UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-07851
Franklin Fund Allocator Series
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
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: 7/31
Date of reporting period: 1/31/23
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
.
Your
Fund’s
Expenses
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
1
franklintempleton.com
Semiannual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Beginning
Account
Value
8/1/22
Ending
Account
Value
1/31/23
Expenses
Paid
During
Period
8/1/22–1/31/23
1,2
Ending
Account
Value
1/31/23
Expenses
Paid
During
Period
8/1/22–1/31/23
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,062.60
$0.00
$1,025.21
$0.00
0.00%
Your
Fund’s
Expenses
Franklin
International
Core
Equity
(IU)
Fund
2
franklintempleton.com
Semiannual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Beginning
Account
Value
8/1/22
Ending
Account
Value
1/31/23
Expenses
Paid
During
Period
8/1/22–1/31/23
1,2
Ending
Account
Value
1/31/23
Expenses
Paid
During
Period
8/1/22–1/31/23
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,076.80
$0.00
$1,025.21
$0.00
0.00%
Your
Fund’s
Expenses
Franklin
U.S.
Core
Equity
(IU)
Fund
3
franklintempleton.com
Semiannual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Beginning
Account
Value
8/1/22
Ending
Account
Value
1/31/23
Expenses
Paid
During
Period
8/1/22–1/31/23
1,2
Ending
Account
Value
1/31/23
Expenses
Paid
During
Period
8/1/22–1/31/23
1,2
a
Annualized
Expense
Ratio
2
$1,000
$992.90
$0.00
$1,025.21
$0.00
0.00%
Franklin
Fund
Allocator
Series
Financial
Highlights
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
a
Six
Months
Ended
January
31,
2023
(unaudited)
Year
Ended
July
31,
Year
Ended
July
31,
2020
a
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$9.23
$11.83
$10.57
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.15
0.35
0.28
0.33
Net
realized
and
unrealized
gains
(losses)
........................
0.40
(2.58)
1.34
0.45
Total
from
investment
operations
.................................
0.55
(2.23)
1.62
0.78
Less
distributions
from:
Net
investment
income
.......................................
(0.19)
(0.37)
(0.36)
(0.21)
Net
realized
gains
..........................................
—
—
—
(—)
d
Total
distributions
............................................
(0.19)
(0.37)
(0.36)
(0.21)
Net
asset
value,
end
of
period
...................................
$9.59
$9.23
$11.83
$10.57
Total
return
e
................................................
6.26%
(19.15)%
15.57%
7.96%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.
0.18%
0.17%
0.14%
0.17%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
—%
—%
—%
0.01%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..
—%
g
—%
g
—%
g
—%
Net
investment
income
........................................
3.33%
3.27%
2.41%
3.44%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$116,090
$109,129
$116,643
$138,590
Portfolio
turnover
rate
.........................................
61.34%
125.41%
108.13%
102.39%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited),
January
31,
2023
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
94.2%
Aerospace
&
Defense
0.1%
Bharat
Electronics
Ltd.
.................................
India
150,135
$
175,060
Air
Freight
&
Logistics
0.4%
ZTO
Express
Cayman,
Inc.,
ADR
.........................
China
15,300
436,203
Airlines
0.2%
a
Turk
Hava
Yollari
AO
...................................
Turkey
36,518
267,644
Auto
Components
0.7%
Fuyao
Glass
Industry
Group
Co.
Ltd.,
A
.....................
China
21,100
122,319
b
Fuyao
Glass
Industry
Group
Co.
Ltd.,
H,
144A,
Reg
S
..........
China
78,800
387,849
a
Hankook
Tire
&
Technology
Co.
Ltd.
.......................
South
Korea
6,950
183,188
Tube
Investments
of
India
Ltd.
............................
India
3,255
104,460
797,816
Automobiles
3.2%
Astra
International
Tbk.
PT
..............................
Indonesia
769,700
309,229
BYD
Co.
Ltd.,
A
.......................................
China
22,700
969,956
BYD
Co.
Ltd.,
H
......................................
China
49,500
1,567,664
Mahindra
&
Mahindra
Ltd.
...............................
India
18,085
306,351
b
Yadea
Group
Holdings
Ltd.,
144A,
Reg
S
...................
China
246,000
560,888
3,714,088
Banks
13.5%
Absa
Group
Ltd.
......................................
South
Africa
53,369
613,545
Abu
Dhabi
Islamic
Bank
PJSC
...........................
United
Arab
Emirates
160,294
412,011
Alinma
Bank
.........................................
Saudi
Arabia
39,498
347,979
Arab
National
Bank
....................................
Saudi
Arabia
133,392
986,167
b
Banco
del
Bajio
SA,
144A,
Reg
S
.........................
Mexico
163,731
659,367
Bank
Central
Asia
Tbk.
PT
..............................
Indonesia
1,366,200
775,331
Bank
of
Beijing
Co.
Ltd.,
A
...............................
China
268,895
169,411
Bank
of
Jiangsu
Co.
Ltd.,
A
..............................
China
182,500
201,013
Bank
of
the
Philippine
Islands
............................
Philippines
65,290
125,458
BDO
Unibank,
Inc.
....................................
Philippines
145,042
326,461
Commercial
International
Bank
Egypt
SAE
..................
Egypt
74,896
123,191
a
Grupo
Financiero
Inbursa
SAB
de
CV,
O
....................
Mexico
323,600
696,016
Haci
Omer
Sabanci
Holding
A/S
..........................
Turkey
235,310
489,256
Hana
Financial
Group,
Inc.
..............................
South
Korea
48,701
1,932,426
Hong
Leong
Bank
Bhd.
.................................
Malaysia
139,600
672,508
Huaxia
Bank
Co.
Ltd.,
A
................................
China
161,600
124,866
ICICI
Bank
Ltd.
.......................................
India
95,587
980,045
Industrial
Bank
Co.
Ltd.,
A
...............................
China
260,106
680,934
KB
Financial
Group,
Inc.
................................
South
Korea
15,495
705,294
Komercni
Banka
A/S
...................................
Czech
Republic
4,083
137,838
Metropolitan
Bank
&
Trust
Co.
............................
Philippines
378,130
396,463
Qatar
International
Islamic
Bank
QSC
......................
Qatar
186,748
527,409
Shinhan
Financial
Group
Co.
Ltd.
.........................
South
Korea
55,823
1,885,348
Taiwan
Business
Bank
.................................
Taiwan
1,292,000
575,875
a,b,c,d
TCS
Group
Holding
plc,
GDR,
Reg
S
......................
Russia
2,334
—
Woori
Financial
Group,
Inc.
..............................
South
Korea
107,874
1,123,859
15,668,071
Beverages
1.5%
Ambev
SA
...........................................
Brazil
124,300
334,533
Arca
Continental
SAB
de
CV
.............................
Mexico
91,600
809,185
Chongqing
Brewery
Co.
Ltd.,
A
...........................
China
5,800
103,633
Jiangsu
King's
Luck
Brewery
JSC
Ltd.,
A
....................
China
15,000
128,784
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Beverages
(continued)
a
United
Spirits
Ltd.
.....................................
India
42,794
$
403,923
1,780,058
Biotechnology
0.7%
b
3SBio,
Inc.,
144A,
Reg
S
................................
China
302,500
329,516
Beijing
Wantai
Biological
Pharmacy
Enterprise
Co.
Ltd.,
A
.......
China
7,300
145,302
Celltrion,
Inc.
.........................................
South
Korea
2,386
314,591
789,409
Capital
Markets
0.9%
a
Banco
BTG
Pactual
SA
.................................
Brazil
28,400
120,974
CITIC
Securities
Co.
Ltd.,
A
..............................
China
120,782
384,573
East
Money
Information
Co.
Ltd.,
A
........................
China
63,700
213,525
Guotai
Junan
Securities
Co.
Ltd.,
A
........................
China
94,700
200,695
Huatai
Securities
Co.
Ltd.,
A
.............................
China
92,500
178,270
1,098,037
Chemicals
2.5%
Asian
Paints
Ltd.
......................................
India
3,845
128,674
Berger
Paints
India
Ltd.
.................................
India
21,073
142,045
Dongyue
Group
Ltd.
...................................
China
276,000
330,445
Guangzhou
Tinci
Materials
Technology
Co.
Ltd.,
A
.............
China
24,400
178,442
Indorama
Ventures
PCL
................................
Thailand
361,700
447,982
a
Kumho
Petrochemical
Co.
Ltd.
...........................
South
Korea
3,723
447,245
a,b,c,d
PhosAgro
PJSC,
GDR,
Reg
S
............................
Russia
32,310
—
PI
Industries
Ltd.
......................................
India
2,824
103,926
Pidilite
Industries
Ltd.
..................................
India
5,307
148,370
Sahara
International
Petrochemical
Co.
.....................
Saudi
Arabia
79,647
792,432
SRF
Ltd.
............................................
India
7,959
213,535
2,933,096
Commercial
Services
&
Supplies
0.1%
S-1
Corp.
...........................................
South
Korea
2,419
113,046
Communications
Equipment
0.2%
ZTE
Corp.,
A
.........................................
China
49,800
197,059
Construction
&
Engineering
0.5%
Larsen
&
Toubro
Ltd.
...................................
India
21,642
564,591
Construction
Materials
0.9%
ACC
Ltd.
............................................
India
16,087
388,773
Ambuja
Cements
Ltd.
..................................
India
128,949
635,750
1,024,523
Consumer
Finance
0.7%
Krungthai
Card
PCL
...................................
Thailand
194,700
336,555
Shriram
Finance
Ltd.
...................................
India
28,435
449,534
786,089
Containers
&
Packaging
0.1%
Klabin
SA
...........................................
Brazil
27,800
105,930
Diversified
Financial
Services
1.5%
Far
East
Horizon
Ltd.
..................................
China
288,000
260,164
FirstRand
Ltd.
........................................
South
Africa
152,151
565,527
Housing
Development
Finance
Corp.
Ltd.
...................
India
23,961
773,002
Remgro
Ltd.
.........................................
South
Africa
14,109
113,560
1,712,253
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Diversified
Telecommunication
Services
1.3%
b
China
Tower
Corp.
Ltd.,
H,
144A,
Reg
S
....................
China
9,386,000
$
1,066,528
Indus
Towers
Ltd.
.....................................
India
48,387
91,022
Telekom
Malaysia
Bhd.
.................................
Malaysia
245,300
300,917
1,458,467
Electric
Utilities
0.4%
Enel
Americas
SA
.....................................
Chile
2,021,572
267,628
Enel
Chile
SA
........................................
Chile
3,088,382
145,481
c,d
Inter
RAO
UES
PJSC
..................................
Russia
8,656,700
—
413,109
Electrical
Equipment
1.2%
ABB
India
Ltd.
........................................
India
3,319
115,750
Havells
India
Ltd.
.....................................
India
44,348
643,544
NARI
Technology
Co.
Ltd.,
A
.............................
China
33,700
132,105
TBEA
Co.
Ltd.,
A
......................................
China
49,000
155,094
Voltronic
Power
Technology
Corp.
.........................
Taiwan
6,000
303,373
1,349,866
Electronic
Equipment,
Instruments
&
Components
3.0%
China
Zhenhua
Group
Science
&
Technology
Co.
Ltd.,
A
........
China
6,800
114,515
Delta
Electronics,
Inc.
..................................
Taiwan
36,000
348,818
Foxconn
Industrial
Internet
Co.
Ltd.,
A
......................
China
124,200
175,312
Hon
Hai
Precision
Industry
Co.
Ltd.
........................
Taiwan
206,000
686,384
Kingboard
Holdings
Ltd.
................................
China
133,000
543,325
Largan
Precision
Co.
Ltd.
...............................
Taiwan
13,000
926,926
Synnex
Technology
International
Corp.
.....................
Taiwan
60,000
121,158
Zhen
Ding
Technology
Holding
Ltd.
........................
Taiwan
147,000
542,366
3,458,804
Entertainment
1.3%
a
Krafton,
Inc.
.........................................
South
Korea
836
122,635
NetEase,
Inc.
........................................
China
61,500
1,091,224
a
Tencent
Music
Entertainment
Group,
ADR
...................
China
29,800
250,022
1,463,881
Equity
Real
Estate
Investment
Trusts
(REITs)
0.1%
Fibra
Uno
Administracion
SA
de
CV
.......................
Mexico
87,100
117,954
Food
&
Staples
Retailing
1.5%
Bid
Corp.
Ltd.
........................................
South
Africa
5,566
114,719
BIM
Birlesik
Magazalar
A/S
..............................
Turkey
17,515
116,100
Cencosud
SA
........................................
Chile
87,001
156,265
Clicks
Group
Ltd.
.....................................
South
Africa
7,278
111,040
Nahdi
Medical
Co.
.....................................
Saudi
Arabia
2,403
121,906
Sendas
Distribuidora
SA
................................
Brazil
30,200
116,919
Shoprite
Holdings
Ltd.
..................................
South
Africa
34,054
471,578
Sumber
Alfaria
Trijaya
Tbk.
PT
...........................
Indonesia
1,712,100
323,642
Wal-Mart
de
Mexico
SAB
de
CV
..........................
Mexico
49,400
193,510
1,725,679
Food
Products
2.2%
b
Dali
Foods
Group
Co.
Ltd.,
144A,
Reg
S
....................
China
422,000
188,196
Nestle
India
Ltd.
......................................
India
1,242
289,564
Nestle
Malaysia
Bhd.
..................................
Malaysia
14,900
472,245
PPB
Group
Bhd.
......................................
Malaysia
127,200
524,813
Tingyi
Cayman
Islands
Holding
Corp.
......................
China
426,000
708,754
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
8
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Food
Products
(continued)
Tongwei
Co.
Ltd.,
A
....................................
China
57,600
$
361,420
2,544,992
Gas
Utilities
0.5%
Adani
Total
Gas
Ltd.
...................................
India
17,827
461,522
Indraprastha
Gas
Ltd.
..................................
India
21,871
114,105
575,627
Health
Care
Equipment
&
Supplies
0.3%
Shandong
Weigao
Group
Medical
Polymer
Co.
Ltd.,
H
.........
China
132,800
220,781
Shenzhen
Mindray
Bio-Medical
Electronics
Co.
Ltd.,
A
..........
China
2,300
113,751
334,532
Health
Care
Providers
&
Services
0.9%
Bumrungrad
Hospital
PCL
...............................
Thailand
20,900
138,497
Dr.
Sulaiman
Al
Habib
Medical
Services
Group
Co.
............
Saudi
Arabia
11,928
745,535
Sinopharm
Group
Co.
Ltd.,
H
............................
China
84,800
207,860
1,091,892
Hotels,
Restaurants
&
Leisure
1.1%
OPAP
SA
...........................................
Greece
13,435
201,745
a
Trip.com
Group
Ltd.,
ADR
...............................
China
7,736
284,375
Yum
China
Holdings,
Inc.
...............................
China
13,757
847,569
1,333,689
Household
Durables
0.5%
Gree
Electric
Appliances,
Inc.
of
Zhuhai,
A
...................
China
21,900
112,589
Haier
Smart
Home
Co.
Ltd.,
A
............................
China
76,200
291,309
LG
Electronics,
Inc.
....................................
South
Korea
1,539
125,953
529,851
Household
Products
0.1%
Unilever
Indonesia
Tbk.
PT
..............................
Indonesia
369,100
114,894
Independent
Power
and
Renewable
Electricity
Producers
0.7%
a
Adani
Power
Ltd.
.....................................
India
168,460
463,532
Engie
Brasil
Energia
SA
................................
Brazil
42,800
331,822
795,354
Industrial
Conglomerates
0.9%
GS
Holdings
Corp.
....................................
South
Korea
9,892
355,019
KOC
Holding
A/S
.....................................
Turkey
177,260
722,451
1,077,470
Insurance
2.7%
Bupa
Arabia
for
Cooperative
Insurance
Co.
..................
Saudi
Arabia
16,004
667,687
DB
Insurance
Co.
Ltd.
..................................
South
Korea
9,708
516,729
a
Meritz
Fire
&
Marine
Insurance
Co.
Ltd.
.....................
South
Korea
7,545
316,313
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
A
................
China
133,100
1,009,337
Powszechny
Zaklad
Ubezpieczen
SA
......................
Poland
34,166
290,504
Samsung
Life
Insurance
Co.
Ltd.
..........................
South
Korea
5,341
307,123
3,107,693
Interactive
Media
&
Services
6.0%
Autohome,
Inc.,
ADR
...................................
China
14,900
519,414
a
Baidu,
Inc.,
A
.........................................
China
30,200
507,702
Info
Edge
India
Ltd.
....................................
India
11,196
506,337
a,b
Kuaishou
Technology,
144A,
Reg
S
........................
China
90,600
797,234
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Interactive
Media
&
Services
(continued)
Tencent
Holdings
Ltd.
..................................
China
94,100
$
4,585,742
6,916,429
Internet
&
Direct
Marketing
Retail
5.6%
a
Alibaba
Group
Holding
Ltd.
..............................
China
183,400
2,521,699
a,b,e
Meituan
Dianping,
B,
144A,
Reg
S
........................
China
47,710
1,066,681
momo.com,
Inc.
......................................
Taiwan
13,000
345,662
a
Pinduoduo,
Inc.,
ADR
..................................
China
12,900
1,263,942
a
Vipshop
Holdings
Ltd.,
ADR
.............................
China
82,660
1,278,750
6,476,734
IT
Services
2.6%
HCL
Technologies
Ltd.
.................................
India
14,669
202,710
Infosys
Ltd.
..........................................
India
33,849
638,911
Tata
Consultancy
Services
Ltd.
...........................
India
53,386
2,208,119
3,049,740
Life
Sciences
Tools
&
Services
1.1%
Divi's
Laboratories
Ltd.
.................................
India
3,442
140,154
b
Hangzhou
Tigermed
Consulting
Co.
Ltd.,
H,
144A,
Reg
S
.......
China
23,400
306,977
b
WuXi
AppTec
Co.
Ltd.,
H,
144A,
Reg
S
.....................
China
29,440
382,574
a,b
Wuxi
Biologics
Cayman,
Inc.,
144A,
Reg
S
..................
China
51,000
425,903
1,255,608
Machinery
0.5%
Doosan
Bobcat,
Inc.
...................................
South
Korea
10,578
299,823
Haitian
International
Holdings
Ltd.
.........................
China
84,000
257,812
557,635
Marine
0.5%
Evergreen
Marine
Corp.
Taiwan
Ltd.
.......................
Taiwan
82,000
418,568
Orient
Overseas
International
Ltd.
.........................
Hong
Kong
7,000
116,369
534,937
Metals
&
Mining
3.2%
African
Rainbow
Minerals
Ltd.
............................
South
Africa
24,263
395,805
Anglo
American
Platinum
Ltd.
............................
South
Africa
2,346
174,535
b
Ganfeng
Lithium
Group
Co.
Ltd.,
144A,
Reg
S
................
China
38,800
354,395
Ganfeng
Lithium
Group
Co.
Ltd.,
A
........................
China
20,780
244,456
Hindalco
Industries
Ltd.
.................................
India
42,805
247,605
Impala
Platinum
Holdings
Ltd.
............................
South
Africa
11,657
135,219
Kumba
Iron
Ore
Ltd.
...................................
South
Africa
4,942
151,377
c,d
MMC
Norilsk
Nickel
PJSC
...............................
Russia
3,164
—
a,c,d
Novolipetsk
Steel
PJSC
................................
Russia
347,890
—
a,c,d
Severstal
PAO
.......................................
Russia
48,409
—
Sibanye
Stillwater
Ltd.
..................................
South
Africa
87,339
230,939
Tata
Steel
Ltd.
........................................
India
388,950
574,040
Vale
SA
.............................................
Brazil
33,900
631,240
Zijin
Mining
Group
Co.
Ltd.,
H
............................
China
344,000
569,037
3,708,648
Multiline
Retail
0.1%
Central
Retail
Corp.
PCL
................................
Thailand
131,100
170,590
Oil,
Gas
&
Consumable
Fuels
4.2%
Adaro
Energy
Indonesia
Tbk.
PT
..........................
Indonesia
3,511,300
695,748
MOL
Hungarian
Oil
&
Gas
plc
............................
Hungary
35,420
264,834
a
Petro
Rio
SA
.........................................
Brazil
23,800
197,413
Petroleo
Brasileiro
SA
..................................
Brazil
197,200
1,144,607
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
Polski
Koncern
Naftowy
ORLEN
SA
.......................
Poland
46,157
$
693,485
Qatar
Fuel
QSC
......................................
Qatar
127,244
621,672
Reliance
Industries
Ltd.
.................................
India
38,213
1,104,689
United
Tractors
Tbk.
PT
................................
Indonesia
129,100
211,951
4,934,399
Paper
&
Forest
Products
0.1%
Indah
Kiat
Pulp
&
Paper
Tbk.
PT
..........................
Indonesia
319,600
178,104
Personal
Products
0.9%
Colgate-Palmolive
India
Ltd.
.............................
India
26,054
463,917
Hindustan
Unilever
Ltd.
.................................
India
17,735
560,735
1,024,652
Pharmaceuticals
1.5%
CSPC
Pharmaceutical
Group
Ltd.
.........................
China
1,559,600
1,778,397
Real
Estate
Management
&
Development
2.1%
Aldar
Properties
PJSC
.................................
United
Arab
Emirates
238,801
284,397
C&D
International
Investment
Group
Ltd.
....................
China
55,000
174,891
Central
Pattana
PCL
...................................
Thailand
178,500
388,986
China
Overseas
Property
Holdings
Ltd.
.....................
China
185,000
242,004
Emaar
Properties
PJSC
................................
United
Arab
Emirates
685,781
1,042,056
Greentown
China
Holdings
Ltd.
...........................
China
68,500
101,002
NEPI
Rockcastle
NV
...................................
Romania
28,238
175,512
2,408,848
Semiconductors
&
Semiconductor
Equipment
9.5%
a
Daqo
New
Energy
Corp.,
ADR
...........................
China
7,000
318,570
MediaTek,
Inc.
.......................................
Taiwan
19,000
458,677
Novatek
Microelectronics
Corp.
...........................
Taiwan
97,000
1,154,102
Realtek
Semiconductor
Corp.
............................
Taiwan
33,000
354,089
Shanghai
Fudan
Microelectronics
Group
Co.
Ltd.,
H
...........
China
59,000
245,951
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
...............
Taiwan
450,000
7,934,451
TCL
Zhonghuan
Renewable
Energy
Technology
Co.
Ltd.,
A
......
China
40,100
252,999
a
United
Microelectronics
Corp.
............................
Taiwan
228,000
372,799
11,091,638
Software
0.3%
Hundsun
Technologies,
Inc.,
A
............................
China
24,100
169,044
Tata
Elxsi
Ltd.
........................................
India
1,611
131,658
300,702
Specialty
Retail
0.9%
Chow
Tai
Fook
Jewellery
Group
Ltd.
.......................
China
64,600
138,297
JUMBO
SA
..........................................
Greece
13,582
243,913
b
Topsports
International
Holdings
Ltd.,
144A,
Reg
S
............
China
348,000
327,933
Zhongsheng
Group
Holdings
Ltd.
.........................
China
60,500
342,346
1,052,489
Technology
Hardware,
Storage
&
Peripherals
4.7%
Catcher
Technology
Co.
Ltd.
.............................
Taiwan
137,000
814,012
Lenovo
Group
Ltd.
....................................
China
1,574,000
1,262,553
Samsung
Electronics
Co.
Ltd.
............................
South
Korea
68,611
3,413,416
5,489,981
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Textiles,
Apparel
&
Luxury
Goods
1.1%
Bosideng
International
Holdings
Ltd.
.......................
China
676,000
$
376,748
Li
Ning
Co.
Ltd.
.......................................
China
18,000
177,956
Page
Industries
Ltd.
...................................
India
1,308
642,432
Xtep
International
Holdings
Ltd.
...........................
China
97,500
130,013
1,327,149
Tobacco
0.4%
ITC
Ltd.
............................................
India
117,207
506,896
Transportation
Infrastructure
0.8%
China
Merchants
Port
Holdings
Co.
Ltd.
....................
China
120,000
168,231
Grupo
Aeroportuario
del
Sureste
SAB
de
CV,
B
...............
Mexico
18,200
494,345
Shenzhen
International
Holdings
Ltd.
......................
China
301,000
293,692
956,268
Wireless
Telecommunication
Services
1.7%
Advanced
Info
Service
PCL
..............................
Thailand
207,100
1,232,963
Far
EasTone
Telecommunications
Co.
Ltd.
..................
Taiwan
342,000
760,154
a,c,d
Mobile
TeleSystems
PJSC,
ADR
..........................
Russia
31,600
—
1,993,117
Total
Common
Stocks
(Cost
$103,384,159)
.....................................
109,369,688
Preferred
Stocks
4.0%
Banks
1.3%
f
Itau
Unibanco
Holding
SA,
4.02%
.........................
Brazil
128,400
640,792
f
Itausa
SA,
4.89%
.....................................
Brazil
524,330
881,192
1,521,984
Chemicals
0.6%
f
Sociedad
Quimica
y
Minera
de
Chile
SA,
B,
0.01%
............
Chile
6,801
662,418
Electric
Utilities
0.6%
f
Cia
Energetica
de
Minas
Gerais,
11.88%
....................
Brazil
284,300
641,916
Metals
&
Mining
1.0%
f
Gerdau
SA,
11.09%
...................................
Brazil
185,300
1,195,284
Oil,
Gas
&
Consumable
Fuels
0.5%
f
Petroleo
Brasileiro
SA,
44.12%
...........................
Brazil
119,900
615,853
Total
Preferred
Stocks
(Cost
$4,287,506)
.......................................
4,637,455
Total
Long
Term
Investments
(Cost
$107,671,665)
...............................
114,007,143
a
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
See
Abbreviations
on
page
47
.
Short
Term
Investments
0.3%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.3%
g,h
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
3.969%
....
United
States
290,959
$
290,959
Total
Money
Market
Funds
(Cost
$290,959)
.....................................
290,959
Total
Short
Term
Investments
(Cost
$290,959
)
..................................
290,959
a
Total
Investments
(Cost
$107,962,624)
98.5%
...................................
$114,298,102
Other
Assets,
less
Liabilities
1.5%
.............................................
1,791,816
Net
Assets
100.0%
...........................................................
$116,089,918
a
Non-income
producing.
b
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
January
31,
2023,
the
aggregate
value
of
these
securities
was
$6,854,041,
representing
5.9%
of
net
assets.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
d
See
Note
7
regarding
investments
in
Russian
securities.
e
A
portion
or
all
of
the
security
purchased
on
a
delayed
delivery
basis.
See
Note
1(c).
f
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
g
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
h
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
Series
Financial
Highlights
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International
Core
Equity
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Fund
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
Six
Months
Ended
January
31,
2023
(unaudited)
Year
Ended
July
31,
Year
Ended
July
31,
2020
a
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$10.18
$13.09
$10.31
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.12
0.34
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
........................
0.64
(2.26)
2.80
0.30
Total
from
investment
operations
.................................
0.76
(1.92)
3.15
0.55
Less
distributions
from:
Net
investment
income
.......................................
(0.12)
(0.42)
(0.37)
(0.24)
Net
realized
gains
..........................................
—
(0.57)
—
—
Total
distributions
............................................
(0.12)
(0.99)
(0.37)
(0.24)
Net
asset
value,
end
of
period
...................................
$10.82
$10.18
$13.09
$10.31
Total
return
d
................................................
7.68%
(15.56)%
31.00%
5.58%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.
0.02%
0.04%
0.04%
0.08%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
—%
—%
—%
0.01%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..
—%
f
—%
—%
f
—%
Net
investment
income
........................................
2.44%
2.94%
2.93%
2.57%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$909,344
$800,757
$360,375
$281,150
Portfolio
turnover
rate
.........................................
54.50%
125.21%
103.80%
94.98%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited),
January
31,
2023
Franklin
International
Core
Equity
(IU)
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
98.9%
Aerospace
&
Defense
1.4%
BAE
Systems
plc
.....................................
United
Kingdom
1,011,389
$
10,706,182
Dassault
Aviation
SA
...................................
France
13,048
2,228,223
12,934,405
Air
Freight
&
Logistics
0.6%
DSV
A/S
............................................
Denmark
18,350
3,035,820
Nippon
Express
Holdings,
Inc.
............................
Japan
47,300
2,745,582
5,781,402
Auto
Components
0.5%
Bridgestone
Corp.
.....................................
Japan
50,000
1,867,090
Continental
AG
.......................................
Germany
23,480
1,648,729
Valeo
..............................................
France
43,375
947,994
4,463,813
Automobiles
2.8%
Bayerische
Motoren
Werke
AG
...........................
Germany
104,616
10,657,167
Mazda
Motor
Corp.
....................................
Japan
349,200
2,780,268
Stellantis
NV
.........................................
United
States
683,137
10,740,080
Toyota
Motor
Corp.
....................................
Japan
62,000
910,725
25,088,240
Banks
7.8%
Banco
Bilbao
Vizcaya
Argentaria
SA
.......................
Spain
260,153
1,837,746
Commonwealth
Bank
of
Australia
.........................
Australia
60,767
4,743,937
DBS
Group
Holdings
Ltd.
...............................
Singapore
434,800
11,903,656
ING
Groep
NV
.......................................
Netherlands
539,602
7,813,937
Mitsubishi
UFJ
Financial
Group,
Inc.
.......................
Japan
313,600
2,297,613
NatWest
Group
plc
....................................
United
Kingdom
2,861,204
10,915,219
Standard
Chartered
plc
.................................
United
Kingdom
1,203,949
10,112,302
Sumitomo
Mitsui
Financial
Group,
Inc.
......................
Japan
284,100
12,350,143
Swedbank
AB,
A
......................................
Sweden
479,563
9,224,241
71,198,794
Beverages
1.7%
a
Budweiser
Brewing
Co.
APAC
Ltd.,
144A,
Reg
S
..............
China
766,800
2,419,684
Carlsberg
A/S,
B
......................................
Denmark
10,064
1,428,786
Kirin
Holdings
Co.
Ltd.
.................................
Japan
108,600
1,673,882
Pernod
Ricard
SA
.....................................
France
41,018
8,492,349
Suntory
Beverage
&
Food
Ltd.
...........................
Japan
43,000
1,452,349
15,467,050
Biotechnology
1.0%
CSL
Ltd.
............................................
United
States
33,422
7,057,574
b
Swedish
Orphan
Biovitrum
AB
............................
Sweden
99,621
2,221,404
9,278,978
Building
Products
1.2%
Cie
de
Saint-Gobain
...................................
France
184,914
10,620,313
Capital
Markets
3.6%
3i
Group
plc
.........................................
United
Kingdom
488,132
9,522,947
Deutsche
Bank
AG
....................................
Germany
422,112
5,633,648
Deutsche
Boerse
AG
...................................
Germany
55,045
9,850,332
Julius
Baer
Group
Ltd.
.................................
Switzerland
13,963
895,648
SBI
Holdings,
Inc.
.....................................
Japan
58,700
1,244,686
UBS
Group
AG
.......................................
Switzerland
270,416
5,772,135
32,919,396
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Chemicals
3.2%
BASF
SE
...........................................
Germany
34,182
$
1,959,931
ICL
Group
Ltd.
.......................................
Israel
373,951
2,967,961
Nissan
Chemical
Corp.
.................................
Japan
63,300
2,989,060
Nitto
Denko
Corp.
.....................................
Japan
85,800
5,547,173
OCI
NV
.............................................
Netherlands
64,816
2,206,467
Shin-Etsu
Chemical
Co.
Ltd.
.............................
Japan
28,200
4,158,291
Solvay
SA
...........................................
Belgium
41,031
4,781,622
Symrise
AG
.........................................
Germany
30,161
3,206,553
Tosoh
Corp.
.........................................
Japan
115,300
1,508,866
29,325,924
Commercial
Services
&
Supplies
0.1%
Brambles
Ltd.
........................................
Australia
104,566
889,246
Communications
Equipment
0.2%
Telefonaktiebolaget
LM
Ericsson,
B
........................
Sweden
333,053
1,931,687
Construction
&
Engineering
0.6%
ACS
Actividades
de
Construccion
y
Servicios
SA
..............
Spain
125,790
3,722,765
Eiffage
SA
...........................................
France
16,016
1,710,757
5,433,522
Construction
Materials
0.5%
CRH
plc
............................................
Ireland
86,727
4,052,292
Diversified
Consumer
Services
0.1%
IDP
Education
Ltd.
....................................
Australia
44,291
985,698
Diversified
Financial
Services
0.6%
b
EXOR
NV
...........................................
Netherlands
50,475
4,012,372
ORIX
Corp.
..........................................
Japan
74,000
1,301,441
5,313,813
Diversified
Telecommunication
Services
1.5%
Bezeq
The
Israeli
Telecommunication
Corp.
Ltd.
..............
Israel
1,242,823
2,058,877
Deutsche
Telekom
AG
..................................
Germany
155,821
3,471,664
Nippon
Telegraph
&
Telephone
Corp.
......................
Japan
76,600
2,297,421
Spark
New
Zealand
Ltd.
................................
New
Zealand
394,339
1,329,813
Telenor
ASA
.........................................
Norway
413,415
4,329,010
13,486,785
Electric
Utilities
1.4%
Acciona
SA
..........................................
Spain
14,243
2,778,938
Elia
Group
SA/NV
.....................................
Belgium
19,050
2,675,092
Endesa
SA
..........................................
Spain
178,746
3,563,773
Red
Electrica
Corp.
SA
.................................
Spain
229,871
4,068,652
13,086,455
Electrical
Equipment
1.9%
Fuji
Electric
Co.
Ltd.
...................................
Japan
71,700
2,902,941
Mitsubishi
Electric
Corp.
................................
Japan
251,500
2,772,359
Prysmian
SpA
........................................
Italy
109,901
4,488,308
Schneider
Electric
SE
..................................
United
States
41,923
6,800,877
16,964,485
Electronic
Equipment,
Instruments
&
Components
1.4%
Hirose
Electric
Co.
Ltd.
.................................
Japan
18,700
2,435,008
Ibiden
Co.
Ltd.
.......................................
Japan
26,000
1,014,985
Keyence
Corp.
.......................................
Japan
8,300
3,821,943
TDK
Corp.
..........................................
Japan
81,500
2,912,363
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
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)
Electronic
Equipment,
Instruments
&
Components
(continued)
Yokogawa
Electric
Corp.
................................
Japan
138,800
$
2,437,833
12,622,132
Entertainment
0.9%
Nintendo
Co.
Ltd.
.....................................
Japan
136,800
5,932,715
Square
Enix
Holdings
Co.
Ltd.
............................
Japan
50,800
2,402,950
8,335,665
Equity
Real
Estate
Investment
Trusts
(REITs)
1.1%
Covivio
.............................................
France
19,332
1,327,094
Klepierre
SA
.........................................
France
121,338
3,079,741
Segro
plc
...........................................
United
Kingdom
276,440
2,845,448
Stockland
...........................................
Australia
1,052,074
2,939,987
10,192,270
Food
&
Staples
Retailing
1.4%
Coles
Group
Ltd.
......................................
Australia
111,670
1,404,644
Jeronimo
Martins
SGPS
SA
.............................
Portugal
93,216
2,023,880
Koninklijke
Ahold
Delhaize
NV
............................
Netherlands
322,046
9,612,539
13,041,063
Food
Products
4.1%
Ajinomoto
Co.,
Inc.
....................................
Japan
169,800
5,599,358
Danone
SA
..........................................
France
23,421
1,284,450
Nestle
SA
...........................................
United
States
177,866
21,701,263
a
WH
Group
Ltd.,
144A,
Reg
S
............................
Hong
Kong
4,646,000
2,861,526
Yakult
Honsha
Co.
Ltd.
.................................
Japan
77,700
5,548,120
36,994,717
Gas
Utilities
0.6%
Tokyo
Gas
Co.
Ltd.
....................................
Japan
246,800
5,169,111
Health
Care
Equipment
&
Supplies
2.4%
BioMerieux
..........................................
France
22,070
2,250,050
Hoya
Corp.
..........................................
Japan
29,300
3,222,921
Olympus
Corp.
.......................................
Japan
554,900
10,434,318
Sonova
Holding
AG
....................................
Switzerland
23,946
5,988,219
21,895,508
Health
Care
Providers
&
Services
0.3%
Sonic
Healthcare
Ltd.
..................................
Australia
135,090
3,025,902
Health
Care
Technology
0.1%
M3,
Inc.
............................................
Japan
32,200
880,645
Hotels,
Restaurants
&
Leisure
1.2%
Compass
Group
plc
...................................
United
Kingdom
225,220
5,379,842
a
La
Francaise
des
Jeux
SAEM,
144A,
Reg
S
.................
France
33,760
1,444,589
b
Lottery
Corp.
Ltd.
(The)
.................................
Australia
1,265,349
4,220,434
11,044,865
Household
Durables
0.9%
Sekisui
House
Ltd.
....................................
Japan
366,100
6,920,614
Taylor
Wimpey
plc
.....................................
United
Kingdom
857,777
1,244,518
8,165,132
Household
Products
0.5%
Reckitt
Benckiser
Group
plc
.............................
United
Kingdom
48,524
3,457,725
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Household
Products
(continued)
Unicharm
Corp.
.......................................
Japan
37,900
$
1,446,054
4,903,779
Independent
Power
and
Renewable
Electricity
Producers
0.3%
Corp.
ACCIONA
Energias
Renovables
SA
...................
Spain
22,469
918,892
RWE
AG
............................................
Germany
47,912
2,133,087
3,051,979
Industrial
Conglomerates
1.2%
CK
Hutchison
Holdings
Ltd.
..............................
United
Kingdom
1,381,000
8,789,290
Hitachi
Ltd.
..........................................
Japan
44,100
2,313,246
11,102,536
Insurance
5.5%
Japan
Post
Holdings
Co.
Ltd.
............................
Japan
657,200
5,771,193
Legal
&
General
Group
plc
..............................
United
Kingdom
3,074,398
9,674,561
Medibank
Pvt
Ltd.
.....................................
Australia
1,548,710
3,226,631
Muenchener
Rueckversicherungs-Gesellschaft
AG
in
Muenchen
..
Germany
9,685
3,498,456
NN
Group
NV
........................................
Netherlands
48,171
2,093,033
a
Poste
Italiane
SpA,
144A,
Reg
S
..........................
Italy
89,778
959,235
Sampo
OYJ,
A
.......................................
Finland
77,262
4,056,403
Tokio
Marine
Holdings,
Inc.
..............................
Japan
376,200
7,881,218
Zurich
Insurance
Group
AG
..............................
Switzerland
26,166
12,939,844
50,100,574
Interactive
Media
&
Services
0.3%
a
Auto
Trader
Group
plc,
144A,
Reg
S
.......................
United
Kingdom
365,629
2,836,612
Internet
&
Direct
Marketing
Retail
0.5%
a,b
Zalando
SE,
144A,
Reg
S
...............................
Germany
58,066
2,708,033
ZOZO,
Inc.
..........................................
Japan
75,900
1,968,025
4,676,058
IT
Services
1.2%
Edenred
............................................
France
78,417
4,271,528
Otsuka
Corp.
........................................
Japan
69,100
2,273,884
TIS,
Inc.
............................................
Japan
138,900
4,006,154
10,551,566
Leisure
Products
0.2%
Bandai
Namco
Holdings,
Inc.
............................
Japan
32,000
2,140,454
Life
Sciences
Tools
&
Services
0.4%
Eurofins
Scientific
SE
..................................
Luxembourg
14,677
1,052,826
b
QIAGEN
NV
.........................................
United
States
17,061
832,327
Sartorius
Stedim
Biotech
................................
France
5,426
1,892,830
3,777,983
Machinery
3.3%
Atlas
Copco
AB,
A
.....................................
Sweden
255,599
3,032,678
Atlas
Copco
AB,
B
.....................................
Sweden
866,704
9,140,828
Komatsu
Ltd.
........................................
Japan
324,600
7,978,709
Mitsubishi
Heavy
Industries
Ltd.
..........................
Japan
195,500
7,667,319
NGK
Insulators
Ltd.
....................................
Japan
105,800
1,464,746
Volvo
AB,
A
..........................................
Sweden
43,818
910,180
30,194,460
Marine
0.5%
AP
Moller
-
Maersk
A/S,
A
...............................
Denmark
1,523
3,245,626
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
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
Common
Stocks
(continued)
Marine
(continued)
SITC
International
Holdings
Co.
Ltd.
.......................
China
758,000
$
1,656,053
4,901,679
Media
0.3%
Hakuhodo
DY
Holdings,
Inc.
.............................
Japan
140,300
1,516,620
Publicis
Groupe
SA
....................................
France
14,132
996,912
2,513,532
Metals
&
Mining
4.6%
BHP
Group
Ltd.
......................................
Australia
558,394
19,557,546
Fortescue
Metals
Group
Ltd.
.............................
Australia
455,189
7,190,474
Glencore
plc
.........................................
Australia
1,447,322
9,692,160
Rio
Tinto
Ltd.
........................................
Australia
59,776
5,364,519
41,804,699
Multiline
Retail
0.3%
Next
plc
............................................
United
Kingdom
12,789
1,047,047
Wesfarmers
Ltd.
......................................
Australia
46,491
1,639,236
2,686,283
Multi-Utilities
0.9%
E.ON
SE
............................................
Germany
436,789
4,762,489
Engie
SA
...........................................
France
223,051
3,167,441
7,929,930
Oil,
Gas
&
Consumable
Fuels
5.3%
BP
plc
..............................................
United
Kingdom
1,580,917
9,548,754
Equinor
ASA
.........................................
Norway
328,614
10,017,668
Idemitsu
Kosan
Co.
Ltd.
................................
Japan
82,500
2,063,039
Inpex
Corp.
..........................................
Japan
123,100
1,353,014
OMV
AG
............................................
Austria
36,236
1,815,153
Repsol
SA
...........................................
Spain
188,082
3,089,735
Santos
Ltd.
..........................................
Australia
543,473
2,774,560
Shell
plc
............................................
Netherlands
173,992
5,107,813
TotalEnergies
SE
.....................................
France
195,187
12,067,170
47,836,906
Paper
&
Forest
Products
0.2%
Mondi
plc
...........................................
Austria
115,802
2,183,689
Personal
Products
1.9%
Beiersdorf
AG
........................................
Germany
18,496
2,248,804
L'Oreal
SA
..........................................
France
35,634
14,714,370
16,963,174
Pharmaceuticals
9.3%
AstraZeneca
plc
......................................
United
Kingdom
30,172
3,952,750
Bayer
AG
...........................................
Germany
216,907
13,501,983
GSK
plc
............................................
United
States
723,878
12,714,429
Ipsen
SA
............................................
France
21,112
2,217,601
Novartis
AG
.........................................
Switzerland
34,864
3,152,022
Novo
Nordisk
A/S,
B
...................................
Denmark
146,222
20,236,828
Orion
OYJ,
B
........................................
Finland
57,767
3,094,987
Roche
Holding
AG
....................................
United
States
57,903
18,075,603
Roche
Holding
AG,
BR
.................................
United
States
6,644
2,431,976
Sanofi
SA
...........................................
France
49,826
4,879,409
84,257,588
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Professional
Services
1.9%
Persol
Holdings
Co.
Ltd.
................................
Japan
45,800
$
1,004,420
Randstad
NV
........................................
Netherlands
62,538
4,008,769
RELX
plc
...........................................
United
Kingdom
74,613
2,216,583
Wolters
Kluwer
NV
....................................
Netherlands
94,971
10,354,498
17,584,270
Real
Estate
Management
&
Development
1.4%
CK
Asset
Holdings
Ltd.
.................................
Hong
Kong
292,000
1,867,048
Daito
Trust
Construction
Co.
Ltd.
..........................
Japan
32,700
3,232,114
b
Fastighets
AB
Balder,
B
.................................
Sweden
318,735
1,642,051
Hulic
Co.
Ltd.
........................................
Japan
214,200
1,761,085
Nomura
Real
Estate
Holdings,
Inc.
........................
Japan
71,700
1,580,664
Swire
Pacific
Ltd.,
A
...................................
Hong
Kong
289,000
2,648,568
12,731,530
Road
&
Rail
0.5%
Aurizon
Holdings
Ltd.
..................................
Australia
394,028
1,029,968
Kintetsu
Group
Holdings
Co.
Ltd.
.........................
Japan
112,500
3,664,406
4,694,374
Semiconductors
&
Semiconductor
Equipment
3.3%
Advantest
Corp.
......................................
Japan
96,200
6,897,300
ASML
Holding
NV
.....................................
Netherlands
8,703
5,758,583
Disco
Corp.
..........................................
Japan
4,900
1,472,460
STMicroelectronics
NV
.................................
Singapore
269,279
12,680,482
SUMCO
Corp.
.......................................
Japan
194,200
2,878,080
29,686,905
Software
1.5%
b
Check
Point
Software
Technologies
Ltd.
....................
Israel
37,027
4,709,835
Sage
Group
plc
(The)
..................................
United
Kingdom
590,566
5,673,735
WiseTech
Global
Ltd.
..................................
Australia
81,810
3,547,499
13,931,069
Specialty
Retail
0.8%
Industria
de
Diseno
Textil
SA
.............................
Spain
163,723
5,111,801
JD
Sports
Fashion
plc
..................................
United
Kingdom
613,389
1,236,310
USS
Co.
Ltd.
.........................................
Japan
53,900
886,761
7,234,872
Technology
Hardware,
Storage
&
Peripherals
0.4%
Logitech
International
SA
...............................
Switzerland
13,095
766,277
Seiko
Epson
Corp.
....................................
Japan
168,000
2,605,945
3,372,222
Textiles,
Apparel
&
Luxury
Goods
3.4%
Burberry
Group
plc
....................................
United
Kingdom
218,431
6,653,341
Cie
Financiere
Richemont
SA
............................
Switzerland
5,990
923,402
Hermes
International
...................................
France
2,041
3,819,925
LVMH
Moet
Hennessy
Louis
Vuitton
SE
....................
France
16,354
14,277,297
Pandora
A/S
.........................................
Denmark
36,683
3,054,806
Swatch
Group
AG
(The)
................................
Switzerland
28,843
1,895,207
30,623,978
Tobacco
1.2%
Imperial
Brands
plc
....................................
United
Kingdom
277,841
6,969,706
c
Swedish
Match
AB
....................................
Sweden
314,685
3,462,316
10,432,022
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
International
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Trading
Companies
&
Distributors
1.5%
Marubeni
Corp.
.......................................
Japan
298,000
$
3,656,881
Mitsubishi
Corp.
......................................
Japan
284,800
9,538,999
13,195,880
Wireless
Telecommunication
Services
1.2%
KDDI
Corp.
..........................................
Japan
344,500
10,765,851
Total
Common
Stocks
(Cost
$793,758,209)
.....................................
899,255,762
Short
Term
Investments
0.3%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.3%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
3.969%
....
United
States
2,783,635
2,783,635
Total
Money
Market
Funds
(Cost
$2,783,635)
...................................
2,783,635
Total
Short
Term
Investments
(Cost
$2,783,635
)
.................................
2,783,635
a
Total
Investments
(Cost
$796,541,844)
99.2%
...................................
$902,039,397
Other
Assets,
less
Liabilities
0.8%
.............................................
7,304,523
Net
Assets
100.0%
...........................................................
$909,343,920
See
Abbreviations
on
page
47
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
January
31,
2023,
the
aggregate
value
of
these
securities
was
$13,229,679,
representing
1.5%
of
net
assets.
b
Non-income
producing.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
d
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
Series
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Highlights
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U.S.
Core
Equity
(IU)
Fund
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notes
are
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part
of
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financial
statements.
Semiannual
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21
a
Six
Months
Ended
January
31,
2023
(unaudited)
Year
Ended
July
31,
Year
Ended
July
31,
2020
a
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$13.12
$14.99
$11.31
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.12
0.24
0.21
0.21
Net
realized
and
unrealized
gains
(losses)
........................
(0.23)
(0.81)
3.74
1.27
Total
from
investment
operations
.................................
(0.11)
(0.57)
3.95
1.48
Less
distributions
from:
Net
investment
income
.......................................
(0.04)
(0.20)
(0.20)
(0.17)
Net
realized
gains
..........................................
(0.41)
(1.10)
(0.07)
—
Total
distributions
............................................
(0.45)
(1.30)
(0.27)
(0.17)
Net
asset
value,
end
of
period
...................................
$12.56
$13.12
$14.99
$11.31
Total
return
d
................................................
(0.71)%
(4.42)%
35.39%
15.09%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.
0.01%
0.01%
0.01%
0.03%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
f
.
—%
—%
—%
—%
Net
investment
income
........................................
1.82%
1.73%
1.60%
2.12%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$1,894,388
$2,053,864
$1,316,677
$722,523
Portfolio
turnover
rate
.........................................
45.82%
128.24%
98.39%
60.94%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited),
January
31,
2023
Franklin
U.S.
Core
Equity
(IU)
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Semiannual
Report
The
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notes
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integral
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of
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statements.
22
a
a
Shares
a
Value
a
Common
Stocks
99.1%
Aerospace
&
Defense
2.1%
General
Dynamics
Corp.
..............................................
32,231
$
7,511,757
Lockheed
Martin
Corp.
...............................................
67,825
31,420,609
38,932,366
Air
Freight
&
Logistics
0.7%
Expeditors
International
of
Washington,
Inc.
...............................
66,486
7,190,461
United
Parcel
Service,
Inc.,
B
..........................................
34,619
6,412,477
13,602,938
Airlines
0.2%
a
Delta
Air
Lines,
Inc.
..................................................
85,442
3,340,782
a
Auto
Components
0.1%
BorgWarner,
Inc.
....................................................
55,505
2,624,276
Automobiles
1.0%
General
Motors
Co.
..................................................
422,168
16,599,646
Thor
Industries,
Inc.
.................................................
31,403
2,993,648
19,593,294
Banks
3.2%
Bank
of
America
Corp.
...............................................
528,239
18,741,920
Bank
OZK
.........................................................
68,983
3,150,453
Citigroup,
Inc.
......................................................
460,910
24,068,720
First
Horizon
Corp.
..................................................
332,431
8,221,019
FNB
Corp.
........................................................
218,888
3,123,532
JPMorgan
Chase
&
Co.
...............................................
15,159
2,121,654
Prosperity
Bancshares,
Inc.
............................................
26,328
1,997,242
61,424,540
Beverages
1.6%
PepsiCo,
Inc.
......................................................
179,484
30,695,354
Biotechnology
3.0%
Gilead
Sciences,
Inc.
................................................
263,930
22,154,284
a
Regeneron
Pharmaceuticals,
Inc.
.......................................
29,244
22,180,697
a
Vertex
Pharmaceuticals,
Inc.
...........................................
37,514
12,120,773
56,455,754
Building
Products
0.7%
a
Builders
FirstSource,
Inc.
.............................................
89,696
7,148,771
Owens
Corning
.....................................................
56,741
5,484,018
12,632,789
Capital
Markets
3.5%
Affiliated
Managers
Group,
Inc.
.........................................
23,171
4,002,559
Cboe
Global
Markets,
Inc.
.............................................
67,617
8,308,777
Evercore,
Inc.,
A
....................................................
22,488
2,919,167
FactSet
Research
Systems,
Inc.
........................................
23,777
10,056,244
Jefferies
Financial
Group,
Inc.
..........................................
111,511
4,380,152
Lazard
Ltd.,
A
......................................................
50,807
2,036,345
LPL
Financial
Holdings,
Inc.
...........................................
50,990
12,090,749
MSCI,
Inc.
.........................................................
5,761
3,062,317
Raymond
James
Financial,
Inc.
.........................................
51,970
5,860,657
SEI
Investments
Co.
.................................................
63,839
3,985,469
State
Street
Corp.
...................................................
104,513
9,545,172
66,247,608
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Chemicals
1.5%
Air
Products
and
Chemicals,
Inc.
........................................
5,805
$
1,860,560
CF
Industries
Holdings,
Inc.
...........................................
122,527
10,378,037
LyondellBasell
Industries
NV,
A
.........................................
44,471
4,299,901
Mosaic
Co.
(The)
...................................................
92,231
4,569,124
RPM
International,
Inc.
...............................................
80,166
7,207,725
28,315,347
Commercial
Services
&
Supplies
0.4%
Cintas
Corp.
.......................................................
6,596
2,926,909
a
Clean
Harbors,
Inc.
..................................................
16,052
2,091,575
Rollins,
Inc.
........................................................
63,417
2,308,379
7,326,863
Communications
Equipment
0.7%
a
Arista
Networks,
Inc.
.................................................
24,938
3,142,687
Cisco
Systems,
Inc.
.................................................
170,105
8,279,010
a
F5,
Inc.
...........................................................
13,409
1,979,973
13,401,670
Construction
&
Engineering
0.1%
Quanta
Services,
Inc.
................................................
12,844
1,954,728
Construction
Materials
0.1%
Eagle
Materials,
Inc.
.................................................
14,289
2,087,337
Consumer
Finance
0.7%
OneMain
Holdings,
Inc.
...............................................
52,774
2,276,670
Synchrony
Financial
.................................................
276,487
10,155,368
12,432,038
Containers
&
Packaging
0.2%
Graphic
Packaging
Holding
Co.
.........................................
182,002
4,384,428
Distributors
0.2%
Genuine
Parts
Co.
..................................................
19,769
3,317,634
Diversified
Consumer
Services
0.2%
H&R
Block,
Inc.
.....................................................
96,147
3,747,810
Diversified
Financial
Services
0.5%
a
Berkshire
Hathaway,
Inc.,
B
............................................
33,008
10,282,652
a
Diversified
Telecommunication
Services
0.8%
AT&T,
Inc.
.........................................................
752,164
15,321,581
Electric
Utilities
1.9%
American
Electric
Power
Co.,
Inc.
.......................................
279,489
26,260,786
NRG
Energy,
Inc.
...................................................
143,448
4,908,791
OGE
Energy
Corp.
..................................................
125,489
4,934,228
36,103,805
Electrical
Equipment
0.6%
Acuity
Brands,
Inc.
..................................................
19,774
3,727,794
Hubbell,
Inc.
.......................................................
34,456
7,887,323
11,615,117
Electronic
Equipment,
Instruments
&
Components
0.6%
Avnet,
Inc.
........................................................
42,726
1,960,269
Jabil,
Inc.
.........................................................
84,180
6,619,073
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
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financial
statements.
24
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Electronic
Equipment,
Instruments
&
Components
(continued)
a
Keysight
Technologies,
Inc.
............................................
10,826
$
1,941,643
10,520,985
Energy
Equipment
&
Services
0.4%
Schlumberger
Ltd.
...................................................
117,027
6,668,199
Entertainment
1.1%
Activision
Blizzard,
Inc.
...............................................
103,551
7,928,900
Electronic
Arts,
Inc.
..................................................
55,564
7,149,975
a
Walt
Disney
Co.
(The)
................................................
24,573
2,665,925
World
Wrestling
Entertainment,
Inc.,
A
....................................
26,364
2,230,922
19,975,722
Equity
Real
Estate
Investment
Trusts
(REITs)
2.8%
First
Industrial
Realty
Trust,
Inc.
........................................
80,263
4,282,031
Gaming
and
Leisure
Properties,
Inc.
.....................................
36,169
1,937,212
Omega
Healthcare
Investors,
Inc.
.......................................
146,197
4,304,040
Public
Storage
.....................................................
97,028
29,529,501
Simon
Property
Group,
Inc.
............................................
60,105
7,721,088
STORE
Capital
Corp.
................................................
159,908
5,150,637
52,924,509
Food
&
Staples
Retailing
1.8%
Albertsons
Cos.,
Inc.,
A
...............................................
104,880
2,223,456
Kroger
Co.
(The)
....................................................
408,137
18,215,154
a
Performance
Food
Group
Co.
..........................................
31,122
1,908,401
Walmart,
Inc.
......................................................
75,593
10,875,565
33,222,576
Food
Products
0.9%
Archer-Daniels-Midland
Co.
...........................................
27,578
2,284,838
General
Mills,
Inc.
...................................................
59,773
4,683,812
Hershey
Co.
(The)
..................................................
45,035
10,114,861
17,083,511
Gas
Utilities
0.2%
National
Fuel
Gas
Co.
................................................
54,269
3,150,858
Health
Care
Equipment
&
Supplies
2.3%
Becton
Dickinson
and
Co.
.............................................
7,661
1,932,257
a
Edwards
Lifesciences
Corp.
...........................................
41,693
3,197,853
a
Hologic,
Inc.
.......................................................
149,502
12,164,978
a
IDEXX
Laboratories,
Inc.
..............................................
39,843
19,144,561
a
QuidelOrtho
Corp.
...................................................
29,524
2,527,550
ResMed,
Inc.
......................................................
8,438
1,926,986
Zimmer
Biomet
Holdings,
Inc.
..........................................
17,184
2,188,211
43,082,396
Health
Care
Providers
&
Services
4.1%
a
Centene
Corp.
.....................................................
34,509
2,630,966
Cigna
Corp.
.......................................................
8,223
2,603,977
CVS
Health
Corp.
...................................................
157,318
13,878,594
Elevance
Health,
Inc.
................................................
41,136
20,567,589
Humana,
Inc.
......................................................
9,543
4,883,153
McKesson
Corp.
....................................................
68,955
26,111,879
UnitedHealth
Group,
Inc.
..............................................
15,061
7,518,301
78,194,459
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Hotels,
Restaurants
&
Leisure
1.6%
a
Booking
Holdings,
Inc.
...............................................
3,023
$
7,358,284
Boyd
Gaming
Corp.
.................................................
35,383
2,204,715
Choice
Hotels
International,
Inc.
........................................
18,182
2,234,386
Domino's
Pizza,
Inc.
.................................................
14,062
4,963,886
McDonald's
Corp.
...................................................
51,044
13,649,166
30,410,437
Household
Durables
0.3%
a
NVR,
Inc.
.........................................................
1,037
5,464,990
a
Household
Products
1.7%
Colgate-Palmolive
Co.
...............................................
376,620
28,069,489
Kimberly-Clark
Corp.
.................................................
14,768
1,919,988
Procter
&
Gamble
Co.
(The)
...........................................
11,690
1,664,422
31,653,899
Industrial
Conglomerates
0.7%
3M
Co.
...........................................................
108,274
12,460,172
Insurance
2.6%
American
Financial
Group,
Inc.
.........................................
12,750
1,818,023
Aon
plc,
A
.........................................................
32,857
10,470,869
a
Arch
Capital
Group
Ltd.
...............................................
36,460
2,346,201
Assured
Guaranty
Ltd.
...............................................
35,915
2,248,279
Chubb
Ltd.
........................................................
22,272
5,066,657
Erie
Indemnity
Co.,
A
.................................................
14,721
3,597,076
Principal
Financial
Group,
Inc.
..........................................
150,166
13,897,863
Unum
Group
.......................................................
123,632
5,196,253
W
R
Berkley
Corp.
..................................................
79,327
5,563,996
50,205,217
Interactive
Media
&
Services
5.2%
a
Alphabet,
Inc.,
A
....................................................
349,309
34,525,701
a
Alphabet,
Inc.,
C
....................................................
303,254
30,285,977
a
Meta
Platforms,
Inc.,
A
...............................................
227,837
33,940,878
98,752,556
Internet
&
Direct
Marketing
Retail
2.9%
a
Amazon.com,
Inc.
...................................................
421,748
43,494,871
eBay,
Inc.
.........................................................
191,873
9,497,714
a
Etsy,
Inc.
..........................................................
18,402
2,531,747
55,524,332
IT
Services
3.5%
Amdocs
Ltd.
.......................................................
75,745
6,963,238
Automatic
Data
Processing,
Inc.
........................................
24,018
5,423,505
Cognizant
Technology
Solutions
Corp.,
A
..................................
54,965
3,668,914
a
DXC
Technology
Co.
.................................................
142,120
4,083,108
a
Gartner,
Inc.
.......................................................
8,181
2,766,323
Genpact
Ltd.
.......................................................
114,735
5,424,671
Jack
Henry
&
Associates,
Inc.
..........................................
45,390
8,174,285
Mastercard,
Inc.,
A
..................................................
15,403
5,708,352
Paychex,
Inc.
......................................................
151,432
17,544,911
a
VeriSign,
Inc.
......................................................
13,529
2,949,998
Western
Union
Co.
(The)
..............................................
241,936
3,428,233
66,135,538
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
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Fund
(continued)
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Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
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financial
statements.
26
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Life
Sciences
Tools
&
Services
1.7%
Agilent
Technologies,
Inc.
.............................................
15,537
$
2,362,867
a
Mettler-Toledo
International,
Inc.
........................................
13,567
20,797,126
a
Waters
Corp.
......................................................
29,537
9,705,267
32,865,260
Machinery
2.0%
AGCO
Corp.
.......................................................
21,878
3,022,008
Allison
Transmission
Holdings,
Inc.
......................................
57,845
2,607,652
Deere
&
Co.
.......................................................
5,194
2,196,231
Lincoln
Electric
Holdings,
Inc.
..........................................
34,616
5,776,372
PACCAR,
Inc.
......................................................
120,003
13,117,528
Snap-on,
Inc.
......................................................
32,668
8,125,512
Timken
Co.
(The)
...................................................
37,785
3,111,595
37,956,898
Media
0.7%
Comcast
Corp.,
A
...................................................
265,999
10,467,061
Nexstar
Media
Group,
Inc.,
A
...........................................
17,808
3,646,544
14,113,605
Metals
&
Mining
0.9%
Nucor
Corp.
.......................................................
101,805
17,207,081
Multiline
Retail
0.2%
Macy's,
Inc.
........................................................
159,799
3,776,050
Multi-Utilities
1.0%
Consolidated
Edison,
Inc.
.............................................
149,089
14,209,673
Sempra
Energy
.....................................................
31,661
5,076,208
19,285,881
Oil,
Gas
&
Consumable
Fuels
4.6%
APA
Corp.
.........................................................
205,624
9,115,312
Chesapeake
Energy
Corp.
............................................
73,516
6,375,307
Chevron
Corp.
.....................................................
88,588
15,416,084
Devon
Energy
Corp.
.................................................
32,258
2,039,996
EQT
Corp.
........................................................
53,584
1,750,589
Exxon
Mobil
Corp.
...................................................
187,362
21,735,866
Valero
Energy
Corp.
.................................................
214,122
29,983,504
a
Vitesse
Energy,
Inc.
.................................................
13,122
209,427
86,626,085
Personal
Products
0.1%
Estee
Lauder
Cos.,
Inc.
(The),
A
........................................
10,148
2,811,808
Pharmaceuticals
4.7%
Bristol-Myers
Squibb
Co.
..............................................
229,655
16,684,436
Johnson
&
Johnson
.................................................
32,415
5,297,259
Merck
&
Co.,
Inc.
...................................................
364,580
39,159,538
Pfizer,
Inc.
.........................................................
610,707
26,968,821
88,110,054
Professional
Services
0.4%
Booz
Allen
Hamilton
Holding
Corp.
......................................
41,792
3,955,195
Robert
Half
International,
Inc.
..........................................
26,189
2,198,828
Science
Applications
International
Corp.
..................................
16,347
1,696,492
7,850,515
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
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these
financial
statements.
Semiannual
Report
27
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Real
Estate
Management
&
Development
0.3%
a
Jones
Lang
LaSalle,
Inc.
..............................................
29,543
$
5,461,614
a
Road
&
Rail
0.5%
a
Avis
Budget
Group,
Inc.
..............................................
15,649
3,130,426
Ryder
System,
Inc.
..................................................
30,356
2,865,910
U-Haul
Holding
Co.
..................................................
50,758
3,136,337
9,132,673
Semiconductors
&
Semiconductor
Equipment
5.0%
Broadcom,
Inc.
.....................................................
8,635
5,051,561
a
Cirrus
Logic,
Inc.
....................................................
33,214
3,002,214
a
Enphase
Energy,
Inc.
................................................
33,358
7,384,794
KLA
Corp.
.........................................................
7,972
3,128,851
Microchip
Technology,
Inc.
............................................
44,336
3,441,360
a
ON
Semiconductor
Corp.
.............................................
213,534
15,684,072
QUALCOMM,
Inc.
...................................................
162,027
21,583,617
Texas
Instruments,
Inc.
...............................................
201,909
35,780,294
95,056,763
Software
9.8%
a
Cadence
Design
Systems,
Inc.
.........................................
172,162
31,476,378
a
Fair
Isaac
Corp.
....................................................
14,832
9,877,370
a
Fortinet,
Inc.
.......................................................
380,342
19,907,100
a
Manhattan
Associates,
Inc.
............................................
39,180
5,107,505
Microsoft
Corp.
.....................................................
420,074
104,098,537
a
Synopsys,
Inc.
.....................................................
20,969
7,417,784
a
Teradata
Corp.
.....................................................
62,936
2,195,208
a
VMware,
Inc.,
A
.....................................................
45,116
5,525,357
185,605,239
Specialty
Retail
2.8%
a
AutoZone,
Inc.
.....................................................
5,284
12,886,883
Home
Depot,
Inc.
(The)
...............................................
30,048
9,740,660
Lowe's
Cos.,
Inc.
....................................................
9,302
1,937,142
Penske
Automotive
Group,
Inc.
.........................................
15,958
2,039,752
TJX
Cos.,
Inc.
(The)
.................................................
68,725
5,625,829
a
Ulta
Beauty,
Inc.
....................................................
30,940
15,901,922
Williams-Sonoma,
Inc.
...............................................
40,244
5,430,525
53,562,713
Technology
Hardware,
Storage
&
Peripherals
5.8%
Apple,
Inc.
........................................................
664,982
95,950,253
Hewlett
Packard
Enterprise
Co.
.........................................
791,233
12,762,588
a
Pure
Storage,
Inc.,
A
.................................................
66,177
1,915,162
110,628,003
Textiles,
Apparel
&
Luxury
Goods
0.5%
a
Deckers
Outdoor
Corp.
...............................................
16,539
7,070,091
a
Lululemon
Athletica,
Inc.
..............................................
5,544
1,701,343
8,771,434
Thrifts
&
Mortgage
Finance
0.1%
MGIC
Investment
Corp.
...............................................
185,260
2,615,871
Tobacco
0.7%
Altria
Group,
Inc.
....................................................
235,493
10,606,605
Franklin
Fund
Allocator
Series
Schedule
of
Investments
(unaudited)
Franklin
U.S.
Core
Equity
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Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Tobacco
(continued)
Philip
Morris
International,
Inc.
.........................................
34,335
$
3,579,080
14,185,685
Trading
Companies
&
Distributors
0.3%
WW
Grainger,
Inc.
...................................................
9,071
5,347,173
Water
Utilities
0.1%
Essential
Utilities,
Inc.
................................................
38,342
1,791,722
Wireless
Telecommunication
Services
0.2%
a
T-Mobile
US,
Inc.
...................................................
26,389
3,940,142
a
Total
Common
Stocks
(Cost
$1,669,162,930)
....................................
1,877,973,336
a
a
a
a
Short
Term
Investments
0.8%
a
Money
Market
Funds
0.8%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
3.969%
..................
15,806,126
15,806,126
Total
Money
Market
Funds
(Cost
$15,806,126)
..................................
15,806,126
Total
Short
Term
Investments
(Cost
$15,806,126
)
................................
15,806,126
a
Total
Investments
(Cost
$1,684,969,056)
99.9%
..................................
$1,893,779,462
Other
Assets,
less
Liabilities
0.1%
.............................................
608,088
Net
Assets
100.0%
...........................................................
$1,894,387,550
See
Abbreviations
on
page
47
.
a
Non-income
producing.
b
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
Series
Financial
Statements
Statements
of
Assets
and
Liabilities
January
31,
2023
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$107,671,665
$793,758,209
$1,669,162,930
Cost
-
Non-controlled
affiliates
(Note
3d)
......................
290,959
2,783,635
15,806,126
Value
-
Unaffiliated
issuers
................................
$114,007,143
$899,255,762
$1,877,973,336
Value
-
Non-controlled
affiliates
(Note
3d)
.....................
290,959
2,783,635
15,806,126
Cash
..................................................
—
2,568
—
Foreign
currency,
at
value
(cost
$1,655,
$362
and
$–
respectively)
....
1,657
360
—
Receivables:
Investment
securities
sold
.................................
—
252,695
40,641,699
Capital
shares
sold
......................................
1,343,222
74,998,141
18,181,166
Dividends
and
interest
...................................
708,953
1,205,798
1,424,942
Foreign
tax
refund
.......................................
17,283
—
—
European
Union
tax
reclaims
(Note
1
d
)
.......................
—
237,926
—
Affiliates
..............................................
31,657
35,636
61,497
Total
assets
........................................
116,400,874
978,772,521
1,954,088,766
Liabilities:
Payables:
Investment
securities
purchased
............................
202,119
62,165,892
51,649
Capital
shares
redeemed
.................................
4,432
7,207,034
59,598,485
Custodian
fees
.........................................
44,582
90
—
Professional
fees
.......................................
37,351
40,917
34,386
Trustees'
fees
and
expenses
...............................
1,628
4
9
Accrued
expenses
and
other
liabilities
.........................
20,844
14,664
16,687
Total
liabilities
.......................................
310,956
69,428,601
59,701,216
Net
assets,
at
value
...............................
$116,089,918
$909,343,920
$1,894,387,550
Net
assets
consist
of:
Paid-in
capital
...........................................
$122,736,123
$855,555,603
$1,772,782,968
Total
distributable
earnings
(losses)
...........................
(6,646,205)
53,788,317
121,604,582
Net
assets,
at
value
...............................
$116,089,918
$909,343,920
$1,894,387,550
Shares
outstanding
.......................................
12,111,272
84,028,139
150,921,060
Net
asset
value
per
share
..................................
$9.59
$10.82
$12.56
Franklin
Fund
Allocator
Series
Financial
Statements
Statements
of
Operations
for
the
period
ended
January
31,
2023
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$214,475,
$681,612
and
$3,123,
respectively)
Unaffiliated
issuers:
Paid
in
cash
..........................................
$1,769,262
$9,258,560
$17,321,976
Non-controlled
affiliates
(Note
3
d
)
...........................
11,399
69,013
206,964
Other
income
............................................
—
139,492
a,b
8,541
a
Total
investment
income
.................................
1,780,661
9,467,065
17,537,481
Expenses:
Custodian
fees
(Note
4
)
....................................
26,990
15,483
4,588
Reports
to
shareholders
fees
................................
425
437
433
Registration
and
filing
fees
..................................
32,215
34,834
40,206
Professional
fees
.........................................
29,615
26,626
18,829
Trustees'
fees
and
expenses
................................
1,177
3,331
9,893
Pricing
fees
.............................................
(6,515)
(8,093)
4,868
Interest
expense
(Note
3e
)
..................................
1,776
1,730
—
Other
..................................................
10,843
15,993
12,450
Total
expenses
.......................................
96,526
90,341
91,267
Expenses
waived/paid
by
affiliates
(Note
3
d
and
3
e
)
............
(96,526)
(90,341)
(91,267)
Net
expenses
.......................................
—
—
—
Net
investment
income
..............................
1,780,661
9,467,065
17,537,481
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$45,941,
$–
and
$–
respectively)
Unaffiliated
issuers
....................................
(5,450,886)
(22,054,959)
(65,814,759)
Foreign
currency
transactions
..............................
42,433
248,818
—
Net
realized
gain
(loss)
................................
(5,408,453)
(21,806,141)
(65,814,759)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
10,208,994
71,611,312
29,037,636
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
56,371
277,143
—
Change
in
deferred
taxes
on
unrealized
appreciation
.............
84,447
—
—
Net
change
in
unrealized
appreciation
(depreciation)
..........
10,349,812
71,888,455
29,037,636
Net
realized
and
unrealized
gain
(loss)
..........................
4,941,359
50,082,314
(36,777,123)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$6,722,020
$59,549,379
$(19,239,642)
a
Other
income
includes
payments
by
Advisers
for
acquired
fund
fees
and
expenses
(See
Note
3e).
b
Other
income
includes
income
from
EU
reclaims
(See
Note
1d).
Franklin
Fund
Allocator
Series
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Six
Months
Ended
January
31,
2023
(unaudited)
Year
Ended
July
31,
2022
Six
Months
Ended
January
31,
2023
(unaudited)
Year
Ended
July
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$1,780,661
$3,678,471
$9,467,065
$11,937,300
Net
realized
gain
(loss)
............
(5,408,453)
(5,771,077)
(21,806,141)
(23,331,941)
Net
change
in
unrealized
appreciation
(depreciation)
.................
10,349,812
(21,114,530)
71,888,455
(28,023,908)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
6,722,020
(23,207,136)
59,549,379
(39,418,549)
Distributions
to
shareholders
.........
(2,286,934)
(3,917,204)
(9,369,474)
(33,759,067)
Capital
share
transactions
(Note
2
)
.....
2,525,996
19,610,017
58,406,548
513,559,733
Net
increase
(decrease)
in
net
assets
.....................
6,961,082
(7,514,323)
108,586,453
440,382,117
Net
assets:
Beginning
of
period
................
109,128,836
116,643,159
800,757,467
360,375,350
End
of
period
.....................
$116,089,918
$109,128,836
$909,343,920
$800,757,467
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.
32
Franklin
U.S.
Core
Equity
(IU)
Fund
Six
Months
Ended
January
31,
2023
(unaudited)
Year
Ended
July
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$17,537,481
$23,185,045
Net
realized
gain
(loss)
.................................................
(65,814,759)
51,240,154
Net
change
in
unrealized
appreciation
(depreciation)
...........................
29,037,636
(65,826,833)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
(19,239,642)
8,598,366
Distributions
to
shareholders
..............................................
(66,885,225)
(118,026,381)
Capital
share
transactions
(Note
2
)
..........................................
(73,351,167)
846,614,494
Net
increase
(decrease)
in
net
assets
...................................
(159,476,034)
737,186,479
Net
assets:
Beginning
of
period
.....................................................
2,053,863,584
1,316,677,105
End
of
period
..........................................................
$1,894,387,550
$2,053,863,584
Franklin
Fund
Allocator
Series
33
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).
The
Trust
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standard
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
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
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can
occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
January
31,
2023,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Purchased
on
a
Delayed
Delivery
Basis
Certain
or
all
Funds
purchase
securities
on
a
delayed
delivery
basis,
with
payment
and
delivery
scheduled
for
a
future
date.
These
transactions
are
subject
to
market
fluctuations
and
are
subject
to
the
risk
that
the
value
at
delivery
may
be
more
or
less
than
the
trade
date
purchase
price.
Although
the
Funds
will
generally
purchase
these
securities
with
the
intention
of
holding
the
securities,
they
may
sell
the
securities
before
the
settlement
date.
d.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
in
other
expenses
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
January
31,
2023,
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).
e.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to
shareholders
are
recorded
on
the
ex-
dividend
date. Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
f.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
g.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust,
on
behalf
of
the
Funds,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Income
and
Deferred
Taxes
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
2.
Shares
of
Beneficial
Interest
At
January
31,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds’
shares
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Funds
are
also
officers
and/or
trustees
of
the
following
subsidiaries:
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Shares
Amount
Shares
Amount
Class
A
Six
Months
ended
January
31,
2023
Shares
sold
...................................
546,933
$4,702,957
10,774,699
$111,218,051
Shares
issued
in
reinvestment
of
distributions
..........
267,458
2,286,934
1,042,580
9,369,474
Shares
redeemed
...............................
(525,906)
(4,463,895)
(6,457,559)
(62,180,977)
Net
increase
(decrease)
..........................
288,485
$2,525,996
5,359,720
$58,406,548
Year
ended
July
31,
2022
Shares
sold
...................................
3,389,370
$35,059,730
60,523,652
$614,058,141
Shares
issued
in
reinvestment
of
distributions
..........
381,790
3,917,204
2,902,155
33,759,067
Shares
redeemed
...............................
(1,809,754)
(19,366,917)
(12,298,376)
(134,257,475)
Net
increase
(decrease)
..........................
1,961,406
$19,610,017
51,127,431
$513,559,733
Franklin
U.S.
Core
Equity
(IU)
Fund
Shares
Amount
Class
A
Six
Months
ended
January
31,
2023
Shares
sold
...................................
3,477,290
$43,466,938
Shares
issued
in
reinvestment
of
distributions
..........
5,546,326
66,885,225
Shares
redeemed
...............................
(14,649,010)
(183,703,330)
Net
increase
(decrease)
..........................
(5,625,394)
$(73,351,167)
Year
ended
July
31,
2022
Shares
sold
...................................
80,697,663
$1,013,215,277
Shares
issued
in
reinvestment
of
distributions
..........
8,310,364
118,026,381
Shares
redeemed
...............................
(20,294,121)
(284,627,164)
Net
increase
(decrease)
..........................
68,713,906
$846,614,494
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)
37
franklintempleton.com
Semiannual
Report
a.
Management
Fees
Advisers
provides
investment
management
services
to
the
Funds.
The
Funds
do
not
pay
a
fee
for
these
services.
Advisers
and
its
affiliates,
receive
compensation
from
the
investment
companies
that
invest
in
the
Funds.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds
and
is
not
paid
by
the
Funds
for
the
services.
c.
Transfer
Agent
Fees
Investor
Services
provides
shareholder
services
to
the
Funds.
The
Funds
do
not
pay
a
fee
for
these
services.
d.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Funds
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Advisers
has
contractually
agreed
to
reimburse
expenses
of
the
Funds
in
an
amount
equal
to
fees
indirectly
borne
by
the
Funds
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations.
During
the
period
ended
January
31,
2023,
investments
in
affiliated
management
investment
companies
were
as
follows:
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
3.969%
$
2,085,742
$
15,721,848
$
(17,516,631)
$
—
$
—
$
290,959
290,959
$
11,399
Total
Affiliated
Securities
...
$2,085,742
$15,721,848
$(17,516,631)
$—
$—
$290,959
$11,399
Franklin
International
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
3.969%
$
7,114,441
$
45,806,823
(50,137,629)
$
—
$
—
$
2,783,635
2,783,635
$
69,013
Total
Affiliated
Securities
...
$7,114,441
$45,806,823
$(50,137,629)
$—
$—
$2,783,635
$69,013
Franklin
U.S.
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
3.969%
$
19,849,812
$
37,565,350
$
(41,609,036)
$
—
$
—
$
15,806,126
15,806,126
$
206,964
Total
Affiliated
Securities
...
$19,849,812
$37,565,350
$(41,609,036)
$—
$—
$15,806,126
$206,964
3.
Transactions
with
Affiliates
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
e.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations),
interest
expense
and
acquired
fund
fees
and
expenses
of
the
Funds
do
not
exceed
0.00%
based
on
the
average
net
assets
of
each
class
until
November
30,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds’
fiscal
year
end.
Acquired
fund
fees
and
expenses
are
indirect
expenses,
and
therefore
Advisers
may
make
payments,
if
necessary,
to
the
Funds
to
offset
these
estimated
indirect
expenses.
Payments
by
Advisers
for
the
period
ended
January
31,
2023,
are
reflected
as
other
income
in
the
Statements
of
Operations.
f.
Other
Affiliated
Transactions
At
January
31,
2023,
the
shares
of
the
Funds
were
owned
by
the
following
investment
companies:
Shares
Percentage
of
Outstanding
Shares
a
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
Conservative
Allocation
Fund
1,377,786
11.4%
Franklin
Moderate
Allocation
Fund
3,428,806
28.3%
Franklin
Growth
Allocation
Fund
3,297,494
27.2%
Franklin
Equity
Portfolio
125
0.0%
Franklin
LifeSmart
2020
Retirement
Target
Fund
89,795
0.7%
Franklin
LifeSmart
2025
Retirement
Target
Fund
374,165
3.1%
Franklin
LifeSmart
2030
Retirement
Target
Fund
212,029
1.8%
Franklin
LifeSmart
2035
Retirement
Target
Fund
478,604
4.0%
Franklin
LifeSmart
2040
Retirement
Target
Fund
192,733
1.6%
Franklin
LifeSmart
2045
Retirement
Target
Fund
400,750
3.3%
Franklin
LifeSmart
2050
Retirement
Target
Fund
184,182
1.5%
Franklin
LifeSmart
2055
Retirement
Target
Fund
133,216
1.1%
Franklin
LifeSmart
2060
Retirement
Target
Fund
16,533
0.1%
Franklin
Total
Advantage
2020
Fund
51,482
0.4%
Franklin
Total
Advantage
2025
Fund
117,931
1.0%
Franklin
Total
Advantage
2030
Fund
190,291
1.6%
Franklin
Total
Advantage
2035
Fund
177,310
1.5%
Franklin
Total
Advantage
2040
Fund
133,906
1.1%
Franklin
Total
Advantage
2045
Fund
115,015
0.9%
Franklin
Total
Advantage
2050
Fund
83,349
0.7%
Franklin
Total
Advantage
2055
Fund
52,839
0.4%
Franklin
Total
Advantage
2060
Fund
35,097
0.3%
Franklin
Total
Advantage
Retirement
Fund
13,847
0.1%
Superior
Officer
Council
Balanced
Fund
953,987
7.9%
Total
12,111,272
100.0%
Franklin
International
Core
Equity
(IU)
Fund
Franklin
Conservative
Allocation
Fund
4,286,621
5.1%
Franklin
Moderate
Allocation
Fund
10,848,172
12.9%
Franklin
Growth
Allocation
Fund
10,749,581
12.8%
Franklin
Aggressive
Growth
Allocation
529
Portfolio
4,364,449
5.2%
Franklin
Conservative
Allocation
Age
11
-
12
Years
529
Portfolio
137,063
0.2%
Franklin
Conservative
Allocation
Age
13
-
14
Years
529
Portfolio
138,370
0.2%
Franklin
Conservative
Allocation
Age
15
-
16
Years
529
Portfolio
137,583
0.2%
Franklin
Conservative
Allocation
Age
17
Years
529
Portfolio
62,062
0.1%
Franklin
Conservative
Allocation
Age
18
Years
529
Portfolio
42,349
0.1%
Franklin
Conservative
Allocation
Age
19+
Years
529
Portfolio
23,765
0.0%
3.
Transactions
with
Affiliates
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
Franklin
Conservative
Allocation
Age
5
-
6
Years
529
Portfolio
36,620
0.0%
Franklin
Conservative
Allocation
Age
7
-
8
Years
529
Portfolio
77,628
0.1%
Franklin
Conservative
Allocation
Age
9
-
10
Years
529
Portfolio
108,359
0.1%
Franklin
Conservative
Allocation
Newborn
-
4
Years
529
Portfolio
49,499
0.1%
Franklin
Conservative
Growth
Allocation
529
Portfolio
179,853
0.2%
Franklin
Equity
Portfolio
188
0.0%
Franklin
Growth
Allocation
529
Portfolio
4,753,367
5.6%
Franklin
Growth
Allocation
Age
11
-
12
Years
529
Portfolio
3,518,270
4.2%
Franklin
Growth
Allocation
Age
13
-
14
Years
529
Portfolio
3,996,581
4.8%
Franklin
Growth
Allocation
Age
15
-
16
Years
529
Portfolio
4,272,369
5.1%
Franklin
Growth
Allocation
Age
17
Years
529
Portfolio
1,765,143
2.1%
Franklin
Growth
Allocation
Age
18
Years
529
Portfolio
1,041,714
1.2%
Franklin
Growth
Allocation
Age
19+
Years
529
Portfolio
1,107,206
1.3%
Franklin
Growth
Allocation
Age
5
-
6
Years
529
Portfolio
1,871,448
2.2%
Franklin
Growth
Allocation
Age
7
-
8
Years
529
Portfolio
2,716,855
3.2%
Franklin
Growth
Allocation
Age
9
-
10
Years
529
Portfolio
3,137,307
3.7%
Franklin
Growth
Allocation
Newborn
-
4
Years
529
Portfolio
2,064,171
2.5%
Franklin
LifeSmart
2020
Retirement
Target
Fund
265,912
0.3%
Franklin
LifeSmart
2025
Retirement
Target
Fund
1,120,328
1.3%
Franklin
LifeSmart
2030
Retirement
Target
Fund
649,564
0.8%
Franklin
LifeSmart
2035
Retirement
Target
Fund
1,464,845
1.7%
Franklin
LifeSmart
2040
Retirement
Target
Fund
596,922
0.7%
Franklin
LifeSmart
2045
Retirement
Target
Fund
1,211,423
1.4%
Franklin
LifeSmart
2050
Retirement
Target
Fund
561,573
0.7%
Franklin
LifeSmart
2055
Retirement
Target
Fund
426,893
0.5%
Franklin
LifeSmart
2060
Retirement
Target
Fund
52,034
0.1%
Franklin
Moderate
Allocation
529
Portfolio
1,239,640
1.5%
Franklin
Moderate
Allocation
Age
11
-
12
Years
529
Portfolio
1,182,011
1.4%
Franklin
Moderate
Allocation
Age
13
-
14
Years
529
Portfolio
937,104
1.1%
Franklin
Moderate
Allocation
Age
15
-
16
Years
529
Portfolio
767,999
0.9%
Franklin
Moderate
Allocation
Age
17
Years
529
Portfolio
313,670
0.4%
Franklin
Moderate
Allocation
Age
18
Years
529
Portfolio
155,047
0.2%
Franklin
Moderate
Allocation
Age
19+
Years
529
Portfolio
142,015
0.2%
Franklin
Moderate
Allocation
Age
5
-
6
Years
529
Portfolio
410,457
0.5%
Franklin
Moderate
Allocation
Age
7
-
8
Years
529
Portfolio
717,329
0.9%
Franklin
Moderate
Allocation
Age
9
-
10
Years
529
Portfolio
944,079
1.1%
Franklin
Moderate
Allocation
Newborn
-
4
Years
529
Portfolio
398,364
0.5%
Franklin
Moderate
Growth
Allocation
529
Portfolio
2,229,102
2.6%
Franklin
Total
Advantage
2020
Fund
159,555
0.2%
Franklin
Total
Advantage
2025
Fund
348,547
0.4%
Franklin
Total
Advantage
2030
Fund
562,412
0.7%
Franklin
Total
Advantage
2035
Fund
534,760
0.6%
Franklin
Total
Advantage
2040
Fund
355,174
0.4%
Franklin
Total
Advantage
2045
Fund
291,237
0.3%
Franklin
Total
Advantage
2050
Fund
236,742
0.3%
Franklin
Total
Advantage
2055
Fund
150,921
0.2%
Franklin
Total
Advantage
2060
Fund
101,139
0.1%
Franklin
Total
Advantage
Retirement
Fund
43,028
0.1%
Superior
Officer
Council
Balanced
Fund
3,780,391
4.5%
Superior
Officer
Council
Senior
Balanced
Fund
191,329
0.2%
Total
84,028,139
100.0%
Franklin
U.S.
Core
Equity
(IU)
Fund
Franklin
Conservative
Allocation
Fund
11,330,351
7.5%
Franklin
Moderate
Allocation
Fund
28,649,222
19.0%
Franklin
Growth
Allocation
Fund
28,371,247
18.8%
3.
Transactions
with
Affiliates
(continued)
f.
Other
Affiliated
Transactions
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
Franklin
Aggressive
Growth
Allocation
529
Portfolio
6,318,763
4.2%
Franklin
Conservative
Allocation
Age
11
-
12
Years
529
Portfolio
198,460
0.1%
Franklin
Conservative
Allocation
Age
13
-
14
Years
529
Portfolio
200,321
0.1%
Franklin
Conservative
Allocation
Age
15
-
16
Years
529
Portfolio
199,179
0.1%
Franklin
Conservative
Allocation
Age
17
Years
529
Portfolio
89,827
0.1%
Franklin
Conservative
Allocation
Age
18
Years
529
Portfolio
61,321
0.0%
Franklin
Conservative
Allocation
Age
19+
Years
529
Portfolio
34,383
0.0%
Franklin
Conservative
Allocation
Age
5
-
6
Years
529
Portfolio
53,005
0.0%
Franklin
Conservative
Allocation
Age
7
-
8
Years
529
Portfolio
112,383
0.1%
Franklin
Conservative
Allocation
Age
9
-
10
Years
529
Portfolio
156,867
0.1%
Franklin
Conservative
Allocation
Newborn
-
4
Years
529
Portfolio
71,690
0.0%
Franklin
Conservative
Growth
Allocation
529
Portfolio
260,407
0.2%
Franklin
Equity
Portfolio
519
0.0%
Franklin
Growth
Allocation
529
Portfolio
6,881,358
4.6%
Franklin
Growth
Allocation
Age
11
-
12
Years
529
Portfolio
5,094,298
3.4%
Franklin
Growth
Allocation
Age
13
-
14
Years
529
Portfolio
5,786,757
3.8%
Franklin
Growth
Allocation
Age
15
-
16
Years
529
Portfolio
6,186,251
4.1%
Franklin
Growth
Allocation
Age
17
Years
529
Portfolio
2,555,910
1.7%
Franklin
Growth
Allocation
Age
18
Years
529
Portfolio
1,508,823
1.0%
Franklin
Growth
Allocation
Age
19+
Years
529
Portfolio
1,603,792
1.1%
Franklin
Growth
Allocation
Age
5
-
6
Years
529
Portfolio
2,709,595
1.8%
Franklin
Growth
Allocation
Age
7
-
8
Years
529
Portfolio
3,933,862
2.6%
Franklin
Growth
Allocation
Age
9
-
10
Years
529
Portfolio
4,542,557
3.0%
Franklin
Growth
Allocation
Newborn
-
4
Years
529
Portfolio
3,133,597
2.1%
Franklin
LifeSmart
2020
Retirement
Target
Fund
398,032
0.3%
Franklin
LifeSmart
2025
Retirement
Target
Fund
1,678,324
1.1%
Franklin
LifeSmart
2030
Retirement
Target
Fund
970,791
0.6%
Franklin
LifeSmart
2035
Retirement
Target
Fund
2,189,490
1.5%
Franklin
LifeSmart
2040
Retirement
Target
Fund
862,327
0.6%
Franklin
LifeSmart
2045
Retirement
Target
Fund
1,813,075
1.2%
Franklin
LifeSmart
2050
Retirement
Target
Fund
765,270
0.5%
Franklin
LifeSmart
2055
Retirement
Target
Fund
505,122
0.3%
Franklin
LifeSmart
2060
Retirement
Target
Fund
65,398
0.1%
Franklin
LifeSmart
Retirement
Income
Fund
111,624
0.1%
Franklin
Moderate
Allocation
529
Portfolio
1,794,863
1.2%
Franklin
Moderate
Allocation
Age
11
-
12
Years
529
Portfolio
1,711,361
1.1%
Franklin
Moderate
Allocation
Age
13
-
14
Years
529
Portfolio
1,356,832
0.9%
Franklin
Moderate
Allocation
Age
15
-
16
Years
529
Portfolio
1,111,997
0.7%
Franklin
Moderate
Allocation
Age
17
Years
529
Portfolio
454,118
0.3%
Franklin
Moderate
Allocation
Age
18
Years
529
Portfolio
224,550
0.1%
Franklin
Moderate
Allocation
Age
19+
Years
529
Portfolio
205,663
0.1%
Franklin
Moderate
Allocation
Age
5
-
6
Years
529
Portfolio
594,248
0.4%
Franklin
Moderate
Allocation
Age
7
-
8
Years
529
Portfolio
1,038,631
0.7%
Franklin
Moderate
Allocation
Age
9
-
10
Years
529
Portfolio
1,366,913
1.0%
Franklin
Moderate
Allocation
Newborn
-
4
Years
529
Portfolio
576,577
0.4%
Franklin
Moderate
Growth
Allocation
529
Portfolio
3,227,225
2.1%
Franklin
Total
Advantage
2020
Fund
221,396
0.1%
Franklin
Total
Advantage
2025
Fund
465,951
0.3%
Franklin
Total
Advantage
2030
Fund
718,184
0.5%
Franklin
Total
Advantage
2035
Fund
581,228
0.4%
Franklin
Total
Advantage
2040
Fund
411,668
0.3%
Franklin
Total
Advantage
2045
Fund
352,070
0.2%
Franklin
Total
Advantage
2050
Fund
254,098
0.2%
Franklin
Total
Advantage
2055
Fund
160,753
0.1%
Franklin
Total
Advantage
2060
Fund
105,993
0.1%
3.
Transactions
with
Affiliates
(continued)
f.
Other
Affiliated
Transactions
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
4.
Expense
Offset
Arrangement
The
Funds
have entered
into
an
arrangement
with
their
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Funds'
custodian
expenses.
During
the period
ended
January
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
July
31,
2022,
the
capital
loss
carryforwards
were
as
follows:
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
July
31,
2022,
the
deferred
losses
were
as
follows:
At
January
31,
2023,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
Franklin
Total
Advantage
Retirement
Fund
73,765
0.0%
Superior
Officer
Council
Balanced
Fund
4,409,206
2.9%
Superior
Officer
Council
Senior
Balanced
Fund
99,572
0.1%
Total
150,921,060
100.0%
a
Investment
activities
of
significant
shareholders
could
have
a
material
impact
on
the
Fund.
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
4,105,315
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
1
1
1
Post-October
capital
loss
...................
$
20,633,740
$13,775,565
3.
Transactions
with
Affiliates
(continued)
f.
Other
Affiliated
Transactions
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
42
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
treatment
of
foreign
currency
transactions,
passive
foreign
investment
company
shares,
foreign
capital
gains
tax,
corporate
actions,
and
wash
sales.
6.
Investment
Transactions
Purchases
and
sales
of
investments
for
the
period
ended
January
31,
2023,
were
as
follows:
7.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
Investing
in
China
A
shares
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities.
In
general,
A
shares
are
issued
by
companies
incorporated
in
the
People’s
Republic
of
China
(PRC)
and
listed
on
the
Shanghai
and
Shenzhen
Stock
Exchanges
and
available
for
investment
by
domestic
(Chinese)
investors
and
holders
of
a
QFII
license
and,
in
the
case
of
certain
eligible
A
shares,
through
the
Shanghai
and
Shenzhen
Stock
Connect
programs.
The
Shanghai
and
Shenzhen
Stock
Exchanges
are,
however,
substantially
smaller,
less
liquid
and
more
volatile
than
the
major
securities
markets
in
the
United
States.
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
imposed
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,
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
a
a
a
a
Cost
of
investments
.......................
$111,314,875
$807,520,377
$1,704,216,119
Unrealized
appreciation
.....................
$14,484,589
$114,359,432
$232,737,400
Unrealized
depreciation
.....................
(11,501,362)
(19,840,412)
(43,174,057)
Net
unrealized
appreciation
(depreciation)
.......
$2,983,227
$94,519,020
$189,563,343
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Purchases
..............................
$68,919,087
$477,247,229
$864,929,448
Sales
..................................
$64,337,964
$420,984,821
$983,044,707
5.
Income
Taxes
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
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.
To
the
extent
that
the
Funds
have
exposure
to
Russian
investments
or
investments
in
countries
affected
by
the
invasion,
the
Funds’
ability
to
price,
buy,
sell,
receive
or
deliver
such
investments was
impaired.
The
Funds
could
determine
at
any
time
that
certain
of
the
most
affected
securities
have
little
or
no
value.
In
addition,
any
exposure
that
the
Funds
may
have
to
counterparties
in
Russia
or
in
countries
affected
by
the
invasion
could
negatively
impact
the
Funds’
portfolio.
The
extent
and
duration
of
Russia’s
military
actions
and
the
repercussions
of
such
actions
(including
any
retaliatory
actions
or
countermeasures
that
may
be
taken
by
those
subject
to
sanctions)
are
impossible
to
predict,
but
could
result
in
significant
market
disruptions,
including
in
the
oil
and
natural
gas
markets,
and
may
negatively
affect
global
supply
chains,
inflation
and
global
growth.
These
and
any
related
events
could
significantly
impact
the
Funds’
performance
and
the
value
of
an
investment
in
the
Funds,
even
beyond
any
direct
exposure
the
Funds
may
have
to
Russian
issuers
or
issuers
in
other
countries
affected
by
the
invasion.
The
Valuation
Committee
determined
that
based
on
their
analysis
of
the
market
and
access
to
market
participants,
the
Russian
financial
instruments
held
by
the
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
had
little
or
no
value
at
January
31,
2023.
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.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
January
31,
2023,
in
valuing
the
Funds’
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
—
$
175,060
$
—
$
175,060
Air
Freight
&
Logistics
...................
436,203
—
—
436,203
Airlines
..............................
—
267,644
—
267,644
Auto
Components
......................
—
797,816
—
797,816
Automobiles
..........................
—
3,714,088
—
3,714,088
7.
Concentration
of
Risk
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
44
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Banks
...............................
$
1,355,383
$
14,312,688
$
—
a
$
15,668,071
Beverages
...........................
1,143,718
636,340
—
1,780,058
Biotechnology
.........................
—
789,409
—
789,409
Capital
Markets
........................
120,974
977,063
—
1,098,037
Chemicals
...........................
—
2,933,096
—
a
2,933,096
Commercial
Services
&
Supplies
...........
—
113,046
—
113,046
Communications
Equipment
..............
—
197,059
—
197,059
Construction
&
Engineering
...............
—
564,591
—
564,591
Construction
Materials
..................
—
1,024,523
—
1,024,523
Consumer
Finance
.....................
—
786,089
—
786,089
Containers
&
Packaging
.................
105,930
—
—
105,930
Diversified
Financial
Services
.............
113,560
1,598,693
—
1,712,253
Diversified
Telecommunication
Services
.....
—
1,458,467
—
1,458,467
Electric
Utilities
........................
267,628
145,481
—
a
413,109
Electrical
Equipment
....................
—
1,349,866
—
1,349,866
Electronic
Equipment,
Instruments
&
Components
........................
—
3,458,804
—
3,458,804
Entertainment
.........................
250,022
1,213,859
—
1,463,881
Equity
Real
Estate
Investment
Trusts
(REITs)
.
117,954
—
—
117,954
Food
&
Staples
Retailing
.................
692,453
1,033,226
—
1,725,679
Food
Products
........................
997,058
1,547,934
—
2,544,992
Gas
Utilities
..........................
—
575,627
—
575,627
Health
Care
Equipment
&
Supplies
.........
—
334,532
—
334,532
Health
Care
Providers
&
Services
..........
—
1,091,892
—
1,091,892
Hotels,
Restaurants
&
Leisure
.............
1,131,944
201,745
—
1,333,689
Household
Durables
....................
—
529,851
—
529,851
Household
Products
....................
—
114,894
—
114,894
Independent
Power
and
Renewable
Electricity
Producers
..........................
331,822
463,532
—
795,354
Industrial
Conglomerates
................
—
1,077,470
—
1,077,470
Insurance
............................
—
3,107,693
—
3,107,693
Interactive
Media
&
Services
..............
519,414
6,397,015
—
6,916,429
Internet
&
Direct
Marketing
Retail
..........
2,542,692
3,934,042
—
6,476,734
IT
Services
...........................
—
3,049,740
—
3,049,740
Life
Sciences
Tools
&
Services
............
—
1,255,608
—
1,255,608
Machinery
............................
—
557,635
—
557,635
Marine
..............................
—
534,937
—
534,937
Metals
&
Mining
.......................
1,027,045
2,681,603
—
a
3,708,648
Multiline
Retail
........................
—
170,590
—
170,590
Oil,
Gas
&
Consumable
Fuels
.............
1,342,020
3,592,379
—
4,934,399
Paper
&
Forest
Products
.................
—
178,104
—
178,104
Personal
Products
.....................
—
1,024,652
—
1,024,652
Pharmaceuticals
.......................
—
1,778,397
—
1,778,397
Real
Estate
Management
&
Development
....
—
2,408,848
—
2,408,848
Semiconductors
&
Semiconductor
Equipment
.
318,570
10,773,068
—
11,091,638
Software
.............................
—
300,702
—
300,702
Specialty
Retail
........................
—
1,052,489
—
1,052,489
Technology
Hardware,
Storage
&
Peripherals
.
—
5,489,981
—
5,489,981
Textiles,
Apparel
&
Luxury
Goods
..........
—
1,327,149
—
1,327,149
Tobacco
.............................
—
506,896
—
506,896
Transportation
Infrastructure
..............
494,345
461,923
—
956,268
Wireless
Telecommunication
Services
.......
—
1,993,117
—
a
1,993,117
Preferred
Stocks
:
Banks
...............................
1,521,984
—
—
1,521,984
9.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
45
franklintempleton.com
Semiannual
Report
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Preferred
Stocks:
Chemicals
...........................
$
—
$
662,418
$
—
$
662,418
Electric
Utilities
........................
641,916
—
—
641,916
Metals
&
Mining
.......................
1,195,284
—
—
1,195,284
Oil,
Gas
&
Consumable
Fuels
.............
615,853
—
—
615,853
Short
Term
Investments
...................
290,959
—
—
290,959
Total
Investments
in
Securities
...........
$17,574,731
$96,723,371
b
$—
$114,298,102
Franklin
International
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
—
12,934,405
—
12,934,405
Air
Freight
&
Logistics
...................
—
5,781,402
—
5,781,402
Auto
Components
......................
—
4,463,813
—
4,463,813
Automobiles
..........................
—
25,088,240
—
25,088,240
Banks
...............................
—
71,198,794
—
71,198,794
Beverages
...........................
—
15,467,050
—
15,467,050
Biotechnology
.........................
—
9,278,978
—
9,278,978
Building
Products
......................
—
10,620,313
—
10,620,313
Capital
Markets
........................
—
32,919,396
—
32,919,396
Chemicals
...........................
—
29,325,924
—
29,325,924
Commercial
Services
&
Supplies
...........
—
889,246
—
889,246
Communications
Equipment
..............
—
1,931,687
—
1,931,687
Construction
&
Engineering
...............
—
5,433,522
—
5,433,522
Construction
Materials
..................
—
4,052,292
—
4,052,292
Diversified
Consumer
Services
............
—
985,698
—
985,698
Diversified
Financial
Services
.............
—
5,313,813
—
5,313,813
Diversified
Telecommunication
Services
.....
—
13,486,785
—
13,486,785
Electric
Utilities
........................
—
13,086,455
—
13,086,455
Electrical
Equipment
....................
—
16,964,485
—
16,964,485
Electronic
Equipment,
Instruments
&
Components
........................
—
12,622,132
—
12,622,132
Entertainment
.........................
—
8,335,665
—
8,335,665
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
10,192,270
—
10,192,270
Food
&
Staples
Retailing
.................
—
13,041,063
—
13,041,063
Food
Products
........................
—
36,994,717
—
36,994,717
Gas
Utilities
..........................
—
5,169,111
—
5,169,111
Health
Care
Equipment
&
Supplies
.........
—
21,895,508
—
21,895,508
Health
Care
Providers
&
Services
..........
—
3,025,902
—
3,025,902
Health
Care
Technology
.................
—
880,645
—
880,645
Hotels,
Restaurants
&
Leisure
.............
—
11,044,865
—
11,044,865
Household
Durables
....................
—
8,165,132
—
8,165,132
Household
Products
....................
—
4,903,779
—
4,903,779
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
3,051,979
—
3,051,979
Industrial
Conglomerates
................
—
11,102,536
—
11,102,536
Insurance
............................
—
50,100,574
—
50,100,574
Interactive
Media
&
Services
..............
—
2,836,612
—
2,836,612
Internet
&
Direct
Marketing
Retail
..........
—
4,676,058
—
4,676,058
IT
Services
...........................
—
10,551,566
—
10,551,566
Leisure
Products
.......................
—
2,140,454
—
2,140,454
Life
Sciences
Tools
&
Services
............
—
3,777,983
—
3,777,983
Machinery
............................
—
30,194,460
—
30,194,460
Marine
..............................
—
4,901,679
—
4,901,679
9.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
46
franklintempleton.com
Semiannual
Report
10.
New
Accounting
Pronouncements
In June
2022,
the 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
has
reviewed
the
requirements
and
believes
that
the
adoption
of
the
ASU
will
not
have
a
material
impact
on
the
financial
statements.
11.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure
other
than
those
already
disclosed
in
the
financial
statements.
Level
1
Level
2
Level
3
Total
Franklin
International
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Media
...............................
$
—
$
2,513,532
$
—
$
2,513,532
Metals
&
Mining
.......................
—
41,804,699
—
41,804,699
Multiline
Retail
........................
—
2,686,283
—
2,686,283
Multi-Utilities
..........................
—
7,929,930
—
7,929,930
Oil,
Gas
&
Consumable
Fuels
.............
—
47,836,906
—
47,836,906
Paper
&
Forest
Products
.................
—
2,183,689
—
2,183,689
Personal
Products
.....................
—
16,963,174
—
16,963,174
Pharmaceuticals
.......................
—
84,257,588
—
84,257,588
Professional
Services
...................
—
17,584,270
—
17,584,270
Real
Estate
Management
&
Development
....
—
12,731,530
—
12,731,530
Road
&
Rail
..........................
—
4,694,374
—
4,694,374
Semiconductors
&
Semiconductor
Equipment
.
—
29,686,905
—
29,686,905
Software
.............................
4,709,835
9,221,234
—
13,931,069
Specialty
Retail
........................
—
7,234,872
—
7,234,872
Technology
Hardware,
Storage
&
Peripherals
.
—
3,372,222
—
3,372,222
Textiles,
Apparel
&
Luxury
Goods
..........
—
30,623,978
—
30,623,978
Tobacco
.............................
—
6,969,706
3,462,316
10,432,022
Trading
Companies
&
Distributors
..........
—
13,195,880
—
13,195,880
Wireless
Telecommunication
Services
.......
—
10,765,851
—
10,765,851
Short
Term
Investments
...................
2,783,635
—
—
2,783,635
Total
Investments
in
Securities
...........
$7,493,470
$891,083,611
c
$3,462,316
$902,039,397
Franklin
U.S.
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
d
Common
Stocks
.........................
1,877,973,336
—
—
1,877,973,336
Short
Term
Investments
...................
15,806,126
—
—
15,806,126
Total
Investments
in
Securities
...........
$1,893,779,462
$—
$—
$1,893,779,462
a
Includes
financial
instruments
determined
to
have
no
value
at
January
31,
2023.
b
Includes
foreign
securities
valued
at
$96,407,058,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$891,083,611,
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.
d
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
9.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
(unaudited)
47
franklintempleton.com
Semiannual
Report
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
GDR
Global
Depositary
Receipt
REIT
Real
Estate
Investment
Trust
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4. Principal Accountant Fees and Services
. N/A
Item 5. Audit Committee of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-
End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment
Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures
.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b)
Changes in Internal Controls
.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(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
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN FUND ALLOCATOR SERIES
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date March 29, 2023
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date March 29, 2023
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date March 29, 2023