmart

2015

Retirement

Target

Date

Fund

in

connection

with

changes

to

its

strategies

including,

among

other

things,

the

addition

of

an

income

generation

strategy

to

support

the

Fund’s

managed

distribution

policy.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

June

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

6/30/22.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

Franklin

LifeSmart™

Retirement

Income

Fund

9

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$870.50

$1.39

$1,023.31

$1.51

0.30%

C

$1,000

$867.60

$4.86

$1,019.59

$5.26

1.05%

R

$1,000

$869.70

$2.55

$1,022.07

$2.76

0.55%

R6

$1,000

$872.50

$0.00

$1,024.79

$0.00

0.00%

Advisor

$1,000

$872.20

$0.23

$1,024.55

$0.25

0.05%

10

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-15.67%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

46.8%

Domestic

Equity

34.9%

Foreign

Equity

13.8%

Foreign

Fixed

Income

2.2%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

67

.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

11

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2020

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

17.0%

Franklin

Liberty

U.S.

Core

Bond

ETF

16.8%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

9.5%

Franklin

Growth

Fund,

Class

R6

7.9%

Franklin

International

Core

Equity

(IU)

Fund

6.3%

Franklin

LibertyQ

U.S.

Equity

ETF

4.9%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

3.5%

Schwab

U.S.

TIPS

ETF

3.4%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

3.4%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

3.3%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2020

Retirement

Target

Fund

12

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-15.67%

-20.33%

1-Year

-12.79%

-17.59%

5-Year

+15.49%

+1.76%

Since

Inception

(7/1/13)

+43.53%

+3.45%

Advisor

6-Month

-15.59%

-15.59%

1-Year

-12.53%

-12.53%

5-Year

+16.98%

+3.19%

Since

Inception

(7/1/13)

+47.02%

+4.38%

See

page

13

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

13

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0683

$0.2354

$0.3037

C

$0.0324

$0.2354

$0.2678

R

$0.0551

$0.2354

$0.2905

R6

$0.0853

$0.2354

$0.3207

Advisor

$0.0823

$0.2354

$0.3177

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.23%

Advisor

0.45%

0.98%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2020

Retirement

Target

Fund

14

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$843.30

$2.11

$1,022.51

$2.31

0.46%

C

$1,000

$839.50

$5.53

$1,018.79

$6.07

1.21%

R

$1,000

$841.50

$3.25

$1,021.26

$3.57

0.71%

R6

$1,000

$862.30

$0.74

$1,024.00

$0.81

0.16%

Advisor

$1,000

$844.10

$0.97

$1,023.74

$1.06

0.21%

15

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

covers

the

period

ended

June

30

,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.55%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

17

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

41.1%

Domestic

Fixed

Income

38.5%

Foreign

Equity

16.3%

Foreign

Fixed

Income

1.6%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

74

.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

16

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2025

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

20.2%

Franklin

Liberty

U.S.

Core

Bond

ETF

13.9%

Franklin

Growth

Fund,

Class

R6

9.3%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

7.9%

Franklin

International

Core

Equity

(IU)

Fund

7.4%

Franklin

LibertyQ

U.S.

Equity

ETF

5.6%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.0%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

2.9%

Schwab

U.S.

TIPS

ETF

2.8%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.8%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2025

Retirement

Target

Fund

17

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-16.55%

-21.16%

1-Year

-13.43%

-18.21%

5-Year

+20.40%

+2.61%

10-Year

+75.45%

+5.19%

Advisor

6-Month

-16.47%

-16.47%

1-Year

-13.24%

-13.24%

5-Year

+21.90%

+4.04%

10-Year

+80.07%

+6.06%

See

page

18

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

18

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0612

$0.2881

$0.3493

C

$0.0309

$0.2881

$0.3190

R

$0.0458

$0.2881

$0.3339

R6

$0.0803

$0.2881

$0.3684

Advisor

$0.0758

$0.2881

$0.3639

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.01%

Advisor

0.45%

0.76%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2025

Retirement

Target

Fund

19

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

A

Net

Annualized

Expense

Ratio

2

A

$1,000

$834.50

$2.17

$1,022.43

$2.39

0.48%

C

$1,000

$831.20

$5.57

$1,018.72

$6.14

1.23%

R

$1,000

$833.50

$3.30

$1,021.20

$3.64

0.73%

R6

$1,000

$835.70

$0.70

$1,024.04

$0.77

0.15%

Advisor

$1,000

$835.30

$1.03

$1,023.67

$1.14

0.23%

20

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-17.29%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

22

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

47.5%

Domestic

Fixed

Income

30.1%

Foreign

Equity

18.6%

Foreign

Fixed

Income

1.2%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.6%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

81

.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

21

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2030

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.1%

Franklin

Growth

Fund,

Class

R6

10.9%

Franklin

Liberty

U.S.

Core

Bond

ETF

10.8%

Franklin

International

Core

Equity

(IU)

Fund

8.4%

Franklin

LibertyQ

U.S.

Equity

ETF

6.6%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

6.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.2%

Vanguard

S&P

500

ETF

2.3%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

2.2%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2030

Retirement

Target

Fund

22

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-17.29%

-21.85%

1-Year

-13.81%

-18.56%

5-Year

+24.49%

+3.30%

Since

Inception

(7/1/13)

+61.62%

+4.82%

Advisor

6-Month

-17.23%

-17.23%

1-Year

-13.60%

-13.60%

5-Year

+26.00%

+4.73%

Since

Inception

(7/1/13)

+65.28%

+5.74%

See

page

23

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

23

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0510

$0.3034

$0.3544

C

$0.0280

$0.3034

$0.3314

R

$0.0437

$0.3034

$0.3471

R6

$0.0611

$0.3034

$0.3645

Advisor

$0.0587

$0.3034

$0.3621

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.18%

Advisor

0.45%

0.93%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2030

Retirement

Target

Fund

24

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$827.10

$2.17

$1,022.42

$2.41

0.48%

C

$1,000

$823.60

$5.53

$1,018.73

$6.13

1.22%

R

$1,000

$825.70

$3.30

$1,021.18

$3.65

0.73%

R6

$1,000

$833.70

$0.79

$1,023.94

$0.87

0.17%

Advisor

$1,000

$827.70

$1.03

$1,023.67

$1.14

0.23%

25

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-18.05%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

27

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

53.5%

Domestic

Fixed

Income

22.0%

Foreign

Equity

21.1%

Foreign

Fixed

Income

1.0%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

88

.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

26

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2035

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

25.3%

Franklin

Growth

Fund,

Class

R6

12.3%

Franklin

International

Core

Equity

(IU)

Fund

9.6%

Franklin

LibertyQ

U.S.

Equity

ETF

8.2%

Franklin

Liberty

U.S.

Core

Bond

ETF

7.8%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.2%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.4%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.7%

Vanguard

S&P

500

ETF

2.6%

Templeton

Developing

Markets

Trust,

Class

R6

2.5%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2035

Retirement

Target

Fund

27

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-18.05%

-22.54%

1-Year

-14.41%

-19.13%

5-Year

+28.34%

+3.93%

10-Year

+94.31%

+6.26%

Advisor

6-Month

-17.92%

-17.92%

1-Year

-14.16%

-14.16%

5-Year

+29.98%

+5.38%

10-Year

+99.76%

+7.16%

See

page

28

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

28

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchange-traded

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individ-

ual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0449

$0.3492

$0.3941

C

$0.0222

$0.3492

$0.3714

R

$0.0376

$0.3492

$0.3868

R6

$0.0553

$0.3492

$0.4045

Advisor

$0.0527

$0.3492

$0.4019

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.06%

Advisor

0.45%

0.81%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2035

Retirement

Target

Fund

29

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

2

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

A

Net

Annualized

Expense

Ratio

2

A

$1,000

$819.50

$2.19

$1,022.39

$2.43

0.49%

C

$1,000

$816.60

$5.56

$1,018.67

$6.18

1.23%

R

$1,000

$818.90

$3.32

$1,021.15

$3.68

0.74%

R6

$1,000

$821.30

$0.76

$1,023.96

$0.85

0.17%

Advisor

$1,000

$820.80

$1.06

$1,023.63

$1.18

0.24%

30

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-18.76%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

32

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

However,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

investment

manager

considers

the

need

for

reduced

market

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

59.7%

Foreign

Equity

23.5%

Domestic

Fixed

Income

14.2%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.6%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

95

.

FranklinLifeSmart™

2040

Retirement

Target

Fund

31

franklintempleton.com

Semiannual

Report

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

Western

Asset

Short-Term

Bond

Fund

contributed

as

credits

with

shorter

terms

were

favored

in

the

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

™

2040

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

25.8%

Franklin

Growth

Fund,

Class

R6

13.8%

Franklin

LibertyQ

U.S.

Equity

ETF

11.3%

Franklin

International

Core

Equity

(IU)

Fund

10.7%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.9%

Franklin

Liberty

U.S.

Core

Bond

ETF

5.4%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.0%

Vanguard

S&P

500

ETF

2.9%

Templeton

Developing

Markets

Trust,

Class

R6

2.8%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2040

Retirement

Target

Fund

32

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-18.76%

-23.23%

1-Year

-14.74%

-19.44%

5-Year

+32.42%

+4.59%

Since

Inception

(7/1/13)

+74.75%

+5.74%

Advisor

6-Month

-18.67%

-18.67%

1-Year

-14.50%

-14.50%

5-Year

+33.98%

+6.03%

Since

Inception

(7/1/13)

+78.89%

+6.68%

See

page

33

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

33

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0483

$0.3496

$0.3979

C

$0.0087

$0.3496

$0.3583

R

$0.0215

$0.3496

$0.3711

R6

$0.0654

$0.3496

$0.4150

Advisor

$0.0625

$0.3496

$0.4121

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.37%

Advisor

0.45%

1.12%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2040

Retirement

Target

Fund

34

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$812.40

$2.21

$1,022.36

$2.47

0.49%

C

$1,000

$808.90

$5.56

$1,018.64

$6.21

1.24%

R

$1,000

$811.10

$3.28

$1,021.18

$3.66

0.73%

R6

$1,000

$813.20

$0.86

$1,023.85

$0.96

0.19%

Advisor

$1,000

$813.30

$1.10

$1,023.58

$1.22

0.24%

35

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-19.55%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

37

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

65.0%

Foreign

Equity

25.7%

Domestic

Fixed

Income

6.9%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

101

.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

36

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

Western

Asset

Short-Term

Bond

Fund

contributed

as

credits

with

shorter

terms

were

favored

in

the

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

29.4%

Franklin

Growth

Fund,

Class

R6

15.1%

Franklin

International

Core

Equity

(IU)

Fund

11.8%

Franklin

LibertyQ

U.S.

Equity

ETF

10.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.4%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.5%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.2%

Franklin

Liberty

U.S.

Core

Bond

ETF

3.2%

Vanguard

S&P

500

ETF

3.2%

Templeton

Developing

Markets

Trust,

Class

R6

3.0%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2045

Retirement

Target

Fund

37

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-19.55%

-23.95%

1-Year

-15.45%

-20.08%

5-Year

+33.65%

+4.78%

10-Year

+104.87%

+6.83%

Advisor

6-Month

-19.43%

-19.43%

1-Year

-15.26%

-15.26%

5-Year

+35.23%

+6.22%

10-Year

+110.28%

+7.72%

See

page

38

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

38

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0303

$0.4132

$0.4435

C

$0.0077

$0.4132

$0.4209

R

$0.0229

$0.4132

$0.4361

R6

$0.0399

$0.4132

$0.4531

Advisor

$0.0383

$0.4132

$0.4515

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.17%

Advisor

0.45%

0.92%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2045

Retirement

Target

Fund

39

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

A

Net

Annualized

Expense

Ratio

2

A

$1,000

$804.50

$2.19

$1,022.37

$2.46

0.49%

C

$1,000

$802.10

$5.53

$1,018.65

$6.20

1.24%

R

$1,000

$803.70

$3.30

$1,021.13

$3.70

0.74%

R6

$1,000

$832.70

$0.86

$1,023.86

$0.95

0.19%

Advisor

$1,000

$805.70

$1.07

$1,023.61

$1.20

0.24%

40

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-19.67%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

42

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

68.2%

Foreign

Equity

27.0%

Domestic

Fixed

Income

2.5%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

108

.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

41

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

Western

Asset

Short-Term

Bond

Fund

contributed

as

credits

with

shorter

terms

were

favored

in

the

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2050

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

27.9%

Franklin

Growth

Fund,

Class

R6

15.8%

Franklin

LibertyQ

U.S.

Equity

ETF

14.4%

Franklin

International

Core

Equity

(IU)

Fund

12.4%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.7%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.7%

Vanguard

S&P

500

ETF

3.4%

Templeton

Developing

Markets

Trust,

Class

R6

3.2%

Templeton

Foreign

Fund,

Class

R6

2.9%

Franklin

International

Growth

Fund,

Class

R6

1.9%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2050

Retirement

Target

Fund

42

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-19.67%

-24.09%

1-Year

-15.36%

-20.00%

5-Year

+34.24%

+4.87%

Since

Inception

(7/1/13)

+79.25%

+6.04%

Advisor

6-Month

-19.54%

-19.54%

1-Year

-15.16%

-15.16%

5-Year

+35.99%

+6.34%

Since

Inception

(7/1/13)

+83.65%

+6.99%

See

page

43

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

43

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effec-

tive

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0334

$0.3985

$0.4319

C

$0.0087

$0.3985

$0.4072

R

$0.0223

$0.3985

$0.4208

R6

$0.0514

$0.3985

$0.4499

Advisor

$0.0486

$0.3985

$0.4471

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.54%

Advisor

0.45%

1.29%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2050

Retirement

Target

Fund

44

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$803.30

$2.15

$1,022.41

$2.41

0.48%

C

$1,000

$800.20

$5.49

$1,018.69

$6.16

1.23%

R

$1,000

$802.60

$3.27

$1,021.17

$3.66

0.73%

R6

$1,000

$804.80

$0.80

$1,023.91

$0.89

0.18%

Advisor

$1,000

$804.60

$1.03

$1,023.65

$1.16

0.23%

45

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-19.73%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

47

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

68.1%

Foreign

Equity

26.9%

Domestic

Fixed

Income

2.5%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

114

.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

46

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

better

than

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

(IU)

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

Western

Asset

Short-Term

Bond

Fund

contributed

as

credits

with

shorter

terms

were

favored

in

the

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

26.2%

Franklin

Growth

Fund,

Class

R6

15.9%

Franklin

LibertyQ

U.S.

Equity

ETF

15.8%

Franklin

International

Core

Equity

(IU)

Fund

12.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.7%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.6%

Vanguard

S&P

500

ETF

3.4%

Templeton

Developing

Markets

Trust,

Class

R6

3.2%

Templeton

Foreign

Fund,

Class

R6

2.9%

Franklin

International

Growth

Fund,

Class

R6

1.9%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2055

Retirement

Target

Fund

47

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-19.73%

-24.15%

1-Year

-15.60%

-20.26%

5-Year

+34.23%

+4.88%

Since

Inception

(5/1/15)

+43.82%

+4.38%

Advisor

6-Month

-19.58%

-19.58%

1-Year

-15.34%

-15.34%

5-Year

+35.78%

+6.31%

Since

Inception

(5/1/15)

+46.10%

+5.43%

See

page

48

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

48

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0222

$0.3342

$0.3564

C

$0.0025

$0.3342

$0.3367

R

$0.0159

$0.3342

$0.3501

R6

$0.0303

$0.3342

$0.3645

Advisor

$0.0290

$0.3342

$0.3632

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

2.05%

Advisor

0.45%

1.80%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2055

Retirement

Target

Fund

49

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$802.70

$2.14

$1,022.42

$2.40

0.48%

C

$1,000

$799.90

$5.48

$1,018.70

$6.15

1.23%

R

$1,000

$801.30

$3.25

$1,021.18

$3.65

0.73%

R6

$1,000

$818.60

$0.83

$1,023.88

$0.93

0.18%

Advisor

$1,000

$804.20

$1.02

$1,023.66

$1.15

0.23%

50

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

seven

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-19.88%

cumulative

total

return

for

the

six

months

ended

June

30,

2022.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

52

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Investment

Strategy

Under

normal

market

conditions,

the

investment

manager

uses

a

predetermined

glide

path

as

a

guide

in

allocating

the

Fund’s

assets

among

underlying

funds

in

the

broad

asset

classes

(the

Neutral

Glide

Path).

Once

the

Fund

is

less

than

20

years

from

its

target

date,

when

the

investment

manager’s

proprietary

risk

indicator

model

signals

a

sustained

level

of

market

turbulence

or

a

prolonged

down

(or

bear)

market,

the

investment

manager,

in

its

sole

discretion

and

without

shareholder

notification,

will

have

the

ability

to

employ

a

defensive

glide

path,

which

has

higher

fixed

income

and

lower

equity

allocations

than

the

Neutral

Glide

Path

(the

Defensive

Glide

Path).

Then,

if

the

market

stabilizes,

the

investment

manager

may,

in

its

sole

discretion

and

without

shareholder

notification,

shift

the

Fund’s

portfolio

back

to

the

Neutral

Glide

Path.

These

glide

path

shifts

are

executed

through

purchases

and

sales

of

underlying

funds

and

ETFs

to

increase

or

decrease

the

Funds’

equity

and

fixed

income

allocations.

The

target

asset

allocations

in

the

Neutral

and

Defensive

Glide

Paths

change

over

time,

reducing

their

exposure

to

equity

investments

and

becoming

increasingly

conservative

until

approximately

seven

years

after

the

stated

target

date.

At

seven

years

after

the

target

date,

the

Fund’s

final

asset

allocation

mix

will

be

40%

equity

funds

and

60%

fixed-

income

funds

under

the

Neutral

Glide

Path

and

30%

equity

funds

and

70%

fixed-income

funds

under

the

Defensive

Glide

Path.

When

selecting

equity

funds,

the

investment

manager

considers

the

underlying

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges,

and

investment

style

(growth

vs.

value).

When

selecting

fixed-income

funds,

the

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

67.2%

Foreign

Equity

26.5%

Domestic

Fixed

Income

2.5%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.8%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sale

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

120

.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

51

franklintempleton.com

Semiannual

Report

investment

manager

considers

the

need

for

reduced

market

risks

and

lower

volatility,

appropriate

to

the

Fund’s

risk

profile,

and

considers

the

credit

quality,

duration

and

maturity

of

the

underlying

funds’

portfolios.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

to

perform

in-line

with

its

blended

benchmark

index

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

Fund

(IU)

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

Western

Asset

Short-Term

Bond

Fund

contributed

as

credits

with

shorter

terms

were

favored

in

the

rising

interest-rate

environment.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

LifeSmart

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2060

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

A

a

Franklin

U.S.

Core

Equity

(IU)

Fund

22.5%

Franklin

LibertyQ

U.S.

Equity

ETF

18.9%

Franklin

Growth

Fund,

Class

R6

15.6%

Franklin

International

Core

Equity

(IU)

Fund

12.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.6%

Vanguard

S&P

500

ETF

3.6%

Templeton

Developing

Markets

Trust,

Class

R6

3.2%

Templeton

Foreign

Fund,

Class

R6

2.9%

Franklin

International

Growth

Fund,

Class

R6

1.9%

Performance

Summary

as

of

June

30,

2022

Franklin

LifeSmart™

2060

Retirement

Target

Fund

52

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

6-Month

-19.88%

-24.31%

1-Year

-15.56%

-20.19%

Since

Inception

(1/29/21)

-5.04%

-7.35%

Advisor

6-Month

-19.76%

-19.76%

1-Year

-15.51%

-15.51%

Since

Inception

(1/29/21)

-4.99%

-3.55%

See

page

53

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

53

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

The

Fund’s

investment

risk

changes

over

time

as

its

asset

allocation

changes.

Since

the

Fund

invests

in

underlying

funds,

including

exchanged-traded

funds

(ETFs),

which

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

the

Fund

is

subject

to

those

same

risks.

All

investments

involve

risks,

including

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

price

of

bonds

in

the

Fund

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Events

such

as

the

spread

of

deadly

dis-

eases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

These

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives,

retirement

horizons

and

risk

tolerance.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

underlying

fund,

contrac-

tually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0294

$0.1838

$0.2132

C

$0.0165

$0.1838

$0.2003

R

$0.0236

$0.1838

$0.2074

R6

$0.0356

$0.1838

$0.2194

Advisor

$0.0343

$0.1838

$0.2181

Total

Annual

Operating

Expenses

4

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

6.35%

Advisor

0.45%

4.65%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2060

Retirement

Target

Fund

54

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period

for

Hypothetical

expenses.

Non-recurring

expenses

are

not

annualized.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$801.20

$1.68

$1,022.93

$1.89

0.38%

C

$1,000

$799.90

$3.86

$1,020.51

$4.33

0.86%

R

$1,000

$801.40

$2.11

$1,022.46

$2.36

0.47%

R6

$1,000

$802.70

$0.59

$1,024.14

$0.66

0.13%

Advisor

$1,000

$802.40

$1.03

$1,023.66

$1.15

0.23%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.50

$11.62

$11.15

$10.35

$11.06

$10.96

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.36

0.39

0.43

0.50

0.43

Net

realized

and

unrealized

gains

(losses)

(1.68)

0.25

0.52

0.79

(0.77)

0.10

Total

from

investment

operations

........

(1.47)

0.61

0.91

1.22

(0.27)

0.53

Less

distributions

from:

Net

investment

income

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

(0.21)

(0.43)

(0.44)

(0.42)

(0.44)

(0.43)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

—

Total

distributions

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

(0.30)

(0.73)

(0.44)

(0.42)

(0.44)

(0.43)

Net

asset

value,

end

of

period

..........

$9.73

$11.50

$11.62

$11.15

$10.35

$11.06

Total

return

d

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

(12.95)%

5.41%

8.40%

11.93%

(2.48)%

4.84%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.96%

0.95%

0.94%

0.95%

0.90%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

0.30%

0.30%

0.30%

0.30%

0.30%

0.30%

Net

investment

income

c

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

4.05%

3.05%

3.56%

3.91%

4.63%

3.89%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$39,174

$46,058

$40,343

$34,363

$31,461

$32,397

Portfolio

turnover

rate

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

15.22%

121.26%

51.13%

82.72%

46.27%

28.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.41%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.36

$11.48

$11.01

$10.23

$10.92

$10.83

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.17

0.25

0.30

0.34

0.42

0.34

Net

realized

and

unrealized

gains

(losses)

(1.66)

0.27

0.52

0.78

(0.76)

0.10

Total

from

investment

operations

........

(1.49)

0.52

0.82

1.12

(0.34)

0.44

Less

distributions

from:

Net

investment

income

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

(0.17)

(0.34)

(0.35)

(0.34)

(0.35)

(0.35)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

—

Total

distributions

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

(0.26)

(0.64)

(0.35)

(0.34)

(0.35)

(0.35)

Net

asset

value,

end

of

period

..........

$9.61

$11.36

$11.48

$11.01

$10.23

$10.92

Total

return

d

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

(13.24)%

4.56%

7.62%

11.14%

(3.29)%

4.07%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.71%

1.70%

1.69%

1.69%

1.65%

1.67%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

1.05%

1.05%

1.05%

1.04%

1.05%

1.05%

Net

investment

income

c

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

3.26%

2.20%

2.80%

3.17%

3.88%

3.14%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,904

$6,803

$9,355

$10,568

$11,796

$16,070

Portfolio

turnover

rate

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

15.22%

121.26%

51.13%

82.72%

46.27%

28.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.41%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

57

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.47

$11.59

$11.11

$10.31

$11.01

$10.92

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.20

0.33

0.37

0.40

0.48

0.40

Net

realized

and

unrealized

gains

(losses)

(1.69)

0.26

0.52

0.79

(0.77)

0.09

Total

from

investment

operations

........

(1.49)

0.59

0.89

1.19

(0.29)

0.49

Less

distributions

from:

Net

investment

income

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

(0.20)

(0.41)

(0.41)

(0.39)

(0.41)

(0.40)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

—

Total

distributions

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

(0.29)

(0.71)

(0.41)

(0.39)

(0.41)

(0.40)

Net

asset

value,

end

of

period

..........

$9.69

$11.47

$11.59

$11.11

$10.31

$11.01

Total

return

d

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

(13.03)%

5.15%

8.22%

11.69%

(2.67)%

4.57%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.21%

1.19%

1.11%

1.16%

1.11%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

0.55%

0.54%

0.47%

0.51%

0.51%

0.55%

Net

investment

income

c

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

3.79%

2.80%

3.39%

3.70%

4.42%

3.64%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,789

$2,197

$2,108

$2,336

$2,876

$4,071

Portfolio

turnover

rate

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

15.22%

121.26%

51.13%

82.72%

46.27%

28.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.41%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.55

$11.67

$11.20

$10.40

$11.11

$11.01

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.22

0.34

0.43

0.47

0.54

0.47

Net

realized

and

unrealized

gains

(losses)

(1.68)

0.31

0.52

0.78

(0.78)

0.10

Total

from

investment

operations

........

(1.46)

0.65

0.95

1.25

(0.24)

0.57

Less

distributions

from:

Net

investment

income

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

(0.23)

(0.47)

(0.48)

(0.45)

(0.47)

(0.47)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

—

Total

distributions

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

(0.32)

(0.77)

(0.48)

(0.45)

(0.47)

(0.47)

Net

asset

value,

end

of

period

..........

$9.77

$11.55

$11.67

$11.20

$10.40

$11.11

Total

return

d

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

(12.75)%

5.63%

8.81%

12.20%

(2.16)%

5.14%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.61%

0.57%

0.58%

0.59%

0.54%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

—%

—%

—%

—%

—%

—%

Net

investment

income

c

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

4.21%

2.88%

3.84%

4.21%

4.93%

4.19%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$129

$56

$4,092

$2,043

$1,798

$4,031

Portfolio

turnover

rate

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

15.22%

121.26%

51.13%

82.72%

46.27%

28.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.41%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

59

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.55

$11.66

$11.19

$10.39

$11.10

$11.00

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.23

0.39

0.42

0.46

0.53

0.46

Net

realized

and

unrealized

gains

(losses)

(1.70)

0.26

0.52

0.79

(0.77)

0.10

Total

from

investment

operations

........

(1.47)

0.65

0.94

1.25

(0.24)

0.56

Less

distributions

from:

Net

investment

income

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

(0.23)

(0.46)

(0.47)

(0.45)

(0.47)

(0.46)

Net

realized

gains

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

(0.09)

(0.30)

—

—

—

—

Total

distributions

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

(0.32)

(0.76)

(0.47)

(0.45)

(0.47)

(0.46)

Net

asset

value,

end

of

period

..........

$9.76

$11.55

$11.66

$11.19

$10.39

$11.10

Total

return

d

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

(12.78)%

5.58%

8.75%

12.16%

(2.21)%

5.09%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.71%

0.70%

0.69%

0.70%

0.65%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

Net

investment

income

c

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

4.32%

3.34%

3.83%

4.16%

4.88%

4.14%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,394

$2,837

$2,021

$1,875

$1,409

$2,122

Portfolio

turnover

rate

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

15.22%

121.26%

51.13%

82.72%

46.27%

28.12%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.41%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

See

Abbreviations

on

page

166

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

88.6%

Domestic

Equity

23.8%

a

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

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

241,668

$

4,514,361

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

114,032

1,387,766

Global

X

U.S.

Preferred

ETF

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

265,577

5,632,888

11,535,015

Domestic

Fixed

Income

57.9%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

253,326

2,396,461

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

106,980

2,354,630

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

131,329

2,844,586

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

199,769

4,421,887

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

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

434,320

2,323,612

Schwab

U.S.

TIPS

ETF

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

26,698

1,489,748

a

Western

Asset

Income

Fund,

Class

IS

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

1,366,360

7,105,071

a

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

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

1,095,274

5,093,023

28,029,018

Foreign

Equity

6.9%

iShares

International

Select

Dividend

ETF

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

70,929

1,926,432

a

Templeton

Developing

Markets

Trust,

Class

R6

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

26,025

450,761

a

Templeton

Foreign

Fund,

Class

R6

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

151,306

959,278

3,336,471

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$48,947,523)

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

42,900,504

Units

a

a

a

a

b

Index-Linked

Notes

10.7%

Capital

Markets

10.7%

c,d

Credit

Suisse

AG,

Senior

Note,

144A,

29.019%,

9/06/22

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

812

2,614,518

c,d

UBS

AG,

Senior

Note,

144A,

10.23%,

11/07/22

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

2,624

2,556,012

5,170,530

Total

Index-Linked

Notes

(Cost

$5,753,564)

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

5,170,530

Total

Long

Term

Investments

(Cost

$54,701,087)

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

48,071,034

a

a

a

a

a

Short

Term

Investments

0.6%

Shares

a

Money

Market

Funds

0.6%

a,e

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

306,241

306,241

Total

Money

Market

Funds

(Cost

$306,241)

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

306,241

Total

Short

Term

Investments

(Cost

$306,241

)

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

306,241

a

Total

Investments

(Cost

$55,007,328)

99.9%

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

$48,377,275

Other

Assets,

less

Liabilities

0.1%

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

13,492

Net

Assets

100.0%

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

$48,390,767

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

61

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(c)

regarding

index-linked

notes.

c

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$5,170,530,

representing

10.7%

of

net

assets.

e

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.00

$12.99

$12.17

$11.00

$11.76

$10.68

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.07

0.22

0.19

0.29

0.35

0.18

Net

realized

and

unrealized

gains

(losses)

(2.10)

1.02

0.89

1.18

(0.79)

1.05

Total

from

investment

operations

........

(2.03)

1.24

1.08

1.47

(0.44)

1.23

Less

distributions

from:

Net

investment

income

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

(0.07)

(0.34)

(0.26)

(0.30)

(0.32)

(0.15)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

—

Total

distributions

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

(0.31)

(1.23)

(0.26)

(0.30)

(0.32)

(0.15)

Net

asset

value,

end

of

period

..........

$10.66

$13.00

$12.99

$12.17

$11.00

$11.76

Total

return

d

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

(15.67)%

9.62%

9.06%

13.43%

(3.78)%

11.53%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.99%

0.98%

0.98%

0.97%

0.94%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.46%

0.46%

0.47%

g

0.35%

0.30%

0.30%

Net

investment

income

c

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

1.23%

1.63%

1.61%

2.47%

2.92%

1.58%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$29,725

$36,698

$30,265

$27,016

$24,108

$20,289

Portfolio

turnover

rate

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

22.78%

79.95%

68.93%

120.35%

57.42%

47.93%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

63

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.91

$12.91

$12.09

$10.93

$11.69

$10.62

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.03

0.11

0.10

0.20

0.24

0.10

Net

realized

and

unrealized

gains

(losses)

(2.10)

1.02

0.89

1.17

(0.76)

1.03

Total

from

investment

operations

........

(2.07)

1.13

0.99

1.37

(0.52)

1.13

Less

distributions

from:

Net

investment

income

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

(0.03)

(0.24)

(0.17)

(0.21)

(0.24)

(0.06)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

—

Total

distributions

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

(0.27)

(1.13)

(0.17)

(0.21)

(0.24)

(0.06)

Net

asset

value,

end

of

period

..........

$10.57

$12.91

$12.91

$12.09

$10.93

$11.69

Total

return

d

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

(16.05)%

8.85%

8.29%

12.59%

(4.53)%

10.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.74%

1.72%

1.73%

1.72%

1.69%

1.77%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.21%

1.21%

1.22%

g

1.10%

1.05%

1.05%

Net

investment

income

c

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

0.45%

0.79%

0.85%

1.72%

2.17%

0.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,211

$6,235

$7,118

$6,811

$6,364

$6,287

Portfolio

turnover

rate

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

22.78%

79.95%

68.93%

120.35%

57.42%

47.93%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.00

$12.98

$12.16

$10.99

$11.75

$10.66

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.17

0.16

0.26

0.29

0.12

Net

realized

and

unrealized

gains

(losses)

(2.11)

1.03

0.89

1.17

(0.76)

1.08

Total

from

investment

operations

........

(2.05)

1.20

1.05

1.43

(0.47)

1.20

Less

distributions

from:

Net

investment

income

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

(0.06)

(0.29)

(0.23)

(0.26)

(0.29)

(0.11)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

—

Total

distributions

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

(0.30)

(1.18)

(0.23)

(0.26)

(0.29)

(0.11)

Net

asset

value,

end

of

period

..........

$10.65

$13.00

$12.98

$12.16

$10.99

$11.75

Total

return

d

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

(15.85)%

9.37%

8.79%

13.25%

(4.14)%

11.26%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.24%

1.22%

1.23%

1.22%

1.19%

1.27%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.71%

0.71%

0.72%

g

0.60%

0.55%

0.55%

Net

investment

income

c

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

0.98%

1.23%

1.35%

2.22%

2.67%

1.33%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$646

$758

$786

$745

$767

$969

Portfolio

turnover

rate

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

22.78%

79.95%

68.93%

120.35%

57.42%

47.93%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

65

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.04

$13.03

$12.20

$11.02

$11.79

$10.70

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.19

0.22

0.32

0.37

0.21

Net

realized

and

unrealized

gains

(losses)

(2.11)

1.09

0.90

1.19

(0.78)

1.06

Total

from

investment

operations

........

(2.02)

1.28

1.12

1.51

(0.41)

1.27

Less

distributions

from:

Net

investment

income

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

(0.09)

(0.38)

(0.29)

(0.33)

(0.36)

(0.18)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

—

Total

distributions

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

(0.33)

(1.27)

(0.29)

(0.33)

(0.36)

(0.18)

Capital

contributions

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

0.23

—

—

—

—

—

Net

asset

value,

end

of

period

..........

$10.92

$13.04

$13.03

$12.20

$11.02

$11.79

Total

return

d

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

(13.77)%

e

9.93%

9.45%

13.83%

(3.57)%

11.93%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.62%

0.59%

0.62%

0.60%

0.58%

0.59%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.16%

0.16%

0.16%

h

0.05%

—%

—%

Net

investment

income

c

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

1.53%

1.40%

1.83%

2.77%

3.22%

1.88%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4

$5

$4,855

$7,429

$8,562

$8,831

Portfolio

turnover

rate

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

22.78%

79.95%

68.93%

120.35%

57.42%

47.93%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

-15.59%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.05

$13.03

$12.20

$11.03

$11.79

$10.70

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.26

0.22

0.32

0.35

0.23

Net

realized

and

unrealized

gains

(losses)

(2.12)

1.02

0.90

1.17

(0.76)

1.04

Total

from

investment

operations

........

(2.03)

1.28

1.12

1.49

(0.41)

1.27

Less

distributions

from:

Net

investment

income

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

(0.08)

(0.37)

(0.29)

(0.32)

(0.35)

(0.18)

Net

realized

gains

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

(0.24)

(0.89)

—

—

—

—

Total

distributions

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

(0.32)

(1.26)

(0.29)

(0.32)

(0.35)

(0.18)

Net

asset

value,

end

of

period

..........

$10.70

$13.05

$13.03

$12.20

$11.03

$11.79

Total

return

d

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

(15.59)%

9.95%

9.39%

13.77%

(3.62)%

11.88%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.74%

0.73%

0.73%

0.72%

0.69%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.21%

0.21%

0.21%

g

0.10%

0.05%

0.05%

Net

investment

income

c

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

1.46%

1.88%

1.80%

2.72%

3.17%

1.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$660

$826

$685

$745

$637

$691

Portfolio

turnover

rate

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

22.78%

79.95%

68.93%

120.35%

57.42%

47.93%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

67

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

16,360

$

352,558

Domestic

Equity

34.9%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

35,156

1,188,272

a

Franklin

Growth

Fund,

Class

R6

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

25,052

2,784,803

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

44,453

1,723,443

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

493,397

6,004,644

Vanguard

S&P

500

ETF

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

1,714

594,552

12,295,714

Domestic

Fixed

Income

46.8%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

124,183

1,174,769

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

41,138

905,447

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

41,953

908,702

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

267,563

5,922,507

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

55,798

1,216,954

iShares

Floating

Rate

Bond

ETF

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

15,075

752,544

Schwab

U.S.

TIPS

ETF

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

21,629

1,206,898

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

339,263

3,351,921

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

297,367

1,088,361

16,528,103

Foreign

Equity

13.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

90,295

845,164

a

Franklin

International

Core

Equity

(IU)

Fund

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

224,968

2,204,683

a

Franklin

International

Growth

Fund,

Class

R6

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

24,445

348,099

iShares

Core

MSCI

EAFE

ETF

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

5,929

348,922

a

Templeton

Developing

Markets

Trust,

Class

R6

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

32,456

562,143

a

Templeton

Foreign

Fund,

Class

R6

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

82,304

521,810

4,830,821

Foreign

Fixed

Income

2.2%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

33,746

780,882

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$36,040,410)

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

34,788,078

a

a

a

a

Short

Term

Investments

1.4%

a

Money

Market

Funds

1.4%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

473,813

473,813

Total

Money

Market

Funds

(Cost

$473,813)

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

473,813

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$3,088)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$1,690)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$88)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$1,310)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$3,150)

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

$

3,088

$

3,088

Total

Repurchase

Agreements

(Cost

$3,088)

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

3,088

Total

Short

Term

Investments

(Cost

$476,901

)

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

476,901

a

Total

Investments

(Cost

$36,517,311)

100.1%

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

$35,264,979

Other

Assets,

less

Liabilities

(0.1)%

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

(19,052)

Net

Assets

100.0%

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

$35,245,927

See

Abbreviations

on

page

166

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

69

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.67

$13.80

$12.98

$11.52

$12.97

$11.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.07

0.23

0.20

0.27

0.32

0.19

Net

realized

and

unrealized

gains

(losses)

(2.33)

1.31

1.08

1.66

(1.02)

1.52

Total

from

investment

operations

........

(2.26)

1.54

1.28

1.93

(0.70)

1.71

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.06)

(0.37)

(0.21)

(0.28)

(0.33)

(0.23)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(0.35)

(1.67)

(0.46)

(0.47)

(0.75)

(0.23)

Net

asset

value,

end

of

period

..........

$11.06

$13.67

$13.80

$12.98

$11.52

$12.97

Total

return

d

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

(16.55)%

11.21%

10.26%

16.85%

(5.46)%

14.95%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.76%

0.76%

0.77%

0.80%

0.77%

0.80%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.48%

0.47%

0.45%

g

0.35%

0.30%

g

0.30%

Net

investment

income

c

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

1.08%

1.57%

1.53%

2.15%

2.41%

1.52%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$96,203

$118,521

$96,973

$86,084

$76,050

$77,510

Portfolio

turnover

rate

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

20.56%

69.35%

66.87%

84.18%

52.98%

34.08%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.40

$13.56

$12.76

$11.34

$12.77

$11.32

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.02

0.10

0.09

0.17

0.20

0.09

Net

realized

and

unrealized

gains

(losses)

(2.28)

1.30

1.08

1.62

(0.97)

1.50

Total

from

investment

operations

........

(2.26)

1.40

1.17

1.79

(0.77)

1.59

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.03)

(0.26)

(0.12)

(0.18)

(0.24)

(0.14)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(0.32)

(1.56)

(0.37)

(0.37)

(0.66)

(0.14)

Net

asset

value,

end

of

period

..........

$10.82

$13.40

$13.56

$12.76

$11.34

$12.77

Total

return

d

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

(16.88)%

10.40%

9.44%

15.90%

(6.12)%

14.06%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.51%

1.50%

1.51%

1.55%

1.51%

1.55%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.23%

1.21%

1.20%

g

1.10%

1.04%

g

1.05%

Net

investment

income

c

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

0.32%

0.70%

0.76%

1.40%

1.67%

0.77%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$13,404

$17,778

$21,991

$23,450

$21,907

$27,301

Portfolio

turnover

rate

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

20.56%

69.35%

66.87%

84.18%

52.98%

34.08%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

71

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.61

$13.75

$12.93

$11.48

$12.93

$11.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.04

0.18

0.16

0.23

0.26

0.14

Net

realized

and

unrealized

gains

(losses)

(2.30)

1.31

1.09

1.65

(0.99)

1.54

Total

from

investment

operations

........

(2.26)

1.49

1.25

1.88

(0.73)

1.68

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.33)

(0.18)

(0.24)

(0.30)

(0.19)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(0.34)

(1.63)

(0.43)

(0.43)

(0.72)

(0.19)

Net

asset

value,

end

of

period

..........

$11.01

$13.61

$13.75

$12.93

$11.48

$12.93

Total

return

d

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

(16.65)%

10.89%

10.00%

16.52%

(5.73)%

14.73%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.01%

1.01%

1.02%

1.05%

1.02%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

0.72%

0.70%

g

0.60%

0.55%

g

0.55%

Net

investment

income

c

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

0.71%

1.26%

1.24%

1.90%

2.16%

1.27%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,975

$3,069

$3,117

$3,930

$4,510

$6,166

Portfolio

turnover

rate

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

20.56%

69.35%

66.87%

84.18%

52.98%

34.08%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.72

$13.85

$13.02

$11.56

$13.01

$11.52

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.09

0.19

0.23

0.31

0.34

0.23

Net

realized

and

unrealized

gains

(losses)

(2.34)

1.39

1.10

1.65

(1.00)

1.53

Total

from

investment

operations

........

(2.25)

1.58

1.33

1.96

(0.66)

1.76

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.08)

(0.41)

(0.25)

(0.31)

(0.37)

(0.27)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(0.37)

(1.71)

(0.50)

(0.50)

(0.79)

(0.27)

Net

asset

value,

end

of

period

..........

$11.10

$13.72

$13.85

$13.02

$11.56

$13.01

Total

return

d

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

(16.43)%

11.49%

10.64%

17.14%

(5.15)%

15.34%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.45%

0.39%

0.39%

0.41%

0.38%

0.37%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.15%

0.15%

0.15%

g

0.05%

—%

g

—%

Net

investment

income

c

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

1.42%

1.34%

1.83%

2.45%

2.71%

1.82%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$469

$544

$16,094

$14,717

$14,228

$17,009

Portfolio

turnover

rate

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

20.56%

69.35%

66.87%

84.18%

52.98%

34.08%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

73

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.71

$13.83

$13.01

$11.55

$13.00

$11.51

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.08

0.26

0.24

0.30

0.33

0.23

Net

realized

and

unrealized

gains

(losses)

(2.33)

1.32

1.07

1.66

(1.00)

1.52

Total

from

investment

operations

........

(2.25)

1.58

1.31

1.96

(0.67)

1.75

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.08)

(0.40)

(0.24)

(0.31)

(0.36)

(0.26)

Net

realized

gains

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

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

—

Total

distributions

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

(0.37)

(1.70)

(0.49)

(0.50)

(0.78)

(0.26)

Net

asset

value,

end

of

period

..........

$11.09

$13.71

$13.83

$13.01

$11.55

$13.00

Total

return

d

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

(16.47)%

11.53%

10.51%

17.09%

(5.20)%

15.30%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.51%

0.51%

0.52%

0.55%

0.52%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.23%

0.22%

0.20%

g

0.10%

0.05%

g

0.05%

Net

investment

income

c

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

1.33%

1.80%

1.90%

2.40%

2.66%

1.77%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,479

$3,055

$2,872

$1,532

$1,449

$1,866

Portfolio

turnover

rate

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

20.56%

69.35%

66.87%

84.18%

52.98%

34.08%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.5%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

53,108

$

1,144,477

Domestic

Equity

41.1%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

135,136

4,567,583

a

Franklin

Growth

Fund,

Class

R6

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

96,222

10,696,038

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

166,761

6,465,324

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,898,019

23,098,891

Vanguard

S&P

500

ETF

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

6,581

2,282,817

47,110,653

Domestic

Fixed

Income

38.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

293,184

2,773,525

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

110,728

2,437,123

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

112,940

2,446,280

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

720,133

15,940,144

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

150,163

3,275,055

iShares

Floating

Rate

Bond

ETF

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

40,575

2,025,504

Schwab

U.S.

TIPS

ETF

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

58,236

3,249,568

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

913,067

9,021,101

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

826,522

3,025,072

44,193,372

Foreign

Equity

16.3%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

344,479

3,224,324

a

Franklin

International

Core

Equity

(IU)

Fund

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

862,219

8,449,741

a

Franklin

International

Growth

Fund,

Class

R6

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

93,782

1,335,455

iShares

Core

MSCI

EAFE

ETF

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

22,742

1,338,368

a

Templeton

Developing

Markets

Trust,

Class

R6

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

124,546

2,157,145

a

Templeton

Foreign

Fund,

Class

R6

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

315,584

2,000,806

18,505,839

Foreign

Fixed

Income

1.6%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

79,658

1,843,286

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$113,112,075)

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

112,797,627

a

a

a

a

Short

Term

Investments

1.5%

a

Money

Market

Funds

1.4%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

1,546,143

1,546,143

Total

Money

Market

Funds

(Cost

$1,546,143)

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

1,546,143

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

75

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$124,019)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$67,878)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$3,535)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$52,606)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$126,533)

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

$

124,014

$

124,014

Total

Repurchase

Agreements

(Cost

$124,014)

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

124,014

Total

Short

Term

Investments

(Cost

$1,670,157

)

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

1,670,157

a

Total

Investments

(Cost

$114,782,232)

100.0%

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

$114,467,784

Other

Assets,

less

Liabilities

0.0%

†

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

62,936

Net

Assets

100.0%

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

$114,530,720

See

Abbreviations

on

page

166

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.21

$14.40

$13.28

$11.50

$12.70

$11.08

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.24

0.19

0.25

0.29

0.19

Net

realized

and

unrealized

gains

(losses)

(2.52)

1.61

1.29

1.90

(1.09)

1.65

Total

from

investment

operations

........

(2.46)

1.85

1.48

2.15

(0.80)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.41)

(0.22)

(0.23)

(0.32)

(0.22)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(0.35)

(2.04)

(0.36)

(0.37)

(0.40)

(0.22)

Net

asset

value,

end

of

period

..........

$11.40

$14.21

$14.40

$13.28

$11.50

$12.70

Total

return

d

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

(17.29)%

12.91%

11.52%

18.80%

(6.32)%

16.73%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.93%

0.93%

0.95%

1.02%

0.98%

1.08%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.48%

0.46%

0.44%

g

0.34%

g

0.30%

g

0.30%

Net

investment

income

c

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

0.95%

1.57%

1.46%

1.96%

2.24%

1.60%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$42,603

$49,835

$34,019

$27,248

$22,447

$19,270

Portfolio

turnover

rate

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

22.45%

82.69%

67.25%

93.46%

47.37%

37.45%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

77

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.00

$14.22

$13.13

$11.37

$12.56

$10.97

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.01

0.11

0.09

0.15

0.18

0.11

Net

realized

and

unrealized

gains

(losses)

(2.48)

1.61

1.27

1.89

(1.06)

1.63

Total

from

investment

operations

........

(2.47)

1.72

1.36

2.04

(0.88)

1.74

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.03)

(0.31)

(0.13)

(0.14)

(0.23)

(0.15)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(0.33)

(1.94)

(0.27)

(0.28)

(0.31)

(0.15)

Net

asset

value,

end

of

period

..........

$11.20

$14.00

$14.22

$13.13

$11.37

$12.56

Total

return

d

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

(17.64)%

12.13%

10.60%

17.98%

(7.02)%

15.89%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.68%

1.68%

1.70%

1.77%

1.73%

1.83%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.22%

1.21%

1.19%

g

1.09%

g

1.05%

g

1.05%

Net

investment

income

c

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

0.19%

0.74%

0.71%

1.21%

1.49%

0.85%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$9,668

$12,281

$10,937

$9,146

$7,460

$7,642

Portfolio

turnover

rate

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

22.45%

82.69%

67.25%

93.46%

47.37%

37.45%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.19

$14.38

$13.27

$11.48

$12.68

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.04

0.20

0.15

0.22

0.23

0.15

Net

realized

and

unrealized

gains

(losses)

(2.52)

1.61

1.29

1.91

(1.06)

1.65

Total

from

investment

operations

........

(2.48)

1.81

1.44

2.13

(0.83)

1.80

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.04)

(0.37)

(0.19)

(0.20)

(0.29)

(0.18)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(0.34)

(2.00)

(0.33)

(0.34)

(0.37)

(0.18)

Net

asset

value,

end

of

period

..........

$11.37

$14.19

$14.38

$13.27

$11.48

$12.68

Total

return

d

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

(17.43)%

12.65%

11.17%

18.64%

(6.59)%

16.39%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.18%

1.18%

1.20%

1.27%

1.23%

1.33%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

0.71%

0.69%

g

0.59%

g

0.55%

g

0.55%

Net

investment

income

c

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

0.69%

1.29%

1.19%

1.71%

1.99%

1.35%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,318

$1,512

$1,186

$1,058

$816

$1,148

Portfolio

turnover

rate

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

22.45%

82.69%

67.25%

93.46%

47.37%

37.45%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

79

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.28

$14.46

$13.34

$11.54

$12.74

$11.12

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.18

0.23

0.29

0.32

0.23

Net

realized

and

unrealized

gains

(losses)

(2.59)

1.72

1.29

1.92

(1.08)

1.65

Total

from

investment

operations

........

(2.53)

1.90

1.52

2.21

(0.76)

1.88

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.06)

(0.45)

(0.26)

(0.27)

(0.36)

(0.26)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(0.36)

(2.08)

(0.40)

(0.41)

(0.44)

(0.26)

Capital

contributions

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

0.15

—

—

—

—

—

Net

asset

value,

end

of

period

..........

$11.54

$14.28

$14.46

$13.34

$11.54

$12.74

Total

return

d

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

(16.63)%

e

13.24%

11.80%

19.26%

(6.02)%

17.01%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.49%

0.45%

0.50%

0.53%

0.52%

0.54%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.17%

0.15%

0.15%

h

0.04%

h

—%

h

—%

Net

investment

income

c

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

0.89%

1.20%

1.72%

2.26%

2.54%

1.90%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$12

$40

$23,717

$22,064

$18,389

$18,260

Portfolio

turnover

rate

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

22.45%

82.69%

67.25%

93.46%

47.37%

37.45%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

-17.70%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.27

$14.44

$13.33

$11.53

$12.73

$11.11

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.08

0.28

0.23

0.28

0.31

0.23

Net

realized

and

unrealized

gains

(losses)

(2.54)

1.62

1.28

1.92

(1.08)

1.64

Total

from

investment

operations

........

(2.46)

1.90

1.51

2.20

(0.77)

1.87

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.06)

(0.44)

(0.26)

(0.26)

(0.35)

(0.25)

Net

realized

gains

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

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

—

Total

distributions

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

(0.36)

(2.07)

(0.40)

(0.40)

(0.43)

(0.25)

Net

asset

value,

end

of

period

..........

$11.45

$14.27

$14.44

$13.33

$11.53

$12.73

Total

return

d

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

(17.23)%

13.28%

11.68%

19.22%

(6.08)%

16.97%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.68%

0.68%

0.70%

0.77%

0.73%

0.83%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.23%

0.21%

0.19%

g

0.09%

g

0.05%

g

0.05%

Net

investment

income

c

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

1.20%

1.81%

1.74%

2.21%

2.49%

1.85%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,638

$1,937

$1,546

$997

$785

$662

Portfolio

turnover

rate

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

22.45%

82.69%

67.25%

93.46%

47.37%

37.45%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

81

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.4%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

25,636

$

552,456

Domestic

Equity

47.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

75,417

2,549,089

a

Franklin

Growth

Fund,

Class

R6

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

54,176

6,022,233

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

94,151

3,650,234

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,047,292

12,745,546

Vanguard

S&P

500

ETF

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

3,703

1,284,497

26,251,599

Domestic

Fixed

Income

30.1%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

105,531

998,320

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

41,508

913,591

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

42,342

917,128

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

270,004

5,976,539

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

56,286

1,227,598

iShares

Floating

Rate

Bond

ETF

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

15,200

758,784

Schwab

U.S.

TIPS

ETF

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

21,824

1,217,779

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

342,369

3,382,608

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

326,756

1,195,928

16,588,275

Foreign

Equity

18.6%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

190,859

1,786,436

a

Franklin

International

Core

Equity

(IU)

Fund

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

476,144

4,666,215

a

Franklin

International

Growth

Fund,

Class

R6

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

52,224

743,668

iShares

Core

MSCI

EAFE

ETF

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

12,653

744,629

a

Templeton

Developing

Markets

Trust,

Class

R6

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

70,044

1,213,155

a

Templeton

Foreign

Fund,

Class

R6

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

175,665

1,113,716

10,267,819

Foreign

Fixed

Income

1.2%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

28,825

667,010

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$54,521,757)

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

54,327,159

a

a

a

a

Short

Term

Investments

1.6%

a

Money

Market

Funds

1.6%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

883,234

883,234

Total

Money

Market

Funds

(Cost

$883,234)

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

883,234

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$14,559)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$7,968)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$415)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$6,176)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$14,855)

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

$

14,559

$

14,559

Total

Repurchase

Agreements

(Cost

$14,559)

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

14,559

Total

Short

Term

Investments

(Cost

$897,793

)

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

897,793

a

Total

Investments

(Cost

$55,419,550)

100.0%

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

$55,224,952

Other

Assets,

less

Liabilities

0.0%

†

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

13,345

Net

Assets

100.0%

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

$55,238,297

See

Abbreviations

on

page

166

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

83

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.67

$15.18

$13.94

$12.03

$13.70

$11.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.05

0.24

0.19

0.24

0.29

0.20

Net

realized

and

unrealized

gains

(losses)

(2.70)

1.90

1.61

2.19

(1.21)

1.92

Total

from

investment

operations

........

(2.65)

2.14

1.80

2.43

(0.92)

2.12

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.04)

(0.42)

(0.20)

(0.24)

(0.30)

(0.28)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(0.39)

(2.65)

(0.56)

(0.52)

(0.75)

(0.28)

Net

asset

value,

end

of

period

..........

$11.63

$14.67

$15.18

$13.94

$12.03

$13.70

Total

return

d

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

(18.05)%

14.20%

13.44%

20.36%

(6.87)%

17.93%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.80%

0.81%

0.81%

0.86%

0.81%

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.49%

0.47%

0.43%

g

0.34%

0.30%

g

0.30%

Net

investment

income

c

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

0.82%

1.45%

1.38%

1.81%

2.04%

1.55%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$87,346

$104,174

$84,029

$72,425

$60,087

$61,238

Portfolio

turnover

rate

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

18.63%

69.46%

47.82%

79.04%

47.85%

31.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.23

$14.79

$13.60

$11.75

$13.40

$11.61

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

—

d

0.09

0.08

0.14

0.16

0.10

Net

realized

and

unrealized

gains

(losses)

(2.61)

1.88

1.58

2.13

(1.16)

1.88

Total

from

investment

operations

........

(2.61)

1.97

1.66

2.27

(1.00)

1.98

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.02)

(0.30)

(0.11)

(0.14)

(0.20)

(0.19)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(0.37)

(2.53)

(0.47)

(0.42)

(0.65)

(0.19)

Net

asset

value,

end

of

period

..........

$11.25

$14.23

$14.79

$13.60

$11.75

$13.40

Total

return

e

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

(18.34)%

13.36%

12.62%

19.46%

(7.58)%

17.09%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

1.55%

1.55%

1.56%

1.61%

1.56%

1.60%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

1.23%

1.21%

1.18%

h

1.09%

1.05%

h

1.04%

Net

investment

income

c

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

0.05%

0.60%

0.60%

1.06%

1.29%

0.81%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$14,779

$18,502

$21,329

$21,115

$18,350

$21,451

Portfolio

turnover

rate

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

18.63%

69.46%

47.82%

79.04%

47.85%

31.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

85

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.66

$15.17

$13.92

$12.01

$13.69

$11.84

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.04

0.18

0.15

0.20

0.24

0.15

Net

realized

and

unrealized

gains

(losses)

(2.69)

1.91

1.63

2.20

(1.20)

1.94

Total

from

investment

operations

........

(2.65)

2.09

1.78

2.40

(0.96)

2.09

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.04)

(0.37)

(0.17)

(0.21)

(0.27)

(0.24)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(0.39)

(2.60)

(0.53)

(0.49)

(0.72)

(0.24)

Net

asset

value,

end

of

period

..........

$11.62

$14.66

$15.17

$13.92

$12.01

$13.69

Total

return

d

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

(18.11)%

13.87%

13.23%

20.10%

(7.18)%

17.71%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.05%

1.05%

1.05%

1.10%

1.05%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.74%

0.71%

0.68%

g

0.58%

0.54%

g

0.55%

Net

investment

income

c

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

0.56%

1.08%

1.07%

1.57%

1.80%

1.30%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,586

$4,113

$4,530

$4,966

$4,762

$5,745

Portfolio

turnover

rate

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

18.63%

69.46%

47.82%

79.04%

47.85%

31.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.81

$15.31

$14.05

$12.12

$13.80

$11.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.08

0.18

0.23

0.29

0.31

0.25

Net

realized

and

unrealized

gains

(losses)

(2.72)

2.02

1.63

2.20

(1.20)

1.93

Total

from

investment

operations

........

(2.64)

2.20

1.86

2.49

(0.89)

2.18

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.06)

(0.47)

(0.24)

(0.28)

(0.34)

(0.32)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(0.41)

(2.70)

(0.60)

(0.56)

(0.79)

(0.32)

Net

asset

value,

end

of

period

..........

$11.76

$14.81

$15.31

$14.05

$12.12

$13.80

Total

return

d

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

(17.87)%

14.46%

13.82%

20.73%

(6.63)%

18.31%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.67%

0.38%

0.40%

0.41%

0.39%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.17%

0.14%

0.13%

g

0.04%

—%

g

—%

Net

investment

income

c

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

1.14%

1.10%

1.66%

2.11%

2.34%

1.85%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$83

$93

$30,069

$28,513

$22,207

$26,497

Portfolio

turnover

rate

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

18.63%

69.46%

47.82%

79.04%

47.85%

31.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

87

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.84

$15.33

$14.07

$12.13

$13.81

$11.95

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.07

0.27

0.23

0.28

0.32

0.23

Net

realized

and

unrealized

gains

(losses)

(2.73)

1.93

1.63

2.21

(1.22)

1.94

Total

from

investment

operations

........

(2.66)

2.20

1.86

2.49

(0.90)

2.17

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.46)

(0.24)

(0.27)

(0.33)

(0.31)

Net

realized

gains

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

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

—

Total

distributions

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

(0.40)

(2.69)

(0.60)

(0.55)

(0.78)

(0.31)

Net

asset

value,

end

of

period

..........

$11.78

$14.84

$15.33

$14.07

$12.13

$13.81

Total

return

d

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

(17.92)%

14.46%

13.75%

20.73%

(6.67)%

18.24%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.55%

0.56%

0.56%

0.61%

0.56%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.24%

0.21%

0.18%

g

0.09%

0.05%

g

0.05%

Net

investment

income

c

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

1.06%

1.67%

1.67%

2.06%

2.29%

1.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,385

$3,911

$3,438

$2,145

$1,723

$1,578

Portfolio

turnover

rate

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

18.63%

69.46%

47.82%

79.04%

47.85%

31.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

50,725

$

1,093,124

Domestic

Equity

53.5%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

169,493

5,728,848

a

Franklin

Growth

Fund,

Class

R6

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

120,691

13,415,977

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

229,701

8,905,508

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

2,265,508

27,571,238

Vanguard

S&P

500

ETF

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

8,288

2,874,941

58,496,512

Domestic

Fixed

Income

22.0%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

174,997

1,655,472

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

58,845

1,295,178

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

60,021

1,300,055

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

382,690

8,470,843

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

79,787

1,740,154

iShares

Floating

Rate

Bond

ETF

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

21,550

1,075,776

Schwab

U.S.

TIPS

ETF

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

30,941

1,726,508

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

485,308

4,794,842

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

505,191

1,848,997

23,907,825

Foreign

Equity

21.1%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

429,515

4,020,263

a

Franklin

International

Core

Equity

(IU)

Fund

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

1,072,377

10,509,292

a

Franklin

International

Growth

Fund,

Class

R6

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

115,569

1,645,706

iShares

Core

MSCI

EAFE

ETF

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

28,035

1,649,860

a

Templeton

Developing

Markets

Trust,

Class

R6

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

156,953

2,718,420

a

Templeton

Foreign

Fund,

Class

R6

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

388,624

2,463,877

23,007,418

Foreign

Fixed

Income

1.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

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

47,537

1,100,006

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$104,350,208)

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

107,604,885

a

a

a

a

Short

Term

Investments

1.5%

a

Money

Market

Funds

1.4%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

1,554,512

1,554,512

Total

Money

Market

Funds

(Cost

$1,554,512)

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

1,554,512

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

89

s

h

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$49,576)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$27,134)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$1,413)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$21,029)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$50,581)

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

$

49,574

$

49,574

Total

Repurchase

Agreements

(Cost

$49,574)

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

49,574

Total

Short

Term

Investments

(Cost

$1,604,086

)

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

1,604,086

a

Total

Investments

(Cost

$105,954,294)

100.1%

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

$109,208,971

Other

Assets,

less

Liabilities

(0.1)%

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

(28,934)

Net

Assets

100.0%

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

$109,180,037

See

Abbreviations

on

page

166

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.42

$15.30

$13.76

$11.61

$13.03

$11.20

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.05

0.24

0.18

0.22

0.27

0.18

Net

realized

and

unrealized

gains

(losses)

(2.75)

2.19

1.82

2.25

(1.17)

1.88

Total

from

investment

operations

........

(2.70)

2.43

2.00

2.47

(0.90)

2.06

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.43)

(0.23)

(0.18)

(0.30)

(0.23)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(0.40)

(3.31)

(0.46)

(0.32)

(0.52)

(0.23)

Net

asset

value,

end

of

period

..........

$11.32

$14.42

$15.30

$13.76

$11.61

$13.03

Total

return

d

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

(18.76)%

15.99%

15.04%

21.50%

(7.00)%

18.50%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.10%

1.11%

1.11%

1.18%

1.14%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.49%

0.46%

0.43%

g

0.34%

g

0.30%

g

0.30%

Net

investment

income

c

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

0.71%

1.43%

1.30%

1.67%

2.03%

1.55%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$30,181

$35,193

$24,809

$19,322

$15,921

$14,001

Portfolio

turnover

rate

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

20.51%

86.92%

37.54%

90.08%

41.77%

39.11%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

91

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.10

$15.02

$13.52

$11.42

$12.83

$11.05

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(—)

d

0.10

0.07

0.12

0.16

0.11

Net

realized

and

unrealized

gains

(losses)

(2.69)

2.18

1.79

2.21

(1.14)

1.83

Total

from

investment

operations

........

(2.69)

2.28

1.86

2.33

(0.98)

1.94

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.01)

(0.32)

(0.13)

(0.09)

(0.21)

(0.16)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(0.36)

(3.20)

(0.36)

(0.23)

(0.43)

(0.16)

Net

asset

value,

end

of

period

..........

$11.05

$14.10

$15.02

$13.52

$11.42

$12.83

Total

return

e

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

(19.11)%

15.25%

14.15%

20.56%

(7.71)%

17.63%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

1.85%

1.85%

1.86%

1.93%

1.89%

2.01%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

1.24%

1.21%

1.18%

h

1.09%

h

1.05%

h

1.05%

Net

investment

income

(loss)

c

..........

(0.04)%

0.62%

0.55%

0.92%

1.28%

0.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,452

$7,989

$6,867

$5,630

$4,286

$4,015

Portfolio

turnover

rate

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

20.51%

86.92%

37.54%

90.08%

41.77%

39.11%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.41

$15.28

$13.74

$11.60

$13.02

$11.17

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.03

0.18

0.14

0.18

0.22

0.13

Net

realized

and

unrealized

gains

(losses)

(2.75)

2.21

1.82

2.25

(1.16)

1.91

Total

from

investment

operations

........

(2.72)

2.39

1.96

2.43

(0.94)

2.04

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.02)

(0.38)

(0.19)

(0.15)

(0.26)

(0.19)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(0.37)

(3.26)

(0.42)

(0.29)

(0.48)

(0.19)

Net

asset

value,

end

of

period

..........

$11.32

$14.41

$15.28

$13.74

$11.60

$13.02

Total

return

d

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

(18.89)%

15.78%

14.74%

21.13%

(7.27)%

18.31%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.35%

1.35%

1.36%

1.43%

1.39%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

0.71%

0.68%

g

0.59%

g

0.55%

g

0.55%

Net

investment

income

c

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

0.45%

1.09%

1.02%

1.42%

1.78%

1.30%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,022

$1,806

$1,540

$1,528

$1,273

$1,519

Portfolio

turnover

rate

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

20.51%

86.92%

37.54%

90.08%

41.77%

39.11%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

93

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.54

$15.40

$13.85

$11.69

$13.11

$11.26

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.07

0.17

0.21

0.25

0.30

0.23

Net

realized

and

unrealized

gains

(losses)

(2.77)

2.33

1.84

2.27

(1.16)

1.89

Total

from

investment

operations

........

(2.70)

2.50

2.05

2.52

(0.86)

2.12

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.07)

(0.48)

(0.27)

(0.22)

(0.34)

(0.27)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(0.42)

(3.36)

(0.50)

(0.36)

(0.56)

(0.27)

Net

asset

value,

end

of

period

..........

$11.42

$14.54

$15.40

$13.85

$11.69

$13.11

Total

return

d

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

(18.68)%

16.42%

15.35%

21.89%

(6.77)%

18.92%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.56%

0.49%

0.55%

0.58%

0.58%

0.61%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.19%

0.14%

0.13%

g

0.04%

g

—%

g

—%

Net

investment

income

c

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

1.00%

1.01%

1.58%

1.97%

2.33%

1.85%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$257

$310

$25,450

$22,250

$18,247

$17,521

Portfolio

turnover

rate

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

20.51%

86.92%

37.54%

90.08%

41.77%

39.11%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.52

$15.37

$13.82

$11.67

$13.10

$11.25

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.29

0.22

0.33

0.27

0.22

Net

realized

and

unrealized

gains

(losses)

(2.77)

2.21

1.82

2.18

(1.15)

1.89

Total

from

investment

operations

........

(2.71)

2.50

2.04

2.51

(0.88)

2.11

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.06)

(0.47)

(0.26)

(0.22)

(0.33)

(0.26)

Net

realized

gains

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

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

—

Total

distributions

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

(0.41)

(3.35)

(0.49)

(0.36)

(0.55)

(0.26)

Net

asset

value,

end

of

period

..........

$11.40

$14.52

$15.37

$13.82

$11.67

$13.10

Total

return

d

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

(18.67)%

16.40%

15.33%

21.68%

(6.82)%

18.88%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.86%

0.86%

0.86%

0.93%

0.89%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.24%

0.22%

0.18%

g

0.09%

g

0.05%

g

0.05%

Net

investment

income

c

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

0.96%

1.75%

1.60%

1.92%

2.28%

1.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,186

$937

$506

$146

$165

$155

Portfolio

turnover

rate

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

20.51%

86.92%

37.54%

90.08%

41.77%

39.11%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

95

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.4%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

18,162

$

391,391

Domestic

Equity

59.7%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

68,029

2,299,394

a

Franklin

Growth

Fund,

Class

R6

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

48,431

5,383,619

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

114,367

4,434,009

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

828,831

10,086,877

Vanguard

S&P

500

ETF

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

3,302

1,145,398

23,349,297

Domestic

Fixed

Income

14.2%

a

Franklin

Liberty

High

Yield

Corporate

ETF

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

14,548

320,201

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

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

14,828

321,175

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

94,702

2,096,229

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

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

19,746

430,660

iShares

Floating

Rate

Bond

ETF

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

5,325

265,824

Schwab

U.S.

TIPS

ETF

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

7,656

427,205

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

120,107

1,186,661

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

142,557

521,758

5,569,713

Foreign

Equity

23.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

169,637

1,587,799

a

Franklin

International

Core

Equity

(IU)

Fund

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

426,978

4,184,384

a

Franklin

International

Growth

Fund,

Class

R6

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

46,363

660,207

iShares

Core

MSCI

EAFE

ETF

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

11,234

661,121

a

Templeton

Developing

Markets

Trust,

Class

R6

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

63,196

1,094,560

a

Templeton

Foreign

Fund,

Class

R6

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

155,982

988,928

9,176,999

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$36,807,145)

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

38,487,400

a

a

a

a

Short

Term

Investments

2.1%

a

Money

Market

Funds

2.1%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

809,670

809,670

Total

Money

Market

Funds

(Cost

$809,670)

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

809,670

Total

Short

Term

Investments

(Cost

$809,670

)

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

809,670

a

Total

Investments

(Cost

$37,616,815)

100.5%

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

$39,297,070

Other

Assets,

less

Liabilities

(0.5)%

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

(199,057)

Net

Assets

100.0%

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

$39,098,013

See

Abbreviations

on

page

166

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.19

$15.80

$14.27

$12.04

$13.78

$11.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.04

0.23

0.17

0.21

0.27

0.20

Net

realized

and

unrealized

gains

(losses)

(3.01)

2.45

1.98

2.45

(1.26)

2.01

Total

from

investment

operations

........

(2.97)

2.68

2.15

2.66

(0.99)

2.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.03)

(0.45)

(0.19)

(0.21)

(0.27)

(0.29)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(0.44)

(3.29)

(0.62)

(0.43)

(0.75)

(0.29)

Net

asset

value,

end

of

period

..........

$11.78

$15.19

$15.80

$14.27

$12.04

$13.78

Total

return

d

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

(19.55)%

17.06%

15.76%

22.33%

(7.42)%

18.72%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.92%

0.91%

0.94%

0.98%

0.93%

1.01%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.49%

0.46%

0.43%

g

0.34%

g

0.30%

g

0.30%

Net

investment

income

c

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

0.57%

1.32%

1.22%

1.57%

1.91%

1.53%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$59,835

$72,764

$59,801

$51,412

$44,978

$46,783

Portfolio

turnover

rate

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

17.79%

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

97

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.61

$15.33

$13.88

$11.72

$13.44

$11.57

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.01)

0.08

0.06

0.11

0.15

0.10

Net

realized

and

unrealized

gains

(losses)

(2.88)

2.38

1.94

2.38

(1.22)

1.96

Total

from

investment

operations

........

(2.89)

2.46

2.00

2.49

(1.07)

2.06

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.01)

(0.34)

(0.12)

(0.11)

(0.17)

(0.19)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(0.42)

(3.18)

(0.55)

(0.33)

(0.65)

(0.19)

Net

asset

value,

end

of

period

..........

$11.30

$14.61

$15.33

$13.88

$11.72

$13.44

Total

return

d

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

(19.79)%

16.10%

15.00%

21.35%

(8.07)%

17.92%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.67%

1.66%

1.68%

1.73%

1.67%

1.75%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.24%

1.21%

1.17%

g

1.09%

g

1.04%

g

1.04%

Net

investment

income

(loss)

c

..........

(0.20)%

0.48%

0.46%

0.82%

1.17%

0.79%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$10,240

$13,509

$14,502

$13,333

$11,738

$13,190

Portfolio

turnover

rate

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

17.79%

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.11

$15.74

$14.20

$11.98

$13.72

$11.81

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.02

0.19

0.11

0.17

0.23

0.17

Net

realized

and

unrealized

gains

(losses)

(2.99)

2.43

2.01

2.45

(1.25)

2.00

Total

from

investment

operations

........

(2.97)

2.62

2.12

2.62

(1.02)

2.17

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.02)

(0.41)

(0.15)

(0.18)

(0.24)

(0.26)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(0.43)

(3.25)

(0.58)

(0.40)

(0.72)

(0.26)

Net

asset

value,

end

of

period

..........

$11.71

$15.11

$15.74

$14.20

$11.98

$13.72

Total

return

d

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

(19.63)%

16.73%

15.55%

21.95%

(7.61)%

18.43%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.17%

1.16%

1.18%

1.22%

1.17%

1.26%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.74%

0.71%

0.67%

g

0.58%

g

0.54%

g

0.55%

Net

investment

income

c

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

0.29%

1.08%

0.80%

1.33%

1.67%

1.28%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,520

$3,348

$2,620

$4,838

$5,146

$5,464

Portfolio

turnover

rate

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

17.79%

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

99

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.34

$15.93

$14.38

$12.12

$13.88

$11.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.05

0.15

0.21

0.27

0.30

0.25

Net

realized

and

unrealized

gains

(losses)

(2.95)

2.60

2.01

2.46

(1.27)

2.02

Total

from

investment

operations

........

(2.90)

2.75

2.22

2.73

(0.97)

2.27

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.04)

(0.50)

(0.24)

(0.25)

(0.31)

(0.33)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(0.45)

(3.34)

(0.67)

(0.47)

(0.79)

(0.33)

Capital

contributions

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

0.32

—

—

—

—

—

Net

asset

value,

end

of

period

..........

$12.31

$15.34

$15.93

$14.38

$12.12

$13.88

Total

return

d

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

(16.73)%

e

17.37%

16.11%

22.69%

(7.16)%

19.10%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.45%

0.41%

0.44%

0.46%

0.46%

0.43%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.19%

0.14%

0.13%

h

0.04%

h

—%

h

—%

Net

investment

income

c

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

0.68%

0.87%

1.52%

1.87%

2.21%

1.83%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4

$4

$23,504

$20,022

$12,681

$13,787

Portfolio

turnover

rate

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

17.79%

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

-18.88%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.34

$15.93

$14.38

$12.13

$13.88

$11.94

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.06

0.28

0.21

0.25

0.31

0.23

Net

realized

and

unrealized

gains

(losses)

(3.04)

2.46

2.00

2.46

(1.28)

2.03

Total

from

investment

operations

........

(2.98)

2.74

2.21

2.71

(0.97)

2.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.04)

(0.49)

(0.23)

(0.24)

(0.30)

(0.32)

Net

realized

gains

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

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

—

Total

distributions

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

(0.45)

(3.33)

(0.66)

(0.46)

(0.78)

(0.32)

Net

asset

value,

end

of

period

..........

$11.91

$15.34

$15.93

$14.38

$12.13

$13.88

Total

return

d

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

(19.43)%

17.32%

16.06%

22.53%

(7.13)%

19.04%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.67%

0.67%

0.69%

0.73%

0.68%

0.76%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.24%

0.22%

0.18%

g

0.09%

g

0.05%

g

0.05%

Net

investment

income

c

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

0.82%

1.63%

1.49%

1.82%

2.16%

1.78%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,292

$1,584

$1,089

$819

$639

$602

Portfolio

turnover

rate

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

17.79%

70.40%

36.61%

86.25%

43.20%

31.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

101

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.6%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

34,384

$

740,975

Domestic

Equity

65.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

140,037

4,733,265

a

Franklin

Growth

Fund,

Class

R6

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

100,403

11,160,742

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

207,017

8,026,049

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,783,266

21,702,344

Vanguard

S&P

500

ETF

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

6,867

2,382,025

48,004,425

Domestic

Fixed

Income

6.9%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

108,061

2,391,930

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

242,341

2,394,325

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

102,128

373,787

5,160,042

Foreign

Equity

25.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

351,690

3,291,821

a

Franklin

International

Core

Equity

(IU)

Fund

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

889,422

8,716,335

a

Franklin

International

Growth

Fund,

Class

R6

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

94,346

1,343,484

iShares

Core

MSCI

EAFE

ETF

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

22,752

1,338,955

a

Templeton

Developing

Markets

Trust,

Class

R6

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

129,462

2,242,287

a

Templeton

Foreign

Fund,

Class

R6

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

323,485

2,050,896

18,983,778

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$68,434,605)

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

72,889,220

a

a

a

a

Short

Term

Investments

1.4%

a

Money

Market

Funds

1.3%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

944,148

944,148

Total

Money

Market

Funds

(Cost

$944,148)

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

944,148

Principal

Amount

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$55,703)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$30,487)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$1,588)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$23,628)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$56,832)

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

$

55,700

55,700

Total

Repurchase

Agreements

(Cost

$55,700)

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

55,700

Total

Short

Term

Investments

(Cost

$999,848

)

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

999,848

a

Total

Investments

(Cost

$69,434,453)

100.0%

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

$73,889,068

Other

Assets,

less

Liabilities

0.0%

†

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

1,719

Net

Assets

100.0%

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

$73,890,787

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

See

Abbreviations

on

page

166

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

103

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.60

$15.76

$14.01

$11.74

$13.19

$11.29

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.03

0.24

0.17

0.19

0.27

0.20

Net

realized

and

unrealized

gains

(losses)

(2.90)

2.51

2.03

2.37

(1.23)

1.93

Total

from

investment

operations

........

(2.87)

2.75

2.20

2.56

(0.96)

2.13

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.03)

(0.43)

(0.22)

(0.16)

(0.30)

(0.23)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(0.43)

(3.91)

(0.45)

(0.29)

(0.49)

(0.23)

Net

asset

value,

end

of

period

..........

$11.30

$14.60

$15.76

$14.01

$11.74

$13.19

Total

return

d

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

(19.67)%

17.58%

16.22%

22.00%

(7.40)%

18.96%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.31%

1.28%

1.28%

1.35%

1.30%

1.53%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.48%

0.45%

0.42%

g

0.34%

g

0.30%

g

0.30%

Net

investment

income

c

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

0.51%

1.42%

1.23%

1.55%

1.98%

1.62%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$23,221

$30,413

$20,709

$16,729

$16,856

$13,823

Portfolio

turnover

rate

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

30.23%

85.61%

35.30%

94.67%

43.18%

35.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.40

$15.61

$13.91

$11.66

$13.11

$11.24

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.02)

0.10

0.07

0.11

0.16

0.11

Net

realized

and

unrealized

gains

(losses)

(2.85)

2.49

2.00

2.34

(1.22)

1.91

Total

from

investment

operations

........

(2.87)

2.59

2.07

2.45

(1.06)

2.02

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.01)

(0.32)

(0.14)

(0.07)

(0.20)

(0.15)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(0.41)

(3.80)

(0.37)

(0.20)

(0.39)

(0.15)

Net

asset

value,

end

of

period

..........

$11.12

$14.40

$15.61

$13.91

$11.66

$13.11

Total

return

d

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

(19.98)%

16.66%

15.35%

21.13%

(8.12)%

18.03%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

2.06%

2.02%

2.03%

2.10%

2.05%

2.28%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.23%

1.20%

1.17%

g

1.09%

g

1.05%

g

1.05%

Net

investment

income

(loss)

c

..........

(0.24)%

0.57%

0.48%

0.80%

1.23%

0.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,271

$8,038

$7,014

$5,658

$4,167

$3,797

Portfolio

turnover

rate

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

30.23%

85.61%

35.30%

94.67%

43.18%

35.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

105

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.61

$15.76

$14.01

$11.74

$13.19

$11.29

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.01

0.17

0.13

0.17

0.23

0.16

Net

realized

and

unrealized

gains

(losses)

(2.89)

2.54

2.03

2.36

(1.22)

1.94

Total

from

investment

operations

........

(2.88)

2.71

2.16

2.53

(0.99)

2.10

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.02)

(0.38)

(0.18)

(0.13)

(0.27)

(0.20)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(0.42)

(3.86)

(0.41)

(0.26)

(0.46)

(0.20)

Net

asset

value,

end

of

period

..........

$11.31

$14.61

$15.76

$14.01

$11.74

$13.19

Total

return

d

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

(19.74)%

17.23%

15.92%

21.72%

(7.62)%

18.67%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.56%

1.51%

1.53%

1.60%

1.55%

1.78%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

0.70%

0.67%

g

0.59%

g

0.55%

g

0.55%

Net

investment

income

c

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

0.22%

0.97%

0.91%

1.30%

1.73%

1.37%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,701

$1,857

$2,468

$2,364

$1,814

$1,608

Portfolio

turnover

rate

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

30.23%

85.61%

35.30%

94.67%

43.18%

35.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.72

$15.87

$14.10

$11.80

$13.26

$11.34

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.08

0.14

0.21

0.26

0.29

0.24

Net

realized

and

unrealized

gains

(losses)

(2.96)

2.68

2.05

2.37

(1.23)

1.94

Total

from

investment

operations

........

(2.88)

2.82

2.26

2.63

(0.94)

2.18

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.49)

(0.26)

(0.20)

(0.33)

(0.26)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(0.45)

(3.97)

(0.49)

(0.33)

(0.52)

(0.26)

Capital

contributions

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

0.01

—

—

—

—

—

Net

asset

value,

end

of

period

..........

$11.40

$14.72

$15.87

$14.10

$11.80

$13.26

Total

return

d

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

(19.52)%

e

17.84%

16.59%

22.50%

(7.18)%

19.36%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.71%

0.51%

0.59%

0.62%

0.65%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.18%

0.14%

0.12%

h

0.04%

h

—%

h

—%

Net

investment

income

c

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

1.19%

0.85%

1.54%

1.85%

2.28%

1.92%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4

$2

$22,839

$17,560

$11,800

$12,099

Portfolio

turnover

rate

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

30.23%

85.61%

35.30%

94.67%

43.18%

35.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

-19.59%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

107

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.72

$15.87

$14.10

$11.80

$13.26

$11.35

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.05

0.28

0.20

0.24

0.28

0.23

Net

realized

and

unrealized

gains

(losses)

(2.92)

2.53

2.05

2.38

(1.22)

1.94

Total

from

investment

operations

........

(2.87)

2.81

2.25

2.62

(0.94)

2.17

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.48)

(0.25)

(0.19)

(0.33)

(0.26)

Net

realized

gains

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

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

—

Total

distributions

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

(0.45)

(3.96)

(0.48)

(0.32)

(0.52)

(0.26)

Net

asset

value,

end

of

period

..........

$11.40

$14.72

$15.87

$14.10

$11.80

$13.26

Total

return

d

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

(19.54)%

17.77%

16.54%

22.44%

(7.23)%

19.20%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.06%

1.03%

1.03%

1.10%

1.05%

1.28%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.23%

0.20%

0.18%

g

0.09%

g

0.05%

g

0.05%

Net

investment

income

c

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

0.84%

1.62%

1.45%

1.80%

2.23%

1.87%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$939

$942

$720

$617

$468

$512

Portfolio

turnover

rate

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

30.23%

85.61%

35.30%

94.67%

43.18%

35.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

See

Abbreviations

on

page

166

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.7%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

14,963

$

322,453

Domestic

Equity

68.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

64,074

2,165,692

a

Franklin

Growth

Fund,

Class

R6

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

45,755

5,086,098

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

119,122

4,618,360

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

735,545

8,951,581

Vanguard

S&P

500

ETF

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

3,149

1,092,325

21,914,056

Domestic

Fixed

Income

2.5%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

14,675

324,831

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

33,101

327,036

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

44,445

162,670

814,537

Foreign

Equity

27.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

160,730

1,504,437

a

Franklin

International

Core

Equity

(IU)

Fund

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

405,079

3,969,770

a

Franklin

International

Growth

Fund,

Class

R6

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

43,010

612,464

iShares

Core

MSCI

EAFE

ETF

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

10,334

608,156

a

Templeton

Developing

Markets

Trust,

Class

R6

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

59,449

1,029,656

a

Templeton

Foreign

Fund,

Class

R6

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

147,474

934,986

8,659,469

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$29,815,349)

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

31,710,515

a

a

a

a

Short

Term

Investments

1.7%

a

Money

Market

Funds

1.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

548,463

548,463

Total

Money

Market

Funds

(Cost

$548,463)

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

548,463

Total

Short

Term

Investments

(Cost

$548,463

)

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

548,463

a

Total

Investments

(Cost

$30,363,812)

100.4%

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

$32,258,978

Other

Assets,

less

Liabilities

(0.4)%

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

(122,003)

Net

Assets

100.0%

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

$32,136,975

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

109

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.21

$13.41

$11.86

$9.88

$11.05

$9.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.03

0.20

0.15

0.18

0.23

0.18

Net

realized

and

unrealized

gains

(losses)

(2.64)

2.12

1.69

2.02

(1.03)

1.62

Total

from

investment

operations

........

(2.61)

2.32

1.84

2.20

(0.80)

1.80

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.02)

(0.40)

(0.19)

(0.12)

(0.20)

(0.19)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(0.35)

(2.52)

(0.29)

(0.22)

(0.37)

(0.22)

Net

asset

value,

end

of

period

..........

$10.25

$13.21

$13.41

$11.86

$9.88

$11.05

Total

return

d

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

(19.73)%

17.34%

15.95%

22.39%

(7.37)%

19.06%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

2.05%

1.79%

2.03%

2.50%

2.51%

3.18%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.48%

g

0.46%

g

0.43%

g

0.34%

0.30%

g

0.30%

Net

investment

income

c

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

0.54%

1.38%

1.27%

1.65%

2.01%

1.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$15,808

$17,727

$12,408

$8,254

$6,104

$4,684

Portfolio

turnover

rate

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

19.28%

87.74%

32.75%

90.64%

42.85%

31.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.92

$13.18

$11.69

$9.75

$10.92

$9.39

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.01)

0.09

0.06

0.09

0.15

0.12

Net

realized

and

unrealized

gains

(losses)

(2.58)

2.08

1.66

1.99

(1.02)

1.58

Total

from

investment

operations

........

(2.59)

2.17

1.72

2.08

(0.87)

1.70

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(—)

d

(0.31)

(0.13)

(0.04)

(0.13)

(0.14)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(0.33)

(2.43)

(0.23)

(0.14)

(0.30)

(0.17)

Net

asset

value,

end

of

period

..........

$10.00

$12.92

$13.18

$11.69

$9.75

$10.92

Total

return

e

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

(20.01)%

16.49%

15.07%

21.45%

(8.04)%

18.10%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

2.79%

2.54%

2.78%

3.25%

3.26%

3.93%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

1.23%

h

1.21%

h

1.18%

h

1.09%

1.05%

h

1.05%

Net

investment

income

(loss)

c

..........

(0.21)%

0.60%

0.51%

0.90%

1.26%

1.00%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$5,358

$6,236

$5,083

$3,563

$2,338

$1,428

Portfolio

turnover

rate

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

19.28%

87.74%

32.75%

90.64%

42.85%

31.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

111

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.15

$13.36

$11.82

$9.85

$11.01

$9.44

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.02

0.17

0.11

0.15

0.19

0.13

Net

realized

and

unrealized

gains

(losses)

(2.63)

2.10

1.69

2.01

(1.01)

1.63

Total

from

investment

operations

........

(2.61)

2.27

1.80

2.16

(0.82)

1.76

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.02)

(0.36)

(0.16)

(0.09)

(0.17)

(0.16)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(0.35)

(2.48)

(0.26)

(0.19)

(0.34)

(0.19)

Net

asset

value,

end

of

period

..........

$10.19

$13.15

$13.36

$11.82

$9.85

$11.01

Total

return

d

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

(19.87)%

17.07%

15.61%

22.08%

(7.53)%

18.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

2.30%

2.04%

2.29%

2.75%

2.76%

3.43%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

g

0.71%

g

0.67%

g

0.59%

0.55%

g

0.55%

Net

investment

income

c

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

0.29%

1.16%

0.95%

1.40%

1.76%

1.50%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$851

$936

$580

$539

$425

$354

Portfolio

turnover

rate

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

19.28%

87.74%

32.75%

90.64%

42.85%

31.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.24

$13.43

$11.87

$9.89

$11.06

$9.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.04

0.13

0.18

0.22

0.24

0.22

Net

realized

and

unrealized

gains

(losses)

(2.60)

2.24

1.70

2.01

(1.01)

1.61

Total

from

investment

operations

........

(2.56)

2.37

1.88

2.23

(0.77)

1.83

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.03)

(0.44)

(0.22)

(0.15)

(0.23)

(0.22)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(0.36)

(2.56)

(0.32)

(0.25)

(0.40)

(0.25)

Capital

contributions

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

0.15

—

—

—

—

—

Net

asset

value,

end

of

period

..........

$10.47

$13.24

$13.43

$11.87

$9.89

$11.06

Total

return

d

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

(18.14)%

e

17.72%

16.34%

22.72%

(7.12)%

19.32%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

1.07%

0.67%

0.87%

1.18%

1.35%

1.85%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.18%

h

0.12%

h

0.13%

h

0.04%

—%

h

—%

Net

investment

income

c

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

0.66%

0.87%

1.57%

1.95%

2.31%

2.05%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4

$8

$12,017

$7,296

$3,573

$3,184

Portfolio

turnover

rate

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

19.28%

87.74%

32.75%

90.64%

42.85%

31.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

-19.29%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

113

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.22

$13.42

$11.87

$9.90

$11.06

$9.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.05

0.24

0.21

0.23

0.25

0.20

Net

realized

and

unrealized

gains

(losses)

(2.64)

2.11

1.66

1.99

(1.02)

1.62

Total

from

investment

operations

........

(2.59)

2.35

1.87

2.22

(0.77)

1.82

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.03)

(0.43)

(0.22)

(0.15)

(0.22)

(0.21)

Net

realized

gains

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

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

(0.03)

Total

distributions

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

(0.36)

(2.55)

(0.32)

(0.25)

(0.39)

(0.24)

Net

asset

value,

end

of

period

..........

$10.27

$13.22

$13.42

$11.87

$9.90

$11.06

Total

return

d

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

(19.58)%

17.60%

16.19%

22.67%

(7.16)%

19.27%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.80%

1.54%

1.77%

2.25%

2.26%

2.93%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.23%

g

0.21%

g

0.19%

g

0.09%

0.05%

g

0.05%

Net

investment

income

c

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

0.78%

1.61%

1.74%

1.90%

2.26%

2.00%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$427

$505

$378

$134

$46

$32

Portfolio

turnover

rate

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

19.28%

87.74%

32.75%

90.64%

42.85%

31.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.5%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

10,438

$

224,939

Domestic

Equity

68.1%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

44,730

1,511,867

a

Franklin

Growth

Fund,

Class

R6

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

32,053

3,562,966

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

91,724

3,556,140

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

483,546

5,884,755

Vanguard

S&P

500

ETF

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

2,231

773,889

15,289,617

Domestic

Fixed

Income

2.5%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

10,246

226,795

a

Western

Asset

Core

Plus

Bond

Fund,

C

lass

IS

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

23,093

228,154

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

31,007

113,484

568,433

Foreign

Equity

26.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

111,501

1,043,653

a

Franklin

International

Core

Equity

(IU)

Fund

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

280,959

2,753,396

a

Franklin

International

Growth

Fund,

Class

R6

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

30,139

429,179

iShares

Core

MSCI

EAFE

ETF

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

7,180

422,543

a

Templeton

Developing

Markets

Trust,

Class

R6

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

41,616

720,791

a

Templeton

Foreign

Fund,

Class

R6

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

103,298

654,912

6,024,474

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$21,557,087)

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

22,107,463

a

a

a

a

Short

Term

Investments

1.8%

a

Money

Market

Funds

1.8%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

394,447

394,447

Total

Money

Market

Funds

(Cost

$394,447)

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

394,447

Total

Short

Term

Investments

(Cost

$394,447

)

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

394,447

a

Total

Investments

(Cost

$21,951,534)

100.3%

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

$22,501,910

Other

Assets,

less

Liabilities

(0.3)%

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

(53,706)

Net

Assets

100.0%

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

$22,448,204

See

Abbreviations

on

page

166

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

115

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$11.26

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.04

0.27

Net

realized

and

unrealized

gains

(losses)

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

(2.28)

1.58

Total

from

investment

operations

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

(2.24)

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.03)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.21)

(0.59)

Net

asset

value,

end

of

period

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

$8.81

$11.26

Total

return

e

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

(19.88)%

18.52%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

10.71%

13.83%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.38%

0.21%

Net

investment

income

d

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

0.84%

2.34%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$1,101

$325

Portfolio

turnover

rate

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

25.70%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.02

0.28

Net

realized

and

unrealized

gains

(losses)

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

(2.27)

1.56

Total

from

investment

operations

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

(2.25)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.02)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.20)

(0.59)

Net

asset

value,

end

of

period

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

$8.80

$11.25

Total

return

e

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

(20.01)%

18.43%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

12.70%

14.00%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.86%

0.21%

Net

investment

income

d

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

0.32%

2.49%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$130

$68

Portfolio

turnover

rate

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

25.70%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

117

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.03

0.23

Net

realized

and

unrealized

gains

(losses)

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

(2.27)

1.61

Total

from

investment

operations

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

(2.24)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.02)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.20)

(0.59)

Net

asset

value,

end

of

period

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

$8.81

$11.25

Total

return

e

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

(19.86)%

18.42%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

9.32%

12.86%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.47%

0.21%

Net

investment

income

d

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

0.53%

2.02%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$30

$37

Portfolio

turnover

rate

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

25.70%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$11.26

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.04

0.16

Net

realized

and

unrealized

gains

(losses)

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

(2.26)

1.69

Total

from

investment

operations

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

(2.22)

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.04)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.22)

(0.59)

Capital

contributions

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

—

e

—

Net

asset

value,

end

of

period

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

$8.82

$11.26

Total

return

f

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

(19.73)%

g

18.56%

Ratios

to

average

net

assets

h

Expenses

before

waiver

and

payments

by

affiliates

i

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

8.32%

13.90%

Expenses

net

of

waiver

and

payments

by

affiliates

i

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

0.13%

0.15%

Net

investment

income

d

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

0.86%

1.38%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$9

$11

Portfolio

turnover

rate

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

25.70%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Amount

rounds

to

less

than

$0.01

per

share.

f

Total

return

is

not

annualized

for

periods

less

than

one

year.

g

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

unchanged.

See

Note

2.

h

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

i

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

119

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.04

0.20

Net

realized

and

unrealized

gains

(losses)

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

(2.27)

1.64

Total

from

investment

operations

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

(2.23)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

.

(0.03)

(0.32)

Net

realized

gains

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

(0.18)

(0.27)

Total

distributions

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

(0.21)

(0.59)

Net

asset

value,

end

of

period

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

$8.81

$11.25

Total

return

e

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

(19.76)%

18.41%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

8.97%

14.59%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.23%

0.20%

Net

investment

income

d

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

0.77%

1.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$863

$1,096

Portfolio

turnover

rate

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

25.70%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.27%

for

the

period

ended

June

30,

2022.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.2%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

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

969

$

20,882

Domestic

Equity

67.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

4,185

141,453

a

Franklin

Growth

Fund,

Class

R6

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

3,002

333,705

a

Franklin

LibertyQ

U.S.

Equity

ETF

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

10,380

402,433

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

39,422

479,764

Vanguard

S&P

500

ETF

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

221

76,661

1,434,016

Domestic

Fixed

Income

2.5%

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

950

21,028

a

Western

Asset

Core

Plus

Bond

Fund

,

Class

IS

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

2,166

21,395

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

2,908

10,643

53,066

Foreign

Equity

26.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

10,472

98,021

a

Franklin

International

Core

Equity

(IU)

Fund

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

26,248

257,228

a

Franklin

International

Growth

Fund,

Class

R6

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

2,846

40,528

iShares

Core

MSCI

EAFE

ETF

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

664

39,076

a

Templeton

Developing

Markets

Trust,

Class

R6

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

3,925

67,974

a

Templeton

Foreign

Fund,

Class

R6

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

9,722

61,641

564,468

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$2,388,606)

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

2,072,432

a

a

a

a

Short

Term

Investments

1.9%

a

Money

Market

Funds

1.9%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

40,138

40,138

Total

Money

Market

Funds

(Cost

$40,138)

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

40,138

Total

Short

Term

Investments

(Cost

$40,138

)

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

40,138

a

Total

Investments

(Cost

$2,428,744)

99.1%

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

$2,112,570

Other

Assets,

less

Liabilities

0.9%

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

20,377

Net

Assets

100.0%

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

$2,132,947

See

Abbreviations

on

page

166

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

121

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$16,381,908

$3,205,166

$9,906,411

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

38,625,420

33,309,057

104,751,807

Cost

-

Unaffiliated

repurchase

agreements

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

—

3,088

124,014

Value

-

Unaffiliated

issuers

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

$14,219,598

$2,902,916

$8,896,257

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

34,157,677

32,358,975

105,447,513

Value

-

Unaffiliated

repurchase

agreements

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

—

3,088

124,014

Cash

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

—

—

1,522

Receivables:

Investment

securities

sold

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

—

596,539

1,817,974

Capital

shares

sold

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

7,995

3,223

18,163

Dividends

and

interest

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

50,611

2,637

10,128

Affiliates

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

23,148

8,687

—

Other

assets

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

12,756

27,241

17,120

Total

assets

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

48,471,785

35,903,306

116,332,691

Liabilities:

Payables:

Investment

securities

purchased

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

—

520,710

1,683,621

Capital

shares

redeemed

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

16,338

82,055

11,786

Management

&

Asset

allocation

fees

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

—

—

10,050

Distribution

fees

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

13,264

10,120

32,353

Transfer

agent

fees

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

7,505

6,753

14,864

Reports

to

shareholders

fees

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

13,488

13,657

24,540

Professional

fees

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

27,613

22,733

21,223

Trustees'

fees

and

expenses

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

580

584

607

Distributions

to

shareholders

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

—

362

2,332

Funds

advanced

by

custodian

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

238

193

—

Accrued

expenses

and

other

liabilities

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

1,992

212

595

Total

liabilities

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

81,018

657,379

1,801,971

Net

assets,

at

value

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

$48,390,767

$35,245,927

$114,530,720

Net

assets

consist

of:

Paid-in

capital

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

$55,744,822

$37,241,223

$116,989,969

Total

distributable

earnings

(losses)

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

(7,354,055)

(1,995,296)

(2,459,249)

Net

assets,

at

value

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

$48,390,767

$35,245,927

$114,530,720

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

122

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

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

$39,174,486

$29,724,697

$96,202,697

Shares

outstanding

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

4,027,466

2,789,091

8,698,226

Net

asset

value

per

share

a

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

$9.73

$10.66

$11.06

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

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

$10.30

$11.28

$11.70

Class

C:

Net

assets,

at

value

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

$4,903,572

$4,211,084

$13,404,457

Shares

outstanding

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

510,492

398,240

1,238,404

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$9.61

$10.57

$10.82

Class

R:

Net

assets,

at

value

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

$1,789,228

$646,056

$1,975,426

Shares

outstanding

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

184,576

60,648

179,353

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.69

$10.65

$11.01

Class

R6:

Net

assets,

at

value

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

$129,235

$3,913

$468,875

Shares

outstanding

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

13,221

358

42,227

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.77

$10.92

$11.10

Advisor

Class:

Net

assets,

at

value

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

$2,394,246

$660,177

$2,479,265

Shares

outstanding

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

245,218

61,719

223,517

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.76

$10.70

$11.09

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

123

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$4,504,617

$8,314,587

$2,845,097

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

50,900,374

97,590,133

34,771,718

Cost

-

Unaffiliated

repurchase

agreements

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

14,559

49,574

—

Value

-

Unaffiliated

issuers

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

$4,005,689

$7,327,085

$2,499,548

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

51,204,704

101,832,312

36,797,522

Value

-

Unaffiliated

repurchase

agreements

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

14,559

49,574

—

Cash

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

13,933

1,076

—

Receivables:

Investment

securities

sold

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

890,131

1,527,900

452,193

Capital

shares

sold

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

10,246

22,946

17,698

Dividends

and

interest

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

7,946

16,162

5,074

Affiliates

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

10,438

7,025

12,725

Other

assets

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

29,693

19,243

28,180

Total

assets

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

56,187,339

110,803,323

39,812,940

Liabilities:

Payables:

Investment

securities

purchased

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

870,145

1,505,940

626,883

Capital

shares

redeemed

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

10,782

9,222

24,726

Distribution

fees

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

17,679

32,341

12,113

Transfer

agent

fees

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

11,196

26,578

11,858

Reports

to

shareholders

fees

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

14,858

24,950

15,876

Professional

fees

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

23,091

21,157

22,165

Trustees'

fees

and

expenses

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

632

667

657

Distributions

to

shareholders

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

470

1,871

94

Funds

advanced

by

custodian

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

—

—

378

Accrued

expenses

and

other

liabilities

.........................

189

560

177

Total

liabilities

.......................................

949,042

1,623,286

714,927

Net

assets,

at

value

...............................

$55,238,297

$109,180,037

$39,098,013

Net

assets

consist

of:

Paid-in

capital

...........................................

$56,846,961

$107,575,439

$38,087,112

Total

distributable

earnings

(losses)

...........................

(1,608,664)

1,604,598

1,010,901

Net

assets,

at

value

...............................

$55,238,297

$109,180,037

$39,098,013

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

124

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$42,603,158

$87,346,317

$30,181,084

Shares

outstanding

......................................

3,738,048

7,509,036

2,666,090

Net

asset

value

per

share

a

................................

$11.40

$11.63

$11.32

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$12.06

$12.31

$11.98

Class

C:

Net

assets,

at

value

.....................................

$9,667,675

$14,779,354

$6,451,744

Shares

outstanding

......................................

863,006

1,313,715

583,734

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.20

$11.25

$11.05

Class

R:

Net

assets,

at

value

.....................................

$1,317,897

$3,586,403

$1,021,576

Shares

outstanding

......................................

115,889

308,717

90,258

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.37

$11.62

$11.32

Class

R6:

Net

assets,

at

value

.....................................

$11,834

$83,280

$257,248

Shares

outstanding

......................................

1,025

7,082

22,522

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.54

$11.76

$11.42

Advisor

Class:

Net

assets,

at

value

.....................................

$1,637,733

$3,384,683

$1,186,361

Shares

outstanding

......................................

142,995

287,426

104,095

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.45

$11.78

$11.40

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

125

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$4,374,358

$1,984,160

$1,398,416

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

65,004,395

28,379,652

20,553,118

Cost

-

Unaffiliated

repurchase

agreements

....................

55,700

—

—

Value

-

Unaffiliated

issuers

................................

$3,720,980

$1,700,481

$1,196,432

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

70,112,388

30,558,497

21,305,478

Value

-

Unaffiliated

repurchase

agreements

....................

55,700

—

—

Cash

..................................................

—

7,074

—

Receivables:

Investment

securities

sold

.................................

641,095

217,681

149,350

Capital

shares

sold

......................................

13,668

28,600

26,500

Dividends

and

interest

...................................

17,498

4,774

3,386

Affiliates

..............................................

4,748

18,135

55,600

Other

assets

............................................

15,891

27,980

5,075

Total

assets

........................................

74,581,968

32,563,222

22,741,821

Liabilities:

Payables:

Investment

securities

purchased

............................

595,538

323,450

211,819

Capital

shares

redeemed

.................................

9,895

38,771

14,788

Distribution

fees

........................................

22,369

10,884

8,184

Transfer

agent

fees

......................................

15,385

11,646

17,629

Reports

to

shareholders

fees

..............................

24,485

18,815

17,471

Professional

fees

.......................................

20,799

21,785

22,017

Trustees'

fees

and

expenses

...............................

655

652

618

Distributions

to

shareholders

...............................

1,102

86

12

Funds

advanced

by

custodian

...............................

552

—

193

Accrued

expenses

and

other

liabilities

.........................

401

158

886

Total

liabilities

.......................................

691,181

426,247

293,617

Net

assets,

at

value

...............................

$73,890,787

$32,136,975

$22,448,204

Net

assets

consist

of:

Paid-in

capital

...........................................

$70,611,430

$31,001,878

$22,272,448

Total

distributable

earnings

(losses)

...........................

3,279,357

1,135,097

175,756

Net

assets,

at

value

...............................

$73,890,787

$32,136,975

$22,448,204

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

126

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$59,835,313

$23,221,382

$15,807,595

Shares

outstanding

......................................

5,078,914

2,055,720

1,542,379

Net

asset

value

per

share

a

................................

$11.78

$11.30

$10.25

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$12.47

$11.96

$10.85

Class

C:

Net

assets,

at

value

.....................................

$10,239,587

$6,271,366

$5,358,426

Shares

outstanding

......................................

906,281

564,012

536,044

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$11.30

$11.12

$10.00

Class

R:

Net

assets,

at

value

.....................................

$2,519,925

$1,701,202

$850,773

Shares

outstanding

......................................

215,193

150,380

83,464

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.71

$11.31

$10.19

Class

R6:

Net

assets,

at

value

.....................................

$4,112

$4,428

$4,224

Shares

outstanding

......................................

334

389

404

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.31

$11.40

$10.47

Advisor

Class:

Net

assets,

at

value

.....................................

$1,291,850

$938,597

$427,186

Shares

outstanding

......................................

108,434

82,368

41,611

Net

asset

value

and

maximum

offering

price

per

share

...........

$11.91

$11.40

$10.27

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

127

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$135,992

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

2,292,752

Value

-

Unaffiliated

issuers

..................................................................

$115,737

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

1,996,833

Receivables:

Investment

securities

sold

...................................................................

16,122

Capital

shares

sold

........................................................................

2,750

Dividends

and

interest

.....................................................................

334

Affiliates

................................................................................

48,507

Other

assets

..............................................................................

808

Total

assets

..........................................................................

2,181,091

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

24,198

Distribution

fees

..........................................................................

349

Transfer

agent

fees

........................................................................

1,258

Reports

to

shareholders

fees

................................................................

180

Professional

fees

.........................................................................

18,055

Distributions

to

shareholders

.................................................................

3,398

Funds

advanced

by

custodian

.................................................................

18

Accrued

expenses

and

other

liabilities

...........................................................

688

Total

liabilities

.........................................................................

48,144

Net

assets,

at

value

.................................................................

$2,132,947

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,510,798

Total

distributable

earnings

(losses)

.............................................................

(377,851)

Net

assets,

at

value

.................................................................

$2,132,947

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

128

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$1,100,596

Shares

outstanding

........................................................................

124,929

Net

asset

value

per

share

a

..................................................................

$8.81

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$9.32

Class

C:

Net

assets,

at

value

.......................................................................

$130,351

Shares

outstanding

........................................................................

14,815

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$8.80

Class

R:

Net

assets,

at

value

.......................................................................

$30,346

Shares

outstanding

........................................................................

3,444

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.81

Class

R6:

Net

assets,

at

value

.......................................................................

$8,815

Shares

outstanding

........................................................................

1,000

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.82

Advisor

Class:

Net

assets,

at

value

.......................................................................

$862,839

Shares

outstanding

........................................................................

97,939

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$8.81

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

129

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$228,997

$48,133

$142,423

Non-controlled

affiliates

(Note

3

f

)

...........................

631,303

285,344

845,520

Interest:

Unaffiliated

issuers

......................................

305,103

107

261

Total

investment

income

.................................

1,165,403

333,584

988,204

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

67,085

49,475

158,973

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

53,830

41,080

132,733

    Class

C

..............................................

28,928

25,928

76,842

    Class

R

..............................................

5,012

1,706

6,098

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

32,385

19,223

70,125

    Class

C

..............................................

4,346

3,040

10,152

    Class

R

..............................................

1,507

398

1,614

    Class

R6

.............................................

23

—

173

    Advisor

Class

..........................................

2,034

426

1,771

Custodian

fees

(Note

4

)

....................................

2,180

(18)

32

Reports

to

shareholders

fees

................................

6,258

5,080

11,077

Registration

and

filing

fees

..................................

38,422

39,882

40,537

Professional

fees

.........................................

32,267

25,180

24,604

Trustees'

fees

and

expenses

................................

835

776

1,219

Other

..................................................

2,788

2,790

3,001

Total

expenses

.......................................

277,900

214,966

538,951

Expense

reductions

(Note

4

)

.............................

(1)

—

—

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(176,739)

(104,298)

(179,744)

Net

expenses

.......................................

101,160

110,668

359,207

Net

investment

income

..............................

1,064,243

222,916

628,997

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(6,389)

(17,460)

(55,536)

Non-controlled

affiliates

(Note

3

f

)

..........................

(573,991)

(443,790)

(1,495,741)

Net

realized

gain

(loss)

................................

(580,380)

(461,250)

(1,551,277)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(3,046,263)

(425,818)

(1,439,050)

Non-controlled

affiliates

(Note

3

f

)

..........................

(4,917,187)

(6,186,043)

(20,895,950)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(7,963,450)

(6,611,861)

(22,335,000)

Net

realized

and

unrealized

gain

(loss)

..........................

(8,543,830)

(7,073,111)

(23,886,277)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(7,479,587)

$(6,850,195)

$(23,257,280)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

130

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$61,207

$108,245

$35,065

Non-controlled

affiliates

(Note

3

f

)

...........................

363,815

662,901

216,429

Interest:

Unaffiliated

issuers

......................................

172

243

128

Total

investment

income

.................................

425,194

771,389

251,622

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

74,662

148,513

52,561

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

57,089

118,579

39,505

    Class

C

..............................................

54,356

82,070

36,157

    Class

R

..............................................

3,496

9,466

3,713

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

40,674

78,862

40,535

    Class

C

..............................................

9,687

13,655

9,234

    Class

R

..............................................

1,246

3,147

1,917

    Class

R6

.............................................

—

123

(52)

    Advisor

Class

..........................................

1,587

3,043

1,597

Custodian

fees

(Note

4

)

....................................

15

31

14

Reports

to

shareholders

fees

................................

5,840

11,118

5,557

Registration

and

filing

fees

..................................

39,811

39,810

39,589

Professional

fees

.........................................

25,301

24,628

24,791

Trustees'

fees

and

expenses

................................

917

1,236

859

Other

..................................................

2,894

3,015

2,541

Total

expenses

.......................................

317,575

537,296

258,518

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(134,391)

(187,583)

(128,289)

Net

expenses

.......................................

183,184

349,713

130,229

Net

investment

income

..............................

242,010

421,676

121,393

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(37,384)

14,648

(9,120)

Non-controlled

affiliates

(Note

3

f

)

..........................

(931,117)

(1,064,647)

(492,136)

Net

realized

gain

(loss)

................................

(968,501)

(1,049,999)

(501,256)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(697,002)

(1,572,529)

(614,352)

Non-controlled

affiliates

(Note

3

f

)

..........................

(10,103,265)

(21,690,025)

(7,859,034)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(10,800,267)

(23,262,554)

(8,473,386)

Net

realized

and

unrealized

gain

(loss)

..........................

(11,768,768)

(24,312,553)

(8,974,642)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(11,526,758)

$(23,890,877)

$(8,853,249)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

131

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$49,125

$21,812

$15,318

Non-controlled

affiliates

(Note

3

f

)

...........................

381,946

152,964

106,437

Interest:

Unaffiliated

issuers

......................................

206

137

—

Total

investment

income

.................................

431,277

174,913

121,755

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

102,158

44,197

29,788

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

82,377

32,245

20,974

    Class

C

..............................................

57,822

34,598

28,564

    Class

R

..............................................

7,089

4,184

2,194

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

76,393

50,064

53,589

    Class

C

..............................................

13,422

13,426

18,251

    Class

R

..............................................

3,294

3,249

2,802

    Advisor

Class

..........................................

1,646

1,862

1,452

Custodian

fees

(Note

4

)

....................................

27

14

6

Reports

to

shareholders

fees

................................

11,043

6,271

6,084

Registration

and

filing

fees

..................................

39,437

39,732

73,882

Professional

fees

.........................................

24,583

24,606

25,010

Trustees'

fees

and

expenses

................................

1,050

824

730

Other

..................................................

2,570

2,362

2,256

Total

expenses

.......................................

422,911

257,634

265,582

Expense

reductions

(Note

4

)

.............................

—

—

(3)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(177,771)

(145,804)

(186,642)

Net

expenses

.......................................

245,140

111,830

78,937

Net

investment

income

..............................

186,137

63,083

42,818

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

17,573

(31,943)

990

Non-controlled

affiliates

(Note

3

f

)

..........................

(790,306)

(504,733)

(251,539)

Net

realized

gain

(loss)

................................

(772,733)

(536,676)

(250,549)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(1,155,050)

(558,164)

(368,599)

Non-controlled

affiliates

(Note

3

f

)

..........................

(16,170,941)

(6,883,054)

(4,720,783)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(17,325,991)

(7,441,218)

(5,089,382)

Net

realized

and

unrealized

gain

(loss)

..........................

(18,098,724)

(7,977,894)

(5,339,931)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(17,912,587)

$(7,914,811)

$(5,297,113)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

132

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$1,438

Non-controlled

affiliates

(Note

3

f

)

.............................................................

9,897

Total

investment

income

...................................................................

11,335

Expenses:

Management

fees

(Note

3

a

)

...................................................................

2,561

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

696

    Class

C

................................................................................

297

    Class

R

................................................................................

41

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

3,053

    Class

C

................................................................................

308

    Class

R

................................................................................

108

    Advisor

Class

............................................................................

3,132

Reports

to

shareholders

fees

..................................................................

943

Registration

and

filing

fees

....................................................................

59,952

Professional

fees

...........................................................................

24,048

Trustees'

fees

and

expenses

..................................................................

5

Amortization

of

offering

costs

(Note

1f

)

...........................................................

6,717

Other

....................................................................................

3,280

Total

expenses

.........................................................................

105,141

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(101,768)

Net

expenses

.........................................................................

3,373

Net

investment

income

................................................................

7,962

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(493)

Non-controlled

affiliates

(Note

3

f

)

............................................................

(53,611)

Net

realized

gain

(loss)

..................................................................

(54,104)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(33,148)

Non-controlled

affiliates

(Note

3

f

)

............................................................

(372,186)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(405,334)

Net

realized

and

unrealized

gain

(loss)

............................................................

(459,438)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(451,476)

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

133

)

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,064,243

$1,712,217

$222,916

$676,522

Net

realized

gain

(loss)

............

(580,380)

3,699,065

(461,250)

4,065,035

Net

change

in

unrealized

appreciation

(depreciation)

.................

(7,963,450)

(2,340,332)

(6,611,861)

(505,059)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(7,479,587)

3,070,950

(6,850,195)

4,236,498

Distributions

to

shareholders:

Class

A

........................

(1,232,660)

(2,738,432)

(836,774)

(3,188,266)

Class

C

........................

(137,655)

(412,129)

(104,567)

(525,427)

Class

R

........................

(54,601)

(128,601)

(16,993)

(63,968)

Class

R6

.......................

(3,493)

(115,087)

(115)

(81,115)

Advisor

Class

...................

(80,378)

(164,457)

(19,194)

(73,902)

Total

distributions

to

shareholders

.....

(1,508,787)

(3,558,706)

(977,643)

(3,932,678)

Capital

share

transactions:

(Note

2

)

Class

A

........................

339,722

6,205,539

(442,251)

6,563,995

Class

C

........................

(944,971)

(2,523,293)

(1,006,022)

(953,946)

Class

R

........................

(71,917)

113,112

23,274

(47,956)

Class

R6

.......................

96,012

(4,124,405)

82

(5,197,373)

Advisor

Class

...................

8,588

849,592

(22,856)

144,346

Total

capital

share

transactions

.......

(572,566)

520,545

(1,447,773)

509,066

Net

increase

(decrease)

in

net

assets

.....................

(9,560,940)

32,789

(9,275,611)

812,886

Net

assets:

Beginning

of

period

................

57,951,707

57,918,918

44,521,538

43,708,652

End

of

period

.....................

$48,390,767

$57,951,707

$35,245,927

$44,521,538

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.

134

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$628,997

$2,079,645

$242,010

$991,679

Net

realized

gain

(loss)

............

(1,551,277)

16,961,519

(968,501)

10,039,265

Net

change

in

unrealized

appreciation

(depreciation)

.................

(22,335,000)

(3,404,166)

(10,800,267)

(1,595,297)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(23,257,280)

15,636,998

(11,526,758)

9,435,647

Distributions

to

shareholders:

Class

A

........................

(2,967,530)

(12,998,389)

(1,298,157)

(6,264,146)

Class

C

........................

(385,491)

(1,952,002)

(277,743)

(1,503,515)

Class

R

........................

(57,267)

(332,811)

(38,929)

(187,569)

Class

R6

.......................

(15,141)

(341,402)

(309)

(350,602)

Advisor

Class

...................

(79,036)

(346,827)

(50,389)

(243,779)

Total

distributions

to

shareholders

.....

(3,504,465)

(15,971,431)

(1,665,527)

(8,549,611)

Capital

share

transactions:

(Note

2

)

Class

A

........................

35,019

23,268,401

2,845,393

17,136,403

Class

C

........................

(1,128,593)

(4,380,046)

(197,556)

1,538,532

Class

R

........................

(612,079)

(29,946)

114,997

360,153

Class

R6

.......................

30,805

(16,817,248)

(25,734)

(26,167,778)

Advisor

Class

...................

800

212,806

88,746

446,814

Total

capital

share

transactions

.......

(1,674,048)

2,253,967

2,825,846

(6,685,876)

Net

increase

(decrease)

in

net

assets

.....................

(28,435,793)

1,919,534

(10,366,439)

(5,799,840)

Net

assets:

Beginning

of

period

................

142,966,513

141,046,979

65,604,736

71,404,576

End

of

period

.....................

$114,530,720

$142,966,513

$55,238,297

$65,604,736

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

135

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$421,676

$1,851,350

$121,393

$691,677

Net

realized

gain

(loss)

............

(1,049,999)

23,498,603

(501,256)

10,719,607

Net

change

in

unrealized

appreciation

(depreciation)

.................

(23,262,554)

(5,330,755)

(8,473,386)

(2,015,167)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(23,890,877)

20,019,198

(8,853,249)

9,396,117

Distributions

to

shareholders:

Class

A

........................

(2,874,387)

(16,155,657)

(1,020,577)

(6,619,494)

Class

C

........................

(473,240)

(2,902,391)

(201,773)

(1,504,259)

Class

R

........................

(114,776)

(632,310)

(29,424)

(337,502)

Class

R6

.......................

(2,765)

(721,983)

(9,064)

(625,662)

Advisor

Class

...................

(112,616)

(621,466)

(41,575)

(177,487)

Total

distributions

to

shareholders

.....

(3,577,784)

(21,033,807)

(1,302,413)

(9,264,404)

Capital

share

transactions:

(Note

2

)

Class

A

........................

5,077,140

24,068,445

2,664,376

12,737,030

Class

C

........................

99,008

(2,596,763)

208,456

1,583,625

Class

R

........................

351,695

(367,212)

(421,953)

359,360

Class

R6

.......................

10,041

(33,272,877)

15,064

(28,247,644)

Advisor

Class

...................

316,937

580,342

553,174

499,245

Total

capital

share

transactions

.......

5,854,821

(11,588,065)

3,019,117

(13,068,384)

Net

increase

(decrease)

in

net

assets

.....................

(21,613,840)

(12,602,674)

(7,136,545)

(12,936,671)

Net

assets:

Beginning

of

period

................

130,793,877

143,396,551

46,234,558

59,171,229

End

of

period

.....................

$109,180,037

$130,793,877

$39,098,013

$46,234,558

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

136

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$186,137

$1,161,188

$63,083

$571,815

Net

realized

gain

(loss)

............

(772,733)

19,471,341

(536,676)

11,005,422

Net

change

in

unrealized

appreciation

(depreciation)

.................

(17,325,991)

(3,699,419)

(7,441,218)

(2,318,687)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(17,912,587)

16,933,110

(7,914,811)

9,258,550

Distributions

to

shareholders:

Class

A

........................

(2,183,795)

(13,185,030)

(854,951)

(6,412,318)

Class

C

........................

(366,852)

(2,492,203)

(218,856)

(1,716,148)

Class

R

........................

(89,427)

(598,679)

(61,643)

(498,620)

Class

R6

.......................

(150)

(584,253)

(175)

(541,844)

Advisor

Class

...................

(46,930)

(284,717)

(35,601)

(203,092)

Total

distributions

to

shareholders

.....

(2,687,154)

(17,144,882)

(1,171,226)

(9,372,022)

Capital

share

transactions:

(Note

2

)

Class

A

........................

3,672,076

15,804,135

(546,589)

12,297,908

Class

C

........................

(338,509)

(689,917)

14,707

1,540,871

Class

R

........................

(118,739)

881,792

262,199

(522,124)

Class

R6

.......................

1,545

(26,662,590)

3,564

(25,991,520)

Advisor

Class

...................

63,887

572,962

239,007

288,068

Total

capital

share

transactions

.......

3,280,260

(10,093,618)

(27,112)

(12,386,797)

Net

increase

(decrease)

in

net

assets

.....................

(17,319,481)

(10,305,390)

(9,113,149)

(12,500,269)

Net

assets:

Beginning

of

period

................

91,210,268

101,515,658

41,250,124

53,750,393

End

of

period

.....................

$73,890,787

$91,210,268

$32,136,975

$41,250,124

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

137

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

a

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$42,818

$346,227

$7,962

$21,947

Net

realized

gain

(loss)

............

(250,549)

5,143,531

(54,104)

91,200

Net

change

in

unrealized

appreciation

(depreciation)

.................

(5,089,382)

(2,290)

(405,334)

89,160

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(5,297,113)

5,487,468

(451,476)

202,307

Distributions

to

shareholders:

Class

A

........................

(531,246)

(2,853,427)

(25,717)

(15,484)

Class

C

........................

(173,209)

(994,136)

(2,857)

(3,154)

Class

R

........................

(27,796)

(149,684)

(704)

(1,891)

Class

R6

.......................

(147)

(267,234)

(219)

(597)

Advisor

Class

...................

(14,571)

(82,790)

(21,319)

(57,208)

Total

distributions

to

shareholders

.....

(746,969)

(4,347,271)

(50,816)

(78,334)

Capital

share

transactions:

(Note

2

)

Class

A

........................

2,319,920

5,782,053

1,004,393

322,209

Class

C

........................

588,785

1,308,941

87,921

67,409

Class

R

........................

137,090

386,733

1,197

35,624

Class

R6

.......................

(2,219)

(13,811,173)

1

9,229

Advisor

Class

...................

36,946

139,711

4,818

978,465

Total

capital

share

transactions

.......

3,080,522

(6,193,735)

1,098,330

1,412,936

Net

increase

(decrease)

in

net

assets

.....................

(2,963,560)

(5,053,538)

596,038

1,536,909

Net

assets:

Beginning

of

period

................

25,411,764

30,465,302

1,536,909

—

End

of

period

.....................

$22,448,204

$25,411,764

$2,132,947

$1,536,909

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

138

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds, ten

of

which

are

included

in

this

report

(Funds)

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Certain

or

all

Funds

invest

primarily

in

affiliated

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

139

franklintempleton.com

Semiannual

Report

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

June

30,

2022.

c.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

d.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

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).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

The

Franklin

LifeSmart

TM

Retirement

Income

Fund

employs

a

managed

distribution

policy.

Under

this

policy,

the

Fund

will

distribute

level

monthly

distributions

in

any

given

year

regardless

of

the

performance

of

the

Fund;

however,

the

twelfth

monthly

payment

may

be

greater

than

the

initially

anticipated

amount

if

additional

income

or

capital

gains

are

required

to

be

distributed.

These

distributions

may

include

income

and

capital

gains

generated

by

the

Underlying

Funds,

as

well

as

a

possible

return

of

capital

component,

if

necessary,

to

meet

the

annual

distribution

rate.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year

in

response

to

market

conditions.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Joint

Repurchase

Agreement

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

140

franklintempleton.com

Semiannual

Report

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

f.

Organization

and

Offering

Costs

Organization

costs

were

expensed

as

incurred.

Offering

costs

are

amortized

on

a

straight

line

basis

over

twelve

months.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

141

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

415,122

$4,486,117

189,863

$2,301,319

Shares

issued

in

reinvestment

of

distributions

..........

118,138

1,217,461

77,674

835,456

Shares

redeemed

...............................

(509,144)

(5,363,856)

(301,085)

(3,579,026)

Net

increase

(decrease)

..........................

24,116

$339,722

(33,548)

$(442,251)

Year

ended

December

31,

2021

Shares

sold

a

...................................

878,539

$10,294,955

767,024

$10,342,759

Shares

issued

in

reinvestment

of

distributions

..........

233,814

2,710,183

242,737

3,182,560

Shares

redeemed

...............................

(581,442)

(6,799,599)

(516,263)

(6,961,324)

Net

increase

(decrease)

..........................

530,911

$6,205,539

493,498

$6,563,995

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

56,943

$609,214

26,255

$311,915

Shares

issued

in

reinvestment

of

distributions

..........

13,304

135,164

9,805

103,986

Shares

redeemed

a

..............................

(158,687)

(1,689,349)

(120,819)

(1,421,923)

Net

increase

(decrease)

..........................

(88,440)

$(944,971)

(84,759)

$(1,006,022)

Year

ended

December

31,

2021

Shares

sold

...................................

130,078

$1,504,498

82,486

$1,095,715

Shares

issued

in

reinvestment

of

distributions

..........

35,197

402,711

40,159

522,493

Shares

redeemed

a

..............................

(381,629)

(4,430,502)

(190,825)

(2,572,154)

Net

increase

(decrease)

..........................

(216,354)

$(2,523,293)

(68,180)

$(953,946)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

6,246

$65,241

4,137

$48,022

Shares

issued

in

reinvestment

of

distributions

..........

5,321

54,601

1,584

16,993

Shares

redeemed

...............................

(18,635)

(191,759)

(3,369)

(41,741)

Net

increase

(decrease)

..........................

(7,068)

$(71,917)

2,352

$23,274

Year

ended

December

31,

2021

Shares

sold

...................................

19,568

$227,826

33,424

$442,150

Shares

issued

in

reinvestment

of

distributions

..........

11,132

128,601

4,886

63,967

Shares

redeemed

...............................

(21,006)

(243,315)

(40,555)

(554,073)

Net

increase

(decrease)

..........................

9,694

$113,112

(2,245)

$(47,956)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

142

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

18,033

$200,734

—

$—

Capital

contributions

.............................

—

—

—

82

b

Shares

issued

in

reinvestment

of

distributions

..........

67

742

—

—

Shares

redeemed

...............................

(9,691)

(105,464)

—

—

Net

increase

(decrease)

..........................

8,409

$96,012

—

$82

Year

ended

December

31,

2021

Shares

sold

...................................

167,173

$1,964,575

40,240

$539,421

Shares

issued

in

reinvestment

of

distributions

..........

148

1,712

3

48

Shares

redeemed

...............................

(513,086)

(6,090,692)

(412,496)

(5,736,842)

Net

increase

(decrease)

..........................

(345,765)

$(4,124,405)

(372,253)

$(5,197,373)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

51,662

$557,791

773

$8,967

Shares

issued

in

reinvestment

of

distributions

..........

7,500

77,658

1,773

19,194

Shares

redeemed

...............................

(59,621)

(626,861)

(4,169)

(51,017)

Net

increase

(decrease)

..........................

(459)

$8,588

(1,623)

$(22,856)

Year

ended

December

31,

2021

Shares

sold

...................................

86,986

$1,024,260

13,132

$176,166

Shares

issued

in

reinvestment

of

distributions

..........

13,648

158,707

5,616

73,902

Shares

redeemed

...............................

(28,235)

(333,375)

(7,987)

(105,722)

Net

increase

(decrease)

..........................

72,399

$849,592

10,761

$144,346

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

572,026

$7,153,689

456,704

$5,907,285

Shares

issued

in

reinvestment

of

distributions

..........

265,279

2,958,582

113,104

1,297,297

Shares

redeemed

...............................

(809,889)

(10,077,252)

(338,768)

(4,359,189)

Net

increase

(decrease)

..........................

27,416

$35,019

231,040

$2,845,393

Year

ended

December

31,

2021

Shares

sold

a

...................................

1,995,202

$29,010,592

1,118,157

$17,123,074

Shares

issued

in

reinvestment

of

distributions

..........

935,404

12,920,431

435,728

6,246,397

Shares

redeemed

...............................

(1,286,278)

(18,662,622)

(409,816)

(6,233,068)

Net

increase

(decrease)

..........................

1,644,328

$23,268,401

1,144,069

$17,136,403

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

143

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

105,223

$1,301,684

118,112

$1,513,580

Shares

issued

in

reinvestment

of

distributions

..........

35,450

385,479

24,640

277,539

Shares

redeemed

a

..............................

(229,061)

(2,815,756)

(157,130)

(1,988,675)

Net

increase

(decrease)

..........................

(88,388)

$(1,128,593)

(14,378)

$(197,556)

Year

ended

December

31,

2021

Shares

sold

...................................

247,050

$3,501,733

209,976

$3,148,993

Shares

issued

in

reinvestment

of

distributions

..........

144,046

1,951,938

106,489

1,502,679

Shares

redeemed

a

..............................

(685,739)

(9,833,717)

(208,118)

(3,113,140)

Net

increase

(decrease)

..........................

(294,643)

$(4,380,046)

108,347

$1,538,532

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

25,043

$304,463

15,901

$204,478

Shares

issued

in

reinvestment

of

distributions

..........

5,173

57,267

3,403

38,929

Shares

redeemed

...............................

(76,297)

(973,809)

(10,020)

(128,410)

Net

increase

(decrease)

..........................

(46,081)

$(612,079)

9,284

$114,997

Year

ended

December

31,

2021

Shares

sold

...................................

25,401

$365,549

22,477

$342,363

Shares

issued

in

reinvestment

of

distributions

..........

24,200

332,811

13,106

187,569

Shares

redeemed

...............................

(50,873)

(728,306)

(11,447)

(169,779)

Net

increase

(decrease)

..........................

(1,272)

$(29,946)

24,136

$360,153

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

1,225

$15,669

698

$8,445

Capital

contributions

.............................

—

—

—

85

b

Shares

issued

in

reinvestment

of

distributions

..........

1,348

15,140

27

309

Shares

redeemed

...............................

(1)

(4)

(2,469)

(34,573)

Net

increase

(decrease)

..........................

2,572

$30,805

(1,744)

$(25,734)

Year

ended

December

31,

2021

Shares

sold

...................................

181,182

$2,609,770

344,614

$5,214,446

Shares

issued

in

reinvestment

of

distributions

..........

4,384

60,810

386

5,596

Shares

redeemed

...............................

(1,308,198)

(19,487,828)

(1,982,748)

(31,387,820)

Net

increase

(decrease)

..........................

(1,122,632)

$(16,817,248)

(1,637,748)

$(26,167,778)

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

144

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

29,348

$372,580

5,759

$76,422

Shares

issued

in

reinvestment

of

distributions

..........

6,539

73,324

4,340

50,057

Shares

redeemed

...............................

(35,266)

(445,104)

(2,833)

(37,733)

Net

increase

(decrease)

..........................

621

$800

7,266

$88,746

Year

ended

December

31,

2021

Shares

sold

...................................

56,538

$797,042

44,175

$692,384

Shares

issued

in

reinvestment

of

distributions

..........

23,267

322,458

16,837

242,368

Shares

redeemed

...............................

(64,542)

(906,694)

(32,315)

(487,938)

Net

increase

(decrease)

..........................

15,263

$212,806

28,697

$446,814

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

505,077

$6,762,242

327,121

$4,211,047

Shares

issued

in

reinvestment

of

distributions

..........

244,096

2,860,361

89,163

1,020,692

Shares

redeemed

...............................

(341,918)

(4,545,463)

(190,070)

(2,567,363)

Net

increase

(decrease)

..........................

407,255

$5,077,140

226,214

$2,664,376

Year

ended

December

31,

2021

Shares

sold

a

...................................

1,319,958

$21,444,570

707,756

$11,755,225

Shares

issued

in

reinvestment

of

distributions

..........

1,081,774

16,083,299

452,373

6,616,403

Shares

redeemed

...............................

(834,142)

(13,459,424)

(342,250)

(5,634,598)

Net

increase

(decrease)

..........................

1,567,590

$24,068,445

817,879

$12,737,030

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

97,910

$1,264,662

65,443

$837,135

Shares

issued

in

reinvestment

of

distributions

..........

41,779

473,144

18,074

201,776

Shares

redeemed

a

..............................

(126,448)

(1,638,798)

(66,510)

(830,455)

Net

increase

(decrease)

..........................

13,241

$99,008

17,007

$208,456

Year

ended

December

31,

2021

Shares

sold

...................................

215,158

$3,391,865

95,273

$1,537,776

Shares

issued

in

reinvestment

of

distributions

..........

201,075

2,901,877

105,040

1,499,819

Shares

redeemed

a

..............................

(557,504)

(8,890,505)

(90,679)

(1,453,970)

Net

increase

(decrease)

..........................

(141,271)

$(2,596,763)

109,634

$1,583,625

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

145

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

29,560

$388,794

20,511

$251,894

Shares

issued

in

reinvestment

of

distributions

..........

9,809

114,776

2,569

29,424

Shares

redeemed

...............................

(11,217)

(151,875)

(58,187)

(703,271)

Net

increase

(decrease)

..........................

28,152

$351,695

(35,107)

$(421,953)

Year

ended

December

31,

2021

Shares

sold

...................................

71,468

$1,150,481

23,581

$387,809

Shares

issued

in

reinvestment

of

distributions

..........

42,337

628,619

23,118

337,502

Shares

redeemed

...............................

(131,902)

(2,146,312)

(22,113)

(365,951)

Net

increase

(decrease)

..........................

(18,097)

$(367,212)

24,586

$359,360

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

548

$7,314

435

$6,000

Shares

issued

in

reinvestment

of

distributions

..........

233

2,765

784

9,064

Shares

redeemed

...............................

(2)

(38)

—

—

Net

increase

(decrease)

..........................

779

$10,041

1,219

$15,064

Year

ended

December

31,

2021

Shares

sold

...................................

327,590

$5,312,608

340,093

$5,572,350

Shares

issued

in

reinvestment

of

distributions

..........

978

14,707

4,036

59,699

Shares

redeemed

...............................

(2,286,573)

(38,600,192)

(1,975,209)

(33,879,693)

Net

increase

(decrease)

..........................

(1,958,005)

$(33,272,877)

(1,631,080)

$(28,247,644)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

30,254

$417,879

42,238

$593,047

Shares

issued

in

reinvestment

of

distributions

..........

9,264

109,941

3,606

41,575

Shares

redeemed

...............................

(15,717)

(210,883)

(6,264)

(81,448)

Net

increase

(decrease)

..........................

23,801

$316,937

39,580

$553,174

Year

ended

December

31,

2021

Shares

sold

...................................

24,576

$396,685

22,682

$372,451

Shares

issued

in

reinvestment

of

distributions

..........

40,058

603,559

11,918

175,331

Shares

redeemed

...............................

(25,324)

(419,902)

(2,996)

(48,537)

Net

increase

(decrease)

..........................

39,310

$580,342

31,604

$499,245

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

146

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

438,990

$6,018,167

279,829

$3,695,140

Shares

issued

in

reinvestment

of

distributions

..........

182,467

2,168,100

74,795

854,975

Shares

redeemed

...............................

(333,957)

(4,514,191)

(382,486)

(5,096,704)

Net

increase

(decrease)

..........................

287,500

$3,672,076

(27,862)

$(546,589)

Year

ended

December

31,

2021

Shares

sold

a

...................................

736,080

$12,605,794

628,036

$10,661,579

Shares

issued

in

reinvestment

of

distributions

..........

849,185

13,083,221

433,200

6,411,353

Shares

redeemed

...............................

(577,974)

(9,884,880)

(291,313)

(4,775,024)

Net

increase

(decrease)

..........................

1,007,291

$15,804,135

769,923

$12,297,908

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

99,637

$1,327,336

67,835

$877,297

Shares

issued

in

reinvestment

of

distributions

..........

32,224

366,664

19,472

218,856

Shares

redeemed

a

..............................

(150,041)

(2,032,509)

(81,508)

(1,081,446)

Net

increase

(decrease)

..........................

(18,180)

$(338,509)

5,799

$14,707

Year

ended

December

31,

2021

Shares

sold

...................................

154,021

$2,551,169

123,755

$2,065,942

Shares

issued

in

reinvestment

of

distributions

..........

167,778

2,488,961

117,416

1,716,159

Shares

redeemed

a

..............................

(343,510)

(5,730,047)

(132,180)

(2,241,230)

Net

increase

(decrease)

..........................

(21,711)

$(689,917)

108,991

$1,540,871

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

22,747

$308,344

50,928

$636,472

Shares

issued

in

reinvestment

of

distributions

..........

7,576

89,426

5,390

61,643

Shares

redeemed

...............................

(36,766)

(516,509)

(33,007)

(435,916)

Net

increase

(decrease)

..........................

(6,443)

$(118,739)

23,311

$262,199

Year

ended

December

31,

2021

Shares

sold

...................................

42,492

$730,310

33,070

$560,640

Shares

issued

in

reinvestment

of

distributions

..........

38,951

595,892

33,649

498,620

Shares

redeemed

...............................

(26,296)

(444,410)

(96,208)

(1,581,384)

Net

increase

(decrease)

..........................

55,147

$881,792

(29,489)

$(522,124)

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

147

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

728

$10,785

393

$5,060

Capital

contributions

.............................

—

129

b

—

2

b

Shares

issued

in

reinvestment

of

distributions

..........

2

25

—

—

Shares

redeemed

...............................

(674)

(9,394)

(115)

(1,498)

Net

increase

(decrease)

..........................

56

$1,545

278

$3,564

Year

ended

December

31,

2021

Shares

sold

...................................

246,381

$4,211,143

279,109

$4,774,889

Shares

issued

in

reinvestment

of

distributions

..........

48

835

54

879

Shares

redeemed

...............................

(1,721,200)

(30,874,568)

(1,718,603)

(30,767,288)

Net

increase

(decrease)

..........................

(1,474,771)

$(26,662,590)

(1,439,440)

$(25,991,520)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

5,503

$74,582

17,547

$231,415

Shares

issued

in

reinvestment

of

distributions

..........

3,905

46,930

3,084

35,601

Shares

redeemed

...............................

(4,233)

(57,625)

(2,228)

(28,009)

Net

increase

(decrease)

..........................

5,175

$63,887

18,403

$239,007

Year

ended

December

31,

2021

Shares

sold

...................................

25,416

$434,424

6,394

$109,125

Shares

issued

in

reinvestment

of

distributions

..........

18,300

284,717

13,570

203,092

Shares

redeemed

...............................

(8,782)

(146,179)

(1,369)

(24,149)

Net

increase

(decrease)

..........................

34,934

$572,962

18,595

$288,068

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

249,775

$2,981,442

95,186

$999,117

Shares

issued

in

reinvestment

of

distributions

..........

51,412

531,312

2,870

25,504

Shares

redeemed

...............................

(100,625)

(1,192,834)

(1,952)

(20,228)

Net

increase

(decrease)

..........................

200,562

$2,319,920

96,104

$1,004,393

Year

ended

December

31,

2021

c

Shares

sold

a

...................................

392,623

$5,682,892

38,966

$425,182

Shares

issued

in

reinvestment

of

distributions

..........

213,346

2,852,970

1,321

14,893

Shares

redeemed

...............................

(189,747)

(2,753,809)

(11,462)

(117,866)

Net

increase

(decrease)

..........................

416,222

$5,782,053

28,825

$322,209

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

148

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

80,193

$928,307

9,030

$90,582

Shares

issued

in

reinvestment

of

distributions

..........

17,201

173,209

299

2,657

Shares

redeemed

a

..............................

(44,039)

(512,731)

(516)

(5,318)

Net

increase

(decrease)

..........................

53,355

$588,785

8,813

$87,921

Year

ended

December

31,

2021

c

Shares

sold

...................................

129,120

$1,846,042

6,853

$77,148

Shares

issued

in

reinvestment

of

distributions

..........

76,168

994,120

228

2,565

Shares

redeemed

a

..............................

(108,345)

(1,531,221)

(1,079)

(12,304)

Net

increase

(decrease)

..........................

96,943

$1,308,941

6,002

$67,409

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

16,145

$188,147

68

$700

Shares

issued

in

reinvestment

of

distributions

..........

2,705

27,797

56

497

Shares

redeemed

...............................

(6,557)

(78,854)

—

—

Net

increase

(decrease)

..........................

12,293

$137,090

124

$1,197

Year

ended

December

31,

2021

c

Shares

sold

...................................

26,931

$389,407

3,207

$34,334

Shares

issued

in

reinvestment

of

distributions

..........

11,253

149,684

116

1,302

Shares

redeemed

...............................

(10,394)

(152,358)

(3)

(12)

Net

increase

(decrease)

..........................

27,790

$386,733

3,320

$35,624

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

417

$5,173

—

$—

Contributions

..................................

—

76

b

—

1

b

Shares

redeemed

...............................

(603)

(7,468)

—

—

Net

increase

(decrease)

..........................

(186)

$(2,219)

—

$1

Year

ended

December

31,

2021

c

Shares

sold

...................................

260,819

$3,744,627

3,695

$40,469

Shares

issued

in

reinvestment

of

distributions

..........

134

1,854

—

—

Shares

redeemed

...............................

(1,155,363)

(17,557,654)

(2,695)

(31,240)

Net

increase

(decrease)

..........................

(894,410)

$(13,811,173)

1,000

$9,229

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

149

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Management

and

Asset

Allocation

Fees

The

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

pay

an

asset

allocation

fee,

calculated

daily

and

paid

monthly,

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

LifeSmart

TM

Retirement

Income

Fund pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

 Advisers of

0.25%

per

year

of

the

average

daily

net

assets

of

the

Fund. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

2,651

$30,222

458

$4,436

Shares

issued

in

reinvestment

of

distributions

..........

1,406

14,571

43

382

Shares

redeemed

...............................

(628)

(7,847)

—

—

Net

increase

(decrease)

..........................

3,429

$36,946

501

$4,818

Year

ended

December

31,

2021

c

Shares

sold

...................................

7,070

$103,158

97,373

$977,734

Shares

issued

in

reinvestment

of

distributions

..........

6,179

82,789

65

731

Shares

redeemed

...............................

(3,212)

(46,236)

—

—

Net

increase

(decrease)

..........................

10,037

$139,711

97,438

$978,465

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

b

An

affiliate

of

the

Fund

voluntarily

made

a

capital

contribution

to

the

Fund.

This

contribution

was

made

to

reimburse

the

Fund

for

previously

over-accrued

transfer

agent

fees.

The

affiliate

did

not

receive

any

shares

of

the

Fund

or

other

consideration

in

exchange

for

making

this

cash

contribution.

c

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

150

franklintempleton.com

Semiannual

Report

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$5,655

$1,923

$11,799

$9,999

CDSC

retained

...........................

$370

$616

$2,337

$2,026

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$13,842

$8,751

$12,975

$10,793

CDSC

retained

...........................

$700

$474

$707

$717

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

.............

$9,948

$3,493

CDSC

retained

.............................................................

$1,210

$34

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

151

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Transfer

agent

fees

........................

$33,043

$19,130

$71,155

$48,714

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Transfer

agent

fees

........................

$84,835

$51,981

$82,415

$66,783

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Transfer

agent

fees

..........................................................

$72,893

$5,954

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

152

franklintempleton.com

Semiannual

Report

f.

Investments

in

FT

Underlying

Funds

The

Funds

invest

in

FT

Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

FT

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

and

asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund. 

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2022,

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

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

—

$

2,927,059

$

(110,888)

$

(9,380)

$

(410,330)

$

2,396,461

253,326

$

21,154

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund

-

USD

Hedged,

Class

IS

...........

2,864,272

—

(2,843,896)

(205,165)

184,789

—

—

—

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

.......

4,644,204

999,811

(381,579)

(14,879)

(733,196)

4,514,361

241,668

102,214

Franklin

Liberty

High

Yield

Corporate

ETF

............

2,877,203

103,416

(161,151)

(20,215)

(444,623)

2,354,630

106,980

65,316

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

3,435,358

160,907

(190,031)

(36,744)

(524,904)

2,844,586

131,329

48,878

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

5,216,759

146,399

(318,776)

(32,143)

(590,352)

4,421,887

199,769

55,969

Franklin

U.S.

Core

Equity

(IU)

Fund

2,308,371

113,114

(637,499)

125,499

(521,719)

1,387,766

114,032

7,966

Franklin

U.S.

Government

Securities

Fund,

Class

R6

.....

5,769,024

152,688

(3,131,883)

(319,068)

(147,149)

2,323,612

434,320

63,237

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

515,239

7,920,127

(8,129,125)

—

—

306,241

306,241

364

Templeton

Developing

Markets

Trust,

Class

R6

............

550,869

27,380

—

—

(127,488)

450,761

26,025

—

Templeton

Foreign

Fund,

Class

R6

1,160,475

—

(92,625)

7,714

(116,286)

959,278

151,306

—

Western

Asset

Income

Fund,

Class

IS

.....................

5,753,705

2,539,255

(337,760)

(38,956)

(811,173)

7,105,071

1,366,360

127,499

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

153

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

........

$

5,227,049

$

913,607

$

(342,223)

$

(30,654)

$

(674,756)

$

5,093,023

1,095,274

$

138,706

Total

Non-Controlled

Affiliates

$40,322,528

$16,003,763

$(16,677,436)

$(573,991)

$(4,917,187)

$34,157,677

$631,303

Total

Affiliated

Securities

....

$40,322,528

$16,003,763

$(16,677,436)

$(573,991)

$(4,917,187)

$34,157,677

$631,303

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,213,493

303,693

(142,101)

(18,303)

(182,013)

1,174,769

124,183

10,290

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,169,022

47,039

(781,174)

16,512

(263,127)

1,188,272

35,156

10,010

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

630,569

416,841

(58,598)

(4,962)

(138,686)

845,164

90,295

5,521

Franklin

FTSE

Europe

ETF

....

253,373

10,079

(226,077)

39,689

(77,064)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

4,373,598

480,541

(967,937)

51,692

(1,153,091)

2,784,803

25,052

—

Franklin

International

Core

Equity

(IU)

Fund

................

2,866,263

559,310

(565,748)

(115,207)

(539,935)

2,204,683

224,968

25,847

Franklin

International

Growth

Fund,

Class

R6

................

496,395

111,652

(81,864)

(13,913)

(164,171)

348,099

24,445

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,595,822

136,929

(610,897)

(56,261)

(160,146)

905,447

41,138

31,598

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,183,504

46,165

(395,556)

(23,528)

(29,703)

780,882

33,746

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

705,533

560,960

(218,728)

(33,856)

(105,207)

908,702

41,953

11,573

Franklin

Liberty

Senior

Loan

ETF

887,464

26,766

(893,869)

(22,034)

1,673

—

—

7,885

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

229,241

182,245

(57,220)

(10,197)

8,489

352,558

16,360

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

7,966,338

887,199

(2,091,136)

(124,351)

(715,543)

5,922,507

267,563

73,980

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,417,988

158,554

(235,647)

(29,482)

(94,459)

1,216,954

55,798

7,311

Franklin

LibertyQ

U.S.

Equity

ETF

881,483

1,267,720

(218,835)

22,140

(229,065)

1,723,443

44,453

9,567

Franklin

U.S.

Core

Equity

(IU)

Fund

8,822,202

366,709

(1,679,665)

(47,713)

(1,456,889)

6,004,644

493,397

33,025

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

3

4,181,460

(3,707,650)

—

—

473,813

473,813

336

Templeton

Developing

Markets

Trust,

Class

R6

............

605,500

503,867

(367,671)

(49,710)

(129,843)

562,143

32,456

—

Templeton

Foreign

Fund,

Class

R6

1,041,988

40,073

(506,791)

37,947

(91,407)

521,810

82,304

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

2,694,526

1,576,023

(257,428)

(52,160)

(609,040)

3,351,921

339,263

48,099

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

154

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

1,073,847

$

256,819

$

(175,396)

$

(10,093)

$

(56,816)

$

1,088,361

297,367

$

10,302

Total

Non-Controlled

Affiliates

$41,108,152

$12,120,644

$(14,239,988)

$(443,790)

$(6,186,043)

$32,358,975

$285,344

Total

Affiliated

Securities

....

$41,108,152

$12,120,644

$(14,239,988)

$(443,790)

$(6,186,043)

$32,358,975

$285,344

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

2,825,250

704,296

(288,472)

(35,566)

(431,983)

2,773,525

293,184

24,276

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

7,900,941

135,706

(2,534,589)

36,427

(970,902)

4,567,583

135,136

37,440

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

3,097,498

840,343

(134,680)

(18,106)

(560,731)

3,224,324

344,479

20,557

Franklin

FTSE

Europe

ETF

....

968,159

23,469

(849,800)

114,254

(256,082)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

15,972,227

1,581,880

(2,722,422)

(128,459)

(4,007,188)

10,696,038

96,222

—

Franklin

International

Core

Equity

(IU)

Fund

................

10,898,437

2,051,402

(2,011,852)

(404,489)

(2,083,757)

8,449,741

862,219

97,359

Franklin

International

Growth

Fund,

Class

R6

................

1,895,053

402,142

(280,754)

(55,942)

(625,044)

1,335,455

93,782

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

4,185,999

392,435

(1,569,718)

(144,400)

(427,193)

2,437,123

110,728

83,301

Franklin

Liberty

International

Aggregate

Bond

ETF

........

2,773,811

44,623

(850,590)

(49,804)

(74,754)

1,843,286

79,658

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

1,852,156

1,439,878

(480,196)

(91,622)

(273,936)

2,446,280

112,940

30,568

Franklin

Liberty

Senior

Loan

ETF

2,329,560

46,022

(2,322,832)

(57,363)

4,613

—

—

20,568

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

739,420

574,191

(163,351)

(29,596)

23,813

1,144,477

53,108

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

21,191,518

2,362,217

(5,409,572)

(303,307)

(1,900,712)

15,940,144

720,133

195,099

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

3,722,764

417,992

(541,654)

(68,180)

(255,867)

3,275,055

150,163

19,353

Franklin

LibertyQ

U.S.

Equity

ETF

3,222,872

4,613,250

(583,801)

62,573

(849,570)

6,465,324

166,761

35,981

Franklin

U.S.

Core

Equity

(IU)

Fund

31,756,777

1,062,108

(4,061,425)

(133,546)

(5,525,023)

23,098,891

1,898,019

124,813

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

13

12,387,159

(10,841,029)

—

—

1,546,143

1,546,143

1,223

Templeton

Developing

Markets

Trust,

Class

R6

............

3,024,775

1,238,985

(1,346,771)

(256,090)

(503,754)

2,157,145

124,546

—

Templeton

Foreign

Fund,

Class

R6

3,978,852

83,675

(1,860,281)

213,909

(415,349)

2,000,806

315,584

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

7,031,491

4,311,392

(592,389)

(123,392)

(1,606,001)

9,021,101

913,067

127,036

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

155

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

2,802,314

$

804,001

$

(401,671)

$

(23,042)

$

(156,530)

$

3,025,072

826,522

$

27,946

Total

Non-Controlled

Affiliates

$132,169,887

$35,517,166

$(39,847,849)

$(1,495,741)

$(20,895,950)

$105,447,513

$845,520

Total

Affiliated

Securities

....

$132,169,887

$35,517,166

$(39,847,849)

$(1,495,741)

$(20,895,950)

$105,447,513

$845,520

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

949,870

307,713

(93,123)

(13,335)

(152,805)

998,320

105,531

8,720

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

3,999,208

208,205

(1,146,686)

(6,418)

(505,220)

2,549,089

75,417

20,288

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,692,004

494,729

(81,536)

(10,716)

(308,045)

1,786,436

190,859

11,266

Franklin

FTSE

Europe

ETF

....

523,170

21,238

(467,266)

59,595

(136,737)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

8,283,384

1,251,118

(1,288,386)

(201,329)

(2,022,554)

6,022,233

54,176

—

Franklin

International

Core

Equity

(IU)

Fund

................

5,972,992

1,085,790

(1,031,347)

(188,760)

(1,172,460)

4,666,215

476,144

52,950

Franklin

International

Growth

Fund,

Class

R6

................

1,027,329

264,459

(176,095)

(44,679)

(327,346)

743,668

52,224

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

1,453,397

241,651

(574,532)

(54,362)

(152,563)

913,591

41,508

30,059

Franklin

Liberty

International

Aggregate

Bond

ETF

........

952,832

80,587

(322,594)

(19,460)

(24,355)

667,010

28,825

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

642,233

590,359

(183,999)

(35,319)

(96,146)

917,128

42,342

11,030

Franklin

Liberty

Senior

Loan

ETF

808,503

50,267

(839,785)

(20,378)

1,393

—

—

7,307

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

340,401

301,682

(86,619)

(15,117)

12,109

552,456

25,636

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

7,385,589

1,411,307

(2,034,069)

(121,210)

(665,078)

5,976,539

270,004

70,082

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,292,686

271,593

(221,377)

(27,806)

(87,498)

1,227,598

56,286

7,073

Franklin

LibertyQ

U.S.

Equity

ETF

1,667,543

2,661,065

(244,868)

9,343

(442,849)

3,650,234

94,151

19,974

Franklin

U.S.

Core

Equity

(IU)

Fund

16,273,762

863,301

(1,347,435)

(84,356)

(2,959,726)

12,745,546

1,047,292

67,850

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

6

7,988,471

(7,105,243)

—

—

883,234

883,234

658

Templeton

Developing

Markets

Trust,

Class

R6

............

1,665,712

716,859

(743,723)

(137,477)

(288,216)

1,213,155

70,044

—

Templeton

Foreign

Fund,

Class

R6

2,149,699

123,484

(1,047,784)

47,770

(159,453)

1,113,716

175,665

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

2,386,772

1,880,330

(268,441)

(56,764)

(559,289)

3,382,608

342,369

45,966

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

156

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

951,538

$

482,408

$

(171,252)

$

(10,339)

$

(56,427)

$

1,195,928

326,756

$

10,592

Total

Non-Controlled

Affiliates

$60,418,630

$21,296,616

$(19,476,160)

$(931,117)

$(10,103,265)

$51,204,704

$363,815

Total

Affiliated

Securities

....

$60,418,630

$21,296,616

$(19,476,160)

$(931,117)

$(10,103,265)

$51,204,704

$363,815

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,615,481

464,023

(148,774)

(17,189)

(258,069)

1,655,472

174,997

14,465

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

8,922,369

359,239

(2,424,108)

9,958

(1,138,610)

5,728,848

169,493

44,677

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,371,726

474,738

(81,824)

(12,287)

(732,090)

4,020,263

429,515

25,153

Franklin

FTSE

Europe

ETF

....

1,171,645

32,073

(1,031,022)

125,126

(297,822)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

17,952,826

2,139,822

(1,791,200)

(257,504)

(4,627,967)

13,415,977

120,691

—

Franklin

International

Core

Equity

(IU)

Fund

................

13,487,630

2,204,170

(2,145,973)

(396,407)

(2,640,128)

10,509,292

1,072,377

117,739

Franklin

International

Growth

Fund,

Class

R6

................

2,291,201

495,753

(313,110)

(62,445)

(765,693)

1,645,706

115,569

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

2,028,077

340,960

(783,663)

(73,514)

(216,682)

1,295,178

58,845

42,387

Franklin

Liberty

International

Aggregate

Bond

ETF

........

1,583,181

74,710

(485,408)

(28,715)

(43,762)

1,100,006

47,537

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

896,955

798,092

(211,026)

(41,662)

(142,304)

1,300,055

60,021

15,553

Franklin

Liberty

Senior

Loan

ETF

1,128,497

54,128

(1,156,240)

(28,507)

2,122

—

—

10,165

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

674,767

571,346

(147,699)

(26,048)

20,758

1,093,124

50,725

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

10,119,465

1,887,635

(2,439,632)

(147,853)

(948,772)

8,470,843

382,690

98,646

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

1,802,137

380,708

(281,647)

(34,952)

(126,092)

1,740,154

79,787

10,034

Franklin

LibertyQ

U.S.

Equity

ETF

3,636,971

7,493,598

(1,167,614)

86,801

(1,144,248)

8,905,508

229,701

52,366

Franklin

U.S.

Core

Equity

(IU)

Fund

33,981,989

149,503

—

—

(6,560,254)

27,571,238

2,265,508

149,503

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

9

10,687,530

(9,133,027)

—

—

1,554,512

1,554,512

1,351

Templeton

Developing

Markets

Trust,

Class

R6

............

4,233,465

1,060,056

(1,563,422)

(260,137)

(751,542)

2,718,420

156,953

—

Templeton

Foreign

Fund,

Class

R6

4,599,997

128,981

(2,008,858)

193,063

(449,306)

2,463,877

388,624

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

3,411,230

2,600,813

(355,441)

(77,104)

(784,656)

4,794,842

485,308

64,803

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

157

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

1,359,316

$

850,827

$

(260,967)

$

(15,271)

$

(84,908)

$

1,848,997

505,191

$

16,059

Total

Non-Controlled

Affiliates

$119,268,934

$33,248,705

$(27,930,655)

$(1,064,647)

$(21,690,025)

$101,832,312

$662,901

Total

Affiliated

Securities

....

$119,268,934

$33,248,705

$(27,930,655)

$(1,064,647)

$(21,690,025)

$101,832,312

$662,901

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

3,398,026

216,576

(866,331)

(10,329)

(438,548)

2,299,394

68,029

17,518

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,734,895

177,495

(28,907)

(4,438)

(291,246)

1,587,799

169,637

9,933

Franklin

FTSE

Europe

ETF

....

472,518

12,727

(416,333)

53,233

(122,145)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

7,148,048

940,198

(763,641)

(148,315)

(1,792,671)

5,383,619

48,431

—

Franklin

International

Core

Equity

(IU)

Fund

................

5,285,608

1,028,199

(918,609)

(148,133)

(1,062,681)

4,184,384

426,978

47,058

Franklin

International

Growth

Fund,

Class

R6

................

922,300

279,522

(213,862)

(31,958)

(295,795)

660,207

46,363

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

452,306

143,637

(208,124)

(20,314)

(47,304)

320,201

14,548

9,855

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

200,653

209,477

(46,674)

(8,330)

(33,951)

321,175

14,828

3,622

Franklin

Liberty

Senior

Loan

ETF

251,349

18,645

(264,117)

(6,213)

336

—

—

2,262

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

239,667

214,005

(60,588)

(9,935)

8,242

391,391

18,162

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

2,291,989

767,856

(713,480)

(48,152)

(201,984)

2,096,229

94,702

22,858

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

402,432

161,209

(96,402)

(7,073)

(29,506)

430,660

19,746

2,378

Franklin

LibertyQ

U.S.

Equity

ETF

1,420,823

3,786,310

(222,645)

(4,197)

(546,282)

4,434,009

114,367

26,428

Franklin

U.S.

Core

Equity

(IU)

Fund

12,432,235

54,696

—

—

(2,400,054)

10,086,877

828,831

54,695

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

4

5,860,092

(5,050,426)

—

—

809,670

809,670

521

Templeton

Developing

Markets

Trust,

Class

R6

............

1,719,000

432,165

(670,042)

(100,756)

(285,807)

1,094,560

63,196

—

Templeton

Foreign

Fund,

Class

R6

1,893,431

151,742

(959,425)

39,532

(136,352)

988,928

155,982

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

740,382

795,691

(154,906)

(30,968)

(163,538)

1,186,661

120,107

15,082

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

158

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

295,463

$

349,427

$

(97,594)

$

(5,790)

$

(19,748)

$

521,758

142,557

$

4,219

Total

Non-Controlled

Affiliates

$41,301,129

$15,599,669

$(11,752,106)

$(492,136)

$(7,859,034)

$36,797,522

$216,429

Total

Affiliated

Securities

....

$41,301,129

$15,599,669

$(11,752,106)

$(492,136)

$(7,859,034)

$36,797,522

$216,429

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

7,191,500

343,221

(1,869,948)

(4,450)

(927,058)

4,733,265

140,037

36,066

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,137,604

103,155

(311,872)

(21,512)

(615,554)

3,291,821

351,690

20,566

Franklin

FTSE

Europe

ETF

....

1,014,785

31,080

(897,192)

92,661

(241,334)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

14,715,308

1,569,250

(1,105,417)

(181,583)

(3,836,816)

11,160,742

100,403

—

Franklin

International

Core

Equity

(IU)

Fund

................

11,638,898

1,787,610

(2,154,540)

(397,382)

(2,158,251)

8,716,335

889,422

98,432

Franklin

International

Growth

Fund,

Class

R6

................

1,984,318

360,603

(304,987)

(49,002)

(647,448)

1,343,484

94,346

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

472,196

383,647

(111,527)

(19,398)

16,057

740,975

34,384

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

2,021,752

1,366,446

(732,919)

(66,503)

(196,846)

2,391,930

108,061

25,324

Franklin

LibertyQ

U.S.

Equity

ETF

2,950,427

6,330,321

(204,018)

53,694

(1,104,375)

8,026,049

207,017

50,157

Franklin

U.S.

Core

Equity

(IU)

Fund

26,748,484

117,679

—

—

(5,163,819)

21,702,344

1,783,266

117,679

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

6

7,648,370

(6,704,228)

—

—

944,148

944,148

895

Templeton

Developing

Markets

Trust,

Class

R6

............

4,030,870

479,103

(1,374,516)

(261,622)

(631,548)

2,242,287

129,462

—

Templeton

Foreign

Fund,

Class

R6

4,040,920

81,008

(1,865,945)

157,911

(362,998)

2,050,896

323,485

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

2,028,708

1,399,570

(655,611)

(91,211)

(287,131)

2,394,325

242,341

30,136

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

159

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

448,859

$

(59,343)

$

(1,909)

$

(13,820)

$

373,787

102,128

$

2,691

Total

Non-Controlled

Affiliates

$82,975,776

$22,449,922

$(18,352,063)

$(790,306)

$(16,170,941)

$70,112,388

$381,946

Total

Affiliated

Securities

....

$82,975,776

$22,449,922

$(18,352,063)

$(790,306)

$(16,170,941)

$70,112,388

$381,946

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

3,364,181

316,753

(1,094,583)

(14,503)

(406,156)

2,165,692

64,074

16,087

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,915,868

181,716

(301,358)

(16,642)

(275,147)

1,504,437

160,730

9,044

Franklin

FTSE

Europe

ETF

....

518,116

37,995

(488,219)

68,458

(136,350)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

7,205,622

1,683,631

(1,956,377)

(222,075)

(1,624,703)

5,086,098

45,755

—

Franklin

International

Core

Equity

(IU)

Fund

................

5,437,449

1,058,150

(1,343,512)

(171,098)

(1,011,219)

3,969,770

405,079

43,955

Franklin

International

Growth

Fund,

Class

R6

................

1,015,837

241,822

(323,238)

(39,652)

(282,305)

612,464

43,010

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

227,056

198,057

(100,979)

(10,772)

9,091

322,453

14,963

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

—

589,646

(246,521)

(11,958)

(6,336)

324,831

14,675

2,368

Franklin

LibertyQ

U.S.

Equity

ETF

1,434,368

4,485,098

(700,850)

(8,266)

(591,990)

4,618,360

119,122

28,305

Franklin

U.S.

Core

Equity

(IU)

Fund

11,032,966

48,539

—

—

(2,129,924)

8,951,581

735,545

48,539

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

4

5,108,456

(4,559,997)

—

—

548,463

548,463

407

Templeton

Developing

Markets

Trust,

Class

R6

............

2,033,777

375,952

(987,384)

(115,870)

(276,819)

1,029,656

59,449

—

Templeton

Foreign

Fund,

Class

R6

2,110,317

156,937

(1,252,991)

61,524

(140,801)

934,986

147,474

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

204,076

373,796

(223,265)

(23,085)

(4,486)

327,036

33,101

3,106

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

160

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

193,071

$

(23,698)

$

(794)

$

(5,909)

$

162,670

44,445

$

1,153

Total

Non-Controlled

Affiliates

$36,499,637

$15,049,619

$(13,602,972)

$(504,733)

$(6,883,054)

$30,558,497

$152,964

Total

Affiliated

Securities

....

$36,499,637

$15,049,619

$(13,602,972)

$(504,733)

$(6,883,054)

$30,558,497

$152,964

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,028,956

290,554

(520,890)

(14,273)

(272,480)

1,511,867

44,730

11,175

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,222,321

65,042

(47,270)

(3,875)

(192,565)

1,043,653

111,501

6,320

Franklin

FTSE

Europe

ETF

....

302,761

21,873

(279,290)

46,084

(91,428)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

4,236,751

850,637

(311,288)

(74,093)

(1,139,041)

3,562,966

32,053

—

Franklin

International

Core

Equity

(IU)

Fund

................

3,420,945

712,657

(591,361)

(91,242)

(697,603)

2,753,396

280,959

30,199

Franklin

International

Growth

Fund,

Class

R6

................

593,953

178,582

(133,232)

(18,585)

(191,539)

429,179

30,139

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

132,055

128,941

(35,026)

(3,838)

2,807

224,939

10,438

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

—

386,067

(146,823)

(8,011)

(4,438)

226,795

10,246

1,622

Franklin

LibertyQ

U.S.

Equity

ETF

839,344

3,204,996

(31,105)

1,572

(458,667)

3,556,140

91,724

21,979

Franklin

U.S.

Core

Equity

(IU)

Fund

7,253,054

31,910

—

—

(1,400,209)

5,884,755

483,546

31,910

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

2

3,100,174

(2,705,729)

—

—

394,447

394,447

308

Templeton

Developing

Markets

Trust,

Class

R6

............

1,193,793

243,221

(440,403)

(89,411)

(186,409)

720,791

41,616

—

Templeton

Foreign

Fund,

Class

R6

1,234,222

143,692

(661,017)

19,981

(81,966)

654,912

103,298

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

127,578

263,255

(144,195)

(15,236)

(3,248)

228,154

23,093

2,125

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

161

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

—

$

136,619

$

(18,526)

$

(612)

$

(3,997)

$

113,484

31,007

$

799

Total

Non-Controlled

Affiliates

$22,585,735

$9,758,220

$(6,066,155)

$(251,539)

$(4,720,783)

$21,305,478

$106,437

Total

Affiliated

Securities

....

$22,585,735

$9,758,220

$(6,066,155)

$(251,539)

$(4,720,783)

$21,305,478

$106,437

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

121,636

98,380

(51,826)

(3,996)

(22,741)

141,453

4,185

1,017

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

71,054

48,866

(3,111)

(439)

(18,349)

98,021

10,472

577

Franklin

FTSE

Europe

ETF

....

19,596

14,535

(30,165)

(2,082)

(1,884)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

252,340

224,467

(43,489)

(5,513)

(94,100)

333,705

3,002

—

Franklin

International

Core

Equity

(IU)

Fund

................

203,327

166,901

(43,977)

(9,494)

(59,529)

257,228

26,248

2,743

Franklin

International

Growth

Fund,

Class

R6

................

36,231

39,879

(18,843)

(3,736)

(13,003)

40,528

2,846

—

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

8,047

21,846

(8,772)

(91)

(148)

20,882

969

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

—

36,980

(14,856)

(737)

(359)

21,028

950

142

Franklin

LibertyQ

U.S.

Equity

ETF

50,745

413,404

(10,989)

(425)

(50,302)

402,433

10,380

2,501

Franklin

U.S.

Core

Equity

(IU)

Fund

381,307

205,510

(3,234)

(791)

(103,028)

479,764

39,422

2,619

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

16,296

586,447

(562,605)

—

—

40,138

40,138

29

Templeton

Developing

Markets

Trust,

Class

R6

............

71,685

75,537

(54,061)

(21,466)

(3,721)

67,974

3,925

—

Templeton

Foreign

Fund,

Class

R6

74,879

54,306

(59,684)

(3,551)

(4,309)

61,641

9,722

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

7,062

27,548

(11,632)

(1,211)

(372)

21,395

2,166

194

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

—

13,399

(2,336)

(79)

(341)

10,643

2,908

75

Total

Non-Controlled

Affiliates

$1,314,205

$2,028,005

$(919,580)

$(53,611)

$(372,186)

$1,996,833

$9,897

Total

Affiliated

Securities

....

$1,314,205

$2,028,005

$(919,580)

$(53,611)

$(372,186)

$1,996,833

$9,897

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

162

franklintempleton.com

Semiannual

Report

Fund

other

than

Class

R6

do

not

exceed

0.05%,

and

for

Class

R6

do

not

exceed

0.00%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Advisers

and

Investor

Services

have

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

so

that

the

expenses

(including

acquired

fund

fees

and

expenses

but

excluding

interest

expense,

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

does not

exceed

0.45%

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds’

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.00%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

h.

Other

Affiliated

Transactions

At

June

30,

2022,

Templeton

International

Inc.

owned

41.3%

of

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund’s

outstanding

shares.

Investment

activities

of

this

investment

company

could

have

a

material

impact

on

the

Fund.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the period

ended

June

30,

2022, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

5.

Income

Taxes

For

tax

purposes,

the

Funds

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

deferred

losses

were

as

follows:

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Post-October

capital

loss

...................

$15,081

$62,000

$6,716

$8,047

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Post-October

capital

loss

...................

$15,799

$10,561

$2,022

3.

Transactions

with

Affiliates

(continued)

g.

Waiver

and

Expense

Reimbursements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

163

franklintempleton.com

Semiannual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

return

of

capital

distributions,

short

term

capital

gains

distributions

from

Underlying

Funds,

wash

sales,

non-

deductible

expenses

and

offering

costs.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

were

as

follows: 

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$55,204,350

$36,794,139

$115,344,672

$55,870,666

Unrealized

appreciation

.....................

$288,100

$1,567,453

$7,861,978

$3,032,673

Unrealized

depreciation

.....................

(7,115,175)

(3,096,613)

(8,738,866)

(3,678,387)

Net

unrealized

appreciation

(depreciation)

.......

$(6,827,075)

$(1,529,160)

$(876,888)

$(645,714)

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$106,575,529

$37,792,648

$69,837,726

$30,593,767

Unrealized

appreciation

.....................

$8,915,310

$3,088,573

$7,139,742

$2,723,177

Unrealized

depreciation

.....................

(6,281,868)

(1,584,151)

(3,088,400)

(1,057,966)

Net

unrealized

appreciation

(depreciation)

.......

$2,633,442

$1,504,422

$4,051,342

$1,665,211

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

a

a

Cost

of

investments

.........................................................

$22,069,702

$2,434,881

Unrealized

appreciation

.......................................................

$1,281,604

$432

Unrealized

depreciation

.......................................................

(849,396)

(322,743)

Net

unrealized

appreciation

(depreciation)

.........................................

$432,208

$(322,311)

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Purchases

..............................

$8,168,781

$9,034,272

$26,225,043

$14,746,018

Sales

..................................

$9,021,423

$11,265,805

$31,349,993

$13,448,764

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

164

franklintempleton.com

Semiannual

Report

7.

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.

8.

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.

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2022,

the

Funds

did

not

use

the

Global

Credit

Facility.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Purchases

..............................

$24,557,955

$10,469,730

$15,141,783

$10,758,288

Sales

..................................

$22,180,669

$8,644,080

$14,575,972

$12,034,520

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Purchases

................................................................

$7,022,228

$1,542,869

Sales

....................................................................

$4,595,192

$506,100

6.

Investment

Transactions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

165

franklintempleton.com

Semiannual

Report

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

42,900,504

$

—

$

—

$

42,900,504

Index-Linked

Notes

......................

—

5,170,530

—

5,170,530

Short

Term

Investments

...................

306,241

—

—

306,241

Total

Investments

in

Securities

...........

$43,206,745

$5,170,530

$—

$48,377,275

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

34,788,078

—

—

34,788,078

Short

Term

Investments

...................

473,813

3,088

—

476,901

Total

Investments

in

Securities

...........

$35,261,891

$3,088

$—

$35,264,979

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

112,797,627

—

—

112,797,627

Short

Term

Investments

...................

1,546,143

124,014

—

1,670,157

Total

Investments

in

Securities

...........

$114,343,770

$124,014

$—

$114,467,784

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

54,327,159

—

—

54,327,159

Short

Term

Investments

...................

883,234

14,559

—

897,793

Total

Investments

in

Securities

...........

$55,210,393

$14,559

$—

$55,224,952

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

107,604,885

—

—

107,604,885

Short

Term

Investments

...................

1,554,512

49,574

—

1,604,086

Total

Investments

in

Securities

...........

$109,159,397

$49,574

$—

$109,208,971

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

166

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.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

38,487,400

$

—

$

—

$

38,487,400

Short

Term

Investments

...................

809,670

—

—

809,670

Total

Investments

in

Securities

...........

$39,297,070

$—

$—

$39,297,070

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

72,889,220

—

—

72,889,220

Short

Term

Investments

...................

944,148

55,700

—

999,848

Total

Investments

in

Securities

...........

$73,833,368

$55,700

$—

$73,889,068

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

31,710,515

—

—

31,710,515

Short

Term

Investments

...................

548,463

—

—

548,463

Total

Investments

in

Securities

...........

$32,258,978

$—

$—

$32,258,978

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

22,107,463

—

—

22,107,463

Short

Term

Investments

...................

394,447

—

—

394,447

Total

Investments

in

Securities

...........

$22,501,910

$—

$—

$22,501,910

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

2,072,432

—

—

2,072,432

Short

Term

Investments

...................

40,138

—

—

40,138

Total

Investments

in

Securities

...........

$2,112,570

$—

$—

$2,112,570

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

Selected

Portfolio

ETF

Exchange-Traded

Fund

10.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

167

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

LifeSmart

Retirement

Income

Fund

Franklin

LifeSmart

2020

Retirement

Target

Fund

Franklin

LifeSmart

2025

Retirement

Target

Fund

Franklin

LifeSmart

2030

Retirement

Target

Fund

Franklin

LifeSmart

2035

Retirement

Target

Fund

Franklin

LifeSmart

2040

Retirement

Target

Fund

Franklin

LifeSmart

2045

Retirement

Target

Fund

Franklin

LifeSmart

2050

Retirement

Target

Fund

Franklin

LifeSmart

2055

Retirement

Target

Fund

Franklin

LifeSmart

2060

Retirement

Target

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

February

28,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

(Independent

Trustees)

as

defined

in

the

Investment

Company

Act

of

1940

(1940

Act),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

each

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

Franklin

Fund

Allocator

Series

Shareholder

Information

168

franklintempleton.com

Semiannual

Report

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

November

30,

2021,

except

for

the

Franklin

LifeSmart

2060

Retirement

Target

Fund.

The

Board

noted

that

it

would

need

more

time

to

evaluate

the

performance

of

the

Franklin

LifeSmart

2060

Retirement

Target

Fund

as

the

Fund

commenced

operations

on

January

21,

2021

and

had

less

than

$1

million

in

assets

(comprised

substantially

of

seed

money).

The

Board

considered

the

performance

returns

for

each

other

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Overall,

the

Board

recalled

the

historic

conservative

nature

of

the

LifeSmart

Retirement

Funds

generally

and

the

performance

of

the

funds

in

which

they

invest.

The

Board

discussed

with

management

its

ongoing

evaluation

of

the

Funds

and

noted

that,

effective

May

1,

2019,

each

Fund

(except

for

the

Franklin

LifeSmart

Retirement

Income

Fund)

made

changes

to

its

glide

path

and

asset

allocation

which

are

characterized

by

both

a

more

aggressive

equity

allocation

in

the

early

years

as

well

as

continuing

to

adjust

its

allocation

mix

through

retirement

to

its

final

landing

point

at

5

years

post-retirement.

The

Board

also

noted

that,

effective

January

29,

2021,

the

Franklin

LifeSmart

Retirement

Income

Fund

changed

its

asset

allocation

to

align

its

portfolio

with

the

landing

point

of

the

glide

paths

of

the

other

LifeSmart

Retirement

Funds

and

that

the

other

LifeSmart

Retirement

Funds

modified

the

landing

point

of

their

glide

paths

to

be

in

line

with

the

new

required

distribution

age

of

72.

Franklin

LifeSmart

Retirement

Income

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

retirement

income

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

and

in

the

fifth

quintile

(worst)

of

its

respective

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2020

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2020

funds.

The

Fund

commenced

operations

on

July

1,

2013,

and

thus

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-year

period

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

was

equal

to

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

the

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers.

Management

further

explained

that,

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

Management

also

explained

that

the

glide

path

for

the

Fund

shifted

to

a

“defensive”

glide

path,

reducing

Franklin

Fund

Allocator

Series

Shareholder

Information

169

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Report

exposure

to

equity

securities

in

April

2020,

and

then

shifted

back

to

a

“neutral”

glide

path

in

July

2020.

Management

further

explained

that

the

April

2020

shift

away

from

equity

securities

adversely

impacted

the

Funds’

performance

versus

peers

as

the

S&P

500

Index

rallied

by

approximately

23%

over

the

period

the

Fund

implemented

the

“defensive”

glide

path.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2025

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2025

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

for

the

three-year

period

was

above

the

median

of

its

Performance

Universe,

and

for

the

five-year

period

was

equal

to

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

the

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers.

Management

further

explained

that,

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

Management

also

explained

that

the

glide

path

for

the

Fund

shifted

to

a

“defensive”

glide

path,

reducing

exposure

to

equity

securities

in

April

2020,

and

then

shifted

back

to

a

“neutral”

glide

path

in

July

2020.

Management

further

explained

that

the

April

2020

shift

away

from

equity

securities

adversely

impacted

the

Fund’s

performance

versus

peers

as

the

S&P

500

Index

rallied

by

approximately

23%

over

the

period

the

Fund

implemented

the

“defensive”

glide

path.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

performance

was

acceptable,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2030

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2030

funds.

The

Fund

commenced

operations

on

July

1,

2013,

and

thus

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

the

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers.

Management

further

explained

that,

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

Management

also

explained

that

the

glide

path

for

the

Fund

shifted

to

a

“defensive”

glide

path,

reducing

exposure

to

equity

securities

in

April

2020,

and

then

shifted

back

to

a

“neutral”

glide

path

in

July

2020.

Management

further

explained

that

the

April

2020

shift

away

from

equity

securities

adversely

impacted

the

Funds’

performance

versus

peers

as

the

S&P

500

Index

rallied

by

approximately

23%

over

the

period

the

Fund

implemented

the

“defensive”

glide

path.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

performance

was

acceptable,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2035

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2035

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

and

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

were

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

the

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers.

Management

further

explained

that,

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

Management

also

explained

that

the

glide

path

for

the

Fund

shifted

to

a

“defensive”

glide

path,

reducing

exposure

to

equity

Franklin

Fund

Allocator

Series

Shareholder

Information

170

franklintempleton.com

Semiannual

Report

securities

in

April

2020,

and

then

shifted

back

to

a

“neutral”

glide

path

in

July

2020.

Management

further

explained

that

the

April

2020

shift

away

from

equity

securities

adversely

impacted

the

Funds’

performance

versus

peers

as

the

S&P

500

Index

rallied

by

approximately

23%

over

the

period

the

Fund

implemented

the

“defensive”

glide

path.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2040

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2040

funds.

The

Fund

commenced

operations

on

July

1,

2013,

thus

the

Fund

has

been

in

operation

for

less

than

ten

years.

The

Board

also

noted

that

the

Fund’s

annualized

income

return

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2045

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2045

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

20

50

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

-

The

Performance

Universe

for

each

of

the

Franklin

LifeSmart

2050

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2050

or

2055

funds,

respectively.

The

Franklin

LifeSmart

2050

Retirement

Target

Fund

commenced

operations

on

July

1,

2013

and

the

Franklin

LifeSmart

2055

Retirement

Target

Fund

commenced

operations

on

May

1,

2015,

thus

each

Fund

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Funds’

annualized

total

returns

for

the

one-,

three-

and

five-year

periods

were

below

the

medians

of

their

respective

Performance

Universes.

The

Board

discussed

this

performance

with

management

and

management

explained

that

during

the

past

5

years,

the

more

aggressive

“flow

through”

glide

paths

of

Fund

peers

have

outperformed

the

Fund’s

more

conservative

“flow

to”

glide

path

with

peers

having

a

higher

equity

allocation

and

lower

fixed

income

allocation

than

the

Fund.

The

Board

noted

management’s

steps

to

address

the

Fund’s

underperformance,

including

the

implementation

of

the

revised

glide

path

and

an

increase

to

the

Fund’s

strategic

equity

allocation,

and

concluded

that

each

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund,

except

for

the

Franklin

LifeSmart

2060

Retirement

Target

Fund,

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

Franklin

Fund

Allocator

Series

Shareholder

Information

171

franklintempleton.com

Semiannual

Report

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

funds

with

multiple

classes

of

shares.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Board

separately

considered

the

contractual

management

fee

of

the

Franklin

LifeSmart

2060

Retirement

Target

Fund

and

management’s

representation

that

the

Fund

has

a

pricing

schedule

similar

to

its

respective

retail

counterparts.

The

Board

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

Retirement

Income

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund,

one

other

retirement

income

fund

and

eight

mixed-asset

target

today

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

of

its

Expense

Group.

The

Board

also

noted

that

the

Fund’s

investment

management

agreement

permits

the

Fund

to

pay

fees

for

services

other

than

asset

allocation

services,

including

in

order

for

the

Fund

to

employ

an

income

generation

strategy

to

generate

income

for

its

managed

distribution

policy.

The

Board

further

noted

that

the

Fund

invests

in

third-party

mutual

funds

or

exchange-traded

funds

in

excess

of

the

statutory

limitations

under

the

1940

Act

in

reliance

on

recently

adopted

Rule

12d1-4

under

the

1940

Act.

The

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

Management

Rate

paid

by

the

Fund

is

based

on

services

provided

that

are

in

addition

to,

rather

than

duplicative

of,

the

services

provided

under

the

investment

management

agreements

of

the

underlying

funds

in

which

the

Fund

invests.

The

Board

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

2020

Retirement

Target

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund

and

eight

other

mixed-asset

target

2020

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

only

slightly

above

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Management

Rate

paid

by

the

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

2025

Retirement

Target

Fund,

Franklin

LifeSmart

2035

Retirement

Target

Fund,

Franklin

LifeSmart

2045

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

-

The

Expense

Group

for

each

of

the

Franklin

LifeSmart

2025

Retirement

Target

Fund,

Franklin

LifeSmart

2035

Retirement

Target

Fund,

Franklin

LifeSmart

2045

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

included

the

Fund

and

ten

other

mixed-asset

target

2025,

2035,

2045,

or

2055

funds,

respectively.

The

Board

noted

that

the

Management

Rates

for

these

Funds

were

below

the

medians

of

their

respective

Expense

Groups,

but

their

actual

total

expense

ratios

were

equal

to

the

medians

of

their

respective

Expense

Groups.

The

Board

also

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

each

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Franklin

LifeSmart

2030

Retirement

Target

Fund,

Franklin

LifeSmart

2040

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

-

The

Expense

Group

for

each

of

the

Franklin

LifeSmart

2030

Retirement

Target

Fund,

Franklin

LifeSmart

2040

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

included

the

Fund

and

eleven

other

mixed-asset

target

2030,

2040,

or

2050

funds,

respectively.

The

Board

noted

that

the

Management

Rates

for

these

Funds

were

below

the

medians

of

their

respective

Expense

Groups,

and

that

their

actual

total

expense

ratios

were

less

than

two

basis

points

above

the

medians

of

their

respective

Expense

Groups.

The

Board

also

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

each

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

Franklin

Fund

Allocator

Series

Shareholder

Information

172

franklintempleton.com

Semiannual

Report

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Funds

are

not

of

a

sufficient

size

to

likely

be

able

to

realize

economies

of

scale

and

that

the

asset

allocation

services

covered

by

the

current

Management

Rate

may

be

less

likely

to

experience

economies

of

scale

as

assets

grow.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

Franklin

Fund

Allocator

Series

Shareholder

Information

173

franklintempleton.com

Semiannual

Report

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

RTF

S

08/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Fund

Allocator

Series

June

30,

2022

Sign

up

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electronic

delivery

at

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Franklin

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franklintempleton.com

Semiannual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

June

30,

2022,

the

U.S.

economy

showed

progress

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

The

U.S.

economy

contracted

in

2022’s

first

quarter

given

a

record

trade

deficit

and

a

decline

in

inventory

investment,

while

consumer

spending

expanded

more

slowly,

helped

by

the

reopening

of

businesses,

widespread

vaccinations

and

federal

assistance

programs.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply

chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

During

the

first

half

of

this

period,

the

U.S.

Federal

Reserve

continued

some

quantitative

easing

measures

to

bolster

credit

markets

and

encourage

economic

activity.

However,

to

support

its

goals

to

maximize

employment

and

return

long-

term

annual

inflation

to

2%,

the

Federal

Reserve

continued

reversing

its

quantitative

easing

measures,

increasing

its

monthly

asset

purchase

tapering

and

ending

purchases

by

March

2022.

The

Federal

Reserve

also

raised

the

federal

funds

rate

by

0.25%

in

March,

0.50%

in

May

and

0.75%

in

June,

for

a

total

of

1.50%,

increasing

the

rate

from

0.25%

to

1.75%

during

the

period.

Additionally,

the

Federal

Reserve

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

increases

to

combat

inflation.

Resilient

consumer

demand

together

with

persistent

supply-

chain

disruptions

contributed

to

higher

inflation

in

numerous

countries,

and

many

central

banks

tightened

monetary

policy.

China

imposed

new

lockdowns

to

mitigate

the

spread

of

COVID-19,

which

pressured

Asian

and

global

emerging

market

stocks.

International

sanctions

on

Russia

in

response

to

its

invasion

of

Ukraine

hindered

companies

doing

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-20.58%

(the

index

decreasing

from

4,766.18

to

3,785.38).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-21.21%

(the

index

decreasing

from

3,231.727

to

2,546.185).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-10.35%

total

return

(an

index

decrease

from

2,355.14

to

2,111.40),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Fund

Allocator

Series’

semiannual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Fund

Allocator

Series

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2022,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-19.96%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

7,993.43)

and

MSCI

World

Index

-20.29%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,337.724).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Economic

and

Market

Overview

3

Franklin

Conservative

Allocation

Fund

4

Franklin

Moderate

Allocation

Fund

9

Franklin

Growth

Allocation

Fund

14

Financial

Highlights

and

Schedules

of

Investments

19

Financial

Statements

40

Notes

to

Financial

Statements

45

Shareholder

Information

59

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

The

foregoing

information

reflects

our

analysis

and

opinions

as

of

June

30,

2022.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Morningstar.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

4

franklintempleton.com

Semiannual

Report

Franklin

Conservative

Allocation

Fund

This

semiannual

report

for

Franklin

Conservative

Allocation

Fund

covers

the

period

ended

June

30,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

lower

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-14.99%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Conservative

Allocation

Fund

Benchmark-NR

(Blended

Benchmark-NR)

posted

a

-16.43%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

Under

normal

market

conditions,

we

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed

income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

fixed

income

funds

and

40%

equity

funds.

When

selecting

equity

funds,

we

consider

the

funds’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

on

income

as

a

means

of

diversification

to

help

offset

the

risk

presented

by

exposure

to

equity

investments

and

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

We

also

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

asset

allocation

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

perform

better

than

the

Linked

Franklin

Conservative

Allocation

Fund

Benchmark-NR

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Within

equities,

Franklin

U.S.

Core

Equity

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Fixed

Income

54.3%

Domestic

Equity

32.1%

Foreign

Equity

7.9%

Foreign

Fixed

Income

2.0%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.7%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

24

.

Franklin

Conservative

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

Allocation

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

Conservative

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

19.7%

Franklin

U.S.

Core

Equity

(IU)

Fund

16.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

11.1%

Franklin

Growth

Fund,

Class

R6

7.2%

Franklin

LibertyQ

U.S.

Equity

ETF

4.0%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

4.0%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

4.0%

Schwab

U.S.

TIPS

ETF

4.0%

Franklin

International

Core

Equity

(IU)

Fund

3.8%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

3.1%

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2022

Franklin

Conservative

Allocation

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-14.99%

-19.68%

1-Year

-12.33%

-17.18%

5-Year

+14.86%

+1.65%

10-Year

+48.54%

+3.45%

Advisor

6-Month

-14.89%

-14.89%

1-Year

-12.11%

-12.11%

5-Year

+16.31%

+3.07%

10-Year

+52.39%

+4.30%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Conservative

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0810

$0.2386

$0.3196

C

$0.0356

$0.2386

$0.2742

R

$0.0679

$0.2386

$0.3065

R6

$0.1022

$0.2386

$0.3408

Advisor

$0.0967

$0.2386

$0.3353

Total

Annual

Operating

Expenses

5

Share

Class

A

0.84%

Advisor

0.59%

Your

Fund’s

Expenses

Franklin

Conservative

Allocation

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$850.10

$2.85

$1,021.71

$3.12

0.62%

C

$1,000

$846.90

$6.28

$1,017.99

$6.86

1.37%

R

$1,000

$848.60

$4.00

$1,020.47

$4.37

0.87%

R6

$1,000

$851.30

$1.36

$1,023.32

$1.49

0.30%

Advisor

$1,000

$851.10

$1.70

$1,022.95

$1.86

0.37%

9

franklintempleton.com

Semiannual

Report

Franklin

Moderate

Allocation

Fund

This

semiannual

report

for

Franklin

Moderate

Allocation

Fund

covers

the

period

ended

June

30

,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

moderate

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-16.81%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Moderate

Allocation

Fund

Benchmark-

NR

(Blended

Benchmark-NR)

posted

a

-17.68%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

11

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

Under

normal

market

conditions,

we

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

60%

equity

funds

and

40%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

on

income

as

a

means

of

diversification

to

help

offset

the

risk

presented

by

exposure

to

equity

investments

and

on

maximizing

income

appropriate

to

the

Fund’s

specific

risk

profile.

We

also

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

asset

allocation

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

perform

better

than

the

Linked

Franklin

Moderate

Allocation

Fund

Benchmark-NR

for

the

six-month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

48.1%

Domestic

Fixed

Income

35.1%

Foreign

Equity

11.8%

Foreign

Fixed

Income

1.2%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.8%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

31

.

Franklin

Moderate

Allocation

Fund

10

franklintempleton.com

Semiannual

Report

Within

equities,

Franklin

U.S.

Core

Equity

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

Allocation

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

Moderate

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.7%

Franklin

Liberty

U.S.

Core

Bond

ETF

12.6%

Franklin

Growth

Fund,

Class

R6

10.9%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

7.1%

Franklin

LibertyQ

U.S.

Equity

ETF

6.5%

Franklin

International

Core

Equity

(IU)

Fund

5.7%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.7%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

2.9%

Franklin

Liberty

U.S.

Treasury

Bond

ETF

2.6%

Schwab

U.S.

TIPS

ETF

2.6%

Performance

Summary

as

of

June

30,

2022

Franklin

Moderate

Allocation

Fund

11

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-16.81%

-21.40%

1-Year

-13.17%

-17.96%

5-Year

+24.92%

+3.38%

10-Year

+75.15%

+5.17%

Advisor

6-Month

-16.68%

-16.68%

1-Year

-12.92%

-12.92%

5-Year

+26.59%

+4.83%

10-Year

+79.65%

+6.03%

See

page

12

for

Performance

Summary

footnotes.

Franklin

Moderate

Allocation

Fund

Performance

Summary

12

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

Fund’s

ability

to

achieve

its

investment

goal

depends

upon

the

investment

manager’s

skill

in

determining

the

Fund’s

broad

asset

allocation

mix

and

selecting

underlying

funds.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Smaller

or

relatively

new

or

unseasoned

companies

can

be

particularly

sensitive

to

changing

economic

conditions,

and

their

prospects

for

growth

are

less

certain

than

those

of

larger,

more

established

companies.

Bond

prices

gen-

erally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0585

$0.3801

$0.4386

C

$0.0284

$0.3801

$0.4085

R

$0.0456

$0.3801

$0.4257

R6

$0.0815

$0.3801

$0.4616

Advisor

$0.0757

$0.3801

$0.4558

Total

Annual

Operating

Expenses

5

Share

Class

A

0.85%

Advisor

0.60%

Your

Fund’s

Expenses

Franklin

Moderate

Allocation

Fund

13

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$831.90

$2.84

$1,021.69

$3.13

0.63%

C

$1,000

$828.80

$6.24

$1,017.97

$6.88

1.38%

R

$1,000

$830.90

$3.97

$1,020.46

$4.38

0.88%

R6

$1,000

$833.30

$1.33

$1,023.34

$1.47

0.29%

Advisor

$1,000

$833.20

$1.71

$1,022.93

$1.88

0.38%

14

franklintempleton.com

Semiannual

Report

Franklin

Growth

Allocation

Fund

This

semiannual

report

for

Franklin

Growth

Allocation

Fund

covers

the

period

ended

June

30,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

higher

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-18.68%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Growth

Allocation

Fund

Benchmark-NR

(Blended

Benchmark-NR)

posted

a

-18.91%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

-13.97%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

16

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Investment

Strategy

Whenever

possible,

we

attempt

to

hold

the

same

underlying

Franklin

Templeton

and

Legg

Mason

funds

and

other

fund

investments

(collectively,

“fund

investments”)

in

each

Allocation

Fund’s

portfolio

and

will

vary

the

allocation

percentages

of

the

fund

investments

based

upon

each

Allocation

Fund’s

risk/return

level.

Under

normal

market

conditions,

we

allocate

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

by

investing

primarily

in

a

distinctly-weighted

combination

of

underlying

funds,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity

and

fixed-income

securities,

and

may

also

have

exposure

to

derivative

instruments.

We

use

the

following

as

a

general

guide

in

allocating

the

Fund’s

assets

among

the

broad

asset

classes:

80%

equity

funds

and

20%

fixed

income

funds.

When

selecting

equity

funds,

we

consider

the

fund

investments’

foreign

and

domestic

exposure,

market

capitalization

ranges

and

investment

styles

(growth

versus

value).

When

selecting

fixed

income

funds,

we

focus

on

income

as

a

means

of

diversification

to

help

offset

the

risk

presented

by

exposure

to

equity

investments

and

on

maximizing

income

appropriate

to

the

Fund’s

risk

profile.

We

also

consider

the

duration

and

maturity

of

the

underlying

funds’

portfolios.

*The

asset

allocation

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Manager’s

Discussion

The

Fund’s

cross-asset

allocation

contributed

to

relative

performance

and

helped

it

perform

better

than

the

Linked

Franklin

Growth

Allocation

Fund

Benchmark-NR

for

the

six-

month

period

ended

June

30,

2022.

Fund

selection

overall

was

also

positive.

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

64.1%

Foreign

Equity

16.1%

Domestic

Fixed

Income

15.3%

Alternative

Strategies

1.0%

Foreign

Fixed

Income

0.8%

Short-Term

Investments

&

Other

Net

Assets

2.7%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

38

.

Franklin

Growth

Allocation

Fund

15

franklintempleton.com

Semiannual

Report

Within

equities,

Franklin

U.S.

Core

Equity

Fund

contributed

to

relative

performance

due

in

part

to

its

systematic

process

focused

on

quality,

value

and

momentum

style

factors.

Franklin

International

Growth

Fund,

however,

detracted

from

relative

performance

as

international

growth

stocks

were

out

of

favor.

Within

fixed

income,

the

shorter

duration

positioning

of

the

Franklin

Liberty

International

Aggregate

Bond

ETF

contributed

to

relative

performance

in

a

challenging

environment

for

international

bonds.

Meanwhile,

Western

Asset

Core

Plus

Bond

Fund

underperformed

as

it

was

positioned

with

a

view

that

inflation

would

be

short

lived.

Its

longer

duration

positioning

negatively

impacted

performance

in

the

first

half

of

2022.

The

Allocation

Fund

carried

an

effective

tactical

cash

position

as

a

hedge

in

a

declining

market

environment

for

both

equities

and

fixed

income.

The

Fund

did

not

use

derivatives

during

the

reporting

period.

Thank

you

for

your

continued

participation

in

Franklin

Growth

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Top

10

Holdings

6/30/22

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

28.2%

Franklin

Growth

Fund,

Class

R6

14.7%

Franklin

LibertyQ

U.S.

Equity

ETF

9.8%

Franklin

International

Core

Equity

(IU)

Fund

7.8%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

6.3%

Vanguard

S&P

500

ETF

5.1%

Franklin

Liberty

U.S.

Core

Bond

ETF

5.1%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

2.9%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.5%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

1.8%

Performance

Summary

as

of

June

30,

2022

Franklin

Growth

Allocation

Fund

16

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-18.68%

-23.14%

1-Year

-14.21%

-18.94%

5-Year

+34.00%

+4.83%

10-Year

+107.67%

+6.98%

Advisor

6-Month

-18.60%

-18.60%

1-Year

-14.00%

-14.00%

5-Year

+35.70%

+6.30%

10-Year

+112.84%

+7.85%

See

page

17

for

Performance

Summary

footnotes.

Franklin

Growth

Allocation

Fund

Performance

Summary

17

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

this

Fund

invests

in

underlying

funds,

it

is

subject

to

the

same

risks,

and

indirectly

bears

the

fees

and

expenses,

of

the

underlying

funds.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

in

a

fund

adjust

to

a

rise

in

interest

rates,

that

fund’s

share

price

may

decline.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

Investors

should

consult

their

financial

advisor

for

help

selecting

the

appropriate

fund

of

funds,

or

fund

combination,

based

on

an

evaluation

of

their

investment

objectives

and

risk

tolerance.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

As

of

1/1/13,

the

Fund

changed

its

target

allocation,

with

short-term

investments

(formerly

a

targeted

allocation

of

20%)

combined

into

the

fixed

income

allocations;

such

a

change

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0347

$0.5946

$0.6293

C

$0.0037

$0.5946

$0.5983

R

$0.0237

$0.5946

$0.6183

R6

$0.0499

$0.5946

$0.6445

Advisor

$0.0454

$0.5946

$0.6400

Total

Annual

Operating

Expenses

5

Share

Class

A

0.89%

Advisor

0.64%

Your

Fund’s

Expenses

Franklin

Growth

Allocation

Fund

18

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$813.20

$2.95

$1,021.54

$3.29

0.66%

C

$1,000

$810.10

$6.31

$1,017.82

$7.04

1.41%

R

$1,000

$812.30

$4.07

$1,020.30

$4.54

0.91%

R6

$1,000

$814.50

$1.34

$1,023.32

$1.49

0.30%

Advisor

$1,000

$814.00

$1.83

$1,022.78

$2.04

0.41%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.89

$14.95

$14.08

$13.33

$14.86

$13.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.23

0.22

0.32

0.39

0.20

Net

realized

and

unrealized

gains

(losses)

(2.31)

0.99

1.05

1.43

(0.90)

1.25

Total

from

investment

operations

........

(2.23)

1.22

1.27

1.75

(0.51)

1.45

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.35)

(0.23)

(0.33)

(0.38)

(0.24)

Net

realized

gains

.................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...................

(0.32)

(1.28)

(0.40)

(1.00)

(1.02)

(0.33)

Net

asset

value,

end

of

period

..........

$12.34

$14.89

$14.95

$14.08

$13.33

$14.86

Total

return

d

.......................

(14.99)%

8.18%

9.30%

13.25%

(3.44)%

10.58%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.63%

0.62%

0.63%

0.63%

h

0.63%

h

0.63%

Net

investment

income

c

...............

1.17%

1.47%

1.54%

2.25%

2.57%

1.37%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$869,056

$1,081,071

$941,777

$839,134

$778,221

$800,141

Portfolio

turnover

rate

................

24.07%

61.92%

48.36%

86.76%

30.70%

17.99%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.54

$14.62

$13.77

$13.06

$14.57

$13.47

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.03

0.09

0.10

0.20

0.24

0.09

Net

realized

and

unrealized

gains

(losses)

(2.25)

0.99

1.05

1.40

(0.84)

1.23

Total

from

investment

operations

........

(2.22)

1.08

1.15

1.60

(0.60)

1.32

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.04)

(0.23)

(0.13)

(0.22)

(0.27)

(0.13)

Net

realized

gains

.................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...................

(0.28)

(1.16)

(0.30)

(0.89)

(0.91)

(0.22)

Net

asset

value,

end

of

period

..........

$12.04

$14.54

$14.62

$13.77

$13.06

$14.57

Total

return

d

.......................

(15.31)%

7.40%

8.51%

12.35%

(4.14)%

9.80%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

1.38%

1.37%

1.38%

1.38%

h

1.38%

h

1.38%

Net

investment

income

c

...............

0.40%

0.61%

0.76%

1.50%

1.82%

0.62%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$107,725

$152,244

$212,656

$252,407

$285,547

$423,890

Portfolio

turnover

rate

................

24.07%

61.92%

48.36%

86.76%

30.70%

17.99%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.83

$14.88

$14.02

$13.28

$14.80

$13.69

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.18

0.18

0.28

0.33

0.16

Net

realized

and

unrealized

gains

(losses)

(2.31)

1.01

1.05

1.42

(0.87)

1.24

Total

from

investment

operations

........

(2.24)

1.19

1.23

1.70

(0.54)

1.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.31)

(0.20)

(0.29)

(0.34)

(0.20)

Net

realized

gains

.................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...................

(0.31)

(1.24)

(0.37)

(0.96)

(0.98)

(0.29)

Net

asset

value,

end

of

period

..........

$12.28

$14.83

$14.88

$14.02

$13.28

$14.80

Total

return

d

.......................

(15.14)%

7.99%

8.98%

12.93%

(3.64)%

10.25%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.88%

0.87%

0.88%

0.88%

h

0.88%

h

0.88%

Net

investment

income

c

...............

0.97%

1.14%

1.28%

2.00%

2.32%

1.12%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$46,481

$55,629

$66,208

$71,153

$80,338

$103,629

Portfolio

turnover

rate

................

24.07%

61.92%

48.36%

86.76%

30.70%

17.99%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

0

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.87

$14.92

$14.06

$13.31

$14.84

$13.72

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.10

0.28

0.26

0.36

0.44

0.25

Net

realized

and

unrealized

gains

(losses)

(2.31)

1.00

1.05

1.44

(0.90)

1.25

Total

from

investment

operations

........

(2.21)

1.28

1.31

1.80

(0.46)

1.50

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.10)

(0.40)

(0.28)

(0.38)

(0.43)

(0.29)

Net

realized

gains

.................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...................

(0.34)

(1.33)

(0.45)

(1.05)

(1.07)

(0.38)

Net

asset

value,

end

of

period

..........

$12.32

$14.87

$14.92

$14.06

$13.31

$14.84

Total

return

d

.......................

(14.87)%

8.60%

9.61%

13.64%

(3.11)%

10.99%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.39%

0.39%

0.40%

0.42%

0.40%

0.32%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.30%

0.30%

0.31%

g

0.29%

g

0.28%

Net

investment

income

c

...............

1.51%

1.78%

1.86%

2.57%

2.91%

1.72%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,401

$2,852

$2,537

$2,364

$2,253

$2,149

Portfolio

turnover

rate

................

24.07%

61.92%

48.36%

86.76%

30.70%

17.99%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.89

$14.95

$14.08

$13.33

$14.86

$13.74

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.10

0.27

0.25

0.36

0.43

0.25

Net

realized

and

unrealized

gains

(losses)

(2.31)

0.99

1.06

1.43

(0.90)

1.24

Total

from

investment

operations

........

(2.21)

1.26

1.31

1.79

(0.47)

1.49

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.10)

(0.39)

(0.27)

(0.37)

(0.42)

(0.28)

Net

realized

gains

.................

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

(0.09)

Total

distributions

...................

(0.34)

(1.32)

(0.44)

(1.04)

(1.06)

(0.37)

Net

asset

value,

end

of

period

..........

$12.34

$14.89

$14.95

$14.08

$13.33

$14.86

Total

return

d

.......................

(14.89)%

8.45%

9.58%

13.53%

(3.19)%

10.88%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.38%

0.37%

0.38%

0.38%

h

0.38%

h

0.38%

Net

investment

income

c

...............

1.40%

1.72%

1.79%

2.50%

2.82%

1.62%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$35,530

$54,537

$48,041

$44,022

$38,031

$38,934

Portfolio

turnover

rate

................

24.07%

61.92%

48.36%

86.76%

30.70%

17.99%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.24%

for

the

period

ended

June

30,

2022.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Conservative

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.3%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

492,076

$

10,604,238

Domestic

Equity

32.1%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

964,812

32,610,645

a

Franklin

Growth

Fund,

Class

R6

........................................

686,747

76,338,826

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

1,105,778

42,871,013

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

14,053,936

171,036,395

Vanguard

S&P

500

ETF

..............................................

47,061

16,324,520

339,181,399

Domestic

Fixed

Income

54.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,394,579

32,112,722

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

1,448,833

31,888,814

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,477,664

32,006,202

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

9,421,691

208,549,130

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

1,964,762

42,851,459

iShares

Floating

Rate

Bond

ETF

........................................

531,125

26,513,760

Schwab

U.S.

TIPS

ETF

...............................................

762,175

42,529,365

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

11,945,045

118,017,049

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

11,688,076

42,778,356

577,246,857

Foreign

Equity

7.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

1,384,849

12,962,183

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

4,099,719

40,177,244

a

Franklin

International

Growth

Fund,

Class

R6

..............................

438,016

6,237,345

iShares

Core

MSCI

EAFE

ETF

.........................................

105,815

6,227,213

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

499,218

8,646,456

a

Templeton

Foreign

Fund,

Class

R6

......................................

1,502,374

9,525,050

83,775,491

Foreign

Fixed

Income

2.0%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

922,566

21,348,177

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,056,549,113)

..............................................................

1,032,156,162

a

a

a

a

Short

Term

Investments

2.7%

a

Money

Market

Funds

2.6%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

..................

27,949,915

27,949,915

Total

Money

Market

Funds

(Cost

$27,949,915)

..................................

27,949,915

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$773,055)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$423,109)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$22,032)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$327,914)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$788,725)

..................................

$

773,025

$

773,025

Total

Repurchase

Agreements

(Cost

$773,025)

..................................

773,025

Total

Short

Term

Investments

(Cost

$28,722,940

)

................................

28,722,940

a

Total

Investments

(Cost

$1,085,272,053)

100.0%

................................

$1,060,879,102

Other

Assets,

less

Liabilities

0.0%

†

............................................

314,755

Net

Assets

100.0%

...........................................................

$1,061,193,857

See

Abbreviations

on

page

58

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.08

$16.17

$15.08

$14.06

$16.11

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.06

0.22

0.19

0.28

0.34

0.20

Net

realized

and

unrealized

gains

(losses)

(2.76)

1.77

1.60

2.15

(1.11)

2.01

Total

from

investment

operations

........

(2.70)

1.99

1.79

2.43

(0.77)

2.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.06)

(0.41)

(0.22)

(0.28)

(0.33)

(0.29)

Net

realized

gains

.................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...................

(0.44)

(2.08)

(0.70)

(1.41)

(1.28)

(0.96)

Net

asset

value,

end

of

period

..........

$12.94

$16.08

$16.17

$15.08

$14.06

$16.11

Total

return

d

.......................

(16.81)%

12.38%

12.37%

17.40%

(4.82)%

14.98%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.63%

0.63%

0.64%

0.63%

0.63%

0.66%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.63%

g

0.62%

0.64%

g,h

0.63%

g,h

0.63%

g

0.65%

Net

investment

income

c

...............

0.85%

1.29%

1.29%

1.78%

2.02%

1.23%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,426,397

$1,794,149

$1,573,566

$1,456,531

$1,318,198

$1,407,956

Portfolio

turnover

rate

................

19.77%

56.07%

44.49%

71.70%

33.65%

16.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.49

$15.64

$14.60

$13.65

$15.66

$14.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.01

0.07

0.07

0.15

0.17

0.07

Net

realized

and

unrealized

gains

(losses)

(2.66)

1.73

1.56

2.09

(1.02)

1.94

Total

from

investment

operations

........

(2.65)

1.80

1.63

2.24

(0.85)

2.01

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.28)

(0.11)

(0.16)

(0.21)

(0.16)

Net

realized

gains

.................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...................

(0.41)

(1.95)

(0.59)

(1.29)

(1.16)

(0.83)

Net

asset

value,

end

of

period

..........

$12.43

$15.49

$15.64

$14.60

$13.65

$15.66

Total

return

d

.......................

(17.12)%

11.55%

11.57%

16.52%

(5.54)%

14.10%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.38%

1.37%

1.39%

1.38%

1.38%

1.41%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.38%

g

1.37%

g

1.39%

g,h

1.38%

g,h

1.38%

g

1.40%

Net

investment

income

c

...............

0.08%

0.43%

0.50%

1.03%

1.27%

0.48%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$148,393

$205,894

$289,283

$339,845

$375,494

$568,280

Portfolio

turnover

rate

................

19.77%

56.07%

44.49%

71.70%

33.65%

16.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.05

$16.15

$15.05

$14.04

$16.08

$14.82

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.17

0.15

0.23

0.27

0.14

Net

realized

and

unrealized

gains

(losses)

(2.75)

1.77

1.61

2.15

(1.07)

2.02

Total

from

investment

operations

........

(2.71)

1.94

1.76

2.38

(0.80)

2.16

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.37)

(0.18)

(0.24)

(0.29)

(0.23)

Net

realized

gains

.................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...................

(0.43)

(2.04)

(0.66)

(1.37)

(1.24)

(0.90)

Net

asset

value,

end

of

period

..........

$12.91

$16.05

$16.15

$15.05

$14.04

$16.08

Total

return

d

.......................

(16.91)%

12.05%

12.17%

17.05%

(5.04)%

14.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.88%

0.87%

0.89%

0.88%

0.88%

0.91%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.88%

g

0.87%

g

0.89%

g,h

0.88%

g,h

0.88%

g

0.90%

Net

investment

income

c

...............

0.60%

1.01%

1.01%

1.53%

1.77%

0.98%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$55,070

$69,211

$68,789

$78,999

$87,277

$119,920

Portfolio

turnover

rate

................

19.77%

56.07%

44.49%

71.70%

33.65%

16.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.08

$16.17

$15.08

$14.06

$16.11

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.09

0.27

0.24

0.34

0.41

0.26

Net

realized

and

unrealized

gains

(losses)

(2.77)

1.78

1.60

2.15

(1.12)

2.01

Total

from

investment

operations

........

(2.68)

2.05

1.84

2.49

(0.71)

2.27

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.47)

(0.27)

(0.34)

(0.39)

(0.35)

Net

realized

gains

.................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...................

(0.46)

(2.14)

(0.75)

(1.47)

(1.34)

(1.02)

Net

asset

value,

end

of

period

..........

$12.94

$16.08

$16.17

$15.08

$14.06

$16.11

Total

return

d

.......................

(16.67)%

12.74%

12.76%

17.81%

(4.49)%

15.40%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.33%

0.33%

0.33%

0.34%

0.35%

0.30%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.29%

0.30%

0.30%

g

0.29%

g

0.29%

0.28%

Net

investment

income

c

...............

1.19%

1.60%

1.61%

2.12%

2.36%

1.60%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$5,994

$7,261

$6,767

$6,666

$5,141

$4,492

Portfolio

turnover

rate

................

19.77%

56.07%

44.49%

71.70%

33.65%

16.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$16.10

$16.19

$15.09

$14.07

$16.12

$14.88

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.27

0.23

0.32

0.39

0.26

Net

realized

and

unrealized

gains

(losses)

(2.76)

1.76

1.61

2.15

(1.11)

1.98

Total

from

investment

operations

........

(2.68)

2.03

1.84

2.47

(0.72)

2.24

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.08)

(0.45)

(0.26)

(0.32)

(0.38)

(0.33)

Net

realized

gains

.................

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

(0.67)

Total

distributions

...................

(0.46)

(2.12)

(0.74)

(1.45)

(1.33)

(1.00)

Net

asset

value,

end

of

period

..........

$12.96

$16.10

$16.19

$15.09

$14.07

$16.12

Total

return

d

.......................

(16.68)%

12.64%

12.72%

17.68%

(4.57)%

15.20%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.38%

0.38%

0.39%

0.38%

0.38%

0.41%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.38%

g

0.37%

0.39%

g,h

0.38%

g,h

0.38%

g

0.40%

Net

investment

income

c

...............

1.09%

1.55%

1.53%

2.03%

2.27%

1.48%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$59,966

$78,346

$66,421

$61,026

$55,052

$52,575

Portfolio

turnover

rate

................

19.77%

56.07%

44.49%

71.70%

33.65%

16.86%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.2%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

787,848

$

16,978,124

Domestic

Equity

48.1%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

2,338,331

79,035,581

a

Franklin

Growth

Fund,

Class

R6

........................................

1,664,422

185,017,117

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

2,829,467

109,698,436

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

32,970,664

401,252,979

Vanguard

S&P

500

ETF

..............................................

114,091

39,575,886

814,579,999

Domestic

Fixed

Income

35.1%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,261,041

30,849,445

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

1,484,545

32,674,835

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

1,514,098

32,795,363

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

9,653,991

213,691,091

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

2,013,197

43,907,827

iShares

Floating

Rate

Bond

ETF

........................................

544,225

27,167,712

Schwab

U.S.

TIPS

ETF

...............................................

780,992

43,579,354

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

12,206,960

120,604,763

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

13,661,127

49,999,726

595,270,116

Foreign

Equity

11.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,344,329

31,302,920

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

9,879,743

96,821,484

a

Franklin

International

Growth

Fund,

Class

R6

..............................

1,048,035

14,924,020

iShares

Core

MSCI

EAFE

ETF

.........................................

253,097

14,894,758

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,209,223

20,943,737

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,594,808

22,791,082

201,678,001

Foreign

Fixed

Income

1.2%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

886,213

20,506,969

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,606,505,728)

..............................................................

1,649,013,209

a

a

a

a

Short

Term

Investments

2.8%

a

Money

Market

Funds

2.7%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

..................

46,440,913

46,440,913

Total

Money

Market

Funds

(Cost

$46,440,913)

..................................

46,440,913

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.1%

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$1,810,252)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$990,787)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$51,592)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$767,873)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$1,846,946)

................................

$

1,810,181

$

1,810,181

Total

Repurchase

Agreements

(Cost

$1,810,181)

................................

1,810,181

Total

Short

Term

Investments

(Cost

$48,251,094

)

................................

48,251,094

a

Total

Investments

(Cost

$1,654,756,822)

100.0%

................................

$1,697,264,303

Other

Assets,

less

Liabilities

(0.0)%

†

...........................................

(1,443,728)

Net

Assets

100.0%

...........................................................

$1,695,820,575

See

Abbreviations

on

page

58

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.99

$19.64

$18.13

$16.54

$19.34

$17.43

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.04

0.23

0.19

0.25

0.30

0.22

Net

realized

and

unrealized

gains

(losses)

(3.78)

2.97

2.32

3.36

(1.54)

3.12

Total

from

investment

operations

........

(3.74)

3.20

2.51

3.61

(1.24)

3.34

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.03)

(0.48)

(0.22)

(0.25)

(0.30)

(0.32)

Net

realized

gains

.................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...................

(0.62)

(2.85)

(1.00)

(2.02)

(1.56)

(1.43)

Net

asset

value,

end

of

period

..........

$15.63

$19.99

$19.64

$18.13

$16.54

$19.34

Total

return

d

.......................

(18.68)%

16.41%

14.58%

21.90%

(6.45)%

19.45%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.66%

0.66%

0.68%

0.68%

0.67%

0.70%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.66%

g

0.66%

g

0.67%

h

0.65%

h

0.65%

h

0.65%

h

Net

investment

income

c

...............

0.49%

1.07%

1.07%

1.32%

1.48%

1.14%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$988,917

$1,258,769

$1,074,822

$974,391

$837,327

$873,011

Portfolio

turnover

rate

................

16.47%

59.90%

39.22%

63.65%

30.79%

16.90%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.24

$19.03

$17.62

$16.12

$18.81

$16.99

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.02)

0.04

0.05

0.10

0.10

0.07

Net

realized

and

unrealized

gains

(losses)

(3.64)

2.91

2.25

3.27

(1.43)

3.04

Total

from

investment

operations

........

(3.66)

2.95

2.30

3.37

(1.33)

3.11

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(—)

d

(0.37)

(0.11)

(0.10)

(0.10)

(0.18)

Net

realized

gains

.................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...................

(0.59)

(2.74)

(0.89)

(1.87)

(1.36)

(1.29)

Net

asset

value,

end

of

period

..........

$14.99

$19.24

$19.03

$17.62

$16.12

$18.81

Total

return

e

.......................

(18.99)%

15.59%

13.74%

20.95%

(7.13)%

18.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

..........................

1.41%

1.41%

1.42%

1.43%

1.42%

1.45%

Expenses

net

of

waiver

and

payments

by

affiliates

g

..........................

1.41%

h

1.41%

h

1.42%

h,i

1.40%

i

1.40%

i

1.40%

i

Net

investment

income

(loss)

c

..........

(0.27)%

0.20%

0.28%

0.57%

0.73%

0.39%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$103,591

$141,604

$186,526

$202,689

$206,933

$311,640

Portfolio

turnover

rate

................

16.47%

59.90%

39.22%

63.65%

30.79%

16.90%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$19.68

$19.38

$17.89

$16.34

$19.10

$17.22

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.02

0.16

0.14

0.18

0.22

0.15

Net

realized

and

unrealized

gains

(losses)

(3.72)

2.93

2.30

3.33

(1.49)

3.11

Total

from

investment

operations

........

(3.70)

3.09

2.44

3.51

(1.27)

3.26

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.02)

(0.42)

(0.17)

(0.19)

(0.23)

(0.27)

Net

realized

gains

.................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...................

(0.61)

(2.79)

(0.95)

(1.96)

(1.49)

(1.38)

Net

asset

value,

end

of

period

..........

$15.37

$19.68

$19.38

$17.89

$16.34

$19.10

Total

return

d

.......................

(18.77)%

16.14%

14.30%

21.56%

(6.68)%

19.17%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.91%

0.91%

0.92%

0.93%

0.92%

0.95%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.91%

g

0.91%

g

0.92%

g,h

0.90%

h

0.90%

h

0.90%

h

Net

investment

income

c

...............

0.24%

0.77%

0.77%

1.07%

1.23%

0.89%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$39,437

$54,097

$54,297

$62,973

$72,100

$100,258

Portfolio

turnover

rate

................

16.47%

59.90%

39.22%

63.65%

30.79%

16.90%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.10

$19.73

$18.20

$16.60

$19.40

$17.48

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.08

0.29

0.26

0.32

0.40

0.31

Net

realized

and

unrealized

gains

(losses)

(3.81)

3.01

2.34

3.37

(1.57)

3.12

Total

from

investment

operations

........

(3.73)

3.30

2.60

3.69

(1.17)

3.43

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.56)

(0.29)

(0.32)

(0.37)

(0.40)

Net

realized

gains

.................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...................

(0.64)

(2.93)

(1.07)

(2.09)

(1.63)

(1.51)

Net

asset

value,

end

of

period

..........

$15.73

$20.10

$19.73

$18.20

$16.60

$19.40

Total

return

d

.......................

(18.55)%

16.85%

15.06%

22.30%

(6.07)%

19.90%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.34%

0.34%

0.35%

0.37%

0.36%

0.31%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.30%

0.30%

g

0.27%

g

0.28%

g

0.25%

g

Net

investment

income

c

...............

0.85%

1.37%

1.44%

1.70%

1.85%

1.54%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,175

$5,434

$5,592

$4,806

$4,224

$3,364

Portfolio

turnover

rate

................

16.47%

59.90%

39.22%

63.65%

30.79%

16.90%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

37

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$20.12

$19.76

$18.22

$16.61

$19.42

$17.49

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.07

0.28

0.24

0.30

0.36

0.26

Net

realized

and

unrealized

gains

(losses)

(3.81)

2.98

2.34

3.38

(1.56)

3.15

Total

from

investment

operations

........

(3.74)

3.26

2.58

3.68

(1.20)

3.41

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.53)

(0.26)

(0.30)

(0.35)

(0.37)

Net

realized

gains

.................

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

(1.11)

Total

distributions

...................

(0.64)

(2.90)

(1.04)

(2.07)

(1.61)

(1.48)

Net

asset

value,

end

of

period

..........

$15.74

$20.12

$19.76

$18.22

$16.61

$19.42

Total

return

d

.......................

(18.60)%

16.71%

14.90%

22.22%

(6.23)%

19.77%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.41%

0.41%

0.43%

0.43%

0.42%

0.45%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.41%

g

0.41%

g

0.42%

h

0.40%

h

0.40%

h

0.40%

h

Net

investment

income

c

...............

0.74%

1.32%

1.32%

1.57%

1.73%

1.39%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$47,478

$60,851

$51,693

$44,684

$38,685

$38,912

Portfolio

turnover

rate

................

16.47%

59.90%

39.22%

63.65%

30.79%

16.90%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2022.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Growth

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.3%

Alternative

Strategies

1.0%

a

Franklin

Liberty

Systematic

Style

Premia

ETF

..............................

550,732

$

11,868,275

Domestic

Equity

64.1%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

2,197,709

74,282,552

a

Franklin

Growth

Fund,

Class

R6

........................................

1,564,636

173,924,973

a

Franklin

LibertyQ

U.S.

Equity

ETF

.......................................

3,003,001

116,426,349

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

27,426,253

333,777,494

Vanguard

S&P

500

ETF

..............................................

175,492

60,874,665

759,286,033

Domestic

Fixed

Income

15.3%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

1,519,832

14,377,611

a

Franklin

Liberty

High

Yield

Corporate

ETF

.................................

421,581

9,278,998

a

Franklin

Liberty

Investment

Grade

Corporate

ETF

...........................

429,972

9,313,193

a

Franklin

Liberty

U.S.

Core

Bond

ETF

.....................................

2,741,613

60,685,604

a

Franklin

Liberty

U.S.

Treasury

Bond

ETF

..................................

571,718

12,469,170

iShares

Floating

Rate

Bond

ETF

........................................

154,550

7,715,136

Schwab

U.S.

TIPS

ETF

...............................................

221,790

12,375,882

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

3,477,133

34,354,074

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

5,821,841

21,307,939

181,877,607

Foreign

Equity

16.1%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,143,210

29,420,443

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

9,410,168

92,219,645

a

Franklin

International

Growth

Fund,

Class

R6

..............................

980,147

13,957,293

iShares

Core

MSCI

EAFE

ETF

.........................................

237,847

13,997,296

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,094,569

18,957,935

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,288,021

20,846,053

189,398,665

Foreign

Fixed

Income

0.8%

a

Franklin

Liberty

International

Aggregate

Bond

ETF

..........................

412,999

9,556,797

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,066,668,171)

..............................................................

1,151,987,377

a

a

a

a

Short

Term

Investments

2.8%

a

Money

Market

Funds

2.8%

a,b

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

..................

33,265,319

33,265,319

Total

Money

Market

Funds

(Cost

$33,265,319)

..................................

33,265,319

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

c

Joint

Repurchase

Agreement,

1.411%,

7/01/22

(Maturity

Value

$438,605)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$240,057)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$12,501)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$186,047)

Collateralized

by

U.S.

Government

Agency

Securities,

2%

-

6%,

12/28/37

-

12/20/51;

U.S.

Government

Agency

Strips,

7/15/23;

and

U.S.

Treasury

Notes,

0.25%

-

0.75%,

7/31/25

-

3/31/26

(valued

at

$447,496)

..................................

$

438,588

$

438,588

Total

Repurchase

Agreements

(Cost

$438,588)

..................................

438,588

Total

Short

Term

Investments

(Cost

$33,703,907

)

................................

33,703,907

a

Total

Investments

(Cost

$1,100,372,078)

100.1%

................................

$1,185,691,284

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(2,093,372)

Net

Assets

100.0%

...........................................................

$1,183,597,912

See

Abbreviations

on

page

58

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

c

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

40

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$99,790,148

$139,436,808

$109,255,747

Cost

-

Controlled

affiliates

(Note

3

f

)

..........................

—

521,842,700

447,634,152

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

984,708,880

991,667,133

543,043,591

Cost

-

Unaffiliated

repurchase

agreements

....................

773,025

1,810,181

438,588

Value

-

Unaffiliated

issuers

................................

$91,594,858

$125,217,710

$94,962,979

Value

-

Controlled

affiliates

(Note

3

f

)

.........................

—

529,377,383

455,417,582

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

968,511,219

1,040,859,029

634,872,135

Value

-

Unaffiliated

repurchase

agreements

....................

773,025

1,810,181

438,588

Receivables:

Investment

securities

sold

.................................

19,142,142

27,739,303

16,259,888

Capital

shares

sold

......................................

568,967

243,936

683,305

Dividends

and

interest

...................................

82,136

523,105

268,429

Total

assets

........................................

1,080,672,347

1,725,770,647

1,202,902,906

Liabilities:

Payables:

Investment

securities

purchased

............................

16,284,978

25,913,754

16,963,729

Capital

shares

redeemed

.................................

2,227,993

2,611,049

1,218,133

Asset

allocation

fees

.....................................

234,369

350,155

304,584

Distribution

fees

........................................

293,757

450,190

314,020

Transfer

agent

fees

......................................

189,382

307,433

343,630

Trustees'

fees

and

expenses

...............................

387

327

397

Distributions

to

shareholders

...............................

117,603

109,828

38,337

Funds

advanced

by

custodian

...............................

15,099

24,487

17,237

Accrued

expenses

and

other

liabilities

.........................

114,922

182,849

104,927

Total

liabilities

.......................................

19,478,490

29,950,072

19,304,994

Net

assets,

at

value

...............................

$1,061,193,857

$1,695,820,575

$1,183,597,912

Net

assets

consist

of:

Paid-in

capital

...........................................

$1,099,976,331

$1,675,685,056

$1,100,524,337

Total

distributable

earnings

(losses)

...........................

(38,782,474)

20,135,519

83,073,575

Net

assets,

at

value

...............................

$1,061,193,857

$1,695,820,575

$1,183,597,912

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

41

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Class

A:

Net

assets,

at

value

.....................................

$869,055,949

$1,426,397,417

$988,916,747

Shares

outstanding

......................................

70,423,095

110,216,906

63,263,748

Net

asset

value

per

share

a

................................

$12.34

$12.94

$15.63

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%,

94.50%

and

94.50%,

respectively)

..........................

$13.06

$13.69

$16.54

Class

C:

Net

assets,

at

value

.....................................

$107,725,456

$148,392,564

$103,591,259

Shares

outstanding

......................................

8,947,272

11,941,989

6,912,164

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$12.04

$12.43

$14.99

Class

R:

Net

assets,

at

value

.....................................

$46,480,791

$55,070,412

$39,436,839

Shares

outstanding

......................................

3,784,377

4,265,423

2,566,226

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.28

$12.91

$15.37

Class

R6:

Net

assets,

at

value

.....................................

$2,401,218

$5,994,363

$4,175,341

Shares

outstanding

......................................

194,889

463,295

265,482

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.32

$12.94

$15.73

Advisor

Class:

Net

assets,

at

value

.....................................

$35,530,443

$59,965,819

$47,477,726

Shares

outstanding

......................................

2,879,031

4,628,700

3,016,086

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.34

$12.96

$15.74

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

42

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$1,535,589

$1,948,227

$1,204,775

Controlled

affiliates

(Note

3

f

)

...............................

—

3,522,457

3,077,381

Non-controlled

affiliates

(Note

3

f

)

...........................

9,206,375

8,560,448

3,397,593

Interest:

Unaffiliated

issuers

......................................

2,676

5,249

3,649

Total

investment

income

.................................

10,744,640

14,036,381

7,683,398

Expenses:

Asset

allocation

fees

(Note

3

a

)

...............................

1,498,904

2,384,721

1,672,438

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

1,212,865

1,995,099

1,391,090

    Class

C

..............................................

642,293

871,313

604,339

    Class

R

..............................................

129,180

153,110

115,180

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

508,138

894,507

772,181

    Class

C

..............................................

67,143

97,704

83,934

    Class

R

..............................................

27,100

34,322

31,989

    Class

R6

.............................................

1,513

2,087

1,511

    Advisor

Class

..........................................

24,079

39,007

37,048

Custodian

fees

(Note

4

)

....................................

396

576

404

Reports

to

shareholders

fees

................................

39,542

66,292

52,772

Registration

and

filing

fees

..................................

45,828

49,850

51,041

Professional

fees

.........................................

29,462

30,200

28,799

Trustees'

fees

and

expenses

................................

6,233

9,586

6,869

Other

..................................................

11,761

18,511

14,092

Total

expenses

.......................................

4,244,437

6,646,885

4,863,687

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(31,320)

(50,436)

(35,534)

Net

expenses

.......................................

4,213,117

6,596,449

4,828,153

Net

investment

income

..............................

6,531,523

7,439,932

2,855,245

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(1,480,869)

(1,982,268)

(1,206,515)

Controlled

affiliates

(Note

3

f

)

.............................

—

(9,174,938)

(5,833,911)

Non-controlled

affiliates

(Note

3

f

)

..........................

(11,546,072)

(8,299,466)

5,501,336

Net

realized

gain

(loss)

................................

(13,026,941)

(19,456,672)

(1,539,090)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

(11,138,970)

(20,034,172)

(23,007,538)

Controlled

affiliates

(Note

3

f

)

.............................

—

(126,745,677)

(109,187,479)

Non-controlled

affiliates

(Note

3

f

)

..........................

(180,491,394)

(196,812,948)

(148,567,490)

Net

change

in

unrealized

appreciation

(depreciation)

..........

(191,630,364)

(343,592,797)

(280,762,507)

Net

realized

and

unrealized

gain

(loss)

..........................

(204,657,305)

(363,049,469)

(282,301,597)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$(198,125,782)

$(355,609,537)

$(279,446,352)

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$6,531,523

$17,784,737

$7,439,932

$24,931,210

Net

realized

gain

(loss)

............

(13,026,941)

116,406,605

(19,456,672)

267,612,917

Net

change

in

unrealized

appreciation

(depreciation)

.................

(191,630,364)

(30,826,627)

(343,592,797)

(50,875,245)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

(198,125,782)

103,364,715

(355,609,537)

241,668,882

Distributions

to

shareholders:

Class

A

........................

(22,293,279)

(86,399,978)

(47,245,371)

(209,165,195)

Class

C

........................

(2,436,689)

(11,677,282)

(4,780,214)

(24,425,442)

Class

R

........................

(1,139,766)

(4,419,238)

(1,760,670)

(8,018,288)

Class

R6

.......................

(65,278)

(235,873)

(210,598)

(857,248)

Advisor

Class

...................

(982,731)

(4,543,024)

(2,087,719)

(9,375,978)

Total

distributions

to

shareholders

.....

(26,917,743)

(107,275,395)

(56,084,572)

(251,842,151)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(29,962,700)

146,064,064

(23,678,397)

234,619,766

Class

C

........................

(20,340,796)

(63,095,079)

(19,513,325)

(88,089,263)

Class

R

........................

616,763

(11,035,523)

(903,944)

499,570

Class

R6

.......................

38,374

325,049

163,758

537,584

Advisor

Class

...................

(10,447,346)

6,764,713

(3,415,728)

12,642,693

Total

capital

share

transactions

.......

(60,095,705)

79,023,224

(47,347,636)

160,210,350

Net

increase

(decrease)

in

net

assets

.....................

(285,139,230)

75,112,544

(459,041,745)

150,037,081

Net

assets:

Beginning

of

period

................

1,346,333,087

1,271,220,543

2,154,862,320

2,004,825,239

End

of

period

.....................

$1,061,193,857

$1,346,333,087

$1,695,820,575

$2,154,862,320

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

Franklin

Growth

Allocation

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$2,855,245

$14,136,976

Net

realized

gain

(loss)

.................................................

(1,539,090)

210,926,900

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(280,762,507)

(5,734,706)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(279,446,352)

219,329,170

Distributions

to

shareholders:

Class

A

.............................................................

(38,483,692)

(160,033,262)

Class

C

.............................................................

(4,018,601)

(18,823,850)

Class

R

.............................................................

(1,532,701)

(6,956,107)

Class

R6

............................................................

(169,039)

(717,514)

Advisor

Class

........................................................

(1,876,580)

(7,939,547)

Total

distributions

to

shareholders

..........................................

(46,080,613)

(194,470,280)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

594,116

168,099,386

Class

C

.............................................................

(8,269,549)

(51,602,781)

Class

R

.............................................................

(3,420,402)

(1,550,874)

Class

R6

............................................................

(99,404)

(296,846)

Advisor

Class

........................................................

(435,886)

8,318,607

Total

capital

share

transactions

............................................

(11,631,125)

122,967,492

Net

increase

(decrease)

in

net

assets

...................................

(337,158,090)

147,826,382

Net

assets:

Beginning

of

period

.....................................................

1,520,756,002

1,372,929,620

End

of

period

..........................................................

$1,183,597,912

$1,520,756,002

Franklin

Fund

Allocator

Series

45

franklintempleton.com

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

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

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sale

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Funds' administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Funds

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively. 

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

June

30,

2022.

c.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

46

franklintempleton.com

Semiannual

Report

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

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).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

by

Underlying

Funds

and

ETFs

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

47

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

4,793,668

$65,693,300

5,876,067

$86,341,424

Shares

issued

in

reinvestment

of

distributions

..........

1,750,538

21,816,384

3,580,960

46,617,660

Shares

redeemed

...............................

(8,709,106)

(117,472,384)

(10,792,844)

(156,637,481)

Net

increase

(decrease)

..........................

(2,164,900)

$(29,962,700)

(1,335,817)

$(23,678,397)

Year

ended

December

31,

2021

Shares

sold

a

...................................

14,924,061

$231,532,249

17,078,662

$292,335,001

Shares

issued

in

reinvestment

of

distributions

..........

5,641,836

84,506,851

12,695,548

206,253,870

Shares

redeemed

...............................

(10,986,767)

(169,975,036)

(15,509,066)

(263,969,105)

Net

increase

(decrease)

..........................

9,579,130

$146,064,064

14,265,144

$234,619,766

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

575,076

$7,715,589

853,180

$12,094,138

Shares

issued

in

reinvestment

of

distributions

..........

200,715

2,420,101

381,736

4,758,981

Shares

redeemed

a

..............................

(2,297,356)

(30,476,486)

(2,588,654)

(36,366,444)

Net

increase

(decrease)

..........................

(1,521,565)

$(20,340,796)

(1,353,738)

$(19,513,325)

Year

ended

December

31,

2021

Shares

sold

...................................

2,430,528

$36,552,182

2,654,138

$43,455,760

Shares

issued

in

reinvestment

of

distributions

..........

792,779

11,589,606

1,551,141

24,279,944

Shares

redeemed

a

..............................

(7,301,383)

(111,236,867)

(9,408,070)

(155,824,967)

Net

increase

(decrease)

..........................

(4,078,076)

$(63,095,079)

(5,202,791)

$(88,089,263)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

1,217,919

$16,753,312

293,976

$4,289,110

Shares

issued

in

reinvestment

of

distributions

..........

91,938

1,139,764

135,624

1,758,149

Shares

redeemed

...............................

(1,276,576)

(17,276,313)

(476,165)

(6,951,203)

Net

increase

(decrease)

..........................

33,281

$616,763

(46,565)

$(903,944)

Year

ended

December

31,

2021

Shares

sold

...................................

381,609

$5,848,627

466,541

$7,885,871

Shares

issued

in

reinvestment

of

distributions

..........

296,128

4,419,140

494,163

8,008,064

Shares

redeemed

...............................

(1,374,701)

(21,303,290)

(909,188)

(15,394,365)

Net

increase

(decrease)

..........................

(696,964)

$(11,035,523)

51,516

$499,570

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

48

franklintempleton.com

Semiannual

Report

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

16,031

$221,717

24,368

$361,507

Shares

issued

in

reinvestment

of

distributions

..........

5,227

65,278

16,116

210,598

Shares

redeemed

...............................

(18,132)

(248,621)

(28,795)

(408,347)

Net

increase

(decrease)

..........................

3,126

$38,374

11,689

$163,758

Year

ended

December

31,

2021

Shares

sold

...................................

31,789

$488,983

57,590

$985,504

Shares

issued

in

reinvestment

of

distributions

..........

15,757

235,873

52,769

857,248

Shares

redeemed

...............................

(25,796)

(399,807)

(77,237)

(1,305,168)

Net

increase

(decrease)

..........................

21,750

$325,049

33,122

$537,584

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

390,248

$5,406,970

595,944

$8,783,621

Shares

issued

in

reinvestment

of

distributions

..........

69,827

873,135

144,487

1,888,839

Shares

redeemed

...............................

(1,243,013)

(16,727,451)

(978,183)

(14,088,188)

Net

increase

(decrease)

..........................

(782,938)

$(10,447,346)

(237,752)

$(3,415,728)

Year

ended

December

31,

2021

Shares

sold

...................................

1,061,339

$16,381,493

1,330,334

$22,629,505

Shares

issued

in

reinvestment

of

distributions

..........

240,672

3,607,232

515,427

8,385,092

Shares

redeemed

...............................

(854,332)

(13,224,012)

(1,082,185)

(18,371,904)

Net

increase

(decrease)

..........................

447,679

$6,764,713

763,576

$12,642,693

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

a

...................................

3,300,207

$59,606,473

Shares

issued

in

reinvestment

of

distributions

..........

2,421,021

38,068,766

Shares

redeemed

...............................

(5,411,848)

(97,081,123)

Net

increase

(decrease)

..........................

309,380

$594,116

Year

ended

December

31,

2021

Shares

sold

a

...................................

8,658,427

$183,957,942

Shares

issued

in

reinvestment

of

distributions

..........

7,832,959

158,202,987

Shares

redeemed

...............................

(8,260,018)

(174,061,543)

Net

increase

(decrease)

..........................

8,231,368

$168,099,386

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

49

franklintempleton.com

Semiannual

Report

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

586,917

$10,208,923

Shares

issued

in

reinvestment

of

distributions

..........

266,012

4,006,002

Shares

redeemed

a

..............................

(1,302,518)

(22,484,474)

Net

increase

(decrease)

..........................

(449,589)

$(8,269,549)

Year

ended

December

31,

2021

Shares

sold

...................................

1,271,518

$25,846,031

Shares

issued

in

reinvestment

of

distributions

..........

964,036

18,775,043

Shares

redeemed

a

..............................

(4,674,532)

(96,223,855)

Net

increase

(decrease)

..........................

(2,438,978)

$(51,602,781)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

124,580

$2,197,557

Shares

issued

in

reinvestment

of

distributions

..........

99,015

1,530,409

Shares

redeemed

...............................

(406,305)

(7,148,368)

Net

increase

(decrease)

..........................

(182,710)

$(3,420,402)

Year

ended

December

31,

2021

Shares

sold

...................................

235,209

$4,899,326

Shares

issued

in

reinvestment

of

distributions

..........

349,129

6,942,891

Shares

redeemed

...............................

(638,662)

(13,393,091)

Net

increase

(decrease)

..........................

(54,324)

$(1,550,874)

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

9,945

$180,507

Shares

issued

in

reinvestment

of

distributions

..........

10,678

169,039

Shares

redeemed

...............................

(25,544)

(448,950)

Net

increase

(decrease)

..........................

(4,921)

$(99,404)

Year

ended

December

31,

2021

Shares

sold

...................................

50,946

$1,076,066

Shares

issued

in

reinvestment

of

distributions

..........

35,286

717,514

Shares

redeemed

...............................

(99,315)

(2,090,426)

Net

increase

(decrease)

..........................

(13,083)

$(296,846)

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

50

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Asset

Allocation

Fees

The

Funds

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class C

and

R

compensation

distribution

plans,

Franklin

Growth

Allocation

Fund

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2022

Shares

sold

...................................

261,760

$4,780,963

Shares

issued

in

reinvestment

of

distributions

..........

106,077

1,680,467

Shares

redeemed

...............................

(376,455)

(6,897,316)

Net

increase

(decrease)

..........................

(8,618)

$(435,886)

Year

ended

December

31,

2021

Shares

sold

...................................

622,446

$13,154,153

Shares

issued

in

reinvestment

of

distributions

..........

343,722

6,988,125

Shares

redeemed

...............................

(559,446)

(11,823,671)

Net

increase

(decrease)

..........................

406,722

$8,318,607

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(

Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

51

franklintempleton.com

Semiannual

Report

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2022,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

f.

Investments

in

FT

Underlying

Funds

The Funds

invest in FT

Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

asset

allocation

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$60,859

$114,760

$110,541

CDSC

retained

...........................

$11,619

$32,412

$5,838

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Transfer

agent

fees

........................

$325,194

$594,639

$534,895

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

52

franklintempleton.com

Semiannual

Report

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2022,

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

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

33,637,163

$

8,527,040

$

(4,567,054)

$

(642,744)

$

(4,841,683)

$

32,112,722

3,394,579

$

283,458

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

61,114,060

2,941,887

(24,480,888)

398,944

(7,363,358)

32,610,645

964,812

269,298

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

12,651,929

4,025,759

(1,372,295)

(140,364)

(2,202,846)

12,962,183

1,384,849

85,337

Franklin

FTSE

Europe

ETF

....

5,320,689

189,357

(4,738,896)

646,220

(1,417,370)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

125,309,415

13,041,346

(30,866,482)

6,261,702

(37,407,155)

76,338,826

686,747

—

Franklin

International

Core

Equity

(IU)

Fund

................

57,733,541

7,178,099

(11,925,577)

(2,399,889)

(10,408,930)

40,177,244

4,099,719

483,578

Franklin

International

Growth

Fund,

Class

R6

................

10,394,454

1,892,865

(2,492,839)

(139,709)

(3,417,426)

6,237,345

438,016

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

58,685,736

3,396,161

(22,373,374)

(2,273,900)

(5,545,809)

31,888,814

1,448,833

1,138,728

Franklin

Liberty

International

Aggregate

Bond

ETF

........

33,062,382

1,227,597

(11,472,573)

(687,564)

(781,665)

21,348,177

922,566

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

25,959,352

19,550,120

(8,471,500)

(1,190,805)

(3,840,965)

32,006,202

1,477,664

416,638

Franklin

Liberty

Senior

Loan

ETF

32,653,456

620,178

(32,533,572)

(808,194)

68,132

—

—

287,088

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

7,045,368

5,697,119

(2,081,490)

(384,029)

327,270

10,604,238

492,076

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

292,437,229

24,841,768

(78,337,911)

(4,700,778)

(25,691,178)

208,549,130

9,421,691

2,668,539

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

52,179,875

4,209,538

(9,064,035)

(1,135,504)

(3,338,415)

42,851,459

1,964,762

261,888

Franklin

LibertyQ

U.S.

Equity

ETF

24,230,091

36,543,189

(12,667,713)

437,779

(5,672,333)

42,871,013

1,105,778

228,048

Franklin

U.S.

Core

Equity

(IU)

Fund

247,730,250

18,852,535

(52,285,643)

(2,492,267)

(40,768,480)

171,036,395

14,053,936

933,224

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

85

136,624,439

(108,674,609)

—

—

27,949,915

27,949,915

23,506

Templeton

Developing

Markets

Trust,

Class

R6

............

13,335,719

4,766,394

(6,473,737)

(924,359)

(2,057,561)

8,646,456

499,218

—

Templeton

Foreign

Fund,

Class

R6

20,687,681

162,896

(10,278,478)

1,548,970

(2,596,019)

9,525,050

1,502,374

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

98,441,245

55,840,389

(12,402,780)

(2,407,936)

(21,453,869)

118,017,049

11,945,045

1,726,309

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

53

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

39,225,398

$

14,947,328

$

(8,800,991)

$

(511,645)

$

(2,081,734)

$

42,778,356

11,688,076

$

400,736

Total

Non-Controlled

Affiliates

$1,251,835,118

$365,076,004

$(456,362,437)

$(11,546,072)

$(180,491,394)

$968,511,219

$9,206,375

Total

Affiliated

Securities

....

$1,251,835,118

$365,076,004

$(456,362,437)

$(11,546,072)

$(180,491,394)

$968,511,219

$9,206,375

Franklin

Moderate

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

$

36,190,583

$

4,034,701

$

(2,839,784)

$

(292,135)

$

(5,790,445)

$

31,302,920

3,344,329

$

199,733

Franklin

International

Core

Equity

(IU)

Fund

................

139,530,343

14,893,801

(26,976,305)

(5,107,693)

(25,518,662)

96,821,484

9,879,743

1,138,010

Franklin

U.S.

Core

Equity

(IU)

Fund

556,798,655

21,863,410

(78,197,406)

(3,775,110)

(95,436,570)

401,252,979

32,970,664

2,184,714

Total

Controlled

Affiliates

....

$732,519,581

$40,791,912

$(108,013,495)

$(9,174,938)

$(126,745,677)

$529,377,383

$3,522,457

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

32,172,162

7,830,044

(3,890,299)

(517,170)

(4,745,292)

30,849,445

3,261,041

271,723

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

137,778,328

2,680,494

(45,113,988)

579,376

(16,888,629)

79,035,581

2,338,331

634,567

Franklin

FTSE

Europe

ETF

....

12,721,804

235,930

(11,118,209)

1,318,510

(3,158,035)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

281,119,140

21,765,362

(45,760,201)

3,729,789

(75,836,973)

185,017,117

1,664,422

—

Franklin

International

Growth

Fund,

Class

R6

................

24,856,235

4,041,106

(5,442,940)

(452,976)

(8,077,405)

14,924,020

1,048,035

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

58,827,480

3,964,960

(22,201,191)

(2,109,996)

(5,806,418)

32,674,835

1,484,545

1,148,563

Franklin

Liberty

International

Aggregate

Bond

ETF

........

31,620,949

1,084,663

(10,795,128)

(640,354)

(763,161)

20,506,969

886,213

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

26,022,034

20,172,965

(8,324,367)

(1,558,548)

(3,516,721)

32,795,363

1,514,098

420,723

Franklin

Liberty

Senior

Loan

ETF

32,732,318

756,533

(32,745,541)

(813,823)

70,513

—

—

286,557

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

11,230,370

9,037,120

(3,200,547)

(594,079)

505,260

16,978,124

787,848

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

292,865,850

28,514,259

(77,158,125)

(4,519,513)

(26,011,380)

213,691,091

9,653,991

2,688,951

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

52,305,894

5,682,894

(9,593,966)

(1,142,812)

(3,344,183)

43,907,827

2,013,197

265,794

Franklin

LibertyQ

U.S.

Equity

ETF

54,848,126

79,249,299

(10,918,611)

765,605

(14,245,983)

109,698,436

2,829,467

604,931

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

132

199,344,661

(152,903,880)

—

—

46,440,913

46,440,913

38,582

Templeton

Developing

Markets

Trust,

Class

R6

............

36,166,834

5,304,956

(12,545,936)

(2,687,345)

(5,294,772)

20,943,737

1,209,223

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

54

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Moderate

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Templeton

Foreign

Fund,

Class

R6

$

50,283,951

$

—

$

(25,001,277)

$

3,218,234

$

(5,709,826)

$

22,791,082

3,594,808

$

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

98,686,924

57,316,955

(11,411,448)

(2,330,428)

(21,657,240)

120,604,763

12,206,960

1,748,991

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

39,319,448

23,225,622

(9,668,705)

(543,936)

(2,332,703)

49,999,726

13,661,127

451,066

Total

Non-Controlled

Affiliates

$1,273,557,979

$470,207,823

$(497,794,359)

$(8,299,466)

$(196,812,948)

$1,040,859,029

$8,560,448

Total

Affiliated

Securities

....

$2,006,077,560

$510,999,735

$(605,807,854)

$(17,474,404)

$(323,558,625)

$1,570,236,412

$12,082,905

Franklin

Growth

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

36,381,032

4,187,566

(5,211,082)

(501,151)

(5,435,922)

29,420,443

3,143,210

186,995

Franklin

International

Core

Equity

(IU)

Fund

................

136,932,223

11,513,558

(26,957,230)

(4,976,829)

(24,292,077)

92,219,645

9,410,168

1,071,643

Franklin

U.S.

Core

Equity

(IU)

Fund

413,400,541

1,818,743

(1,626,379)

(355,931)

(79,459,480)

333,777,494

27,426,253

1,818,743

Total

Controlled

Affiliates

....

$586,713,796

$17,519,867

$(33,794,691)

$(5,833,911)

$(109,187,479)

$455,417,582

$3,077,381

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

15,093,015

3,951,211

(2,194,262)

(212,559)

(2,259,794)

14,377,611

1,519,832

127,267

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

131,860,456

1,106,237

(43,709,649)

854,973

(15,829,465)

74,282,552

2,197,709

589,844

Franklin

FTSE

Europe

ETF

....

12,275,904

42,824

(10,547,785)

1,049,970

(2,820,913)

—

—

—

Franklin

Growth

Fund,

Class

R6

.

280,777,716

6,361,922

(44,185,904)

8,518,561

(77,547,322)

173,924,973

1,564,636

—

Franklin

International

Growth

Fund,

Class

R6

................

23,985,853

4,742,471

(6,432,306)

(642,578)

(7,696,147)

13,957,293

980,147

—

Franklin

Liberty

High

Yield

Corporate

ETF

............

15,565,438

3,226,776

(7,331,768)

(647,769)

(1,533,679)

9,278,998

421,581

316,153

Franklin

Liberty

International

Aggregate

Bond

ETF

........

14,792,817

737,422

(5,316,360)

(318,993)

(338,089)

9,556,797

412,999

—

Franklin

Liberty

Investment

Grade

Corporate

ETF

............

6,884,794

6,195,402

(2,386,476)

(412,541)

(967,986)

9,313,193

429,972

115,933

Franklin

Liberty

Senior

Loan

ETF

8,660,766

704,767

(9,167,448)

(218,010)

19,925

—

—

75,909

Franklin

Liberty

Systematic

Style

Premia

ETF

..............

7,880,850

6,385,539

(2,338,388)

(430,763)

371,037

11,868,275

550,732

—

Franklin

Liberty

U.S.

Core

Bond

ETF

....................

77,699,812

15,046,336

(23,822,358)

(1,620,492)

(6,617,694)

60,685,604

2,741,613

736,567

Franklin

Liberty

U.S.

Treasury

Bond

ETF

....................

13,839,484

3,831,013

(3,993,816)

(350,359)

(857,152)

12,469,170

571,718

74,569

Franklin

LibertyQ

U.S.

Equity

ETF

50,391,751

86,812,204

(5,938,592)

1,009,527

(15,848,541)

116,426,349

3,003,001

671,934

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

55

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

and

Investor

Services

contractually

agreed

in

advance

to

waive

or

limit

their

respective

fees

and

to

assume

as

their

own

expense

certain

expenses

otherwise

payable

by

the

Funds

so

that

the

operating expenses

(excluding

distribution

fees,

and

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

do

not

exceed

0.45%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds’

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the period

ended

June

30,

2022,

there

were

no

credits

earned. 

5.

Income

Taxes

For

tax

purposes,

the

Growth

Allocation

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2021,

the

Growth

Allocation

Fund

deferred

post-October

capital

losses

of

$188,386.

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

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

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Growth

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

$

93

$

145,563,556

$

(112,298,330)

$

—

$

—

$

33,265,319

33,265,319

$

27,171

Templeton

Developing

Markets

Trust,

Class

R6

............

36,284,239

4,525,922

(14,142,593)

(2,548,011)

(5,161,622)

18,957,935

1,094,569

—

Templeton

Foreign

Fund,

Class

R6

49,038,723

2,112,552

(27,834,085)

2,727,005

(5,198,142)

20,846,053

3,288,021

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

26,186,655

20,112,129

(5,496,860)

(998,598)

(5,449,252)

34,354,074

3,477,133

484,431

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

10,432,054

16,659,336

(4,692,770)

(258,027)

(832,654)

21,307,939

5,821,841

177,815

Total

Non-Controlled

Affiliates

$781,650,420

$328,117,619

$(331,829,750)

$5,501,336

$(148,567,490)

$634,872,135

$3,397,593

Total

Affiliated

Securities

....

$1,368,364,216

$345,637,486

$(365,624,441)

$(332,575)

$(257,754,969)

$1,090,289,717

$6,474,974

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

56

franklintempleton.com

Semiannual

Report

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

wash

sales,

return

of

capital

distributions

and

short

term

capital

gains

distributions

from

Underlying

Funds.

6.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

were

as

follows:

7.

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.

8. 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.

9.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

a

a

a

a

Cost

of

investments

.......................

$1,086,922,447

$1,658,108,612

$1,101,311,279

Unrealized

appreciation

.....................

$64,968,293

$149,425,470

$135,779,253

Unrealized

depreciation

.....................

(91,011,638)

(110,269,779)

(51,399,248)

Net

unrealized

appreciation

(depreciation)

.......

$(26,043,345)

$39,155,691

$84,380,005

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Purchases

..............................

$287,075,544

$375,652,262

$219,665,340

Sales

..................................

$385,297,541

$500,861,914

$293,590,391

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

57

franklintempleton.com

Semiannual

Report

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2022,

the

Funds

did

not

use

the

Global

Credit

Facility.

10.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

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.

Level

1

Level

2

Level

3

Total

Franklin

Conservative

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

1,032,156,162

$

—

$

—

$

1,032,156,162

Short

Term

Investments

...................

27,949,915

773,025

—

28,722,940

Total

Investments

in

Securities

...........

$1,060,106,077

$773,025

$—

$1,060,879,102

Franklin

Moderate

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,649,013,209

—

—

1,649,013,209

Short

Term

Investments

...................

46,440,913

1,810,181

—

48,251,094

Total

Investments

in

Securities

...........

$1,695,454,122

$1,810,181

$—

$1,697,264,303

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,151,987,377

—

—

1,151,987,377

Short

Term

Investments

...................

33,265,319

438,588

—

33,703,907

Total

Investments

in

Securities

...........

$1,185,252,696

$438,588

$—

$1,185,691,284

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

9.

Credit

Facility

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

58

franklintempleton.com

Semiannual

Report

Abbreviations

Selected

Portfolio

ETF

Exchange-Traded

Fund

Franklin

Fund

Allocator

Series

Shareholder

Information

59

franklintempleton.com

Semiannual

Report

BOARD

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENTS

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

February

28,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

Franklin

Fund

Allocator

Series

Shareholder

Information

60

franklintempleton.com

Semiannual

Report

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

November

30,

2021.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Franklin

Conservative

Allocation

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

conservative

funds.

The

Performance

Universe

for

the

Franklin

Moderate

Allocation

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

moderate

funds.

The

Performance

Universe

for

the

Franklin

Growth

Allocation

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-

asset

target

allocation

growth

funds.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

10-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

Class

A

shares

and

Investor

Class

shares

for

the

other

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Franklin

Conservative

Allocation

Fund

included

the

Fund

and

14

other

mixed-asset

target

allocation

conservative

funds.

The

Expense

Group

for

the

Franklin

Moderate

Allocation

Fund

included

the

Fund

and

ten

other

mixed-asset

target

allocation

moderate

funds.

The

Expense

Group

for

the

Franklin

Growth

Allocation

Fund

included

the

Fund

and

nine

other

mixed-asset

target

allocation

growth

funds.

The

Board

noted

that

the

Management

Rates

and

the

actual

total

expense

ratios

for

the

Funds

were

above

the

medians

of

their

respective

Expense

Groups.

The

Board

discussed

these

expenses

with

management

and

management

explained

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

Management

further

explained

that

each

Fund’s

total

expenses

(including

underlying

fund

expenses)

were

in

the

first

quintile

(least

expensive)

of

the

Fund’s

respective

Expense

Group.

The

Board

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

Franklin

Fund

Allocator

Series

Shareholder

Information

61

franklintempleton.com

Semiannual

Report

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that,

due

to

the

use

of

the

Management

Rate

for

allocation

services,

the

Funds

would

not

likely

experience

economies

of

scale.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

Franklin

Fund

Allocator

Series

Shareholder

Information

62

franklintempleton.com

Semiannual

Report

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FAS

S

08/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Corefolio

Allocation

Fund

A

Series

of

Franklin

Fund

Allocator

Series

June

30,

2022

Sign

up

for

electronic

delivery

at

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Guarantee

franklintempleton.com

Semiannual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

June

30,

2022,

the

U.S.

economy

showed

progress

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

The

U.S.

economy

contracted

in

2022’s

first

quarter

given

a

record

trade

deficit

and

a

decline

in

inventory

investment,

while

consumer

spending

expanded

more

slowly,

helped

by

the

reopening

of

businesses,

widespread

vaccinations

and

federal

assistance

programs.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply

chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

During

the

first

half

of

this

period,

the

U.S.

Federal

Reserve

continued

some

quantitative

easing

measures

to

bolster

credit

markets

and

encourage

economic

activity.

However,

to

support

its

goals

to

maximize

employment

and

return

long-

term

annual

inflation

to

2%,

the

Federal

Reserve

continued

reversing

its

quantitative

easing

measures,

increasing

its

monthly

asset

purchase

tapering

and

ending

purchases

by

March

2022.

The

Federal

Reserve

also

raised

the

federal

funds

rate

by

0.25%

in

March,

0.50%

in

May

and

0.75%

in

June,

for

a

total

of

1.50%,

increasing

the

rate

from

0.25%

to

1.75%

during

the

period.

Additionally,

the

Federal

Reserve

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

increases

to

combat

inflation.

Resilient

consumer

demand

together

with

persistent

supply-

chain

disruptions

contributed

to

higher

inflation

in

numerous

countries,

and

many

central

banks

tightened

monetary

policy.

China

imposed

new

lockdowns

to

mitigate

the

spread

of

COVID-19,

which

pressured

Asian

and

global

emerging

market

stocks.

International

sanctions

on

Russia

in

response

to

its

invasion

of

Ukraine

hindered

companies

doing

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-20.58%

(the

index

decreasing

from

4,766.18

to

3,785.38).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-21.21%

(the

index

decreasing

from

3,231.727

to

2,546.185).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-10.35%

total

return

(an

index

decrease

from

2,355.14

to

2,111.40),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Corefolio

Allocation

Fund’s

semiannual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Corefolio

Allocation

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2022,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-19.96%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

7,993.43)

and

MSCI

World

Index

-20.29%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,337.724).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

3

Performance

Summary

5

Your

Fund’s

Expenses

7

Financial

Highlights

and

Schedule

of

Investments

8

Financial

Statements

14

Notes

to

Financial

Statements

18

Shareholder

Information

24

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

Corefolio

Allocation

Fund

This

semiannual

report

for

Franklin

Corefolio

Allocation

Fund

covers

the

period

ended

June

30,

2022

.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

through

investments

in

a

combination

of

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

**Rounds

to

less

than

0.1%

of

net

assets.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-22.65%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

benchmarks,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

-19.96%

cumulative

total

return,

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

-20.29%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

5

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

World

Index-NR

(net

of

tax

withholding

when

dividends

are

paid),

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Portfolio

Composition*

6/30/22

%

of

Total

Net

Assets

Domestic

Equity

74.1%

Foreign

Equity

25.9%

Short-Term

Investments

&

Other

Net

Assets

0.0%

**

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

13

.

Franklin

Corefolio

Allocation

Fund

4

franklintempleton.com

Semiannual

Report

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

The

Fund

invests

its

assets

allocated

approximately

25%

each

in

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

These

underlying

funds,

in

turn,

invest

primarily

in

U.S.

and

foreign

equity

securities

and,

to

a

lesser

extent,

fixed

income

and

money

market

securities.

As

market

conditions

affect

the

underlying

funds,

we

rebalance

the

Fund’s

allocations

to

maintain

the

predetermined

weightings

in

each

underlying

fund

whenever

the

actual

allocations

exceed

plus

or

minus

3%

of

the

fixed

allocation

percentages.

Portfolio

Review

The

Fund’s

performance

can

be

attributed

largely

to

maintaining

a

relatively

static

allocation

among

domestic

and

foreign

equities,

fixed

income

securities,

and

short-

term

investments

and

other

net

assets,

and

to

the

actual

performance

of

the

selected

underlying

funds.

During

the

period

under

review,

Franklin

Growth

Fund

–

Class

R6

and

Franklin

Growth

Opportunities

Fund

–

Class

R6

underperformed

the

S&P

500,

while

Franklin

Mutual

Shares

Fund

–

Class

R6

outperformed

the

index.

Templeton

Growth

Fund

–

Class

R6

outperformed

the

MSCI

World

Index.

Thank

you

for

your

continued

participation

in

Franklin

Corefolio

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Revenaugh

Portfolio

Management

Team

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2022

Franklin

Corefolio

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

1

Average

Annual

Total

Return

2

–

A

3

6-Month

-22.65%

-26.90%

1-Year

-20.17%

-24.55%

5-Year

+33.51%

+4.76%

10-Year

+137.22%

+8.41%

Advisor

6-Month

-22.55%

-22.55%

1-Year

-19.94%

-19.94%

5-Year

+35.24%

+6.22%

10-Year

+143.50%

+9.31%

See

page

6

for

Performance

Summary

footnotes.

Franklin

Corefolio

Allocation

Fund

Performance

Summary

6

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Because

the

Fund

invests

in

underlying

funds

that

may

engage

in

a

variety

of

investment

strategies

involving

certain

risks,

this

fund

of

funds

may

be

subject

to

those

same

risks.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Growth

stock

prices

reflect

projections

of

future

earnings

or

revenues,

and

can

therefore

fall

dramatically

if

the

company

fails

to

meet

those

projections.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility,

and

political

or

social

instability;

risks

which

are

height-

ened

in

developing

countries.

The

Fund

includes

investments

in

specialized

industry

sectors

such

as

the

technology

sector,

which

has

been

among

the

most

volatile

in

the

market.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

2.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

3.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

Short-Term

Capital

Gain

Long-Term

Capital

Gain

Total

A

$0.0026

$0.0095

$1.4365

$1.4486

C

$0.0026

$0.0095

$1.4365

$1.4486

R

$0.0026

$0.0095

$1.4365

$1.4486

R6

$0.0026

$0.0095

$1.4365

$1.4486

Advisor

$0.0026

$0.0095

$1.4365

$1.4486

Total

Annual

Operating

Expenses

4

Share

Class

A

0.98%

Advisor

0.73%

Your

Fund’s

Expenses

Franklin

Corefolio

Allocation

Fund

7

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

06/30/

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expen

se

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$773.50

$1.79

$1,022.78

$2.04

0.41%

C

$1,000

$770.70

$5.08

$1,019.06

$5.79

1.16%

R

$1,000

$772.70

$2.89

$1,021.54

$3.29

0.66%

R6

$1,000

$774.50

$0.38

$1,024.37

$0.43

0.09%

Advisor

$1,000

$774.50

$0.69

$1,024.02

$0.79

0.16%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$24.42

$21.92

$20.04

$17.32

$19.68

$17.06

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.04)

0.22

0.12

0.20

0.17

0.17

Net

realized

and

unrealized

gains

(losses)

(5.48)

3.21

3.32

4.17

(1.51)

3.23

Total

from

investment

operations

........

(5.52)

3.43

3.44

4.37

(1.34)

3.40

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.22)

(0.18)

(0.20)

(0.15)

(0.18)

Net

realized

gains

.................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...................

(1.45)

(0.93)

(1.56)

(1.65)

(1.02)

(0.78)

Net

asset

value,

end

of

period

..........

$17.45

$24.42

$21.92

$20.04

$17.32

$19.68

Total

return

e

.......................

(22.65)%

15.76%

18.28%

25.79%

(7.10)%

20.07%

Ratios

to

average

net

assets

f

Expenses

g,h

........................

0.41%

0.42%

0.43%

0.44%

0.41%

0.47%

Net

investment

income

(loss)

..........

(0.41)%

0.91%

0.64%

1.02%

0.76%

0.90%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$697,528

$931,489

$812,250

$717,806

$593,983

$579,707

Portfolio

turnover

rate

................

—%

3.58%

9.29%

2.12%

3.94%

0.71%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$23.94

$21.57

$19.76

$17.10

$19.43

$16.85

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.12)

(0.01)

(0.03)

0.04

(0.10)

0.02

Net

realized

and

unrealized

gains

(losses)

(5.36)

3.20

3.25

4.12

(1.35)

3.19

Total

from

investment

operations

........

(5.48)

3.19

3.22

4.16

(1.45)

3.21

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.11)

(0.03)

(0.05)

(0.01)

(0.03)

Net

realized

gains

.................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...................

(1.45)

(0.82)

(1.41)

(1.50)

(0.88)

(0.63)

Net

asset

value,

end

of

period

..........

$17.01

$23.94

$21.57

$19.76

$17.10

$19.43

Total

return

e

.......................

(22.93)%

14.88%

17.41%

24.83%

(7.76)%

19.20%

Ratios

to

average

net

assets

f

Expenses

g,h

........................

1.16%

1.17%

1.18%

1.19%

1.16%

1.22%

Net

investment

income

(loss)

..........

(1.16)%

(0.05)%

(0.18)%

0.27%

0.01%

0.15%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$43,508

$61,517

$73,513

$75,745

$72,124

$170,218

Portfolio

turnover

rate

................

—%

3.58%

9.29%

2.12%

3.94%

0.71%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$24.42

$21.95

$20.07

$17.34

$19.68

$17.06

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.07)

0.16

0.07

0.14

0.10

0.12

Net

realized

and

unrealized

gains

(losses)

(5.47)

3.21

3.32

4.19

(1.48)

3.23

Total

from

investment

operations

........

(5.54)

3.37

3.39

4.33

(1.38)

3.35

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.19)

(0.13)

(0.15)

(0.09)

(0.13)

Net

realized

gains

.................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...................

(1.45)

(0.90)

(1.51)

(1.60)

(0.96)

(0.73)

Net

asset

value,

end

of

period

..........

$17.43

$24.42

$21.95

$20.07

$17.34

$19.68

Total

return

e

.......................

(22.73)%

15.46%

18.00%

25.51%

(7.30)%

19.79%

Ratios

to

average

net

assets

f

Expenses

g,h

........................

0.66%

0.66%

0.67%

0.67%

0.65%

0.72%

Net

investment

income

(loss)

..........

(0.66)%

0.68%

0.38%

0.79%

0.52%

0.65%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,449

$1,764

$1,498

$1,387

$1,412

$1,629

Portfolio

turnover

rate

................

—%

3.58%

9.29%

2.12%

3.94%

0.71%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

Year

Ended

December

31,

2017

a

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$24.52

$21.97

$20.07

$17.34

$19.67

$19.18

Income

from

investment

operations

b

:

Net

investment

income

(loss)

c

,d

........

(0.01)

0.30

0.21

0.70

0.27

0.26

Net

realized

and

unrealized

gains

(losses)

(5.51)

3.23

3.31

3.75

(1.52)

0.73

Total

from

investment

operations

........

(5.52)

3.53

3.52

4.45

(1.25)

0.99

Less

distributions

from:

Net

investment

income

..............

(—)

e

(0.27)

(0.24)

(0.27)

(0.21)

(0.25)

Net

realized

gains

.................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

(0.25)

Total

distributions

...................

(1.45)

(0.98)

(1.62)

(1.72)

(1.08)

(0.50)

Net

asset

value,

end

of

period

..........

$17.55

$24.52

$21.97

$20.07

$17.34

$19.67

Total

return

f

........................

(22.55)%

16.16%

18.69%

26.24%

(6.78)%

5.28%

Ratios

to

average

net

assets

g

Expenses

before

waiver

and

payments

by

affiliates

h

..........................

0.13%

0.13%

0.13%

0.12%

0.23%

3.47%

Expenses

net

of

waiver

and

payments

by

affiliates

h

..........................

0.09%

0.09%

0.09%

0.09%

0.09%

0.08%

Net

investment

income

(loss)

..........

(0.09)%

1.26%

1.05%

1.37%

1.08%

1.29%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,318

$5,349

$4,393

$3,385

$75

$5

Portfolio

turnover

rate

................

—%

3.58%

9.29%

2.12%

3.94%

0.71%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

e

Amount

rounds

to

less

than

$0.01

per

share.

f

Total

return

is

not

annualized

for

periods

less

than

one

year.

g

Ratios

are

annualized

for

periods

less

than

one

year.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2022.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$24.52

$21.98

$20.08

$17.35

$19.71

$17.08

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.02)

0.28

0.17

0.27

0.24

0.25

Net

realized

and

unrealized

gains

(losses)

(5.50)

3.22

3.34

4.16

(1.53)

3.21

Total

from

investment

operations

........

(5.52)

3.50

3.51

4.43

(1.29)

3.46

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(—)

d

(0.25)

(0.23)

(0.25)

(0.20)

(0.23)

Net

realized

gains

.................

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

(0.60)

Total

distributions

...................

(1.45)

(0.96)

(1.61)

(1.70)

(1.07)

(0.83)

Net

asset

value,

end

of

period

..........

$17.55

$24.52

$21.98

$20.08

$17.35

$19.71

Total

return

e

.......................

(22.55)%

16.05%

18.59%

26.10%

(6.85)%

20.40%

Ratios

to

average

net

assets

f

Expenses

g,h

........................

0.16%

0.17%

0.18%

0.19%

0.16%

0.22%

Net

investment

income

(loss)

..........

(0.16)%

1.16%

0.90%

1.27%

1.01%

1.15%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$51,727

$69,322

$61,166

$52,512

$40,399

$33,607

Portfolio

turnover

rate

................

—%

3.58%

9.29%

2.12%

3.94%

0.71%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.63%

for

the

period

ended

June

30,

2022.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

100.0%

Domestic

Equity

74.1%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,849,857

$

205,630,057

a,b

Franklin

Growth

Opportunities

Fund,

Class

R6

.............................

4,127,343

177,351,938

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

8,803,196

208,283,625

591,265,620

Foreign

Equity

25.9%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

10,012,514

207,158,911

Total

Investments

In

Underlying

Funds

(Cost

$620,589,400)

......................

798,424,531

a

a

a

a

Short

Term

Investments

0.0%

†

a

Money

Market

Funds

0.0%

†

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

..................

332,656

332,656

Total

Money

Market

Funds

(Cost

$332,656)

.....................................

332,656

Total

Short

Term

Investments

(Cost

$332,656

)

..................................

332,656

a

Total

Investments

(Cost

$620,922,056)

100.0%

..................................

$798,757,187

Other

Assets,

less

Liabilities

(0.0)%

†

..........................................

(226,963)

Net

Assets

100.0%

...........................................................

$798,530,224

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(e)

regarding

investments

in

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

Franklin

Corefolio

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Non-controlled

affiliates

(Not

e

3

e

)

........................................................

$620,922,056

Value

-

Non-controlled

affiliates

(Not

e

3

e

)

.......................................................

798,757,187

Cash

....................................................................................

341,946

Receivables:

Capital

shares

sold

........................................................................

209,484

Affiliates

................................................................................

190

Total

assets

..........................................................................

799,308,807

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

328,424

Administrative

fees

........................................................................

20,465

Distribution

fees

..........................................................................

186,829

Transfer

agent

fees

........................................................................

138,270

Reports

to

shareholders

fees

................................................................

77,606

Trustees'

fees

and

expenses

.................................................................

471

Accrued

expenses

and

other

liabilities

...........................................................

26,518

Total

liabilities

.........................................................................

778,583

Net

assets,

at

value

.................................................................

$798,530,224

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$631,426,762

Total

distributable

earnings

(losses)

.............................................................

167,103,462

Net

assets,

at

value

.................................................................

$798,530,224

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

Franklin

Corefolio

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$697,527,948

Shares

outstanding

........................................................................

39,976,886

Net

asset

value

per

share

a

..................................................................

$17.45

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$18.47

Class

C:

Net

assets,

at

value

.......................................................................

$43,508,037

Shares

outstanding

........................................................................

2,558,269

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$17.01

Class

R:

Net

assets,

at

value

.......................................................................

$1,449,113

Shares

outstanding

........................................................................

83,160

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.43

Class

R6:

Net

assets,

at

value

.......................................................................

$4,318,131

Shares

outstanding

........................................................................

246,041

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.55

Advisor

Class:

Net

assets,

at

value

.......................................................................

$51,726,995

Shares

outstanding

........................................................................

2,948,009

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$17.55

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

Franklin

Corefolio

Allocation

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

e

)

.............................................................

$99

Expenses:

Administrative

fees

(Note

3

a

)

..................................................................

139,058

Distribution

fees:

(Note

3b

)

    Class

A

................................................................................

1,010,384

    Class

C

................................................................................

259,627

    Class

R

................................................................................

3,955

Transfer

agent

fees:

(Note

3d

)

    Class

A

................................................................................

407,302

    Class

C

................................................................................

26,189

    Class

R

................................................................................

796

    Class

R6

...............................................................................

1,693

    Advisor

Class

............................................................................

30,488

Reports

to

shareholders

fees

..................................................................

33,295

Registration

and

filing

fees

....................................................................

49,139

Professional

fees

...........................................................................

23,645

Trustees'

fees

and

expenses

..................................................................

5,019

Other

....................................................................................

9,461

Total

expenses

.........................................................................

2,000,051

Expenses

waived/paid

by

affiliates

(Note

3

e

and

3

f

)

..............................................

(1,241)

Net

expenses

.........................................................................

1,998,810

Net

investment

income

(loss)

............................................................

(1,998,711)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

(2,682,667)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

(234,703,879)

Net

realized

and

unrealized

gain

(loss)

............................................................

(237,386,546)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(239,385,257)

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

17

Franklin

Corefolio

Allocation

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(1,998,711)

$8,873,032

Net

realized

gain

(loss)

.................................................

(2,682,667)

64,733,784

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(234,703,879)

74,393,496

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(239,385,257)

148,000,312

Distributions

to

shareholders:

Class

A

.............................................................

(53,837,133)

(34,555,673)

Class

C

.............................................................

(3,448,107)

(2,539,442)

Class

R

.............................................................

(110,722)

(60,862)

Class

R6

............................................................

(331,023)

(205,264)

Advisor

Class

........................................................

(4,022,656)

(2,654,270)

Total

distributions

to

shareholders

..........................................

(61,749,641)

(40,015,511)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

28,501,049

26,878,506

Class

C

.............................................................

(939,911)

(19,916,298)

Class

R

.............................................................

206,143

104,207

Class

R6

............................................................

502,405

436,233

Advisor

Class

........................................................

1,954,046

1,134,411

Total

capital

share

transactions

............................................

30,223,732

8,637,059

Net

increase

(decrease)

in

net

assets

...................................

(270,911,166)

116,621,860

Net

assets:

Beginning

of

period

.....................................................

1,069,441,390

952,819,530

End

of

period

..........................................................

$798,530,224

$1,069,441,390

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

Franklin

Corefolio

Allocation

Fund

18

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Corefolio

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

invests

in

affiliated

mutual

funds

managed

by

Franklin

Templeton

(Underlying

Funds).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Fund

’

s

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The

Fund's

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

Fund

calculates

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

Fund’s

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The

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

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

gain

distributions

by

Underlying

Funds

are

recorded

on

the

ex-dividend

date.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

19

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Fund

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Fund

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

d.

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.

e.

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.

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

1,442,677

$31,043,877

4,582,765

$108,949,626

Shares

issued

in

reinvestment

of

distributions

..........

3,008,564

52,829,991

1,406,638

33,873,395

Shares

redeemed

...............................

(2,615,862)

(55,372,819)

(4,902,459)

(115,944,515)

Net

increase

(decrease)

..........................

1,835,379

$28,501,049

1,086,944

$26,878,506

Class

C

Shares:

Shares

sold

...................................

189,110

$4,043,430

524,039

$12,070,571

Shares

issued

in

reinvestment

of

distributions

..........

199,480

3,415,079

107,106

2,519,810

Shares

redeemed

a

..............................

(399,960)

(8,398,420)

(1,469,878)

(34,506,679)

Net

increase

(decrease)

..........................

(11,370)

$(939,911)

(838,733)

$(19,916,298)

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

20

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

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

Fund

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Administrative

Fees

The

Fund

pays

an

administrative

fee

to

FT

Services

of

0.03%

per

year

of

the

average

daily

net

assets

of

the

Fund

for

administrative

services

including

monitoring

and

rebalancing

the

percentage

of

the

Fund's

investment

in

the

Underlying

Funds.

b.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

R

Shares:

Shares

sold

...................................

4,949

$103,275

13,272

$312,763

Shares

issued

in

reinvestment

of

distributions

..........

6,313

110,722

2,528

60,861

Shares

redeemed

...............................

(351)

(7,854)

(11,787)

(269,417)

Net

increase

(decrease)

..........................

10,911

$206,143

4,013

$104,207

Class

R6

Shares:

Shares

sold

...................................

26,536

$537,836

18,249

$435,971

Shares

issued

in

reinvestment

of

distributions

..........

17,874

315,654

8,245

199,489

Shares

redeemed

...............................

(16,573)

(351,085)

(8,265)

(199,227)

Net

increase

(decrease)

..........................

27,837

$502,405

18,229

$436,233

Advisor

Class

Shares:

Shares

sold

...................................

181,065

$3,904,063

478,215

$11,337,921

Shares

issued

in

reinvestment

of

distributions

..........

204,855

3,617,703

98,555

2,384,542

Shares

redeemed

...............................

(265,312)

(5,567,720)

(532,535)

(12,588,052)

Net

increase

(decrease)

..........................

120,608

$1,954,046

44,235

$1,134,411

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

21

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31. 

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

c.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

d.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2022,

the

Fund

paid

transfer

agent

fees

of

$466,468,

of

which

$308,447

was

retained

by

Investor

Services.

e.

Investments

in

Underlying

Funds

The Fund

invests in Underlying

Funds

which

are

managed

by

Advisers,

an

affiliate

of

FT

Services

or

by

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Fund

does

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

Underlying

Funds

for

the

period

ended

June

30,

2022,

were

as

follows:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$57,118

CDSC

retained

..............................................................................

$1,878

3.

Transactions

with

Affiliates

(continued)

b.

Distribution

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

22

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

4.

Income

Taxes

At

June

30,

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

treatments

of

short

term

capital

gains

distributions

from

Underlying

Funds

and

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$—

and

$33,062,790,

respectively.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Corefolio

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Growth

Fund,

Class

R6

.

$

281,944,606

$

—

$

(1,943,688)

$

(180,384)

$

(74,190,477)

$

205,630,057

1,849,857

$

—

Franklin

Growth

Opportunities

Fund,

Class

R6

............

273,136,240

—

(1,811,132)

(358,065)

(93,615,105)

177,351,938

4,127,343

—

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

266,876,929

—

(26,867,297)

(2,006,236)

(29,719,771)

208,283,625

8,803,196

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

1

9,171,783

(8,839,128)

—

—

332,656

332,656

99

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

246,916,091

—

(2,440,672)

(137,982)

(37,178,526)

207,158,911

10,012,514

—

Total

Non-Controlled

Affiliates

$1,068,873,867

$9,171,783

$(41,901,917)

$(2,682,667)

$(234,703,879)

$798,757,187

$99

Total

Affiliated

Securities

....

$1,068,873,867

$9,171,783

$(41,901,917)

$(2,682,667)

$(234,703,879)

$798,757,187

$99

Cost

of

investments

..........................................................................

$626,963,212

Unrealized

appreciation

........................................................................

$184,958,102

Unrealized

depreciation

........................................................................

(13,164,127)

Net

unrealized

appreciation

(depreciation)

..........................................................

$171,793,975

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

23

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

6.

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

Fund

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.

7.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

8.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

9.

Fair

Value

Measurements

The Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund’s

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Fund’s 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 Fund’s

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.

At

June

30,

2022,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

10.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Franklin

Fund

Allocator

Series

Shareholder

Information

24

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Franklin

Fund

Allocator

Series

Shareholder

Information

25

franklintempleton.com

Semiannual

Report

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

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Householding

of

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and

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You

will

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or

receive

notice

of

the

availability

of,

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financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

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expenses,

we

try

to

identify

related

shareholders

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a

household

and

send

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“householding,”

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reports

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470

S

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fund’s

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goals,

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A

prospectus

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please

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Semiannual

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and

Shareholder

Letter

Franklin

Corefolio

Allocation

Fund

Fund

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Distributor

Shareholder

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Franklin

Templeton

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LLC

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LLC

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SEMIANNUAL

REPORT

AND

SHAREHOLDER

LETTER

Franklin

Global

Allocation

Fund

A

Series

of

Franklin

Fund

Allocator

Series

June

30,

2022

Sign

up

for

electronic

delivery

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franklintempleton.com

Semiannual

Report

1

Shareholder

Letter

Dear

Shareholder:

During

the

six

months

ended

June

30,

2022,

the

U.S.

economy

showed

progress

as

it

continued

to

recover

from

the

COVID-19

pandemic

amid

declining

unemployment,

rising

wages

and

increased

consumer

expenditures.

The

U.S.

economy

contracted

in

2022’s

first

quarter

given

a

record

trade

deficit

and

a

decline

in

inventory

investment,

while

consumer

spending

expanded

more

slowly,

helped

by

the

reopening

of

businesses,

widespread

vaccinations

and

federal

assistance

programs.

Inflation

increased

during

the

six-month

period,

influenced

by

pandemic-related

supply

chain

issues,

higher

energy

prices,

Russia’s

invasion

of

Ukraine

and

broader

price

pressures.

During

the

first

half

of

this

period,

the

U.S.

Federal

Reserve

continued

some

quantitative

easing

measures

to

bolster

credit

markets

and

encourage

economic

activity.

However,

to

support

its

goals

to

maximize

employment

and

return

long-

term

annual

inflation

to

2%,

the

Federal

Reserve

continued

reversing

its

quantitative

easing

measures,

increasing

its

monthly

asset

purchase

tapering

and

ending

purchases

by

March

2022.

The

Federal

Reserve

also

raised

the

federal

funds

rate

by

0.25%

in

March,

0.50%

in

May

and

0.75%

in

June,

for

a

total

of

1.50%,

increasing

the

rate

from

0.25%

to

1.75%

during

the

period.

Additionally,

the

Federal

Reserve

stated

its

intention

to

continue

reducing

its

U.S.

Treasury,

government

agency

debt

and

mortgage-backed

securities

holdings,

and

reiterated

its

anticipation

of

ongoing

increases

to

combat

inflation.

Resilient

consumer

demand

together

with

persistent

supply-

chain

disruptions

contributed

to

higher

inflation

in

numerous

countries,

and

many

central

banks

tightened

monetary

policy.

China

imposed

new

lockdowns

to

mitigate

the

spread

of

COVID-19,

which

pressured

Asian

and

global

emerging

market

stocks.

International

sanctions

on

Russia

in

response

to

its

invasion

of

Ukraine

hindered

companies

doing

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

this

environment,

the

prices

of

U.S.

stocks,

as

measured

by

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

returned

-20.58%

(the

index

decreasing

from

4,766.18

to

3,785.38).

1,3

The

prices

of

stocks

in

global

developed

markets,

as

measured

by

the

MSCI

World

Index,

returned

-21.21%

(the

index

decreasing

from

3,231.727

to

2,546.185).

2,3

Investment-grade

bonds,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index

(Bloomberg

Index),

posted

a

-10.35%

total

return

(an

index

decrease

from

2,355.14

to

2,111.40),

which

includes

reinvestment

of

income

and

distributions,

reflecting

the

rise

in

interest

rates.

4

We

recognize

the

important

role

of

financial

professionals

in

today’s

markets

and

encourage

investors

to

continue

to

seek

their

advice.

Amid

changing

markets

and

economic

conditions,

we

are

confident

investors

with

a

well-diversified

portfolio

and

a

patient,

long-term

outlook

should

be

well

positioned

for

the

years

ahead.

In

addition,

Franklin

Global

Allocation

Fund’s

semiannual

report

includes

more

detail

about

investment

decisions

during

the

period.

All

securities

markets

fluctuate

in

value,

as

do

mutual

fund

share

prices.

We

thank

you

for

investing

with

Franklin,

welcome

your

questions

and

comments,

and

look

forward

to

serving

your

future

investment

needs.

Sincerely,

Rupert

H.

Johnson,

Jr.

Chairman

Franklin

Global

Allocation

Fund

This

letter

reflects

our

analysis

and

opinions

as

of

June

30,

2022,

unless

otherwise

indicated.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

fund.

Statements

of

fact

are

from

sources

considered

reliable.

1.

Source:

Copyright

©

2022,

S&P

Dow

Jones

Indices

LLC.

All

rights

reserved.

2.

Source:

MSCI.

3.

Source:

Morningstar.

The

changes

in

index

prices

shown

for

the

S&P

500

and

MSCI

World

Index

do

not

include

reinvestments

of

income

and

distributions,

which

are

included

in

their

total

returns,

which

were:

S&P

500

-19.96%

(index

total

return

resulting

in

a

decrease

from

9,986.70

to

7,993.43)

and

MSCI

World

Index

-20.29%

(index

total

return

resulting

in

a

decrease

from

14,223.137

to

11,337.724).

4.

Sources:

Morningstar

and

Bloomberg

indexes.

For

the

Bloomberg

Index,

only

total

return

as

shown

is

available,

not

price

change

without

the

inclusion

of

reinvested

income

and

distributions.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

franklintempleton.com

Semiannual

Report

2

Contents

Semiannual

Report

Franklin

Global

Allocation

Fund

3

Performance

Summary

6

Your

Fund’s

Expenses

8

Financial

Highlights

and

Schedule

of

Investments

9

Financial

Statements

24

Notes

to

Financial

Statements

28

Shareholder

Information

40

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

3

franklintempleton.com

Semiannual

Report

SEMIANNUAL

REPORT

Franklin

Global

Allocation

Fund

This

semiannual

report

for

Franklin

Global

Allocation

Fund

covers

the

period

ended

June

30,

2022.

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

that

is

consistent

with

an

acceptable

level

of

risk.

Under

normal

market

conditions,

the

Fund

invests

in

a

diversified

portfolio

of

debt

and

equity

securities

and,

to

a

lesser

extent,

alternative

strategies.

*Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

SOI,

which

can

be

found

later

in

this

report.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

-12.59%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

primary

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

-20.18%

cumulative

total

return.

1

The

Fund’s

Custom

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents

(Blended

Benchmark)

posted

a

-16.34%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

6

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Economic

and

Market

Overview

Global

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

ACWI-NR,

posted

a

-20.18%

total

return

for

the

six

months

ended

June

30,

2022.

1

The

combination

of

resilient

consumer

demand

and

persistent

supply-chain

disruptions

contributed

to

higher

inflation

in

many

countries.

This

inflationary

pressure

led

many

of

the

world’s

central

banks

to

adopt

less

accommodative

stances

regarding

monetary

policy.

The

Chinese

government’s

imposition

of

new

lockdowns

to

quell

the

spread

of

the

Omicron

variant

of

COVID-19

pressured

Asian

and

global

emerging

market

stocks.

Russia’s

invasion

of

Ukraine

also

increased

investor

uncertainty,

as

international

sanctions

on

Russia

constrained

companies

that

do

business

with

Russia

and

disrupted

global

economic

activity

and

commodity

markets.

In

the

U.S.,

gross

domestic

product

(GDP)

growth

turned

negative

in

the

first

quarter

of

2022

as

high

inflation,

supply

constraints

and

record

trade

deficits

weighed

on

the

economy.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

would

continue

to

reduce

its

bond

holdings,

and

Portfolio

Composition

6/30/22

%

of

Total

Net

Assets

Diversified

Financial

Services

17.1%

Capital

Markets

10.3%

Banks

7.1%

Pharmaceuticals

4.9%

Oil,

Gas

&

Consumable

Fuels

3.8%

Semiconductors

&

Semiconductor

Equipment

3.7%

Software

3.6%

Metals

&

Mining

2.8%

Interactive

Media

&

Services

2.3%

Electric

Utilities

2.2%

Specialty

Retail

2.1%

Insurance

2.0%

Technology

Hardware,

Storage

&

Peripherals

1.6%

Industrial

Conglomerates

1.6%

Other*

27.6%

Short-Term

Investments

&

Other

Net

Assets

7.3%

1.

Source:

Morningstar.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

2.

Source:

FactSet.

The

Blended

Benchmark

was

calculated

internally.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

14

.

Franklin

Global

Allocation

Fund

4

franklintempleton.com

Semiannual

Report

anticipated

instituting

further

interest

rate

increases

at

future

meetings.

Economic

growth

in

the

eurozone

maintained

a

slow

rate

in

the

first

quarter

of

2022

as

the

war

in

Ukraine

disrupted

supply

chains,

sent

commodity

prices

higher,

and

weakened

the

economic

outlook.

The

war

in

Ukraine

contributed

to

record

high

inflation

across

the

eurozone

as

commodity

and

oil

prices

soared.

The

European

Central

Bank

indicated

it

will

raise

interest

rates

in

July,

the

first

increase

in

more

than

a

decade,

to

fight

growing

inflation.

In

this

environment,

European

developed

market

equities,

as

measured

by

the

MSCI

Europe

Index-NR,

posted

a

-20.79%

total

return

for

the

six

months

under

review.

1

Asian

developed

and

emerging

market

equities,

as

measured

by

the

MSCI

All

Country

Asia

Index-NR,

posted

a

-17.69%

total

return

for

the

six-month

period.

1

While

many

Asian

countries

experienced

improving

economic

conditions,

Japan’s

GDP

contracted

in

the

first

quarter

of

2022

after

having

returned

to

growth

in

the

fourth

quarter

of

2021.

Although

China’s

economy

continued

to

grow,

it

was

pressured

by

coronavirus-related

restrictions

and

government

measures

to

limit

real

estate

speculation.

Unexpected

regulatory

changes

by

the

Chinese

government,

which

negatively

impacted

education-

and

technology-

related

businesses,

and

investor

concerns

about

the

solvency

of

several

large

Chinese

property

developers

further

pressured

Chinese

stocks.

Global

emerging

market

stocks,

as

measured

by

the

MSCI

Emerging

Markets

Index-NR,

posted

a

-17.63%

total

return

for

the

six

months

under

review.

1

Following

Russia’s

invasion

of

Ukraine,

climbing

food

and

energy

prices

kindled

inflationary

pressures

and

raised

concerns

over

the

possibility

of

government

debt

defaults

in

some

countries.

Meanwhile,

some

countries,

particularly

in

Latin

America,

as

well

as

South

Africa

and

Saudi

Arabia,

have

benefited

from

the

rising

commodity

prices.

Investment

Strategy

The

equity

securities

in

which

the

Fund

invests

are

primarily

common

stock

of

companies

in

any

economic

sector

or

market

capitalization.

The

debt

securities

in

which

the

Fund

may

invest

include

all

varieties

of

fixed,

floating

and

variable

rate

instruments.

Bond

investments

may

include

U.S.

and

foreign

corporate

debt,

U.S.

Treasuries

and

foreign

government

bonds.

The

Fund

will

invest

no

more

than

15%

of

its

assets

in

alternative

strategies,

which

may

include

investments

that

provide

exposure

to

commodities

such

as

commodity

future

and

commodity

exchange

traded

funds

(ETFs).

Manager’s

Discussion

The

asset

allocation

of

the

Fund

moved

towards

fixed

income

in

the

first

half

of

2022.

The

Fund

ended

the

period

with

31.4%

in

fixed

income

securities

versus

27.4%

at

the

beginning

of

the

year.

The

Fund’s

equity

positions

were

61.4%

at

the

end

of

the

period

versus

68.3%

at

the

beginning

of

the

period.

Additionally,

the

Fund

held

7.3%

in

cash

equivalents.

For

the

period

under

review,

equities

and

fixed

income

detracted

from

absolute

returns,

while

foreign

exchange

positions

contributed

to

absolute

returns.

On

a

sector

basis,

nine

out

of

11

equity

sectors

detracted

from

absolute

performance,

with

holdings

in

the

information

technology

(IT),

consumer

discretionary

and

financials

sectors

detracting

the

most,

while

health

care

and

energy

sector

holdings

contributed.

In

fixed

income,

government

bonds

were

the

largest

detractor

from

absolute

returns.

The

top

equity

contributors

to

absolute

returns

in

the

period

included

Chevron,

AbbVie,

AstraZeneca,

Bristol-Myers

Squibb

and

Canadian

Natural

Resources.

The

largest

detractors

were

holdings

in

iShares

Core

MSCI

Emerging

Markets

ETF,

Amazon.com,

Meta

Platforms,

JPMorgan

Chase

and

Microsoft.

The

largest

fixed

income

detractors

included

holdings

in

U.S.

Treasuries

and

Japanese

government

bonds.

On

a

relative

basis

versus

our

custom

Blended

Benchmark

(60%

MSCI

ACWI-NR,

30%

Bloomberg

Global

Aggregate

Bond

Index

and

10%

cash

and

cash

equivalents),

outperformance

was

driven

by

equities,

foreign

exchange

and

fixed

income,

with

a

small

detraction

from

our

cash

holdings.

Holdings

in

the

health

care,

IT

and

communication

services

sectors

contributed

the

most

to

relative

returns

in

equities,

while

financials

holdings

detracted.

Thank

you

for

your

continued

participation

in

Franklin

Global

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Edward

D.

Perks,

CFA

Todd

Brighton,

CFA

Eugene

Podkaminer,

CFA

Portfolio

Management

Team

Franklin

Global

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

30,

2022,

the

end

of

the

reporting

period.

The

way

we

implement

our

main

investment

strategies

and

the

resulting

portfolio

holdings

may

change

depending

on

factors

such

as

market

and

economic

conditions.

These

opinions

may

not

be

relied

upon

as

investment

advice

or

an

offer

for

a

particular

security.

The

information

is

not

a

complete

analysis

of

every

aspect

of

any

market,

country,

industry,

security

or

the

Fund.

Statements

of

fact

are

from

sources

considered

reliable,

but

the

investment

manager

makes

no

representation

or

warranty

as

to

their

completeness

or

accuracy.

Although

historical

performance

is

no

guarantee

of

future

results,

these

insights

may

help

you

understand

our

investment

management

philosophy.

Performance

Summary

as

of

June

30,

2022

Franklin

Global

Allocation

Fund

6

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/22

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

-12.59%

-17.40%

1-Year

-8.62%

-13.63%

5-Year

+9.99%

+0.78%

10-Year

+75.24%

+5.17%

Advisor

6-Month

-12.45%

-12.45%

1-Year

-8.37%

-8.37%

5-Year

+11.41%

+2.18%

10-Year

+79.77%

+6.04%

See

page

7

for

Performance

Summary

footnotes.

Franklin

Global

Allocation

Fund

Performance

Summary

7

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

All

investments

involve

risks,

including

possible

loss

of

principal.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

Bonds

are

affected

by

changes

in

interest

rates

and

the

creditworthiness

of

their

issu-

ers.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Thus,

as

the

prices

of

bonds

adjust

to

a

rise

in

interest

rates,

the

Fund’s

share

price

may

decline.

Higher-yielding,

lower-rated

corporate

bonds

entail

a

greater

degree

of

credit

risk

compared

to

investment-grade

securities.

Value

securities

may

not

increase

in

price

as

anticipated

or

may

decline

further

in

value.

Foreign

investing

carries

additional

risks

such

as

currency

and

market

volatility

and

political

or

social

instability,

risks

which

are

heightened

in

developing

countries.

To

the

extent

the

Fund

focuses

on

particular

countries,

regions,

industries,

sectors

or

types

of

investments

from

time

to

time,

it

may

be

subject

to

greater

risks

of

adverse

developments

in

such

areas

of

focus

than

a

fund

that

invests

in

a

wider

variety

of

countries,

regions,

industries,

sectors

or

investments.

In

addition

to

risks

associated

with

more

traditional

investments

(e.g.,

market

risk,

credit

risk,

etc.),

the

Fund’s

investments

in

alternative

strategies

may

expose

the

Fund

to

potentially

significant

fluctuations

in

value.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

Russia’s

military

invasion

of

Ukraine

in

February

2022,

the

resulting

responses

by

the

United

States

and

other

countries,

and

the

potential

for

wider

conflict

could

increase

volatility

and

uncertainty

in

the

financial

markets

and

adversely

affect

regional

and

global

economies.

The

United

States

and

other

countries

have

im-

posed

broad-ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia’s

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

1.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Effective

2/1/21,

the

Fund

repositioned

from

investing

in

a

static

allocation

of

underlying

funds

(which

invested

primarily

in

U.S.

and

foreign

equity

securities)

to

become

a

directly

managed

allocation

fund

holding

a

diversified

portfolio

of

debt

and

equity

securities

and,

to

a

lesser

extent,

alternative

strategies.

Such

a

change

can

impact

perfor-

mance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/22–6/30/22)

Share

Class

Net

Investment

Income

A

$0.3176

C

$0.2664

R

$0.2973

R6

$0.3385

Advisor

$0.3338

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.98%

1.07%

Advisor

0.73%

0.82%

Your

Fund’s

Expenses

Franklin

Global

Allocation

Fund

8

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$874.10

$4.23

$1,020.28

$4.56

0.91%

C

$1,000

$871.30

$7.70

$1,016.56

$8.30

1.66%

R

$1,000

$873.10

$5.39

$1,019.04

$5.81

1.16%

R6

$1,000

$875.50

$2.75

$1,021.86

$2.97

0.59%

Advisor

$1,000

$875.50

$3.07

$1,021.52

$3.31

0.66%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.95

$13.49

$14.43

$12.63

$14.54

$13.47

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.13

0.19

c

0.34

c

0.42

c

0.41

c

0.40

c

Net

realized

and

unrealized

gains

(losses)

(2.01)

1.39

(0.27)

1.82

(1.82)

1.10

Total

from

investment

operations

........

(1.88)

1.58

0.07

2.24

(1.41)

1.50

Less

distributions

from:

Net

investment

income

..............

(0.32)

(0.12)

(0.47)

(0.44)

(0.50)

(0.43)

Net

realized

gains

.................

—

—

(0.54)

—

—

—

Total

distributions

...................

(0.32)

(0.12)

(1.01)

(0.44)

(0.50)

(0.43)

Net

asset

value,

end

of

period

..........

$12.75

$14.95

$13.49

$14.43

$12.63

$14.54

Total

return

d

.......................

(12.59)%

11.74%

1.55%

17.81%

(9.82)%

11.20%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.95%

0.94%

f

0.42%

f

0.40%

f

0.39%

f

0.43%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.91%

0.88%

f,g

0.42%

f,h

0.40%

f,h

0.39%

f,h

0.43%

f,h

Net

investment

income

...............

1.83%

1.33%

c

2.73%

c

2.99%

c

2.66%

c

2.81%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,511,261

$3,006,324

$2,952,287

$3,397,662

$3,209,751

$3,300,005

Portfolio

turnover

rate

................

5.43%

97.19%

i

4.07%

0.29%

0.73%

0.48%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.79

$13.40

$14.33

$12.54

$14.33

$13.27

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.07

0.08

c

0.23

c

0.29

c

0.18

c

0.28

c

Net

realized

and

unrealized

gains

(losses)

(1.97)

1.38

(0.26)

1.82

(1.67)

1.10

Total

from

investment

operations

........

(1.90)

1.46

(0.03)

2.11

(1.49)

1.38

Less

distributions

from:

Net

investment

income

..............

(0.27)

(0.07)

(0.36)

(0.32)

(0.30)

(0.32)

Net

realized

gains

.................

—

—

(0.54)

—

—

—

Total

distributions

...................

(0.27)

(0.07)

(0.90)

(0.32)

(0.30)

(0.32)

Net

asset

value,

end

of

period

..........

$12.62

$14.79

$13.40

$14.33

$12.54

$14.33

Total

return

d

.......................

(12.87)%

10.89%

0.79%

16.91%

(10.54)%

10.43%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.70%

1.68%

f

1.17%

f

1.15%

f

1.14%

f

1.18%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.66%

1.62%

f,g

1.17%

f,h

1.15%

f,h

1.14%

f,h

1.18%

f,h

Net

investment

income

...............

1.06%

0.58%

c

1.85%

c

2.24%

c

1.91%

c

2.06%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$99,353

$131,347

$201,506

$300,699

$362,833

$1,261,997

Portfolio

turnover

rate

................

5.43%

97.19%

i

4.07%

0.29%

0.73%

0.48%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$14.99

$13.54

$14.48

$12.68

$14.58

$13.49

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.11

0.15

c

0.31

c

0.37

c

0.34

c

0.34

c

Net

realized

and

unrealized

gains

(losses)

(2.01)

1.40

(0.28)

1.83

(1.78)

1.13

Total

from

investment

operations

........

(1.90)

1.55

0.03

2.20

(1.44)

1.47

Less

distributions

from:

Net

investment

income

..............

(0.30)

(0.10)

(0.43)

(0.40)

(0.46)

(0.38)

Net

realized

gains

.................

—

—

(0.54)

—

—

—

Total

distributions

...................

(0.30)

(0.10)

(0.97)

(0.40)

(0.46)

(0.38)

Net

asset

value,

end

of

period

..........

$12.79

$14.99

$13.54

$14.48

$12.68

$14.58

Total

return

d

.......................

(12.69)%

11.50%

1.28%

17.44%

(10.01)%

10.97%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.20%

1.19%

f

0.67%

f

0.65%

f

0.64%

f

0.68%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.16%

1.13%

f,g

0.67%

f,h

0.65%

f,h

0.64%

f,h

0.68%

f,h

Net

investment

income

...............

1.57%

1.08%

c

2.47%

c

2.74%

c

2.41%

c

2.56%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,913

$5,229

$4,975

$5,699

$5,513

$7,843

Portfolio

turnover

rate

................

5.43%

97.19%

i

4.07%

0.29%

0.73%

0.48%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.43

$13.89

$14.81

$12.95

$14.62

$14.46

Income

from

investment

operations

b

:

Net

investment

income

c

.............

0.16

0.25

d

0.96

d

0.46

d

0.37

d

0.30

d

Net

realized

and

unrealized

gains

(losses)

(2.08)

1.43

(0.83)

1.88

(1.75)

0.06

Total

from

investment

operations

........

(1.92)

1.68

0.13

2.34

(1.38)

0.36

Less

distributions

from:

Net

investment

income

..............

(0.34)

(0.14)

(0.51)

(0.48)

(0.29)

(0.20)

Net

realized

gains

.................

—

—

(0.54)

—

—

—

Total

distributions

...................

(0.34)

(0.14)

(1.05)

(0.48)

(0.29)

(0.20)

Net

asset

value,

end

of

period

..........

$13.17

$15.43

$13.89

$14.81

$12.95

$14.62

Total

return

e

.......................

(12.45)%

12.14%

1.94%

18.18%

(9.57)%

2.56%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.66%

0.67%

g

0.21%

g

3.23%

g

0.08%

g

4.28%

g

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.59%

0.54%

g,h

0.07%

g

0.07%

g

0.07%

g

0.06%

g

Net

investment

income

...............

2.19%

1.69%

d

7.33%

d

3.32%

d

2.98%

d

3.18%

d

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$726

$573

$631

$5

$4

$5

Portfolio

turnover

rate

................

5.43%

97.19%

i

4.07%

0.29%

0.73%

0.48%

a

For

the

period

August

1,

2017

(effective

date)

to

December

31,

2017.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.07

$13.58

$14.52

$12.71

$14.63

$13.54

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.23

c

0.37

c

0.45

c

0.43

c

0.46

c

Net

realized

and

unrealized

gains

(losses)

(2.03)

1.40

(0.27)

1.83

(1.81)

1.10

Total

from

investment

operations

........

(1.88)

1.63

0.10

2.28

(1.38)

1.56

Less

distributions

from:

Net

investment

income

..............

(0.33)

(0.14)

(0.50)

(0.47)

(0.54)

(0.47)

Net

realized

gains

.................

—

—

(0.54)

—

—

—

Total

distributions

...................

(0.33)

(0.14)

(1.04)

(0.47)

(0.54)

(0.47)

Net

asset

value,

end

of

period

..........

$12.86

$15.07

$13.58

$14.52

$12.71

$14.63

Total

return

d

.......................

(12.45)%

12.01%

1.79%

18.06%

(9.60)%

11.58%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.70%

0.69%

f

0.17%

f

0.15%

f

0.14%

f

0.18%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.66%

0.63%

f,g

0.17%

f,h

0.15%

f,h

0.14%

f,h

0.18%

f,h

Net

investment

income

...............

2.10%

1.58%

c

2.89%

c

3.24%

c

2.91%

c

3.06%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$107,462

$122,896

$123,049

$156,275

$145,522

$174,219

Portfolio

turnover

rate

................

5.43%

97.19%

i

4.07%

0.29%

0.73%

0.48%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

w

hich

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

Global

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

58.4%

Aerospace

&

Defense

0.6%

Raytheon

Technologies

Corp.

............................

United

States

180,000

$

17,299,800

Air

Freight

&

Logistics

0.8%

Deutsche

Post

AG

.....................................

Germany

260,000

9,816,132

United

Parcel

Service,

Inc.,

B

............................

United

States

64,600

11,792,084

21,608,216

Automobiles

0.9%

Mercedes-Benz

Group

AG

..............................

Germany

115,000

6,678,693

Toyota

Motor

Corp.

....................................

Japan

1,137,000

17,539,889

24,218,582

Banks

4.5%

Banco

Bilbao

Vizcaya

Argentaria

SA

.......................

Spain

2,970,000

13,490,820

Bank

of

America

Corp.

.................................

United

States

530,600

16,517,578

Citigroup,

Inc.

........................................

United

States

207,100

9,524,529

Commonwealth

Bank

of

Australia

.........................

Australia

175,000

10,934,187

HSBC

Holdings

plc

....................................

United

Kingdom

1,470,000

9,601,230

JPMorgan

Chase

&

Co.

.................................

United

States

275,300

31,001,533

Royal

Bank

of

Canada

.................................

Canada

118,000

11,425,979

US

Bancorp

.........................................

United

States

419,000

19,282,380

121,778,236

Beverages

1.0%

Coca-Cola

Co.

(The)

...................................

United

States

101,400

6,379,074

Constellation

Brands,

Inc.,

A

.............................

United

States

32,300

7,527,838

PepsiCo,

Inc.

........................................

United

States

75,500

12,582,830

26,489,742

Biotechnology

1.1%

AbbVie,

Inc.

.........................................

United

States

189,000

28,947,240

Building

Products

0.2%

Trane

Technologies

plc

.................................

United

States

50,300

6,532,461

Capital

Markets

1.3%

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

82,000

4,055,388

Morgan

Stanley

.......................................

United

States

244,600

18,604,276

S&P

Global,

Inc.

......................................

United

States

33,700

11,358,922

34,018,586

Chemicals

0.7%

BASF

SE

...........................................

Germany

177,000

7,743,778

Linde

plc

............................................

United

Kingdom

44,000

12,651,320

20,395,098

Communications

Equipment

0.2%

Cisco

Systems,

Inc.

...................................

United

States

112,500

4,797,000

Diversified

Telecommunication

Services

0.6%

Verizon

Communications,

Inc.

............................

United

States

311,500

15,808,625

Electric

Utilities

2.1%

Duke

Energy

Corp.

....................................

United

States

214,000

22,942,940

Iberdrola

SA

.........................................

Spain

1,083,766

11,282,996

NextEra

Energy,

Inc.

...................................

United

States

132,000

10,224,720

Southern

Co.

(The)

....................................

United

States

184,000

13,121,040

57,571,696

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electrical

Equipment

0.4%

Mitsubishi

Electric

Corp.

................................

Japan

1,132,600

$

12,172,250

Electronic

Equipment,

Instruments

&

Components

0.4%

TE

Connectivity

Ltd.

...................................

Switzerland

93,000

10,522,950

Entertainment

0.9%

Electronic

Arts,

Inc.

....................................

United

States

87,000

10,583,550

Nintendo

Co.

Ltd.

.....................................

Japan

32,100

13,802,269

24,385,819

Equity

Real

Estate

Investment

Trusts

(REITs)

1.1%

American

Tower

Corp.

..................................

United

States

61,500

15,718,785

Prologis,

Inc.

.........................................

United

States

110,000

12,941,500

28,660,285

Food

&

Staples

Retailing

0.2%

Walmart,

Inc.

........................................

United

States

54,200

6,589,636

Food

Products

0.9%

Mondelez

International,

Inc.,

A

............................

United

States

148,500

9,220,365

Nestle

SA

...........................................

United

States

137,641

16,089,012

25,309,377

Health

Care

Equipment

&

Supplies

0.5%

Medtronic

plc

........................................

United

States

153,900

13,812,525

Health

Care

Providers

&

Services

1.2%

Elevance

Health,

Inc.

..................................

United

States

23,400

11,292,372

UnitedHealth

Group,

Inc.

................................

United

States

40,000

20,545,200

31,837,572

Hotels,

Restaurants

&

Leisure

0.5%

McDonald's

Corp.

.....................................

United

States

53,000

13,084,640

Household

Durables

0.6%

Sony

Group

Corp.

.....................................

Japan

206,600

16,846,526

Household

Products

0.7%

Procter

&

Gamble

Co.

(The)

.............................

United

States

138,000

19,843,020

Independent

Power

and

Renewable

Electricity

Producers

0.4%

RWE

AG

............................................

Germany

275,000

10,170,681

Industrial

Conglomerates

1.6%

Hitachi

Ltd.

..........................................

Japan

284,000

13,507,410

Honeywell

International,

Inc.

.............................

United

States

110,500

19,206,005

Siemens

AG

.........................................

Germany

95,697

9,836,847

42,550,262

Insurance

1.9%

AIA

Group

Ltd.

.......................................

Hong

Kong

897,000

9,801,071

Allianz

SE

...........................................

Germany

25,000

4,792,529

MetLife,

Inc.

.........................................

United

States

273,300

17,160,507

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

..

Germany

38,000

8,988,372

Sun

Life

Financial,

Inc.

.................................

Canada

253,000

11,592,557

52,335,036

Interactive

Media

&

Services

2.1%

a

Alphabet,

Inc.,

A

......................................

United

States

15,000

32,688,900

a

Meta

Platforms,

Inc.,

A

.................................

United

States

82,000

13,222,500

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

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)

Interactive

Media

&

Services

(continued)

Tencent

Holdings

Ltd.

..................................

China

230,000

$

10,410,918

56,322,318

Internet

&

Direct

Marketing

Retail

1.3%

a

Amazon.com,

Inc.

.....................................

United

States

260,000

27,614,600

JD.com,

Inc.,

A

.......................................

China

10,952

352,905

a

Pinduoduo,

Inc.,

ADR

..................................

China

125,000

7,725,000

35,692,505

IT

Services

1.5%

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

145,900

9,846,791

Fujitsu

Ltd.

..........................................

Japan

92,000

11,509,653

Mastercard,

Inc.,

A

....................................

United

States

28,000

8,833,440

Visa,

Inc.,

A

..........................................

United

States

54,000

10,632,060

40,821,944

Life

Sciences

Tools

&

Services

0.6%

Danaher

Corp.

.......................................

United

States

46,000

11,661,920

a

Illumina,

Inc.

.........................................

United

States

29,000

5,346,440

17,008,360

Machinery

1.2%

a

Daimler

Truck

Holding

AG

...............................

Germany

57,500

1,514,242

Deere

&

Co.

.........................................

United

States

54,000

16,171,380

Stanley

Black

&

Decker,

Inc.

.............................

United

States

68,300

7,161,938

Volvo

AB,

B

..........................................

Sweden

490,000

7,623,728

32,471,288

Marine

0.5%

AP

Moller

-

Maersk

A/S,

B

...............................

Denmark

5,655

13,275,947

Media

0.3%

Comcast

Corp.,

A

.....................................

United

States

217,700

8,542,548

Metals

&

Mining

2.5%

Agnico

Eagle

Mines

Ltd.

................................

Canada

210,000

9,612,492

BHP

Group

Ltd.

......................................

Australia

665,000

18,540,024

Fortescue

Metals

Group

Ltd.

.............................

Australia

615,000

7,395,762

Newmont

Corp.

.......................................

United

States

220,000

13,127,400

Rio

Tinto

plc

.........................................

Australia

322,000

19,248,137

67,923,815

Multiline

Retail

0.7%

a

Dollar

Tree,

Inc.

......................................

United

States

60,000

9,351,000

Target

Corp.

.........................................

United

States

63,000

8,897,490

18,248,490

Multi-Utilities

0.4%

Dominion

Energy,

Inc.

..................................

United

States

150,000

11,971,500

Oil,

Gas

&

Consumable

Fuels

3.5%

Canadian

Natural

Resources

Ltd.

.........................

Canada

385,000

20,688,666

Chevron

Corp.

.......................................

United

States

192,000

27,797,760

Eni

SpA

............................................

Italy

1,850,000

21,941,188

TotalEnergies

SE

.....................................

France

410,000

21,580,126

Woodside

Energy

Group

Ltd.

............................

Australia

120,166

2,544,820

94,552,560

Personal

Products

0.5%

Unilever

plc

..........................................

United

Kingdom

307,000

13,990,699

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

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

Common

Stocks

(continued)

Pharmaceuticals

4.6%

AstraZeneca

plc

......................................

United

Kingdom

297,000

$

39,174,339

Bristol-Myers

Squibb

Co.

................................

United

States

216,000

16,632,000

Eisai

Co.

Ltd.

........................................

Japan

198,000

8,369,919

Johnson

&

Johnson

...................................

United

States

100,000

17,751,000

Novo

Nordisk

A/S,

B

...................................

Denmark

157,000

17,412,044

Pfizer,

Inc.

...........................................

United

States

305,000

15,991,150

Takeda

Pharmaceutical

Co.

Ltd.

..........................

Japan

399,500

11,219,229

126,549,681

Road

&

Rail

0.9%

Canadian

National

Railway

Co.

...........................

Canada

95,000

10,686,024

Union

Pacific

Corp.

....................................

United

States

70,000

14,929,600

25,615,624

Semiconductors

&

Semiconductor

Equipment

3.7%

Analog

Devices,

Inc.

...................................

United

States

100,000

14,609,000

Applied

Materials,

Inc.

..................................

United

States

93,000

8,461,140

Broadcom,

Inc.

.......................................

United

States

24,600

11,950,926

Lam

Research

Corp.

...................................

United

States

9,400

4,005,810

NVIDIA

Corp.

........................................

United

States

32,500

4,926,675

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

250,000

20,437,500

Texas

Instruments,

Inc.

.................................

United

States

158,100

24,292,065

Tokyo

Electron

Ltd.

....................................

Japan

39,500

12,890,162

101,573,278

Software

3.6%

a

Adobe,

Inc.

..........................................

United

States

25,000

9,151,500

Intuit,

Inc.

...........................................

United

States

27,000

10,406,880

Microsoft

Corp.

.......................................

United

States

146,400

37,599,912

Oracle

Corp.

.........................................

United

States

129,000

9,013,230

a

Salesforce,

Inc.

.......................................

United

States

47,000

7,756,880

a

ServiceNow,

Inc.

......................................

United

States

15,000

7,132,800

a

Synopsys,

Inc.

.......................................

United

States

36,100

10,963,570

a

Workday,

Inc.,

A

......................................

United

States

51,000

7,118,580

99,143,352

Specialty

Retail

2.1%

Home

Depot,

Inc.

(The)

.................................

United

States

39,000

10,696,530

Lowe's

Cos.,

Inc.

......................................

United

States

63,900

11,161,413

a

O'Reilly

Automotive,

Inc.

................................

United

States

14,000

8,844,640

TJX

Cos.,

Inc.

(The)

...................................

United

States

232,700

12,996,295

Tractor

Supply

Co.

....................................

United

States

69,300

13,433,805

57,132,683

Technology

Hardware,

Storage

&

Peripherals

1.6%

Apple,

Inc.

..........................................

United

States

250,000

34,180,000

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

200,000

8,886,560

43,066,560

Textiles,

Apparel

&

Luxury

Goods

0.4%

NIKE,

Inc.,

B

.........................................

United

States

95,000

9,709,000

Trading

Companies

&

Distributors

0.6%

ITOCHU

Corp.

.......................................

Japan

625,600

16,874,308

Wireless

Telecommunication

Services

0.5%

KDDI

Corp.

..........................................

Japan

418,300

13,188,398

Total

Common

Stocks

(Cost

$1,663,527,255)

....................................

1,591,260,719

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Management

Investment

Companies

8.8%

Capital

Markets

8.8%

iShares

Core

MSCI

Emerging

Markets

ETF

..................

United

States

1,600,000

$

78,496,000

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

.........

United

States

280,000

23,889,600

b

Templeton

Global

Bond

Fund,

Class

R6

....................

United

States

14,056,151

111,746,404

VanEck

J.P.

Morgan

EM

Local

Currency

Bond

ETF

............

United

States

985,000

24,112,800

238,244,804

Total

Management

Investment

Companies

(Cost

$305,501,076)

...................

238,244,804

Principal

Amount

*

Corporate

Bonds

6.8%

Aerospace

&

Defense

0.1%

c

Bombardier,

Inc.

,

Senior

Bond

,

144A,

7.5

%

,

3/15/25

...........

Canada

2,000,000

1,812,960

Auto

Components

0.1%

c

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

3,250,000

2,404,187

Automobiles

0.1%

Ford

Motor

Co.

,

Senior

Note

,

4.346

%

,

12/08/26

...............

United

States

1,207,000

1,121,213

c

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

1,600,000

1,162,256

2,283,469

Banks

1.6%

c

Australia

&

New

Zealand

Banking

Group

Ltd.

,

Sub.

Bond

,

144A,

2.57%

to

11/24/30,

FRN

thereafter

,

11/25/35

................

Australia

6,687,000

5,310,087

d

Bank

of

America

Corp.

,

U

,

Junior

Sub.

Bond

,

5.2%

to

5/31/23,

FRN

thereafter

,

Perpetual

.................................

United

States

3,994,000

3,706,931

Barclays

plc

,

Senior

Note

,

4.375

%

,

1/12/26

..................

United

Kingdom

8,000,000

7,930,842

HSBC

Holdings

plc

,

Sub.

Bond

,

4.25

%

,

8/18/25

...............

United

Kingdom

6,128,000

6,050,930

d

JPMorgan

Chase

&

Co.

,

Q

,

Junior

Sub.

Bond

,

5.15%

to

4/30/23,

FRN

thereafter

,

Perpetual

.............................

United

States

4,045,000

3,832,637

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Bond

,

3.287

%

,

7/25/27

Japan

1,690,000

1,604,160

c

Societe

Generale

SA

,

d

Junior

Sub.

Bond,

144A,

4.75%

to

5/25/26,

FRN

thereafter,

Perpetual

.........................................

France

1,600,000

1,304,133

Senior

Note,

144A,

2.625%,

1/22/25

.....................

France

6,354,000

6,047,149

Sumitomo

Mitsui

Financial

Group,

Inc.

,

Sub.

Bond

,

3.202

%

,

9/17/29

Japan

1,464,000

1,299,466

c

Toronto-Dominion

Bank

(The)

,

Sub.

Bond

,

Reg

S,

3.105%

to

4/21/25,

FRN

thereafter

,

4/22/30

...............................

Canada

4,900,000

CAD

3,633,240

d

US

Bancorp

,

Junior

Sub.

Bond

,

3.7%

to

1/14/27,

FRN

thereafter

,

Perpetual

..........................................

United

States

1,670,000

1,285,900

d

Wells

Fargo

&

Co.

,

S

,

Junior

Sub.

Bond

,

5.9%

to

6/14/24,

FRN

thereafter

,

Perpetual

.................................

United

States

1,504,000

1,363,677

Westpac

Banking

Corp.

,

Sub.

Bond

,

2.894%

to

2/03/25,

FRN

thereafter

,

2/04/30

...................................

Australia

1,503,000

1,425,862

44,795,014

Beverages

0.1%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

4

%

,

4/13/28

Belgium

4,000,000

3,952,434

Biotechnology

0.1%

c

Grifols

Escrow

Issuer

SA

,

Senior

Note

,

144A,

4.75

%

,

10/15/28

...

Spain

1,600,000

1,389,696

Capital

Markets

0.2%

c

Macquarie

Bank

Ltd.

,

Senior

Note

,

Reg

S,

1.125

%

,

12/15/25

.....

Australia

1,250,000

GBP

1,394,378

Nomura

Holdings,

Inc.

,

Senior

Bond

,

3.103

%

,

1/16/30

..........

Japan

6,225,000

5,300,914

6,695,292

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Chemicals

0.5%

c

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,600,000

$

5,888,822

c

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

1,258,000

1,076,332

c

Consolidated

Energy

Finance

SA

,

Senior

Note

,

144A,

6.5

%

,

5/15/26

Switzerland

3,200,000

2,952,821

Sasol

Financing

USA

LLC

,

Senior

Note

,

4.375

%

,

9/18/26

.......

South

Africa

1,600,000

1,412,696

c

SCIH

Salt

Holdings,

Inc.

,

Senior

Secured

Note

,

144A,

4.875

%

,

5/01/28

...........................................

United

States

3,400,000

2,832,829

14,163,500

Commercial

Services

&

Supplies

0.3%

c

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

3,200,000

2,482,868

c

GFL

Environmental,

Inc.

,

Senior

Note

,

144A,

4.375

%

,

8/15/29

....

Canada

4,000,000

3,225,580

c

Verisure

Midholding

AB

,

Senior

Note

,

144A,

5.25

%

,

2/15/29

.....

Sweden

1,400,000

EUR

1,122,095

6,830,543

Communications

Equipment

0.1%

c

CommScope

Technologies

LLC

,

Senior

Bond,

144A,

6%,

6/15/25

........................

United

States

2,200,000

1,907,257

Senior

Note,

144A,

5%,

3/15/27

........................

United

States

954,000

706,597

2,613,854

Consumer

Finance

0.2%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Note

,

3

%

,

10/29/28

..................................

Ireland

1,600,000

1,349,222

c,d

Volkswagen

International

Finance

NV

,

Senior

Bond

,

Reg

S,

3.5%

to

6/16/25,

FRN

thereafter

,

Perpetual

.......................

Germany

3,200,000

EUR

3,045,854

4,395,076

Containers

&

Packaging

0.1%

c,e

ARD

Finance

SA

,

Senior

Secured

Note

,

144A,

PIK,

6.5

%

,

6/30/27

.

Luxembourg

1,500,000

1,115,070

c

Mauser

Packaging

Solutions

Holding

Co.

,

Senior

Note,

144A,

7.25%,

4/15/25

......................

United

States

954,000

834,249

Senior

Secured

Note,

144A,

5.5%,

4/15/24

................

United

States

313,000

299,541

c

Trivium

Packaging

Finance

BV

,

Senior

Secured

Note

,

144A,

3.75

%

,

8/15/26

...........................................

Netherlands

521,000

EUR

502,964

2,751,824

Diversified

Telecommunication

Services

0.2%

c

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

1,243,000

884,587

c

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.125

%

,

7/15/29

...

France

1,675,000

1,269,893

c

Iliad

Holding

SASU

,

Senior

Secured

Note

,

144A,

6.5

%

,

10/15/26

..

France

3,000,000

2,705,310

4,859,790

Electric

Utilities

0.1%

Pacific

Gas

and

Electric

Co.

,

Senior

Note

,

2.1

%

,

8/01/27

........

United

States

1,600,000

1,342,583

Electrical

Equipment

0.0%

†

c

Vertiv

Group

Corp.

,

Senior

Secured

Note

,

144A,

4.125

%

,

11/15/28

United

States

1,600,000

1,301,536

Electronic

Equipment,

Instruments

&

Components

0.1%

c

TTM

Technologies,

Inc.

,

Senior

Note

,

144A,

4

%

,

3/01/29

........

United

States

1,640,000

1,382,317

Energy

Equipment

&

Services

0.1%

c

Weatherford

International

Ltd.

,

Senior

Secured

Note

,

144A,

6.5

%

,

9/15/28

...........................................

United

States

3,800,000

3,417,283

Food

Products

0.0%

†

c

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

12/01/31

.....................

United

States

1,600,000

1,315,364

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Health

Care

Equipment

&

Supplies

0.0%

†

c

Medline

Borrower

LP

,

Senior

Note

,

144A,

5.25

%

,

10/01/29

......

United

States

1,600,000

$

1,319,072

Health

Care

Providers

&

Services

0.2%

c

CHS/Community

Health

Systems,

Inc.

,

Secured

Note,

144A,

6.875%,

4/15/29

....................

United

States

950,000

615,515

Senior

Note,

144A,

6.875%,

4/01/28

.....................

United

States

687,000

403,717

Senior

Secured

Note,

144A,

8%,

3/15/26

..................

United

States

1,162,000

1,061,568

c

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

1,600,000

1,252,835

c

Fresenius

Medical

Care

US

Finance

III,

Inc.

,

Senior

Bond

,

144A,

2.375

%

,

2/16/31

.....................................

Germany

4,000,000

3,166,544

6,500,179

Hotels,

Restaurants

&

Leisure

0.2%

Las

Vegas

Sands

Corp.

,

Senior

Note

,

3.2

%

,

8/08/24

...........

United

States

1,600,000

1,513,081

c

Wynn

Las

Vegas

LLC

/

Wynn

Las

Vegas

Capital

Corp.

,

Senior

Bond

,

144A,

5.5

%

,

3/01/25

.................................

United

States

3,115,000

2,856,393

4,369,474

Household

Products

0.2%

c

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

6,180,000

5,148,774

Independent

Power

and

Renewable

Electricity

Producers

0.1%

c

Calpine

Corp.

,

Senior

Secured

Note

,

144A,

4.5

%

,

2/15/28

.......

United

States

306,000

278,416

c,d

Vistra

Corp.

,

Junior

Sub.

Bond

,

144A,

7%

to

12/14/26,

FRN

thereafter

,

Perpetual

.................................

United

States

1,640,000

1,491,572

1,769,988

Insurance

0.1%

Prudential

Financial,

Inc.

,

Junior

Sub.

Bond

,

5.375%

to

5/14/25,

FRN

thereafter

,

5/15/45

...................................

United

States

4,060,000

3,886,821

Interactive

Media

&

Services

0.2%

c

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

6,290,000

5,270,649

Internet

&

Direct

Marketing

Retail

0.2%

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

3.4

%

,

12/06/27

.......

China

6,300,000

6,024,279

Machinery

0.1%

c

TK

Elevator

U.S.

Newco,

Inc.

,

Senior

Secured

Note

,

144A,

5.25

%

,

7/15/27

...........................................

Germany

2,000,000

1,786,600

Media

0.2%

DISH

DBS

Corp.

,

Senior

Note,

5.875%,

11/15/24

.........................

United

States

1,226,000

1,037,098

c

Senior

Secured

Note,

144A,

5.25%,

12/01/26

..............

United

States

1,600,000

1,257,144

c

Univision

Communications,

Inc.

,

Senior

Secured

Note

,

144A,

6.625

%

,

6/01/27

.....................................

United

States

1,210,000

1,154,340

c

Ziggo

BV

,

Senior

Secured

Bond

,

144A,

4.875

%

,

1/15/30

........

Netherlands

1,219,000

1,036,914

4,485,496

Metals

&

Mining

0.3%

ArcelorMittal

SA

,

Senior

Bond

,

4.25

%

,

7/16/29

...............

Luxembourg

3,000,000

2,850,425

c

CSN

Resources

SA

,

Senior

Bond

,

144A,

4.625

%

,

6/10/31

.......

Brazil

1,700,000

1,209,797

c

FMG

Resources

August

2006

Pty.

Ltd.

,

Senior

Note

,

144A,

5.875

%

,

4/15/30

...........................................

Australia

5,000,000

4,508,175

8,568,397

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Oil,

Gas

&

Consumable

Fuels

0.2%

c

Calumet

Specialty

Products

Partners

LP

/

Calumet

Finance

Corp.

,

Senior

Note

,

144A,

11

%

,

4/15/25

........................

United

States

1,249,000

$

1,190,603

Occidental

Petroleum

Corp.

,

Senior

Note

,

5.55

%

,

3/15/26

.......

United

States

3,900,000

3,880,188

5,070,791

Paper

&

Forest

Products

0.1%

Suzano

Austria

GmbH

,

Senior

Bond

,

3.75

%

,

1/15/31

...........

Brazil

4,805,000

3,893,059

Pharmaceuticals

0.3%

c

Bausch

Health

Americas,

Inc.

,

Senior

Note

,

144A,

9.25

%

,

4/01/26

.

United

States

2,400,000

1,722,612

c

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

5,000,000

4,943,078

Teva

Pharmaceutical

Finance

Netherlands

III

BV

,

Senior

Note

,

2.8

%

,

7/21/23

...........................................

Israel

970,000

940,415

7,606,105

Road

&

Rail

0.3%

c

Ashtead

Capital,

Inc.

,

Senior

Note

,

144A,

4

%

,

5/01/28

..........

United

Kingdom

8,000,000

7,228,417

Software

0.0%

†

c

Rocket

Software,

Inc.

,

Senior

Note

,

144A,

6.5

%

,

2/15/29

........

United

States

1,640,000

1,188,458

Tobacco

0.1%

BAT

Capital

Corp.

,

Senior

Bond

,

2.726

%

,

3/25/31

.............

United

Kingdom

4,350,000

3,449,746

Total

Corporate

Bonds

(Cost

$215,464,790)

.....................................

185,273,027

Foreign

Government

and

Agency

Securities

6.1%

c

Australia

Government

Bond

,

Reg

S,

1.5

%

,

6/21/31

............

Australia

12,170,000

AUD

7,035,414

c

Belgium

Government

Bond

,

Senior

Bond

,

Reg

S,

4

%

,

3/28/32

....

Belgium

3,150,000

EUR

3,913,080

Canada

Government

Bond

,

0.25%,

2/01/23

.....................................

Canada

4,100,000

CAD

3,139,500

5.75%,

6/01/33

.....................................

Canada

2,640,000

CAD

2,514,317

c

Canada

Housing

Trust

No.

1

,

Senior

Bond

,

144A,

2.65

%

,

12/15/28

Canada

18,100,000

CAD

13,352,828

Ecopetrol

SA

,

Senior

Bond

,

4.625

%

,

11/02/31

................

Colombia

1,650,000

1,254,000

European

Investment

Bank

,

Senior

Bond

,

2.125

%

,

4/13/26

......

Supranational

f

14,750,000

14,251,859

c

Finland

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

0.75%,

4/15/31

................

Finland

1,892,000

EUR

1,824,029

Senior

Bond,

144A,

Reg

S,

1.375%,

4/15/47

...............

Finland

1,567,000

EUR

1,400,811

c

France

Government

Bond

,

Reg

S,

2.5%,

5/25/30

.................................

France

4,120,000

EUR

4,594,823

Reg

S,

Zero

Cpn.,

11/25/30

............................

France

4,350,000

EUR

3,934,334

Reg

S,

1.5%,

5/25/31

.................................

France

4,410,000

EUR

4,521,143

c

Italy

Buoni

Poliennali

del

Tesoro

,

Senior

Bond,

144A,

Reg

S,

4.75%,

9/01/44

................

Italy

1,860,000

EUR

2,298,652

Senior

Bond,

144A,

Reg

S,

3.25%,

9/01/46

................

Italy

1,884,000

EUR

1,885,788

Senior

Bond,

144A,

Reg

S,

1.7%,

9/01/51

.................

Italy

2,786,000

EUR

1,955,427

Japan

Government

Bond

,

0.1%,

6/20/31

......................................

Japan

8,050,000,000

JPY

58,510,126

0.5%,

9/20/46

......................................

Japan

1,435,000,000

JPY

9,309,861

Mexico

Government

Bond

,

Senior

Bond

,

4.125

%

,

1/21/26

.......

Mexico

13,950,000

13,985,757

c

Netherlands

Government

Bond

,

144A,

Reg

S,

0.5%,

1/15/40

............................

Netherlands

1,410,000

EUR

1,158,795

144A,

Reg

S,

3.75%,

1/15/42

...........................

Netherlands

865,000

EUR

1,168,180

Petroleos

Mexicanos

,

Senior

Note

,

6.7

%

,

2/16/32

.............

Mexico

1,650,000

1,261,590

Spain

Bonos

Y

Obligaciones

del

Estado

,

c

Senior

Bond,

144A,

Reg

S,

1.95%,

4/30/26

................

Spain

2,563,000

EUR

2,727,628

c

Senior

Bond,

144A,

Reg

S,

2.9%,

10/31/46

................

Spain

1,610,000

EUR

1,667,638

6%,

1/31/29

........................................

Spain

3,760,000

EUR

4,937,734

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

c

United

Kingdom

Gilt

,

Reg

S,

1.5

%

,

7/22/47

..................

United

Kingdom

5,110,000

GBP

$

4,938,201

Total

Foreign

Government

and

Agency

Securities

(Cost

$214,071,004)

............

167,541,515

U.S.

Government

and

Agency

Securities

10.7%

U.S.

Treasury

Notes

,

0.125%,

12/31/22

....................................

United

States

55,000,000

54,343,912

0.125%,

8/31/23

.....................................

United

States

32,000,000

30,970,625

2.25%,

3/31/24

.....................................

United

States

32,000,000

31,601,250

0.375%,

9/15/24

.....................................

United

States

32,000,000

30,207,500

1.75%,

3/15/25

.....................................

United

States

32,000,000

30,941,250

0.375%,

12/31/25

....................................

United

States

13,000,000

11,849,043

0.875%,

11/15/30

....................................

United

States

13,000,000

10,979,414

g

Index

Linked,

0.125%,

1/15/31

..........................

United

States

63,000,000

66,606,561

1.875%,

2/15/32

.....................................

United

States

25,000,000

22,652,344

Total

U.S.

Government

and

Agency

Securities

(Cost

$306,970,175)

................

290,151,899

Mortgage-Backed

Securities

1.9%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

1.9%

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

.................

United

States

32,817,569

31,044,429

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

.................

United

States

21,117,141

19,967,210

51,011,639

Total

Mortgage-Backed

Securities

(Cost

$56,684,662)

............................

51,011,639

Total

Long

Term

Investments

(Cost

$2,762,218,962)

.............................

2,523,483,603

a

Short

Term

Investments

7.2%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

7.2%

b,h

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

....

United

States

194,975,756

194,975,756

Total

Money

Market

Funds

(Cost

$194,975,756)

.................................

194,975,756

Total

Short

Term

Investments

(Cost

$194,975,756

)

...............................

194,975,756

a

Total

Investments

(Cost

$2,957,194,718)

99.9%

..................................

$2,718,459,359

Other

Assets,

less

Liabilities

0.1%

.............................................

4,256,429

Net

Assets

100.0%

...........................................................

$2,722,715,788

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2022,

the

aggregate

value

of

these

securities

was

$173,195,219,

representing

6.4%

of

net

assets.

d

Perpetual

security

with

no

stated

maturity

date.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

g

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(e).

h

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

At

June

30,

2022,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Note 9 regarding

other

derivative

information.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

British

Pound

......

JPHQ

Sell

53,168,982

65,654,016

8/04/22

$

906,957

$

—

Canadian

Dollar

....

BZWS

Buy

59,640,340

46,798,026

8/04/22

—

(468,415)

Canadian

Dollar

....

BZWS

Sell

119,280,680

92,859,758

8/04/22

200,535

—

Danish

Krone

......

BZWS

Sell

246,298,513

35,086,908

8/04/22

312,195

—

Euro

.............

BZWS

Buy

41,546,081

44,642,739

8/04/22

—

(1,017,901)

Euro

.............

BZWS

Sell

83,092,162

88,118,789

8/04/22

869,114

—

Hong

Kong

Dollar

...

HSBK

Sell

389,810,445

49,753,085

8/04/22

25,071

—

Japanese

Yen

......

JPHQ

Buy

14,233,933,951

112,330,300

8/04/22

—

(7,247,686)

Japanese

Yen

......

JPHQ

Sell

14,233,933,951

109,487,167

8/04/22

4,404,553

—

Total

Forward

Exchange

Contracts

...................................................

$6,718,425

$(8,734,002)

Net

unrealized

appreciation

(depreciation)

............................................

$(2,015,577)

See

Abbreviations

on

page

39

.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

Franklin

Global

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,627,383,797

Cost

-

Non-controlled

affiliates

(Not

e

3f)

........................................................

329,810,921

Value

-

Unaffiliated

issuers

..................................................................

$2,411,737,199

Value

-

Non-controlled

affiliates

(Not

e

3f)

........................................................

306,722,160

Cash

....................................................................................

403,701

Foreign

currency,

at

value

(cost

$699,940)

........................................................

699,939

Receivables:

Capital

shares

sold

........................................................................

190,763

Dividends

and

interest

.....................................................................

6,635,059

Deposits

with

brokers

for:

OTC

derivative

contracts

..................................................................

2,130,000

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

6,718,425

Total

assets

..........................................................................

2,735,237,246

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

737,606

Management

fees

.........................................................................

1,247,268

Distribution

fees

..........................................................................

617,673

Transfer

agent

fees

........................................................................

722,875

Reports

to

shareholders

fees

................................................................

315,908

Trustees'

fees

and

expenses

.................................................................

152

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

8,734,002

Accrued

expenses

and

other

liabilities

...........................................................

145,974

Total

liabilities

.........................................................................

12,521,458

Net

assets,

at

value

.................................................................

$2,722,715,788

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,980,520,627

Total

distributable

earnings

(losses)

.............................................................

(257,804,839)

Net

assets,

at

value

.................................................................

$2,722,715,788

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

Franklin

Global

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,511,261,232

Shares

outstanding

........................................................................

196,950,380

Net

asset

value

per

share

a

..................................................................

$12.75

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$13.49

Class

C:

Net

assets,

at

value

.......................................................................

$99,353,186

Shares

outstanding

........................................................................

7,875,105

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$12.62

Class

R:

Net

assets,

at

value

.......................................................................

$3,913,442

Shares

outstanding

........................................................................

306,004

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.79

Class

R6:

Net

assets,

at

value

.......................................................................

$725,583

Shares

outstanding

........................................................................

55,111

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.17

Advisor

Class:

Net

assets,

at

value

.......................................................................

$107,462,345

Shares

outstanding

........................................................................

8,357,481

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$12.86

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

Franklin

Global

Allocation

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,882,830)

Unaffiliated

issuers

........................................................................

$29,124,954

Non-controlled

affiliates

(Not

e

3f)

.............................................................

3,738,394

Interest:

Unaffiliated

issuers

........................................................................

8,356,046

Total

investment

income

...................................................................

41,219,394

Expenses:

Management

fees

(Note

3

a

)

...................................................................

8,713,942

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

3,460,941

    Class

C

................................................................................

575,660

    Class

R

................................................................................

11,793

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

1,375,736

    Class

C

................................................................................

57,400

    Class

R

................................................................................

2,349

    Class

R6

...............................................................................

179

    Advisor

Class

............................................................................

57,607

Custodian

fees

(Note

4

)

......................................................................

7,481

Reports

to

shareholders

fees

..................................................................

152,112

Registration

and

filing

fees

....................................................................

59,957

Professional

fees

...........................................................................

47,457

Trustees'

fees

and

expenses

..................................................................

14,374

Other

....................................................................................

19,728

Total

expenses

.........................................................................

14,556,716

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(589,630)

Net

expenses

.........................................................................

13,967,086

Net

investment

income

................................................................

27,252,308

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

60,487,457

Foreign

currency

transactions

................................................................

60,190

Forward

exchange

contracts

.................................................................

35,272,549

Net

realized

gain

(loss)

..................................................................

95,820,196

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

(507,711,301)

Non-controlled

affiliates

(Not

e

3f)

............................................................

(11,814,719)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(34,884)

Forward

exchange

contracts

.................................................................

(4,606,919)

Net

change

in

unrealized

appreciation

(depreciation)

............................................

(524,167,823)

Net

realized

and

unrealized

gain

(loss)

............................................................

(428,347,627)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$(401,095,319)

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

Global

Allocation

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$27,252,308

$42,330,905

Net

realized

gain

(loss)

.................................................

95,820,196

(53,828,111)

Net

change

in

unrealized

appreciation

(depreciation)

...........................

(524,167,823)

373,259,721

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

(401,095,319)

361,762,515

Distributions

to

shareholders:

Class

A

.............................................................

(61,306,444)

(24,497,459)

Class

C

.............................................................

(2,061,584)

(862,058)

Class

R

.............................................................

(88,900)

(36,556)

Class

R6

............................................................

(16,782)

(4,892)

Advisor

Class

........................................................

(2,742,989)

(1,127,709)

Total

distributions

to

shareholders

..........................................

(66,216,699)

(26,528,674)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(64,471,284)

(250,680,505)

Class

C

.............................................................

(14,285,016)

(87,521,338)

Class

R

.............................................................

(599,900)

(258,119)

Class

R6

............................................................

256,745

(118,494)

Advisor

Class

........................................................

2,758,256

(12,734,380)

Total

capital

share

transactions

............................................

(76,341,199)

(351,312,836)

Net

increase

(decrease)

in

net

assets

...................................

(543,653,217)

(16,078,995)

Net

assets:

Beginning

of

period

.....................................................

3,266,369,005

3,282,448,000

End

of

period

..........................................................

$2,722,715,788

$3,266,369,005

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

Franklin

Global

Allocation

Fund

28

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Global

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Fund

’

s

significant

accounting

policies

. 

a.

Financial

Instrument

Valuation 

The

Fund’s

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

Fund

calculates

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

Fund’s

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Fund’s

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Fund’s pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund’s net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Fund

primarily

employs

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

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

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

Fund’s

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

Fund’s

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

Fund’s

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

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

Fund’s

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund’s

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

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

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

Fund

does

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

Statement

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

June

30,

2022,

the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$2,040,648

and

the

aggregate

value

of

collateral

pledged

for

such

contracts

was

$2,130,000.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund,

if

any,

is

held

in

segregated

accounts

with

the

Fund’s

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

9

regarding

other

derivative

information.

d.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The 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

Fund

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

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

31

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

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.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

inflation

principal

adjustments

in

the

Statement

of

Operations.

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

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

32

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

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

Fund

are

also

officers,

and/or

directors

trustees

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2022

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

3,654,491

$51,690,070

11,023,554

$157,462,459

Shares

issued

in

reinvestment

of

distributions

..........

4,604,380

58,705,842

1,637,763

23,452,834

Shares

redeemed

...............................

(12,375,791)

(174,867,196)

(30,483,052)

(431,595,798)

Net

increase

(decrease)

..........................

(4,116,920)

$(64,471,284)

(17,821,735)

$(250,680,505)

Class

C

Shares:

Shares

sold

...................................

384,495

$5,403,384

1,088,356

$15,258,728

Shares

issued

in

reinvestment

of

distributions

..........

161,509

2,038,247

60,094

854,542

Shares

redeemed

a

..............................

(1,549,210)

(21,726,647)

(7,308,840)

(103,634,608)

Net

increase

(decrease)

..........................

(1,003,206)

$(14,285,016)

(6,160,390)

$(87,521,338)

Class

R

Shares:

Shares

sold

...................................

9,643

$136,635

22,067

$312,126

Shares

issued

in

reinvestment

of

distributions

..........

6,927

88,591

2,536

36,440

Shares

redeemed

...............................

(59,370)

(825,126)

(43,174)

(606,685)

Net

increase

(decrease)

..........................

(42,800)

$(599,900)

(18,571)

$(258,119)

Class

R6

Shares:

Shares

sold

...................................

32,114

$469,933

6,772

$102,066

Shares

issued

in

reinvestment

of

distributions

..........

941

12,381

273

4,032

Shares

redeemed

...............................

(15,067)

(225,569)

(15,369)

(224,592)

Net

increase

(decrease)

..........................

17,988

$256,745

(8,324)

$(118,494)

Advisor

Class

Shares:

Shares

sold

...................................

963,212

$13,757,617

1,374,798

$19,709,294

Shares

issued

in

reinvestment

of

distributions

..........

193,559

2,487,229

70,480

1,016,321

Shares

redeemed

...............................

(951,719)

(13,486,590)

(2,354,441)

(33,459,995)

Net

increase

(decrease)

..........................

205,052

$2,758,256

(909,163)

$(12,734,380)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

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

Franklin

Global

Allocation

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.580%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund’s

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.600%

Up

to

and

including

$1

billion

0.570%

Over

$1

billion,

up

to

and

including

$5

billion

0.550%

In

excess

of

$5

billion

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$61,666

CDSC

retained

..............................................................................

$3,735

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

34

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

The

fees

are

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2022,

the

Fund

paid

transfer

agent

fees

of

$1,493,271, of

which

$653,363

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

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

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2022,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

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

Fund

so

that

the

operating

expenses

(excluding

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

and

acquired

fund

fees

and

expenses

for

each

class

of

the

Fund

do

not

exceed

0.73%,

based

on

the

average

net

assets

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2023.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

June

30,

2022,

there

were

no

credits

earned.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Global

Allocation

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

$

137,626,130

$

204,727,837

$

(147,378,211)

$

—

$

—

$

194,975,756

194,975,756

$

175,037

Templeton

Global

Bond

Fund,

Class

R6

...............

119,997,766

3,563,357

—

—

(11,814,719)

111,746,404

14,056,151

3,563,357

Total

Affiliated

Securities

...

$257,623,896

$208,291,194

$(147,378,211)

$—

$(11,814,719)

$306,722,160

$3,738,394

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

35

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

June

30,

2022,

the

cost

of

investments,

net

unrealized

appreciation

(depreciation),

and

undistributed

ordinary

income

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

bond

discounts

and

premiums,

and

corporate

actions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities

and

in-kind

transactions)

for

the

period

ended

June

30,

2022,

aggregated

$152,477,123

and

$271,510,566,

respectively.

7.

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

Fund

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.

8.

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 Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$107,061,080

Cost

of

investments

..........................................................................

$2,966,533,723

Unrealized

appreciation

........................................................................

$136,582,238

Unrealized

depreciation

........................................................................

(386,672,179)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(250,089,941)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

36

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

9.

Other

Derivative

Information

At

June

30,

2022,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statement

of

Assets

and

Liabilities

as

follows:

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022,

the

average

month

end

contract

value

of

forward

exchange

contracts

was

$522,444,331.

See

Note

1(c) regarding

derivative

financial

instruments. 

10.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

3,

2023.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Global

Allocation

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

6,718,425

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

8,734,002

Total

....................

$6,718,425

$8,734,002

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Global

Allocation

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

$35,272,549

Forward

exchange

contracts

$(4,606,919)

Total

.......................

$35,272,549

$(4,606,919)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

37

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

11.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's 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

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2022,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

17,299,800

$

—

$

—

$

17,299,800

Air

Freight

&

Logistics

...................

11,792,084

9,816,132

—

21,608,216

Automobiles

..........................

—

24,218,582

—

24,218,582

Banks

...............................

87,751,999

34,026,237

—

121,778,236

Beverages

...........................

26,489,742

—

—

26,489,742

Biotechnology

.........................

28,947,240

—

—

28,947,240

Building

Products

......................

6,532,461

—

—

6,532,461

Capital

Markets

........................

29,963,198

4,055,388

—

34,018,586

Chemicals

...........................

12,651,320

7,743,778

—

20,395,098

Communications

Equipment

..............

4,797,000

—

—

4,797,000

Diversified

Telecommunication

Services

.....

15,808,625

—

—

15,808,625

Electric

Utilities

........................

46,288,700

11,282,996

—

57,571,696

Electrical

Equipment

....................

—

12,172,250

—

12,172,250

Electronic

Equipment,

Instruments

&

Components

........................

10,522,950

—

—

10,522,950

Entertainment

.........................

10,583,550

13,802,269

—

24,385,819

Equity

Real

Estate

Investment

Trusts

(REITs)

.

28,660,285

—

—

28,660,285

Food

&

Staples

Retailing

.................

6,589,636

—

—

6,589,636

Food

Products

........................

9,220,365

16,089,012

—

25,309,377

Health

Care

Equipment

&

Supplies

.........

13,812,525

—

—

13,812,525

Health

Care

Providers

&

Services

..........

31,837,572

—

—

31,837,572

Hotels,

Restaurants

&

Leisure

.............

13,084,640

—

—

13,084,640

Household

Durables

....................

—

16,846,526

—

16,846,526

Household

Products

....................

19,843,020

—

—

19,843,020

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

10,170,681

—

10,170,681

Industrial

Conglomerates

................

19,206,005

23,344,257

—

42,550,262

Insurance

............................

28,753,064

23,581,972

—

52,335,036

Interactive

Media

&

Services

..............

45,911,400

10,410,918

—

56,322,318

Internet

&

Direct

Marketing

Retail

..........

35,339,600

352,905

—

35,692,505

IT

Services

...........................

29,312,291

11,509,653

—

40,821,944

Life

Sciences

Tools

&

Services

............

17,008,360

—

—

17,008,360

Machinery

............................

23,333,318

9,137,970

—

32,471,288

Marine

..............................

—

13,275,947

—

13,275,947

Media

...............................

8,542,548

—

—

8,542,548

Metals

&

Mining

.......................

22,739,892

45,183,923

—

67,923,815

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

38

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

12.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2022-03,

Fair

Value

Measurement

(Topic

820)

–

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions.

The

amendments

in

the

ASU

clarify

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

should

not

be

considered

in

measuring

fair

value.

The

ASU

is

effective

for

interim

and

annual

reporting

periods

beginning

after

December

15,

2023,

with

the

option

of

early

adoption.

Management

is

currently

evaluating

the

impact,

if

any,

of

applying

this

ASU.

13.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Multiline

Retail

........................

$

18,248,490

$

—

$

—

$

18,248,490

Multi-Utilities

..........................

11,971,500

—

—

11,971,500

Oil,

Gas

&

Consumable

Fuels

.............

51,031,246

43,521,314

—

94,552,560

Personal

Products

.....................

—

13,990,699

—

13,990,699

Pharmaceuticals

.......................

50,374,150

76,175,531

—

126,549,681

Road

&

Rail

..........................

25,615,624

—

—

25,615,624

Semiconductors

&

Semiconductor

Equipment

.

88,683,116

12,890,162

—

101,573,278

Software

.............................

99,143,352

—

—

99,143,352

Specialty

Retail

........................

57,132,683

—

—

57,132,683

Technology

Hardware,

Storage

&

Peripherals

.

34,180,000

8,886,560

—

43,066,560

Textiles,

Apparel

&

Luxury

Goods

..........

9,709,000

—

—

9,709,000

Trading

Companies

&

Distributors

..........

—

16,874,308

—

16,874,308

Wireless

Telecommunication

Services

.......

—

13,188,398

—

13,188,398

Management

Investment

Companies

.........

238,244,804

—

—

238,244,804

Corporate

Bonds

........................

—

185,273,027

—

185,273,027

Foreign

Government

and

Agency

Securities

....

—

167,541,515

—

167,541,515

U.S.

Government

and

Agency

Securities

.......

—

290,151,899

—

290,151,899

Mortgage-Backed

Securities

................

—

51,011,639

—

51,011,639

Short

Term

Investments

...................

194,975,756

—

—

194,975,756

Total

Investments

in

Securities

...........

$1,541,932,911

$1,176,526,448

a

$—

$2,718,459,359

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

6,718,425

$

—

$

6,718,425

Total

Other

Financial

Instruments

.........

$—

$6,718,425

$—

$6,718,425

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

8,734,002

$

—

$

8,734,002

Total

Other

Financial

Instruments

.........

$—

$8,734,002

$—

$8,734,002

a

Includes

foreign

securities

valued

at

$482,548,368,

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.

11.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

39

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

AUD

Australian

Dollar

CAD

Canadian

Dollar

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

Selected

Portfolio

ADR

American

Depositary

Receipt

ETF

Exchange-Traded

Fund

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

PIK

Payment-In-Kind

Franklin

Fund

Allocator

Series

Shareholder

Information

40

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

Global

Allocation

Fund

(Fund)

At

an

in-person

meeting

held

on

February

28,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Fund.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

Franklin

Fund

Allocator

Series

Shareholder

Information

41

franklintempleton.com

Semiannual

Report

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2021.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

flexible

portfolio

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that,

effective

February

1,

2021,

the

Fund

was

repositioned

from

a

fund-of-funds

to

a

directly

managed

allocation

fund.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

for

each

other

fund

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

ten

other

flexible

portfolio

funds.

The

Board

noted

that

the

Fund’s

Management

Rate

and

total

expense

ratio

were

below

the

median

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

further

noted

that

the

Fund’s

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

Franklin

Fund

Allocator

Series

Shareholder

Information

42

franklintempleton.com

Semiannual

Report

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

Franklin

Fund

Allocator

Series

Shareholder

Information

43

franklintempleton.com

Semiannual

Report

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

481

S

08/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

and

Shareholder

Letter

Franklin

Global

Allocation

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.      

N/A

Item 5.  Audit Committee of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-

End Management Investment Companies.                  N/A

Item 8.  Portfolio Managers of Closed-End Management Investment

Companies.                                            N/A

Item 9. Purchases of Equity Securities by Closed-End Management

Investment Company and

Affiliated Purchasers.         N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) 

Changes in Internal Controls

. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12.  Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                       N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(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

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN FUND ALLOCATOR SERIES

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 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  August 26, 2022

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  August 26, 2022