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

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-07851

Franklin Fund Allocator Series

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

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

(Name and address of agent for service)

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

Date of fiscal year end: 12/31

Date of reporting period: 6/30/23

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

.

Semiannual

Report

Franklin

Fund

Allocator

Series

June

30,

2023

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

Franklin

LifeSmart

TM

Retirement

Income

Fund

2020

Retirement

Target

Fund

2025

Retirement

Target

Fund

2030

Retirement

Target

Fund

2035

Retirement

Target

Fund

2040

Retirement

Target

Fund

2045

Retirement

Target

Fund

2050

Retirement

Target

Fund

2055

Retirement

Target

Fund

2060

Retirement

Target

Fund

.

.

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

franklintempleton.com

Semiannual

Report

1

Contents

Franklin

LifeSmart

™

Retirement

Income

Fund

2

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

7

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

11

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

15

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

19

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

23

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

27

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

31

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

35

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

39

Financial

Highlights

and

Schedules

of

Investments

43

Financial

Statements

109

Notes

to

Financial

Statements

126

Shareholder

Information

156

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

2

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

Retirement

Income

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

Retirement

Income

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

to

make

monthly

distributions,

while

preserving

the

investors’

capital

over

the

long

term.

The

Fund

employs

an

asset

allocation

strategy,

combined

with

an

income

generation

strategy,

designed

for

investors

in

retirement.

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+5.90%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

3.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

Retirement

Income

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Fixed

Income

53.5%

Domestic

Equity

28.9%

Foreign

Equity

5.8%

Index-Linked

Notes

5.0%

Foreign

Fixed

Income

4.4%

Short-Term

Investments

&

Other

Net

Assets

2.4%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Western

Asset

Income

Fund,

Class

IS

14.2%

Franklin

U.S.

Core

Bond

ETF

11.4%

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

11.2%

JPMorgan

Equity

Premium

Income

ETF

10.7%

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

10.5%

Franklin

U.S.

Government

Securities

Fund,

Class

R6

6.7%

Franklin

Investment

Grade

Corporate

ETF

5.8%

UBS

AG

into

S&P

500

Index,

Senior

Note

5.0%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

4.9%

JPMorgan

Nasdaq

Equity

Premium

Income

ETF

4.8%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

48

.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

Retirement

Income

Fund

3

franklintempleton.com

Semiannual

Report

The

performance

tables

do

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+5.90%

+0.06%

1-Year

+7.26%

+1.32%

5-Year

+16.25%

+1.90%

10-Year

+41.22%

+2.92%

Advisor

6-Month

+6.12%

+6.12%

1-Year

+7.54%

+7.54%

5-Year

+17.76%

+3.32%

10-Year

+44.97%

+3.78%

30-Day

Standardized

Yield

6

Share

Class

Distribution

Rate

5

(with

fee

waiver)

(without

fee

waiver)

A

3.83%

5.38%

4.76%

Advisor

4.29%

5.93%

5.27%

See

page

5

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

4

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds

.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

Investments

in

equity-linked

notes

often

have

risks

similar

to

their

underlying

securities,

which

could

include

management

risk,

market

risk

and,

as

applicable,

foreign

securities

and

currency

risks

.

Derivative

instruments

can

be

illiquid,

may

disproportionately

increase

losses,

and

have

a

potentially

large

impact

on

performance.

The

Fund

is

not

guaranteed

to

achieve

its

investment

goal

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

In

addition,

some

of

its

distributions

may

be

treated

in

part

as

a

return

of

capital

which

will

decrease

shareholders’

cost

basis

in

the

Fund

and

affect

the

amount

of

any

capital

gain

or

loss

that

shareholders

realize

when

selling

or

exchanging

Fund

shares.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year

and

could

vary

sub-

stantially

over

time.

It

is

possible

for

the

Fund

to

suffer

substantial

investment

losses

and

simultaneously

experience

additional

asset

reductions

as

a

result

of

its

distributions

to

shareholders

under

the

managed

distribution

policy.

Investors

who

hold

the

Fund

within

a

tax-advantaged

retirement

account

should

consult

their

tax

advisors

to

discuss

tax

consequences

of

receiving

cash

distributions.

In

addition,

use

of

the

Fund

or

election

of

the

option

to

receive

distribution

payments

in

cash

may

be

restricted

in

certain

retirement

plans

by

the

terms

of

the

governing

plan

documents

and/or

the

discretion

of

the

plan

administrator.

Investors

are

strongly

advised

to

consult

with

their

financial

advisor

for

assistance

before

selecting

the

appropriate

Fund,

based

on

their

goals

and

personal

situations,

including

time

horizon,

retirement

income

needs,

risk

tolerance

and

tax

bracket.

These

and

other

risks

are

described

more

fully

in

the

Fund’s

prospectus.

Net

Asset

Value

Share

Class

6/30/23

12/31/22

Change

A

(FTRAX)

$9.95

$9.59

+$0.36

C

(FRTCX)

$9.83

$9.47

+$0.36

R

(FBRLX)

$9.92

$9.56

+$0.36

R6

(FLMTX)

$10.00

$9.63

+$0.37

Advisor

(FLRDX)

$9.99

$9.62

+$0.37

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

A

$0.2016

C

$0.1632

R

$0.1890

R6

$0.2166

Advisor

$0.2142

Total

Annual

Operating

Expenses

7

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.76%

1.44%

Advisor

0.51%

1.19%

Franklin

LifeSmart™

Retirement

Income

Fund

Performance

Summary

5

franklintempleton.com

Semiannual

Report

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

changed

its

strategic

asset

allocation

40%

to

equity

funds

and

60%

to

fixed

income

funds

aligning

it

to

the

landing

point

of

the

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

of

other

Franklin

LifeSmart

retirement

funds.

Previously,

as

of

5/1/16,

the

Fund

changed

its

name

from

Franklin

LifeSmart

2015

Retirement

Target

Date

Fund

in

connection

with

changes

to

its

strategies

including,

among

other

things,

the

addition

of

an

income

generation

strategy

to

support

the

Fund’s

managed

distribution

policy.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Distribution

rate

is

based

on

an

annualization

of

the

respective

class’s

June

dividend

and

the

maximum

offering

price

(NAV

for

Advisor

Class)

per

share

on

6/30/23.

6.

The

Fund’s

30-day

standardized

yield

is

calculated

over

a

trailing

30-day

period

using

the

yield

to

maturity

on

bonds

and/or

the

dividends

accrued

on

stocks.

It

may

not

equal

the

Fund’s

actual

income

distribution

rate,

which

reflects

the

Fund’s

past

dividends

paid

to

shareholders.

7.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Your

Fund’s

Expenses

Franklin

LifeSmart™

Retirement

Income

Fund

6

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,059.00

$1.52

$1,023.32

$1.50

0.30%

C

$1,000

$1,055.60

$5.34

$1,019.60

$5.25

1.05%

R

$1,000

$1,057.90

$2.80

$1,022.08

$2.75

0.55%

R6

$1,000

$1,061.40

$0.00

$1,024.80

$0.00

0.00%

Advisor

$1,000

$1,061.20

$0.25

$1,024.56

$0.24

0.05%

7

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2020

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2020

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+7.03%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

8

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2020

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Fixed

Income

46.5%

Domestic

Equity

29.8%

Foreign

Equity

16.8%

Foreign

Fixed

Income

4.0%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.9%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Bond

ETF

17.3%

Franklin

U.S.

Core

Equity

(IU)

Fund

14.9%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

9.9%

Franklin

International

Core

Equity

(IU)

Fund

8.1%

Franklin

Growth

Fund,

Class

R6

6.7%

Franklin

U.S.

Treasury

Bond

ETF

4.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

3.5%

Schwab

U.S.

TIPS

ETF

3.5%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

3.2%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

3.2%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

55

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2020

Retirement

Target

Fund

8

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+7.03%

+1.10%

1-Year

+7.15%

+1.26%

5-Year

+17.99%

+2.20%

Since

Inception

(7/1/13)

+53.79%

+3.81%

Advisor

6-Month

+7.13%

+7.13%

1-Year

+7.40%

+7.40%

5-Year

+19.40%

+3.61%

Since

Inception

(7/1/13)

+57.90%

+4.67%

See

page

9

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Performance

Summary

9

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

A

$0.1911

C

$0.1521

R

$0.1780

R6

$0.2067

Advisor

$0.2043

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.21%

Advisor

0.45%

0.96%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2020

Retirement

Target

Fund

10

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,070.30

$2.48

$1,022.40

$2.42

0.48%

C

$1,000

$1,066.10

$6.31

$1,018.68

$6.17

1.23%

R

$1,000

$1,070.10

$3.76

$1,021.16

$3.67

0.73%

R6

$1,000

$1,072.70

$0.95

$1,023.88

$0.92

0.18%

Advisor

$1,000

$1,071.30

$1.19

$1,023.64

$1.17

0.23%

11

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2025

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023

.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+7.93%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

12

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2025

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Fixed

Income

38.6%

Domestic

Equity

35.6%

Foreign

Equity

20.2%

Foreign

Fixed

Income

3.1%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.5%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

17.9%

Franklin

U.S.

Core

Bond

ETF

14.5%

Franklin

International

Core

Equity

(IU)

Fund

9.8%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

8.3%

Franklin

Growth

Fund,

Class

R6

8.0%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

4.2%

Franklin

U.S.

Treasury

Bond

ETF

4.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

3.2%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.1%

Schwab

U.S.

TIPS

ETF

3.0%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

62

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2025

Retirement

Target

Fund

12

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+7.93%

+2.02%

1-Year

+8.56%

+2.63%

5-Year

+22.63%

+3.00%

10-Year

+69.99%

+4.85%

Advisor

6-Month

+8.03%

+8.03%

1-Year

+8.91%

+8.91%

5-Year

+24.22%

+4.43%

10-Year

+74.47%

+5.72%

See

page

13

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Performance

Summary

13

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal

.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1775

$0.0055

$0.1830

C

$0.1376

$0.0055

$0.1431

R

$0.1646

$0.0055

$0.1701

R6

$0.1948

$0.0055

$0.2003

Advisor

$0.1912

$0.0055

$0.1967

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

0.99%

Advisor

0.45%

0.74%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2025

Retirement

Target

Fund

14

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,079.30

$2.51

$1,022.38

$2.44

0.49%

C

$1,000

$1,075.40

$6.36

$1,018.66

$6.19

1.24%

R

$1,000

$1,077.50

$3.80

$1,021.14

$3.70

0.74%

R6

$1,000

$1,080.60

$0.97

$1,023.87

$0.94

0.19%

Advisor

$1,000

$1,080.30

$1.22

$1,023.62

$1.19

0.24%

15

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2030

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2030

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+8.80%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

16

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2030

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

40.9%

Domestic

Fixed

Income

30.6%

Foreign

Equity

23.2%

Foreign

Fixed

Income

2.4%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.9%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

20.6%

Franklin

U.S.

Core

Bond

ETF

11.5%

Franklin

International

Core

Equity

(IU)

Fund

11.2%

Franklin

Growth

Fund,

Class

R6

9.2%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

6.6%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

4.9%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

3.7%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

3.6%

Franklin

U.S.

Treasury

Bond

ETF

3.2%

Templeton

Foreign

Fund,

Class

R6

2.6%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

69

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2030

Retirement

Target

Fund

16

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+8.80%

+2.86%

1-Year

+9.74%

+3.73%

5-Year

+27.06%

+3.73%

Since

Inception

(7/1/13)

+77.36%

+5.30%

Advisor

6-Month

+8.97%

+8.97%

1-Year

+10.15%

+10.15%

5-Year

+28.75%

+5.18%

Since

Inception

(7/1/13)

+82.05%

+6.18%

See

page

17

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Performance

Summary

17

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds

.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal

.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls

.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets

.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

A

$0.1623

C

$0.1210

R

$0.1481

R6

$0.1790

Advisor

$0.1761

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.17%

Advisor

0.45%

0.92%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2030

Retirement

Target

Fund

18

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,088.00

$2.58

$1,022.33

$2.50

0.50%

C

$1,000

$1,084.00

$6.45

$1,018.61

$6.25

1.25%

R

$1,000

$1,087.00

$3.87

$1,021.09

$3.75

0.75%

R6

$1,000

$1,090.10

$1.03

$1,023.81

$1.00

0.20%

Advisor

$1,000

$1,089.70

$1.28

$1,023.57

$1.24

0.25%

19

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2035

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2035

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+9.64%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

20

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2035

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

46.2%

Foreign

Equity

26.2%

Domestic

Fixed

Income

22.9%

Foreign

Fixed

Income

1.9%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.8%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.3%

Franklin

International

Core

Equity

(IU)

Fund

12.7%

Franklin

Growth

Fund,

Class

R6

10.4%

Franklin

U.S.

Core

Bond

ETF

8.5%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

5.5%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.8%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.0%

Templeton

Foreign

Fund,

Class

R6

3.0%

Templeton

Developing

Markets

Trust,

Class

R6

2.7%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

76

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2035

Retirement

Target

Fund

20

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+9.64%

+3.64%

1-Year

+11.46%

+5.30%

5-Year

+32.34%

+4.57%

10-Year

+91.51%

+6.11%

Advisor

6-Month

+9.82%

+9.82%

1-Year

+11.67%

+11.67%

5-Year

+33.97%

+6.02%

10-Year

+96.67%

+7.00%

See

page

21

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Performance

Summary

21

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal

.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1526

$0.0372

$0.1898

C

$0.1112

$0.0372

$0.1484

R

$0.1374

$0.0372

$0.1746

R6

$0.1702

$0.0372

$0.2074

Advisor

$0.1668

$0.0372

$0.2040

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

0.99%

Advisor

0.45%

0.74%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2035

Retirement

Target

Fund

22

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,096.40

$2.59

$1,022.33

$2.49

0.50%

C

$1,000

$1,092.50

$6.47

$1,018.61

$6.24

1.25%

R

$1,000

$1,095.30

$3.88

$1,021.09

$3.74

0.75%

R6

$1,000

$1,097.70

$1.03

$1,023.81

$1.00

0.20%

Advisor

$1,000

$1,098.20

$1.29

$1,023.57

$1.24

0.25%

23

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2040

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+10.58%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

24

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2040

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

51.2%

Foreign

Equity

28.9%

Domestic

Fixed

Income

15.9%

Alternative

Strategies

1.0%

Foreign

Fixed

Income

0.7%

Short-Term

Investments

&

Other

Net

Assets

2.3%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

21.4%

Franklin

International

Core

Equity

(IU)

Fund

14.0%

Franklin

Growth

Fund,

Class

R6

11.5%

Franklin

U.S.

Equity

Index

ETF

6.9%

Franklin

U.S.

Core

Bond

ETF

6.2%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

6.1%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

4.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.4%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.6%

Templeton

Foreign

Fund,

Class

R6

3.3%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

83

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2040

Retirement

Target

Fund

24

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+10.58%

+4.49%

1-Year

+12.90%

+6.68%

5-Year

+37.79%

+5.43%

Since

Inception

(7/1/13)

+97.30%

+6.43%

Advisor

6-Month

+10.72%

+10.72%

1-Year

+13.17%

+13.17%

5-Year

+39.49%

+6.88%

Since

Inception

(7/1/13)

+102.46%

+7.31%

See

page

25

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Performance

Summary

25

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds

.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1236

$0.0406

$0.1642

C

$0.0827

$0.0406

$0.1233

R

$0.1064

$0.0406

$0.1470

R6

$0.1403

$0.0406

$0.1809

Advisor

$0.1375

$0.0406

$0.1781

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.32%

Advisor

0.45%

1.07%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2040

Retirement

Target

Fund

26

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,105.80

$2.68

$1,022.25

$2.57

0.51%

C

$1,000

$1,101.10

$6.58

$1,018.53

$6.32

1.26%

R

$1,000

$

1,104.30

$3.98

$1,021.01

$3.82

0.76%

R6

$1,000

$1,107.20

$1.11

$1,023.74

$1.07

0.21%

Advisor

$1,000

$1,107.20

$1.37

$1,023.49

$1.32

0.26%

27

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2045

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.40%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

28

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2045

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

56.3%

Foreign

Equity

31.8%

Domestic

Fixed

Income

9.2%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.7%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.5%

Franklin

International

Core

Equity

(IU)

Fund

15.4%

Franklin

Growth

Fund,

Class

R6

12.7%

Franklin

U.S.

Equity

Index

ETF

7.6%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

6.7%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.1%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

4.9%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

4.4%

Franklin

U.S.

Core

Bond

ETF

4.3%

Templeton

Foreign

Fund,

Class

R6

3.6%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

90

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2045

Retirement

Target

Fund

28

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6

/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+11.40%

+5.26%

1-Year

+14.00%

+7.69%

5-Year

+40.37%

+5.82%

10-Year

+106.03%

+6.89%

Advisor

6-Month

+11.56%

+11.56%

1-Year

+14.38%

+14.38%

5-Year

+42.16%

+7.29%

10-Year

+111.56%

+7.78%

See

page

29

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Performance

Summary

29

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1175

$0.0684

$0.1859

C

$0.0731

$0.0684

$0.1415

R

$0.1026

$0.0684

$0.1710

R6

$0.1352

$0.0684

$0.2036

Advisor

$0.1323

$0.0684

$0.2007

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.13%

Advisor

0.45%

0.88%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2045

Retirement

Target

Fund

30

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,114.00

$2.66

$1,022.28

$2.55

0.51%

C

$1,000

$1,109.80

$6.58

$1,018.56

$6.30

1.26%

R

$1,000

$1,112.60

$3.97

$1,021.04

$3.80

0.76%

R6

$1,000

$1,114.40

$1.10

$1,023.76

$1.05

0.21%

Advisor

$1,000

$1,115.60

$1.35

$1,023.51

$1.30

0.26%

31

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2050

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2050

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.82%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

32

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2050

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

59.0%

Foreign

Equity

33.4%

Domestic

Fixed

Income

4.7%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

1.9%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.1%

Franklin

International

Core

Equity

(IU)

Fund

16.1%

Franklin

Growth

Fund,

Class

R6

13.3%

Franklin

U.S.

Equity

Index

ETF

7.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

7.6%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.3%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.1%

Templeton

Foreign

Fund,

Class

R6

3.8%

Templeton

Developing

Markets

Trust,

Class

R6

3.5%

Franklin

International

Growth

Fund,

Class

R6

2.4%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

96

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2050

Retirement

Target

Fund

32

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A

:

5.50%

maximum

initial

sales

charge;

Advisor

Class

:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+11.82%

+5.69%

1-Year

+14.82%

+8.48%

5-Year

+42.10%

+6.08%

Since

Inception

(7/1/13)

+105.81%

+6.88%

Advisor

6-Month

+11.93%

+11.93%

1-Year

+15.05%

+15.05%

5-Year

+43.79%

+7.53%

Since

Inception

(7/1/13)

+111.28%

+7.77%

See

page

33

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Performance

Summary

33

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1080

$0.0448

$0.1528

C

$0.0660

$0.0448

$0.1108

R

$0.0938

$0.0448

$0.1386

R6

$0.1247

$0.0448

$0.1695

Advisor

$0.1219

$0.0448

$0.1667

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.53%

Advisor

0.45%

1.28%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2050

Retirement

Target

Fund

34

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,118.20

$2.63

$1,022.31

$2.51

0.50%

C

$1,000

$1,113.70

$6.55

$1,018.60

$6.26

1.25%

R

$1,000

$1,116.80

$3.94

$1,021.08

$3.76

0.75%

R6

$1,000

$1,119.40

$1.08

$1,023.77

$1.03

0.21%

Advisor

$1,000

$1,119.30

$1.31

$1,023.55

$1.26

0.25%

35

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2055

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.85%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

36

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart

TM

2055

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

59.3%

Foreign

Equity

33.7%

Domestic

Fixed

Income

3.8%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.2%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.1%

Franklin

International

Core

Equity

(IU)

Fund

16.3%

Franklin

Growth

Fund,

Class

R6

13.5%

Franklin

U.S.

Equity

Index

ETF

8.1%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

7.5%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.3%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.2%

Templeton

Foreign

Fund,

Class

R6

3.8%

Templeton

Developing

Markets

Trust,

Class

R6

3.5%

Franklin

International

Growth

Fund,

Class

R6

2.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

102

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2055

Retirement

Target

Fund

36

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+11.85%

+5.70%

1-Year

+14.89%

+8.54%

5-Year

+41.89%

+6.04%

Since

Inception

(5/1/15)

+65.24%

+5.61%

Advisor

6-Month

+11.94%

+11.94%

1-Year

+15.12%

+15.12%

5-Year

+43.43%

+7.48%

Since

Inception

(5/1/15)

+68.19%

+6.58%

See

page

37

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Performance

Summary

37

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

Fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

Effective

1/29/21,

the

Fund

modified

the

landing

point

of

its

glide

path

(the

strategic

asset

allocation

of

a

target

date

fund

over

time)

to

be

in

line

with

the

new

required

minimum

distribution

(RMD)

age

of

72.

Previously,

as

of

May

2019,

the

Fund’s

predetermined

asset

allocation

glide

path

was

modified,

and

among

other

changes,

establishes

neutral

and

defensive

glide

paths,

between

which

the

Funds’

investment

manager

could

shift

depending

on

projected

market

volatility.

Prior

to

that,

as

of

October

2013,

the

Fund’s

glide

path

was

modified,

and

among

other

changes,

reflects

a

lower

starting

allocation

to

equity

funds.

Such

changes

can

impact

performance.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0956

$0.0837

$0.1793

C

$0.0587

$0.0837

$0.1424

R

$0.0835

$0.0837

$0.1672

R6

$0.1104

$0.0837

$0.1941

Advisor

$0.1079

$0.0837

$0.1916

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

1.88%

Advisor

0.45%

1.62%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2055

Retirement

Target

Fund

38

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,118.50

$2.60

$1,022.34

$2.48

0.50%

C

$1,000

$1,113.90

$6.52

$1,018.62

$6.23

1.24%

R

$1,000

$1,117.00

$3.91

$1,021.10

$3.73

0.74%

R6

$1,000

$1,120.30

$1.03

$1,023.82

$0.98

0.20%

Advisor

$1,000

$1,119.40

$1.29

$1,023.58

$1.23

0.24%

39

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

™

2060

Retirement

Target

Fund

This

semiannual

report

for

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

its

asset

allocation.

The

Fund

employs

an

asset

allocation

strategy

designed

for

investors

who

are

expecting

to

retire

and

who

are

likely

to

stop

making

new

investments

in

the

Fund

around

the

specific

target

year

(target

date),

as

indicated

in

the

Fund’s

name,

but

who

are

expecting

to

delay

withdrawals

until

approximately

eight

years

after

the

target

date

(around

their

required

minimum

distribution

age).

Under

normal

market

conditions,

the

investment

manager

allocates

the

Fund’s

assets

among

the

broad

asset

classes

of

equity

and

fixed

income

investments

and

strategies

by

investing

primarily

in

a

distinctly-weighted

combination

of

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs)

and

third-party

ETFs,

based

on

each

underlying

fund’s

predominant

asset

class

and

strategy.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+11.59%

cumulative

total

return

for

the

six

months

ended

June

30,

2023.

In

comparison,

the

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

40

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Thank

you

for

your

continued

participation

in

Franklin

LifeSmart™

2060

Retirement

Target

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

58.2%

Foreign

Equity

33.0%

Domestic

Fixed

Income

3.9%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

3.9%

Top

10

Holdings

6/30/23

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

23.7%

Franklin

International

Core

Equity

(IU)

Fund

15.9%

Franklin

Growth

Fund,

Class

R6

13.4%

Franklin

U.S.

Equity

Index

ETF

7.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

7.3%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.3%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

5.1%

Templeton

Foreign

Fund,

Class

R6

3.8%

Templeton

Developing

Markets

Trust,

Class

R6

3.5%

Franklin

International

Growth

Fund,

Class

R6

2.5%

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

108

.

Performance

Summary

as

of

June

30,

2023

Franklin

LifeSmart™

2060

Retirement

Target

Fund

40

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

6-Month

+11.59%

+5.49%

1-Year

+14.47%

+8.20%

Since

Inception

(1/29/21)

+8.70%

+1.13%

Advisor

6-Month

+11.58%

+11.58%

1-Year

+14.60%

+14.60%

Since

Inception

(1/29/21)

+8.88%

+3.58%

See

page

41

for

Performance

Summary

footnotes.

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Performance

Summary

41

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Principal

invested

is

not

guaranteed

at

any

time,

including

at

or

after

the

Fund’s

retirement

target

date;

nor

is

there

any

guarantee

that

the

Fund

will

provide

sufficient

income

at

or

through

the

investor’s

retirement.

The

investment

risk

of

the

retirement

target

fund

changes

over

time

as

its

asset

allocation

changes.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

period

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0771

$0.0339

$0.1110

C

$0.0513

$0.0339

$0.0852

R

$0.0661

$0.0339

$0.1000

R6

$0.0888

$0.0339

$0.1227

Advisor

$0.0865

$0.0339

$0.1204

Total

Annual

Operating

Expenses

4

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.70%

7.91%

Advisor

0.45%

7.63%

Your

Fund’s

Expenses

Franklin

LifeSmart™

2060

Retirement

Target

Fund

42

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period

for

Hypothetical

expenses.

Non-recurring

expenses

are

not

annualized.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,115.90

$2.61

$1,022.33

$2.49

0.50%

C

$1,000

$1,110.90

$6.52

$1,018.61

$6.24

1.25%

R

$1,000

$1,113.50

$3.92

$1,021.08

$3.75

0.75%

R6

$1,000

$1,116.90

$1.04

$1,023.81

$1.00

0.20%

Advisor

$1,000

$1,115.80

$1.31

$1,023.56

$1.25

0.25%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

43

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$9.59

$11.50

$11.62

$11.15

$10.35

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.25

0.53

0.36

0.39

0.43

0.50

Net

realized

and

unrealized

gains

(losses)

0.31

(1.88)

0.25

0.52

0.79

(0.77)

Total

from

investment

operations

........

0.56

(1.35)

0.61

0.91

1.22

(0.27)

Less

distributions

from:

Net

investment

income

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

(0.20)

(0.47)

(0.43)

(0.44)

(0.42)

(0.44)

Net

realized

gains

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

—

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.20)

(0.56)

(0.73)

(0.44)

(0.42)

(0.44)

Net

asset

value,

end

of

period

..........

$9.95

$9.59

$11.50

$11.62

$11.15

$10.35

Total

return

d

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

5.90%

(11.83)%

5.41%

8.40%

11.93%

(2.48)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.08%

0.98%

0.95%

0.94%

0.95%

0.90%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

0.30%

0.30%

0.30%

0.30%

0.30%

0.30%

Net

investment

income

c

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

5.06%

5.20%

3.05%

3.56%

3.91%

4.63%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$37,922

$36,999

$46,058

$40,343

$34,363

$31,461

Portfolio

turnover

rate

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

18.88%

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.45%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

44

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$9.48

$11.36

$11.48

$11.01

$10.23

$10.92

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.21

0.44

0.25

0.30

0.34

0.42

Net

realized

and

unrealized

gains

(losses)

0.31

(1.86)

0.27

0.52

0.78

(0.76)

Total

from

investment

operations

........

0.52

(1.42)

0.52

0.82

1.12

(0.34)

Less

distributions

from:

Net

investment

income

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

(0.16)

(0.37)

(0.34)

(0.35)

(0.34)

(0.35)

Net

realized

gains

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

—

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.16)

(0.46)

(0.64)

(0.35)

(0.34)

(0.35)

Net

asset

value,

end

of

period

..........

$9.84

$9.48

$11.36

$11.48

$11.01

$10.23

Total

return

d

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

5.56%

(12.53)%

4.56%

7.62%

11.14%

(3.29)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.82%

1.73%

1.70%

1.69%

1.69%

1.65%

Expenses

net

of

waiver

and

payments

by

affiliates

f

,g

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

1.05%

1.05%

1.05%

1.05%

1.04%

1.05%

Net

investment

income

c

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

4.26%

4.29%

2.20%

2.80%

3.17%

3.88%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,445

$4,145

$6,803

$9,355

$10,568

$11,796

Portfolio

turnover

rate

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

18.88%

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.45%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

45

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$9.56

$11.47

$11.59

$11.11

$10.31

$11.01

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.23

0.50

0.33

0.37

0.40

0.48

Net

realized

and

unrealized

gains

(losses)

0.32

(1.88)

0.26

0.52

0.79

(0.77)

Total

from

investment

operations

........

0.55

(1.38)

0.59

0.89

1.19

(0.29)

Less

distributions

from:

Net

investment

income

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

(0.19)

(0.44)

(0.41)

(0.41)

(0.39)

(0.41)

Net

realized

gains

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

—

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.19)

(0.53)

(0.71)

(0.41)

(0.39)

(0.41)

Net

asset

value,

end

of

period

..........

$9.92

$9.56

$11.47

$11.59

$11.11

$10.31

Total

return

d

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

5.79%

(12.03)%

5.15%

8.22%

11.69%

(2.67)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.31%

1.23%

1.19%

1.11%

1.16%

1.11%

Expenses

net

of

waiver

and

payments

by

affiliates

f

,g

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

0.55%

0.55%

0.54%

0.47%

0.51%

0.51%

Net

investment

income

c

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

4.80%

4.96%

2.80%

3.39%

3.70%

4.42%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,555

$1,748

$2,197

$2,108

$2,336

$2,876

Portfolio

turnover

rate

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

18.88%

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.45%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

46

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$9.64

$11.55

$11.67

$11.20

$10.40

$11.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.26

0.55

0.34

0.43

0.47

0.54

Net

realized

and

unrealized

gains

(losses)

0.32

(1.87)

0.31

0.52

0.78

(0.78)

Total

from

investment

operations

........

0.58

(1.32)

0.65

0.95

1.25

(0.24)

Less

distributions

from:

Net

investment

income

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

(0.22)

(0.50)

(0.47)

(0.48)

(0.45)

(0.47)

Net

realized

gains

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

—

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.22)

(0.59)

(0.77)

(0.48)

(0.45)

(0.47)

Net

asset

value,

end

of

period

..........

$10.00

$9.64

$11.55

$11.67

$11.20

$10.40

Total

return

d

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

6.14%

(11.56)%

5.63%

8.81%

12.20%

(2.16)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.87%

0.64%

0.57%

0.58%

0.59%

0.54%

Expenses

net

of

waiver

and

payments

by

affiliates

f

,g

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

—%

—%

—%

—%

—%

—%

Net

investment

income

c

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

5.37%

5.43%

2.88%

3.84%

4.21%

4.93%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$71

$67

$56

$4,092

$2,043

$1,798

Portfolio

turnover

rate

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

18.88%

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.45%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

47

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$9.63

$11.55

$11.66

$11.19

$10.39

$11.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.26

0.56

0.39

0.42

0.46

0.53

Net

realized

and

unrealized

gains

(losses)

0.31

(1.89)

0.26

0.52

0.79

(0.77)

Total

from

investment

operations

........

0.57

(1.33)

0.65

0.94

1.25

(0.24)

Less

distributions

from:

Net

investment

income

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

(0.21)

(0.50)

(0.46)

(0.47)

(0.45)

(0.47)

Net

realized

gains

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

—

(0.09)

(0.30)

—

—

—

Total

distributions

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

(0.21)

(0.59)

(0.76)

(0.47)

(0.45)

(0.47)

Net

asset

value,

end

of

period

..........

$9.99

$9.63

$11.55

$11.66

$11.19

$10.39

Total

return

d

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

6.12%

(11.62)%

5.58%

8.75%

12.16%

(2.21)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.82%

0.73%

0.70%

0.69%

0.70%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

f

,g

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

0.05%

0.05%

0.05%

0.05%

0.05%

0.05%

Net

investment

income

c

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

5.33%

5.45%

3.34%

3.83%

4.16%

4.88%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,516

$2,414

$2,837

$2,021

$1,875

$1,409

Portfolio

turnover

rate

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

18.88%

35.25%

121.26%

51.13%

82.72%

46.27%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year,

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.45%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

Retirement

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

48

See

Abbreviations

on

page

155

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

92.6%

Domestic

Equity

28.9%

a

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

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

251,517

$

5,080,643

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

75,507

1,011,796

JPMorgan

Equity

Premium

Income

ETF

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

87,650

4,849,674

JPMorgan

Nasdaq

Equity

Premium

Income

ETF

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

45,375

2,194,789

13,136,902

Domestic

Fixed

Income

53.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

247,385

2,236,362

a

Franklin

Investment

Grade

Corporate

ETF

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

123,629

2,623,407

a

Franklin

U.S.

Core

Bond

ETF

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

242,169

5,182,417

a

Franklin

U.S.

Government

Securities

Fund,

Class

R6

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

599,512

3,063,504

a

Western

Asset

Income

Fund,

Class

IS

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

1,283,449

6,455,747

a

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

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

1,011,687

4,785,277

24,346,714

Foreign

Equity

5.8%

iShares

International

Select

Dividend

ETF

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

47,329

1,246,173

a

Templeton

Developing

Markets

Trust,

Class

R6

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

26,400

469,661

a

Templeton

Foreign

Fund,

Class

R6

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

125,126

948,456

2,664,290

Foreign

Fixed

Income

4.4%

a

Franklin

High

Yield

Corporate

ETF

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

88,280

2,009,253

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$45,637,079)

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

42,157,159

Units

a

a

a

a

b

Index-Linked

Notes

5.0%

Capital

Markets

5.0%

c,d,e

UBS

AG

into

S&P

500

Index,

Senior

Note,

144A,

7.6%,

5/07/24

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

2,223

2,265,738

Total

Index-Linked

Notes

(Cost

$2,099,913)

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

2,265,738

Total

Long

Term

Investments

(Cost

$47,736,992)

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

44,422,897

a

a

a

a

a

Short

Term

Investments

2.2%

Shares

a

Money

Market

Funds

2.2%

a,f

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

1,013,050

1,013,050

Total

Money

Market

Funds

(Cost

$1,013,050)

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

1,013,050

Total

Short

Term

Investments

(Cost

$1,013,050

)

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

1,013,050

a

Total

Investments

(Cost

$48,750,042)

99.8%

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

$45,435,947

Other

Assets,

less

Liabilities

0.2%

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

73,540

Net

Assets

100.0%

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

$45,509,487

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

49

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

See

Note

1(c)

regarding

index-linked

notes.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

8

regarding

fair

value

measurements.

d

Security

pays

variable

interest

based

on

the

distributions

of

the

strategy

index

and

proceeds

earned

from

related

equity

derivatives.

The

coupon

rate

shown

represents

the

combined

rate

at

period

end.

Cash

payment

at

maturity

or

upon

early

redemption

is

based

on

the

performance

of

the

strategy

index.

e

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2023,

the

value

of

this

security

was

$2,265,738,

representing

5.0%

of

net

assets.

f

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

50

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.58

$13.00

$12.99

$12.17

$11.00

$11.76

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.09

0.25

0.22

0.19

0.29

0.35

Net

realized

and

unrealized

gains

(losses)

0.65

(2.27)

1.02

0.89

1.18

(0.79)

Total

from

investment

operations

........

0.74

(2.02)

1.24

1.08

1.47

(0.44)

Less

distributions

from:

Net

investment

income

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

(0.19)

(0.16)

(0.34)

(0.26)

(0.30)

(0.32)

Net

realized

gains

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

—

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.19)

(0.40)

(1.23)

(0.26)

(0.30)

(0.32)

Net

asset

value,

end

of

period

..........

$11.13

$10.58

$13.00

$12.99

$12.17

$11.00

Total

return

d

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

7.03%

(15.58)%

9.62%

9.06%

13.43%

(3.78)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.15%

0.98%

0.98%

0.98%

0.97%

0.94%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.48%

g

0.47%

g

0.46%

0.47%

g

0.35%

0.30%

Net

investment

income

c

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

1.69%

2.19%

1.63%

1.61%

2.47%

2.92%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$27,379

$27,491

$36,698

$30,265

$27,016

$24,108

Portfolio

turnover

rate

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

5.95%

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

51

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.50

$12.91

$12.91

$12.09

$10.93

$11.69

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.05

0.15

0.11

0.10

0.20

0.24

Net

realized

and

unrealized

gains

(losses)

0.64

(2.24)

1.02

0.89

1.17

(0.76)

Total

from

investment

operations

........

0.69

(2.09)

1.13

0.99

1.37

(0.52)

Less

distributions

from:

Net

investment

income

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

(0.15)

(0.08)

(0.24)

(0.17)

(0.21)

(0.24)

Net

realized

gains

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

—

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.15)

(0.32)

(1.13)

(0.17)

(0.21)

(0.24)

Net

asset

value,

end

of

period

..........

$11.04

$10.50

$12.91

$12.91

$12.09

$10.93

Total

return

d

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

6.61%

(16.23)%

8.85%

8.29%

12.59%

(4.53)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.90%

1.73%

1.72%

1.73%

1.72%

1.69%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.23%

g

1.22%

g

1.21%

1.22%

g

1.10%

1.05%

Net

investment

income

c

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

0.93%

1.36%

0.79%

0.85%

1.72%

2.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,730

$3,796

$6,235

$7,118

$6,811

$6,364

Portfolio

turnover

rate

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

5.95%

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

52

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.57

$13.00

$12.98

$12.16

$10.99

$11.75

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.08

0.23

0.17

0.16

0.26

0.29

Net

realized

and

unrealized

gains

(losses)

0.66

(2.29)

1.03

0.89

1.17

(0.76)

Total

from

investment

operations

........

0.74

(2.06)

1.20

1.05

1.43

(0.47)

Less

distributions

from:

Net

investment

income

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

(0.18)

(0.13)

(0.29)

(0.23)

(0.26)

(0.29)

Net

realized

gains

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

—

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.18)

(0.37)

(1.18)

(0.23)

(0.26)

(0.29)

Net

asset

value,

end

of

period

..........

$11.13

$10.57

$13.00

$12.98

$12.16

$10.99

Total

return

d

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

7.01%

(15.86)%

9.37%

8.79%

13.25%

(4.14)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.40%

1.23%

1.22%

1.23%

1.22%

1.19%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.73%

g

0.72%

g

0.71%

0.72%

g

0.60%

0.55%

Net

investment

income

c

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

1.44%

2.01%

1.23%

1.35%

2.22%

2.67%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$671

$650

$758

$786

$745

$767

Portfolio

turnover

rate

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

5.95%

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

53

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.86

$13.04

$13.03

$12.20

$11.02

$11.79

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.15

0.29

0.19

0.22

0.32

0.37

Net

realized

and

unrealized

gains

(losses)

0.64

(2.29)

1.09

0.90

1.19

(0.78)

Total

from

investment

operations

........

0.79

(2.00)

1.28

1.12

1.51

(0.41)

Less

distributions

from:

Net

investment

income

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

(0.21)

(0.19)

(0.38)

(0.29)

(0.33)

(0.36)

Net

realized

gains

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

—

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.21)

(0.43)

(1.27)

(0.29)

(0.33)

(0.36)

Capital

contributions

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

—

0.25

—

—

—

—

Net

asset

value,

end

of

period

..........

$11.44

$10.86

$13.04

$13.03

$12.20

$11.02

Total

return

d

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

7.27%

(13.38)%

e

9.93%

9.45%

13.83%

(3.57)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

1.33%

1.31%

0.59%

0.62%

0.60%

0.58%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.18%

h

0.16%

h

0.16%

0.16%

h

0.05%

—%

Net

investment

income

c

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

2.66%

2.54%

1.40%

1.83%

2.77%

3.22%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$40

$4

$5

$4,855

$7,429

$8,562

Portfolio

turnover

rate

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

5.95%

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(15.38)%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

54

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.62

$13.05

$13.03

$12.20

$11.03

$11.79

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.11

0.28

0.26

0.22

0.32

0.35

Net

realized

and

unrealized

gains

(losses)

0.64

(2.28)

1.02

0.90

1.17

(0.76)

Total

from

investment

operations

........

0.75

(2.00)

1.28

1.12

1.49

(0.41)

Less

distributions

from:

Net

investment

income

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

(0.20)

(0.19)

(0.37)

(0.29)

(0.32)

(0.35)

Net

realized

gains

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

—

(0.24)

(0.89)

—

—

—

Total

distributions

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

(0.20)

(0.43)

(1.26)

(0.29)

(0.32)

(0.35)

Net

asset

value,

end

of

period

..........

$11.17

$10.62

$13.05

$13.03

$12.20

$11.03

Total

return

d

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

7.13%

(15.37)%

9.95%

9.39%

13.77%

(3.62)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.91%

0.73%

0.73%

0.73%

0.72%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.23%

g

0.22%

g

0.21%

0.21%

g

0.10%

0.05%

Net

investment

income

c

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

1.98%

2.44%

1.88%

1.80%

2.72%

3.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$748

$620

$826

$685

$745

$637

Portfolio

turnover

rate

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

5.95%

35.46%

79.95%

68.93%

120.35%

57.42%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2020

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

55

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.1%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

14,835

$

324,143

Domestic

Equity

29.8%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

22,613

866,081

a

Franklin

Growth

Fund,

Class

R6

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

17,939

2,186,747

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

362,729

4,860,573

a

Franklin

U.S.

Equity

Index

ETF

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

12,425

482,189

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

25,778

1,154,081

iShares

MSCI

USA

Quality

Factor

ETF

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

975

131,498

9,681,169

Domestic

Fixed

Income

46.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

116,407

1,052,318

a

Franklin

Investment

Grade

Corporate

ETF

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

34,178

725,257

a

Franklin

U.S.

Core

Bond

ETF

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

263,438

5,637,573

a

Franklin

U.S.

Treasury

Bond

ETF

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

76,223

1,583,266

iShares

Floating

Rate

Bond

ETF

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

14,450

734,349

Schwab

U.S.

TIPS

ETF

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

21,879

1,147,116

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

341,073

3,226,553

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

288,067

1,037,042

15,143,474

Foreign

Equity

16.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

91,740

858,686

a

Franklin

International

Core

Equity

(IU)

Fund

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

236,471

2,643,742

a,b

Franklin

International

Growth

Fund,

Class

R6

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

24,578

401,363

iShares

Core

MSCI

EAFE

ETF

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

5,879

396,833

a

Templeton

Developing

Markets

Trust,

Class

R6

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

32,298

574,579

a

Templeton

Foreign

Fund,

Class

R6

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

81,533

618,023

5,493,226

Foreign

Fixed

Income

4.0%

a

Franklin

High

Yield

Corporate

ETF

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

25,838

588,073

a

Franklin

International

Aggregate

Bond

ETF

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

35,871

706,300

1,294,373

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$31,279,637)

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

31,936,385

a

a

a

a

Short

Term

Investments

2.0%

a

Money

Market

Funds

2.0%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

636,019

636,019

Total

Money

Market

Funds

(Cost

$636,019)

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

636,019

Total

Short

Term

Investments

(Cost

$636,019

)

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

636,019

a

Total

Investments

(Cost

$31,915,656)

100.1%

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

$32,572,404

Other

Assets,

less

Liabilities

(0.1)%

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

(5,428)

Net

Assets

100.0%

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

$32,566,976

See

Abbreviations

on

page

155

.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

56

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

57

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.04

$13.67

$13.80

$12.98

$11.52

$12.97

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.09

0.23

0.23

0.20

0.27

0.32

Net

realized

and

unrealized

gains

(losses)

0.79

(2.43)

1.31

1.08

1.66

(1.02)

Total

from

investment

operations

........

0.88

(2.20)

1.54

1.28

1.93

(0.70)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.18)

(0.14)

(0.37)

(0.21)

(0.28)

(0.33)

Net

realized

gains

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

(0.01)

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.1

9)

(0.43)

(1.67)

(0.46)

(0.47)

(0.75)

Net

asset

value,

end

of

period

..........

$11.73

$11.04

$13.67

$13.80

$12.98

$11.52

Total

return

d

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

7.93%

(16.06)%

11.21%

10.26%

16.85%

(5.46)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.79%

0.76%

0.76%

0.77%

0.80%

0.77%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.49%

0.48%

g

0.47%

0.45%

g

0.35%

0.30%

g

Net

investment

income

c

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

1.59%

1.97%

1.57%

1.53%

2.15%

2.41%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$99,011

$97,043

$118,521

$96,973

$86,084

$76,050

Portfolio

turnover

rate

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

7.88%

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

58

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.81

$13.40

$13.56

$12.76

$11.34

$12.77

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.05

0.13

0.10

0.09

0.17

0.20

Net

realized

and

unrealized

gains

(losses)

0.77

(2.36)

1.30

1.08

1.62

(0.97)

Total

from

investment

operations

........

0.82

(2.23)

1.40

1.17

1.79

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.14)

(0.07)

(0.26)

(0.12)

(0.18)

(0.24)

Net

realized

gains

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

(0.01)

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.15)

(0.36)

(1.56)

(0.37)

(0.37)

(0.66)

Net

asset

value,

end

of

period

..........

$11.48

$10.81

$13.40

$13.56

$12.76

$11.34

Total

return

d

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

7.54%

(16.66)%

10.40%

9.44%

15.90%

(6.12)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.54%

1.51%

1.50%

1.51%

1.55%

1.51%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.24%

1.23%

g

1.21%

1.20%

g

1.10%

1.04%

g

Net

investment

income

c

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

0.81%

1.16%

0.70%

0.76%

1.40%

1.67%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$11,917

$12,140

$17,778

$21,991

$23,450

$21,907

Portfolio

turnover

rate

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

7.88%

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

59

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.00

$13.61

$13.75

$12.93

$11.48

$12.93

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.08

0.19

0.18

0.16

0.23

0.26

Net

realized

and

unrealized

gains

(losses)

0.77

(2.40)

1.31

1.09

1.65

(0.99)

Total

from

investment

operations

........

0.85

(2.21)

1.49

1.25

1.88

(0.73)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.16)

(0.11)

(0.33)

(0.18)

(0.24)

(0.30)

Net

realized

gains

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

(0.01)

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.17)

(0.40)

(1.63)

(0.43)

(0.43)

(0.72)

Net

asset

value,

end

of

period

..........

$11.68

$11.00

$13.61

$13.75

$12.93

$11.48

Total

return

d

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

7.75%

(16.21)%

10.89%

10.00%

16.52%

(5.73)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.04%

1.01%

1.01%

1.02%

1.05%

1.02%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.74%

0.73%

g

0.72%

0.70%

g

0.60%

0.55%

g

Net

investment

income

c

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

1.33%

1.61%

1.26%

1.24%

1.90%

2.16%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,103

$1,954

$3,069

$3,117

$3,930

$4,510

Portfolio

turnover

rate

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

7.88%

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

60

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.09

$13.72

$13.85

$13.02

$11.56

$13.01

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.11

0.29

0.19

0.23

0.31

0.34

Net

realized

and

unrealized

gains

(losses)

0.78

(2.45)

1.39

1.10

1.65

(1.00)

Total

from

investment

operations

........

0.89

(2.16)

1.58

1.33

1.96

(0.66)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.19)

(0.18)

(0.41)

(0.25)

(0.31)

(0.37)

Net

realized

gains

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

(0.01)

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.20)

(0.47)

(1.71)

(0.50)

(0.50)

(0.79)

Net

asset

value,

end

of

period

..........

$11.78

$11.09

$13.72

$13.85

$13.02

$11.56

Total

return

d

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

8.06%

(15.71)%

11.49%

10.64%

17.14%

(5.15)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.45%

0.38%

0.39%

0.39%

0.41%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.19%

0.14%

g

0.15%

0.15%

g

0.05%

—%

g

Net

investment

income

c

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

1.90%

2.48%

1.34%

1.83%

2.45%

2.71%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$721

$670

$544

$16,094

$14,717

$14,228

Portfolio

turnover

rate

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

7.88%

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

61

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.08

$13.71

$13.83

$13.01

$11.55

$13.00

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.11

0.27

0.26

0.24

0.30

0.33

Net

realized

and

unrealized

gains

(losses)

0.78

(2.44)

1.32

1.07

1.66

(1.00)

Total

from

investment

operations

........

0.89

(2.17)

1.58

1.31

1.96

(0.67)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.19)

(0.17)

(0.40)

(0.24)

(0.31)

(0.36)

Net

realized

gains

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

(0.01)

(0.29)

(1.30)

(0.25)

(0.19)

(0.42)

Total

distributions

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

(0.20)

(0.46)

(1.70)

(0.49)

(0.50)

(0.78)

Net

asset

value,

end

of

period

..........

$11.77

$11.08

$13.71

$13.83

$13.01

$11.55

Total

return

d

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

8.03%

(15.79)%

11.53%

10.51%

17.09%

(5.20)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.54%

0.51%

0.51%

0.52%

0.55%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.24%

0.23%

g

0.22%

0.20%

g

0.10%

0.05%

g

Net

investment

income

c

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

1.86%

2.25%

1.80%

1.90%

2.40%

2.66%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,844

$2,572

$3,055

$2,872

$1,532

$1,449

Portfolio

turnover

rate

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

7.88%

33.70%

69.35%

66.87%

84.18%

52.98%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2025

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

62

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.5%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

53,108

$

1,160,405

Domestic

Equity

35.6%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

96,487

3,695,436

a

Franklin

Growth

Fund,

Class

R6

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

76,276

9,298,001

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,557,539

20,871,019

a

Franklin

U.S.

Equity

Index

ETF

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

53,100

2,060,705

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

110,361

4,940,862

iShares

MSCI

USA

Quality

Factor

ETF

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

4,250

573,198

41,439,221

Domestic

Fixed

Income

38.6%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

302,448

2,734,125

a

Franklin

Investment

Grade

Corporate

ETF

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

102,790

2,181,204

a

Franklin

U.S.

Core

Bond

ETF

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

791,558

16,939,341

a

Franklin

U.S.

Treasury

Bond

ETF

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

229,088

4,758,501

iShares

Floating

Rate

Bond

ETF

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

43,450

2,208,129

Schwab

U.S.

TIPS

ETF

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

65,836

3,451,781

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

1,024,578

9,692,504

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

892,687

3,213,674

45,179,259

Foreign

Equity

20.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

384,582

3,599,686

a

Franklin

International

Core

Equity

(IU)

Fund

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

1,018,307

11,384,674

a,b

Franklin

International

Growth

Fund,

Class

R6

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

105,217

1,718,201

iShares

Core

MSCI

EAFE

ETF

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

25,017

1,688,648

a

Templeton

Developing

Markets

Trust,

Class

R6

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

136,836

2,434,307

a

Templeton

Foreign

Fund,

Class

R6

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

349,050

2,645,798

23,471,314

Foreign

Fixed

Income

3.1%

a

Franklin

High

Yield

Corporate

ETF

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

77,703

1,768,520

a

Franklin

International

Aggregate

Bond

ETF

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

93,283

1,836,742

3,605,262

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$107,668,717)

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

114,855,461

a

a

a

a

Short

Term

Investments

1.9%

a

Money

Market

Funds

1.6%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

1,802,665

1,802,665

Total

Money

Market

Funds

(Cost

$1,802,665)

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

1,802,665

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

63

See

Abbreviations

on

page

155

.

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.3%

d

Joint

Repurchase

Agreement,

4.985%,

7/03/23

(Maturity

Value

$384,365)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$148,638)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$87,093)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$148,634)

Colla

teralized

by

U.S.

Government

Agency

Securities,

0.63%

-

7.5%,

6/15/24

-

11/15/57;

and

U.S.

Treasury

Notes,

0.38%

-

2.5%,

5/31/24

-

4/30/25

(valued

at

$391,872)

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

$

384,205

$

384,205

Total

Repurchase

Agreements

(Cost

$384,205)

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

384,205

Total

Short

Term

Investments

(Cost

$2,186,870

)

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

2,186,870

a

Total

Investments

(Cost

$109,855,587)

100.4%

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

$117,042,331

Other

Assets,

less

Liabilities

(0.4)%

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

(446,025)

Net

Assets

100.0%

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

$116,596,306

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

64

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.42

$14.21

$14.40

$13.28

$11.50

$12.70

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.09

0.22

0.24

0.19

0.25

0.29

Net

realized

and

unrealized

gains

(losses)

0.91

(2.58)

1.61

1.29

1.90

(1.09)

Total

from

investment

operations

........

1.00

(2.36)

1.85

1.48

2.15

(0.80)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.16)

(0.13)

(0.41)

(0.22)

(0.23)

(0.32)

Net

realized

gains

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

—

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.16)

(0.43)

(2.04)

(0.36)

(0.37)

(0.40)

Net

asset

value,

end

of

period

..........

$12.26

$11.42

$14.21

$14.40

$13.28

$11.50

Total

return

d

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

8.80%

(16.57)%

12.91%

11.52%

18.80%

(6.32)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.97%

0.94%

0.93%

0.95%

1.02%

0.98%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.50%

g

0.48%

g

0.46%

0.44%

g

0.34%

g

0.30%

g

Net

investment

income

c

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

1.48%

1.78%

1.57%

1.46%

1.96%

2.24%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$48,446

$44,099

$49,835

$34,019

$27,248

$22,447

Portfolio

turnover

rate

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

9.83%

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

65

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.23

$14.00

$14.22

$13.13

$11.37

$12.56

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.04

0.12

0.11

0.09

0.15

0.18

Net

realized

and

unrealized

gains

(losses)

0.90

(2.53)

1.61

1.27

1.89

(1.06)

Total

from

investment

operations

........

0.94

(2.41)

1.72

1.36

2.04

(0.88)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.12)

(0.06)

(0.31)

(0.13)

(0.14)

(0.23)

Net

realized

gains

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

—

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.12)

(0.36)

(1.94)

(0.27)

(0.28)

(0.31)

Net

asset

value,

end

of

period

..........

$12.05

$11.23

$14.00

$14.22

$13.13

$11.37

Total

return

d

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

8.40%

(17.18)%

12.13%

10.60%

17.98%

(7.02)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.72%

1.69%

1.68%

1.70%

1.77%

1.73%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.25%

g

1.23%

g

1.21%

1.19%

g

1.09%

g

1.05%

g

Net

investment

income

c

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

0.70%

0.99%

0.74%

0.71%

1.21%

1.49%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$10,178

$9,642

$12,281

$10,937

$9,146

$7,460

Portfolio

turnover

rate

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

9.83%

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

66

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.39

$14.19

$14.38

$13.27

$11.48

$12.68

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.07

0.18

0.20

0.15

0.22

0.23

Net

realized

and

unrealized

gains

(losses)

0.92

(2.58)

1.61

1.29

1.91

(1.06)

Total

from

investment

operations

........

0.99

(2.40)

1.81

1.44

2.13

(0.83)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.15)

(0.10)

(0.37)

(0.19)

(0.20)

(0.29)

Net

realized

gains

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

—

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.15)

(0.40)

(2.00)

(0.33)

(0.34)

(0.37)

Net

asset

value,

end

of

period

..........

$12.23

$11.39

$14.19

$14.38

$13.27

$11.48

Total

return

d

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

8.70%

(16.84)%

12.65%

11.17%

18.64%

(6.59)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.22%

1.19%

1.18%

1.20%

1.27%

1.23%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.75%

g

0.74%

g

0.71%

0.69%

g

0.59%

g

0.55%

g

Net

investment

income

c

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

1.18%

1.51%

1.29%

1.19%

1.71%

1.99%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,295

$1,295

$1,512

$1,186

$1,058

$816

Portfolio

turnover

rate

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

9.83%

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

67

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.57

$14.28

$14.46

$13.34

$11.54

$12.74

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.11

0.36

0.18

0.23

0.29

0.32

Net

realized

and

unrealized

gains

(losses)

0.93

(2.67)

1.72

1.29

1.92

(1.08)

Total

from

investment

operations

........

1.04

(2.31)

1.90

1.52

2.21

(0.76)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.18)

(0.16)

(0.45)

(0.26)

(0.27)

(0.36)

Net

realized

gains

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

—

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.18)

(0.46)

(2.08)

(0.40)

(0.41)

(0.44)

Capital

contributions

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

—

0.06

—

—

—

—

Net

asset

value,

end

of

period

..........

$12.43

$11.57

$14.28

$14.46

$13.34

$11.54

Total

return

d

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

9.01%

(15.68)%

e

13.24%

11.80%

19.26%

(6.02)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.91%

1.18%

0.45%

0.50%

0.53%

0.52%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.20%

h

0.15%

h

0.15%

0.15%

h

0.04%

h

—%

h

Net

investment

income

c

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

1.85%

3.02%

1.20%

1.72%

2.26%

2.54%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$86

$51

$40

$23,717

$22,064

$18,389

Portfolio

turnover

rate

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

9.83%

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(16.08)%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

68

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.48

$14.27

$14.44

$13.33

$11.53

$12.73

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.10

0.25

0.28

0.23

0.28

0.31

Net

realized

and

unrealized

gains

(losses)

0.93

(2.59)

1.62

1.28

1.92

(1.08)

Total

from

investment

operations

........

1.03

(2.34)

1.90

1.51

2.20

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.18)

(0.15)

(0.44)

(0.26)

(0.26)

(0.35)

Net

realized

gains

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

—

(0.30)

(1.63)

(0.14)

(0.14)

(0.08)

Total

distributions

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

(0.18)

(0.45)

(2.07)

(0.40)

(0.40)

(0.43)

Net

asset

value,

end

of

period

..........

$12.33

$11.48

$14.27

$14.44

$13.33

$11.53

Total

return

d

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

8.97%

(16.34)%

13.28%

11.68%

19.22%

(6.08)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.71%

0.69%

0.68%

0.70%

0.77%

0.73%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.25%

g

0.23%

g

0.21%

0.19%

g

0.09%

g

0.05%

g

Net

investment

income

c

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

1.70%

2.05%

1.81%

1.74%

2.21%

2.49%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,707

$1,770

$1,937

$1,546

$997

$785

Portfolio

turnover

rate

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

9.83%

48.44%

82.69%

67.25%

93.46%

47.37%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2030

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

69

See

Abbreviations

on

page

155

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.1%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

27,836

$

608,214

Domestic

Equity

40.9%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

58,896

2,255,721

a

Franklin

Growth

Fund,

Class

R6

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

46,629

5,684,024

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

948,576

12,710,917

a

Franklin

U.S.

Equity

Index

ETF

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

32,325

1,254,469

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

67,276

3,011,947

iShares

MSCI

USA

Quality

Factor

ETF

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

2,575

347,290

25,264,368

Domestic

Fixed

Income

30.6%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

119,040

1,076,123

a

Franklin

Investment

Grade

Corporate

ETF

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

42,992

912,290

a

Franklin

U.S.

Core

Bond

ETF

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

331,304

7,089,906

a

Franklin

U.S.

Treasury

Bond

ETF

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

95,811

1,990,138

iShares

Floating

Rate

Bond

ETF

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

18,175

923,653

Schwab

U.S.

TIPS

ETF

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

27,574

1,445,705

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

428,932

4,057,697

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

390,359

1,405,292

18,900,804

Foreign

Equity

23.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

235,365

2,203,016

a

Franklin

International

Core

Equity

(IU)

Fund

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

619,662

6,927,822

a,b

Franklin

International

Growth

Fund,

Class

R6

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

64,170

1,047,902

iShares

Core

MSCI

EAFE

ETF

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

15,253

1,029,577

a

Templeton

Developing

Markets

Trust,

Class

R6

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

83,762

1,490,129

a

Templeton

Foreign

Fund,

Class

R6

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

212,874

1,613,588

14,312,034

Foreign

Fixed

Income

2.4%

a

Franklin

High

Yield

Corporate

ETF

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

32,458

738,744

a

Franklin

International

Aggregate

Bond

ETF

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

36,700

722,623

1,461,367

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$55,165,562)

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

60,546,787

a

a

a

a

Short

Term

Investments

1.9%

a

Money

Market

Funds

1.9%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

1,178,656

1,178,656

Total

Money

Market

Funds

(Cost

$1,178,656)

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

1,178,656

Total

Short

Term

Investments

(Cost

$1,178,656

)

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

1,178,656

a

Total

Investments

(Cost

$56,344,218)

100.0%

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

$61,725,443

Other

Assets,

less

Liabilities

(0.0)%

†

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

(13,811)

Net

Assets

100.0%

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

$61,711,632

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

70

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

71

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.75

$14.67

$15.18

$13.94

$12.03

$13.70

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.08

0.20

0.24

0.19

0.24

0.29

Net

realized

and

unrealized

gains

(losses)

1.05

(2.66)

1.90

1.61

2.19

(1.21)

Total

from

investment

operations

........

1.13

(2.46)

2.14

1.80

2.43

(0.92)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.15)

(0.11)

(0.42)

(0.20)

(0.24)

(0.30)

Net

realized

gains

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

(0.04)

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.19)

(0.46)

(2.65)

(0.56)

(0.52)

(0.75)

Net

asset

value,

end

of

period

..........

$12.69

$11.75

$14.67

$15.18

$13.94

$12.03

Total

return

d

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

9.64%

(16.69)%

14.20%

13.44%

20.36%

(6.87)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.84%

0.77%

0.81%

0.81%

0.86%

0.81%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.50%

0.49%

g

0.47%

0.43%

g

0.34%

0.30%

g

Net

investment

income

c

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

1.35%

1.60%

1.45%

1.38%

1.81%

2.04%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$100,669

$91,064

$104,174

$84,029

$72,425

$60,087

Portfolio

turnover

rate

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

9.09%

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

72

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.36

$14.23

$14.79

$13.60

$11.75

$13.40

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.03

0.10

0.09

0.08

0.14

0.16

Net

realized

and

unrealized

gains

(losses)

1.02

(2.57)

1.88

1.58

2.13

(1.16)

Total

from

investment

operations

........

1.05

(2.47)

1.97

1.66

2.27

(1.00)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.11)

(0.05)

(0.30)

(0.11)

(0.14)

(0.20)

Net

realized

gains

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

(0.04)

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.15)

(0.40)

(2.53)

(0.47)

(0.42)

(0.65)

Net

asset

value,

end

of

period

..........

$12.26

$11.36

$14.23

$14.79

$13.60

$11.75

Total

return

d

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

9.25%

(17.36)%

13.36%

12.62%

19.46%

(7.58)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.59%

1.53%

1.55%

1.56%

1.61%

1.56%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.25%

1.24%

g

1.21%

1.18%

g

1.09%

1.05%

g

Net

investment

income

c

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

0.58%

0.81%

0.60%

0.60%

1.06%

1.29%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$15,391

$14,549

$18,502

$21,329

$21,115

$18,350

Portfolio

turnover

rate

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

9.09%

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

73

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.73

$14.66

$15.17

$13.92

$12.01

$13.69

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.07

0.17

0.18

0.15

0.20

0.24

Net

realized

and

unrealized

gains

(losses)

1.05

(2.66)

1.91

1.63

2.20

(1.20)

Total

from

investment

operations

........

1.12

(2.49)

2.09

1.78

2.40

(0.96)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.14)

(0.09)

(0.37)

(0.17)

(0.21)

(0.27)

Net

realized

gains

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

(0.04)

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.18

)

(0.44)

(2.60)

(0.53)

(0.49)

(0.72)

Net

asset

value,

end

of

period

..........

$12.67

$11.73

$14.66

$15.17

$13.92

$12.01

Total

return

d

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

9.53%

(16.93)%

13.87%

13.23%

20.10%

(7.18)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.09%

1.02%

1.05%

1.05%

1.10%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.75%

0.74%

g

0.71%

0.68%

g

0.58%

0.54%

g

Net

investment

income

c

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

1.09%

1.38%

1.08%

1.07%

1.57%

1.80%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,037

$3,881

$4,113

$4,530

$4,966

$4,762

Portfolio

turnover

rate

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

9.09%

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

74

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.88

$14.81

$15.31

$14.05

$12.12

$13.80

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.10

0.25

0.18

0.23

0.29

0.31

Net

realized

and

unrealized

gains

(losses)

1.06

(2.68)

2.02

1.63

2.20

(1.20)

Total

from

investment

operations

........

1.16

(2.43)

2.20

1.86

2.49

(0.89)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.17)

(0.15)

(0.47)

(0.24)

(0.28)

(0.34)

Net

realized

gains

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

(0.04)

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.21)

(0.50)

(2.70)

(0.60)

(0.56)

(0.79)

Net

asset

value,

end

of

period

..........

$12.83

$11.88

$14.81

$15.31

$14.05

$12.12

Total

return

d

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

9.77%

(16.38)%

14.46%

13.82%

20.73%

(6.63)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.85%

0.79%

0.38%

0.40%

0.41%

0.39%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.20%

0.15%

g

0.14%

0.13%

g

0.04%

—%

g

Net

investment

income

c

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

1.66%

1.98%

1.10%

1.66%

2.11%

2.34%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$107

$91

$93

$30,069

$28,513

$22,207

Portfolio

turnover

rate

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

9.09%

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

75

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.89

$14.84

$15.33

$14.07

$12.13

$13.81

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.10

0.23

0.27

0.23

0.28

0.32

Net

realized

and

unrealized

gains

(losses)

1.07

(2.69)

1.93

1.63

2.21

(1.22)

Total

from

investment

operations

........

1.17

(2.46)

2.20

1.86

2.49

(0.90)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.17)

(0.14)

(0.46)

(0.24)

(0.27)

(0.33)

Net

realized

gains

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

(0.04)

(0.35)

(2.23)

(0.36)

(0.28)

(0.45)

Total

distributions

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

(0.21)

(0.49)

(2.69)

(0.60)

(0.55)

(0.78)

Net

asset

value,

end

of

period

..........

$12.85

$11.89

$14.84

$15.33

$14.07

$12.13

Total

return

d

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

9.82%

(16.54)%

14.46%

13.75%

20.73%

(6.67)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.59%

0.52%

0.56%

0.56%

0.61%

0.56%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.25%

0.24%

g

0.21%

0.18%

g

0.09%

0.05%

g

Net

investment

income

c

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

1.60%

1.85%

1.67%

1.67%

2.06%

2.29%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$3,673

$3,496

$3,911

$3,438

$2,145

$1,723

Portfolio

turnover

rate

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

9.09%

29.56%

69.46%

47.82%

79.04%

47.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2035

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

76

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.2%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

55,700

$

1,217,039

Domestic

Equity

46.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

133,562

5,115,429

a

Franklin

Growth

Fund,

Class

R6

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

105,539

12,865,144

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

2,154,282

28,867,382

a

Franklin

U.S.

Equity

Index

ETF

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

73,500

2,852,388

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

152,751

6,838,662

iShares

MSCI

USA

Quality

Factor

ETF

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

5,825

785,618

57,324,623

Domestic

Fixed

Income

22.9%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

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

198,190

1,791,639

a

Franklin

Investment

Grade

Corporate

ETF

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

63,671

1,351,099

a

Franklin

U.S.

Core

Bond

ETF

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

490,115

10,488,461

a

Franklin

U.S.

Treasury

Bond

ETF

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

141,837

2,946,167

iShares

Floating

Rate

Bond

ETF

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

26,925

1,368,328

Schwab

U.S.

TIPS

ETF

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

40,766

2,137,361

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

634,361

6,001,054

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

620,560

2,234,017

28,318,126

Foreign

Equity

26.2%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

531,634

4,976,091

a

Franklin

International

Core

Equity

(IU)

Fund

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

1,409,472

15,757,899

a,b

Franklin

International

Growth

Fund,

Class

R6

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

145,712

2,379,471

iShares

Core

MSCI

EAFE

ETF

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

34,685

2,341,238

a

Templeton

Developing

Markets

Trust,

Class

R6

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

189,856

3,377,541

a

Templeton

Foreign

Fund,

Class

R6

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

483,401

3,664,178

32,496,418

Foreign

Fixed

Income

1.9%

a

Franklin

High

Yield

Corporate

ETF

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

48,070

1,094,073

a

Franklin

International

Aggregate

Bond

ETF

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

61,162

1,204,280

2,298,353

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$108,129,093)

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

121,654,559

a

a

a

a

Short

Term

Investments

1.8%

a

Money

Market

Funds

1.8%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

2,208,635

2,208,635

Total

Money

Market

Funds

(Cost

$2,208,635)

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

2,208,635

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

77

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

d

Joint

Repurchase

Agreement,

4.985%,

7/03/23

(Maturity

Value

$2,477)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$958)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$561)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$958)

Collateralized

by

U.S.

Government

Agency

Securities,

0.63%

-

7.5%,

6/15/24

-

11/15/57;

and

U.S.

Treasury

Notes,

0.38%

-

2.5%,

5/31/24

-

4/30/25

(valued

at

$2,526)

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

$

2,476

$

2,476

Total

Repurchase

Agreements

(Cost

$2,476)

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

2,476

Total

Short

Term

Investments

(Cost

$2,211,111

)

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

2,211,111

a

Total

Investments

(Cost

$110,340,204)

100.0%

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

$123,865,670

Other

Assets,

less

Liabilities

0.0%

†

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

10,920

Net

Assets

100.0%

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

$123,876,590

See

Abbreviations

on

page

155

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

78

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.50

$14.42

$15.30

$13.76

$11.61

$13.03

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.07

0.16

0.24

0.18

0.22

0.27

Net

realized

and

unrealized

gains

(losses)

1.14

(2.63)

2.19

1.82

2.25

(1.17)

Total

from

investment

operations

........

1.21

(2.47)

2.43

2.00

2.47

(0.90)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.12)

(0.10)

(0.43)

(0.23)

(0.18)

(0.30)

Net

realized

gains

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

(0.04)

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.16)

(0.45)

(3.31)

(0.46)

(0.32)

(0.52)

Net

asset

value,

end

of

period

..........

$12.55

$11.50

$14.42

$15.30

$13.76

$11.61

Total

return

d

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

10.58%

(17.06)%

15.99%

15.04%

21.50%

(7.00)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.13%

1.10%

1.11%

1.11%

1.18%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.51%

0.50%

g

0.46%

0.43%

g

0.34%

g

0.30%

g

Net

investment

income

c

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

1.24%

1.31%

1.43%

1.30%

1.67%

2.03%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$36,689

$32,112

$35,193

$24,809

$19,322

$15,921

Portfolio

turnover

rate

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

13.92%

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

79

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.23

$14.10

$15.02

$13.52

$11.42

$12.83

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.03

0.06

0.10

0.07

0.12

0.16

Net

realized

and

unrealized

gains

(losses)

1.10

(2.56)

2.18

1.79

2.21

(1.14)

Total

from

investment

operations

........

1.13

(2.50)

2.28

1.86

2.33

(0.98)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.08)

(0.02)

(0.32)

(0.13)

(0.09)

(0.21)

Net

realized

gains

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

(0.04)

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.12)

(0.37)

(3.20)

(0.36)

(0.23)

(0.43)

Net

asset

value,

end

of

period

..........

$12.24

$11.23

$14.10

$15.02

$13.52

$11.42

Total

return

d

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

10.11%

(17.70)%

15.25%

14.15%

20.56%

(7.71)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.87%

1.85%

1.85%

1.86%

1.93%

1.89%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.26%

1.25%

g

1.21%

1.18%

g

1.09%

g

1.05%

g

Net

investment

income

c

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

0.46%

0.53%

0.62%

0.55%

0.92%

1.28%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$7,496

$6,697

$7,989

$6,867

$5,630

$4,286

Portfolio

turnover

rate

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

13.92%

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

80

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.50

$14.41

$15.28

$13.74

$11.60

$13.02

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.05

0.12

0.18

0.14

0.18

0.22

Net

realized

and

unrealized

gains

(losses)

1.15

(2.62)

2.21

1.82

2.25

(1.16)

Total

from

investment

operations

........

1.20

(2.50)

2.39

1.96

2.43

(0.94)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.11)

(0.06)

(0.38)

(0.19)

(0.15)

(0.26)

Net

realized

gains

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

(0.04)

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.15)

(0.41)

(3.26)

(0.42)

(0.29)

(0.48)

Net

asset

value,

end

of

period

..........

$12.55

$11.50

$14.41

$15.28

$13.74

$11.60

Total

return

d

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

10.43%

(17.29)%

15.78%

14.74%

21.13%

(7.27)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.37%

1.35%

1.35%

1.36%

1.43%

1.39%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.76%

0.75%

g

0.71%

0.68%

g

0.59%

g

0.55%

g

Net

investment

income

c

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

0.85%

0.96%

1.09%

1.02%

1.42%

1.78%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$984

$1,114

$1,806

$1,540

$1,528

$1,273

Portfolio

turnover

rate

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

13.92%

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

81

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.60

$14.54

$15.40

$13.85

$11.69

$13.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.10

0.19

0.17

0.21

0.25

0.30

Net

realized

and

unrealized

gains

(losses)

1.14

(2.64)

2.33

1.84

2.27

(1.16)

Total

from

investment

operations

........

1.24

(2.45)

2.50

2.05

2.52

(0.86)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.14)

(0.14)

(0.48)

(0.27)

(0.22)

(0.34)

Net

realized

gains

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

(0.04)

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.18)

(0.49)

(3.36)

(0.50)

(0.36)

(0.56)

Net

asset

value,

end

of

period

..........

$12.66

$11.60

$14.54

$15.40

$13.85

$11.69

Total

return

d

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

10.72%

(16.86)%

16.42%

15.35%

21.89%

(6.77)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.72%

0.57%

0.49%

0.55%

0.58%

0.58%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.21%

0.20%

g

0.14%

0.13%

g

0.04%

g

—%

g

Net

investment

income

c

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

1.57%

1.54%

1.01%

1.58%

1.97%

2.33%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$261

$213

$310

$25,450

$22,250

$18,247

Portfolio

turnover

rate

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

13.92%

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

82

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.58

$14.52

$15.37

$13.82

$11.67

$13.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.09

0.19

0.29

0.22

0.33

0.27

Net

realized

and

unrealized

gains

(losses)

1.15

(2.65)

2.21

1.82

2.18

(1.15)

Total

from

investment

operations

........

1.24

(2.46)

2.50

2.04

2.51

(0.88)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.14)

(0.13)

(0.47)

(0.26)

(0.22)

(0.33)

Net

realized

gains

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

(0.04)

(0.35)

(2.88)

(0.23)

(0.14)

(0.22)

Total

distributions

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

(0.18)

(0.48)

(3.35)

(0.49)

(0.36)

(0.55)

Net

asset

value,

end

of

period

..........

$12.64

$11.58

$14.52

$15.37

$13.82

$11.67

Total

return

d

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

10.72%

(16.87)%

16.40%

15.33%

21.68%

(6.82)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.88%

0.85%

0.86%

0.86%

0.93%

0.89%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.26%

0.25%

g

0.22%

0.18%

g

0.09%

g

0.05%

g

Net

investment

income

c

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

1.45%

1.54%

1.75%

1.60%

1.92%

2.28%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,294

$1,156

$937

$506

$146

$165

Portfolio

turnover

rate

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

13.92%

30.11%

86.92%

37.54%

90.08%

41.77%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2040

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

83

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.7%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

20,862

$

455,833

Domestic

Equity

51.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

56,054

2,146,874

a

Franklin

Growth

Fund,

Class

R6

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

44,241

5,393,029

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

745,251

9,986,360

a

Franklin

U.S.

Equity

Index

ETF

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

83,125

3,225,915

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

63,917

2,861,564

iShares

MSCI

USA

Quality

Factor

ETF

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

2,475

333,803

23,947,545

Domestic

Fixed

Income

15.9%

a

Franklin

Investment

Grade

Corporate

ETF

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

17,603

373,536

a

Franklin

U.S.

Core

Bond

ETF

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

135,852

2,907,233

a

Franklin

U.S.

Treasury

Bond

ETF

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

39,296

816,237

iShares

Floating

Rate

Bond

ETF

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

7,425

377,338

Schwab

U.S.

TIPS

ETF

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

11,231

588,841

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

176,228

1,667,116

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

187,776

675,994

7,406,295

Foreign

Equity

28.9%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

221,917

2,077,148

a

Franklin

International

Core

Equity

(IU)

Fund

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

586,218

6,553,916

a,b

Franklin

International

Growth

Fund,

Class

R6

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

60,941

995,174

iShares

Core

MSCI

EAFE

ETF

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

14,459

975,983

a

Templeton

Developing

Markets

Trust,

Class

R6

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

79,454

1,413,479

a

Templeton

Foreign

Fund,

Class

R6

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

202,203

1,532,701

13,548,401

Foreign

Fixed

Income

0.7%

a

Franklin

High

Yield

Corporate

ETF

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

13,323

303,231

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$39,578,273)

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

45,661,305

a

a

a

a

Short

Term

Investments

2.2%

a

Money

Market

Funds

2.2%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

1,045,587

1,045,587

Total

Money

Market

Funds

(Cost

$1,045,587)

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

1,045,587

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

84

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

d

Joint

Repurchase

Agreement,

4.985%,

7/03/23

(Maturity

Value

$4,650)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$1,798)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$1,054)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$1,798)

Collateralized

by

U.S.

Government

Agency

Securities,

0.63%

-

7.5%,

6/15/24

-

11/15/57;

and

U.S.

Treasury

Notes,

0.38%

-

2.5%,

5/31/24

-

4/30/25

(valued

at

$4,741)

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

$

4,648

$

4,648

Total

Repurchase

Agreements

(Cost

$4,648)

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

4,648

Total

Short

Term

Investments

(Cost

$1,050,235

)

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

1,050,235

a

Total

Investments

(Cost

$40,628,508)

99.9%

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

$46,711,540

Other

Assets,

less

Liabilities

0.1%

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

11,974

Net

Assets

100.0%

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

$46,723,514

See

Abbreviations

on

page

155

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

85

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.00

$15.19

$15.80

$14.27

$12.04

$13.78

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.07

0.14

0.23

0.17

0.21

0.27

Net

realized

and

unrealized

gains

(losses)

1.30

(2.84)

2.45

1.98

2.45

(1.26)

Total

from

investment

operations

........

1.37

(2.70)

2.68

2.15

2.66

(0.99)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.12)

(0.08)

(0.45)

(0.19)

(0.21)

(0.27)

Net

realized

gains

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

(0.07)

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.19)

(0.49)

(3.29)

(0.62)

(0.43)

(0.75)

Net

asset

value,

end

of

period

..........

$13.18

$12.00

$15.19

$15.80

$14.27

$12.04

Total

return

d

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

11.40%

(17.67)%

17.06%

15.76%

22.33%

(7.42)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.95%

0.91%

0.91%

0.94%

0.98%

0.93%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.51%

0.50%

g

0.46%

0.43%

g

0.34%

g

0.30%

g

Net

investment

income

c

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

1.10%

1.13%

1.32%

1.22%

1.57%

1.91%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$70,071

$62,061

$72,764

$59,801

$51,412

$44,978

Portfolio

turnover

rate

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

15.58%

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

86

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.51

$14.61

$15.33

$13.88

$11.72

$13.44

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.02

0.04

0.08

0.06

0.11

0.15

Net

realized

and

unrealized

gains

(losses)

1.24

(2.71)

2.38

1.94

2.38

(1.22)

Total

from

investment

operations

........

1.26

(2.67)

2.46

2.00

2.49

(1.07)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.07)

(0.02)

(0.34)

(0.12)

(0.11)

(0.17)

Net

realized

gains

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

(0.07)

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.14)

(0.43)

(3.18)

(0.55)

(0.33)

(0.65)

Net

asset

value,

end

of

period

..........

$12.63

$11.51

$14.61

$15.33

$13.88

$11.72

Total

return

d

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

10.98%

(18.25)%

16.10%

15.00%

21.35%

(8.07)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.70%

1.66%

1.66%

1.68%

1.73%

1.67%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.26%

1.25%

g

1.21%

1.17%

g

1.09%

g

1.04%

g

Net

investment

income

c

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

0.32%

0.36%

0.48%

0.46%

0.82%

1.17%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$10,812

$10,537

$13,509

$14,502

$13,333

$11,738

Portfolio

turnover

rate

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

15.58%

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

87

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.93

$15.11

$15.74

$14.20

$11.98

$13.72

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.05

0.10

0.19

0.11

0.17

0.23

Net

realized

and

unrealized

gains

(losses)

1.29

(2.81)

2.43

2.01

2.45

(1.25)

Total

from

investment

operations

........

1.34

(2.71)

2.62

2.12

2.62

(1.02)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.10)

(0.06)

(0.41)

(0.15)

(0.18)

(0.24)

Net

realized

gains

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

(0.07)

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.17)

(0.47)

(3.25)

(0.58)

(0.40)

(0.72)

Net

asset

value,

end

of

period

..........

$13.10

$11.93

$15.11

$15.74

$14.20

$11.98

Total

return

d

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

11.26%

(17.87)%

16.73%

15.55%

21.95%

(7.61)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.20%

1.16%

1.16%

1.18%

1.22%

1.17%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.76%

0.75%

g

0.71%

0.67%

g

0.58%

g

0.54%

g

Net

investment

income

c

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

0.81%

0.81%

1.08%

0.80%

1.33%

1.67%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,005

$2,178

$3,348

$2,620

$4,838

$5,146

Portfolio

turnover

rate

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

15.58%

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

88

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.55

$15.34

$15.93

$14.38

$12.12

$13.88

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.08

0.24

0.15

0.21

0.27

0.30

Net

realized

and

unrealized

gains

(losses)

1.36

(2.81)

2.60

2.01

2.46

(1.27)

Total

from

investment

operations

........

1.44

(2.57)

2.75

2.22

2.73

(0.97)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.14)

(0.11)

(0.50)

(0.24)

(0.25)

(0.31)

Net

realized

gains

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

(0.07)

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.21)

(0.52)

(3.34)

(0.67)

(0.47)

(0.79)

Capital

contributions

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

—

0.30

—

—

—

—

Net

asset

value,

end

of

period

..........

$13.78

$12.55

$15.34

$15.93

$14.38

$12.12

Total

return

d

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

11.44%

(14.60)%

e

17.37%

16.11%

22.69%

(7.16)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.84%

1.25%

0.41%

0.44%

0.46%

0.46%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.21%

0.19%

0.14%

0.13%

h

0.04%

h

—%

h

Net

investment

income

c

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

1.20%

1.85%

0.87%

1.52%

1.87%

2.21%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$49

$15

$4

$23,504

$20,022

$12,681

Portfolio

turnover

rate

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

15.58%

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(16.64)%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

89

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.14

$15.34

$15.93

$14.38

$12.13

$13.88

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.09

0.18

0.28

0.21

0.25

0.31

Net

realized

and

unrealized

gains

(losses)

1.31

(2.86)

2.46

2.00

2.46

(1.28)

Total

from

investment

operations

........

1.40

(2.68)

2.74

2.21

2.71

(0.97)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.13)

(0.11)

(0.49)

(0.23)

(0.24)

(0.30)

Net

realized

gains

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

(0.07)

(0.41)

(2.84)

(0.43)

(0.22)

(0.48)

Total

distributions

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

(0.20)

(0.52)

(3.33)

(0.66)

(0.46)

(0.78)

Net

asset

value,

end

of

period

..........

$13.34

$12.14

$15.34

$15.93

$14.38

$12.13

Total

return

d

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

11.56%

(17.40)%

17.32%

16.06%

22.53%

(7.13)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.70%

0.66%

0.67%

0.69%

0.73%

0.68%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.26%

0.25%

g

0.22%

0.18%

g

0.09%

g

0.05%

g

Net

investment

income

c

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

1.35%

1.37%

1.63%

1.49%

1.82%

2.16%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,526

$1,279

$1,584

$1,089

$819

$639

Portfolio

turnover

rate

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

15.58%

26.96%

70.40%

36.61%

86.25%

43.20%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2045

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

90

See

Abbreviations

on

page

155

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.3%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

37,834

$

826,669

Domestic

Equity

56.3%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

111,629

4,275,376

a

Franklin

Growth

Fund,

Class

R6

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

87,848

10,708,655

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

1,480,734

19,841,838

a

Franklin

U.S.

Equity

Index

ETF

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

165,250

6,413,022

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

127,117

5,691,028

iShares

MSCI

USA

Quality

Factor

ETF

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

4,850

654,120

47,584,039

Domestic

Fixed

Income

9.2%

a

Franklin

U.S.

Core

Bond

ETF

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

169,686

3,631,280

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

390,979

3,698,665

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

112,301

404,284

7,734,229

Foreign

Equity

31.8%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

443,669

4,152,745

a

Franklin

International

Core

Equity

(IU)

Fund

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

1,162,597

12,997,830

a,b

Franklin

International

Growth

Fund,

Class

R6

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

120,825

1,973,076

iShares

Core

MSCI

EAFE

ETF

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

28,752

1,940,760

a

Templeton

Developing

Markets

Trust,

Class

R6

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

157,942

2,809,791

a

Templeton

Foreign

Fund,

Class

R6

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

400,806

3,038,113

26,912,315

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$69,216,418)

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

83,057,252

a

a

a

a

Short

Term

Investments

1.7%

a

Money

Market

Funds

1.7%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

1,457,114

1,457,114

Total

Money

Market

Funds

(Cost

$1,457,114)

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

1,457,114

Total

Short

Term

Investments

(Cost

$1,457,114

)

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

1,457,114

a

Total

Investments

(Cost

$70,673,532)

100.0%

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

$84,514,366

Other

Assets,

less

Liabilities

(0.0)%

†

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

(50,797)

Net

Assets

100.0%

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

$84,463,569

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

91

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.55

$14.60

$15.76

$14.01

$11.74

$13.19

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.06

0.14

0.24

0.17

0.19

0.27

Net

realized

and

unrealized

gains

(losses)

1.30

(2.71)

2.51

2.03

2.37

(1.23)

Total

from

investment

operations

........

1.36

(2.57)

2.75

2.20

2.56

(0.96)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.11)

(0.08)

(0.43)

(0.22)

(0.16)

(0.30)

Net

realized

gains

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

(0.04)

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.15)

(0.48)

(3.91)

(0.45)

(0.29)

(0.49)

Net

asset

value,

end

of

period

..........

$12.76

$11.55

$14.60

$15.76

$14.01

$11.74

Total

return

d

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

11.82%

(17.52)%

17.58%

16.22%

22.00%

(7.40)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.35%

1.31%

1.28%

1.28%

1.35%

1.30%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.50%

0.49%

g

0.45%

0.42%

g

0.34%

g

0.30%

g

Net

investment

income

c

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

1.05%

1.11%

1.42%

1.23%

1.55%

1.98%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$28,576

$24,594

$30,413

$20,709

$16,729

$16,856

Portfolio

turnover

rate

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

14.43%

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

92

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.37

$14.40

$15.61

$13.91

$11.66

$13.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.02

0.04

0.10

0.07

0.11

0.16

Net

realized

and

unrealized

gains

(losses)

1.28

(2.66)

2.49

2.00

2.34

(1.22)

Total

from

investment

operations

........

1.30

(2.62)

2.59

2.07

2.45

(1.06)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.07)

(0.01)

(0.32)

(0.14)

(0.07)

(0.20)

Net

realized

gains

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

(0.04)

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.11)

(0.41)

(3.80)

(0.37)

(0.20)

(0.39)

Net

asset

value,

end

of

period

..........

$12.56

$11.37

$14.40

$15.61

$13.91

$11.66

Total

return

d

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

11.37%

(18.13)%

16.66%

15.35%

21.13%

(8.12)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

2.09%

2.06%

2.02%

2.03%

2.10%

2.05%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.25%

1.24%

g

1.20%

1.17%

g

1.09%

g

1.05%

g

Net

investment

income

c

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

0.27%

0.36%

0.57%

0.48%

0.80%

1.23%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$7,324

$6,564

$8,038

$7,014

$5,658

$4,167

Portfolio

turnover

rate

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

14.43%

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

93

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.57

$14.61

$15.76

$14.01

$11.74

$13.19

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.05

0.10

0.17

0.13

0.17

0.23

Net

realized

and

unrealized

gains

(losses)

1.29

(2.68)

2.54

2.03

2.36

(1.22)

Total

from

investment

operations

........

1.34

(2.58)

2.71

2.16

2.53

(0.99)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.09)

(0.06)

(0.38)

(0.18)

(0.13)

(0.27)

Net

realized

gains

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

(0.04)

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.13)

(0.46)

(3.86)

(0.41)

(0.26)

(0.46)

Net

asset

value,

end

of

period

..........

$12.78

$11.57

$14.61

$15.76

$14.01

$11.74

Total

return

d

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

11.68%

(17.64)%

17.23%

15.92%

21.72%

(7.62)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.59%

1.56%

1.51%

1.53%

1.60%

1.55%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.75%

0.74%

g

0.70%

0.67%

g

0.59%

g

0.55%

g

Net

investment

income

c

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

0.76%

0.84%

0.97%

0.91%

1.30%

1.73%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,714

$1,608

$1,857

$2,468

$2,364

$1,814

Portfolio

turnover

rate

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

14.43%

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

94

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.66

$14.72

$15.87

$14.10

$11.80

$13.26

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.14

0.20

0.14

0.21

0.26

0.29

Net

realized

and

unrealized

gains

(losses)

1.24

(2.76)

2.68

2.05

2.37

(1.23)

Total

from

investment

operations

........

1.38

(2.56)

2.82

2.26

2.63

(0.94)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.12)

(0.12)

(0.49)

(0.26)

(0.20)

(0.33)

Net

realized

gains

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

(0.04)

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.16)

(0.52)

(3.97)

(0.49)

(0.33)

(0.52)

Capital

contributions

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

—

0.02

—

—

—

—

Net

asset

value,

end

of

period

..........

$12.88

$11.66

$14.72

$15.87

$14.10

$11.80

Total

return

d

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

11.94%

(17.18)%

e

17.84%

16.59%

22.50%

(7.18)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

1.02%

0.43%

0.51%

0.59%

0.62%

0.65%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.21%

0.19%

h

0.14%

0.12%

h

0.04%

h

—%

h

Net

investment

income

c

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

2.24%

1.66%

0.85%

1.54%

1.85%

2.28%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$94

$5

$2

$22,839

$17,560

$11,800

Portfolio

turnover

rate

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

14.43%

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(17.32)%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

95

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.65

$14.72

$15.87

$14.10

$11.80

$13.26

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.08

0.17

0.28

0.20

0.24

0.28

Net

realized

and

unrealized

gains

(losses)

1.30

(2.73)

2.53

2.05

2.38

(1.22)

Total

from

investment

operations

........

1.38

(2.56)

2.81

2.25

2.62

(0.94)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.12)

(0.11)

(0.48)

(0.25)

(0.19)

(0.33)

Net

realized

gains

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

(0.04)

(0.40)

(3.48)

(0.23)

(0.13)

(0.19)

Total

distributions

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

(0.16)

(0.51)

(3.96)

(0.48)

(0.32)

(0.52)

Net

asset

value,

end

of

period

..........

$12.87

$11.65

$14.72

$15.87

$14.10

$11.80

Total

return

d

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

11.93%

(17.30)%

17.77%

16.54%

22.44%

(7.23)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.10%

1.06%

1.03%

1.03%

1.10%

1.05%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.25%

0.25%

g

0.20%

0.18%

g

0.09%

g

0.05%

g

Net

investment

income

c

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

1.31%

1.41%

1.62%

1.45%

1.80%

2.23%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,176

$978

$942

$720

$617

$468

Portfolio

turnover

rate

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

14.43%

43.95%

85.61%

35.30%

94.67%

43.18%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2050

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

96

See

Abbreviations

on

page

155

.

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

98.1%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

17,238

$

376,648

Domestic

Equity

59.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

53,578

2,052,056

a

Franklin

Growth

Fund,

Class

R6

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

42,355

5,163,031

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

698,008

9,353,309

a

Franklin

U.S.

Equity

Index

ETF

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

79,575

3,088,147

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

66,122

2,960,282

iShares

MSCI

USA

Quality

Factor

ETF

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

2,350

316,944

22,933,769

Domestic

Fixed

Income

4.7%

a

Franklin

U.S.

Core

Bond

ETF

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

38,400

821,760

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

88,210

834,464

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

51,110

183,996

1,840,220

Foreign

Equity

33.4%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

213,173

1,995,297

a

Franklin

International

Core

Equity

(IU)

Fund

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

561,084

6,272,919

a,b

Franklin

International

Growth

Fund,

Class

R6

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

58,303

952,084

iShares

Core

MSCI

EAFE

ETF

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

13,834

933,795

a

Templeton

Developing

Markets

Trust,

Class

R6

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

76,290

1,357,200

a

Templeton

Foreign

Fund,

Class

R6

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

193,463

1,466,450

12,977,745

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$31,868,058)

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

38,128,382

a

a

a

a

Short

Term

Investments

2.0%

a

Money

Market

Funds

2.0%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

758,526

758,526

Total

Money

Market

Funds

(Cost

$758,526)

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

758,526

Total

Short

Term

Investments

(Cost

$758,526

)

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

758,526

a

Total

Investments

(Cost

$32,626,584)

100.1%

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

$38,886,908

Other

Assets,

less

Liabilities

(0.1)%

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

(2,371)

Net

Assets

100.0%

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

$38,884,537

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

97

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.48

$13.21

$13.41

$11.86

$9.88

$11.05

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.06

0.13

0.20

0.15

0.18

0.23

Net

realized

and

unrealized

gains

(losses)

1.18

(2.46)

2.12

1.69

2.02

(1.03)

Total

from

investment

operations

........

1.24

(2.33)

2.32

1.84

2.20

(0.80)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.10)

(0.07)

(0.40)

(0.19)

(0.12)

(0.20)

Net

realized

gains

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

(0.08)

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.18)

(0.40)

(2.52)

(0.29)

(0.22)

(0.37)

Net

asset

value,

end

of

period

..........

$11.54

$10.48

$13.21

$13.41

$11.86

$9.88

Total

return

d

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

11.85%

(17.54)%

17.34%

15.95%

22.39%

(7.37)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.81%

1.65%

1.79%

2.03%

2.50%

2.51%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.50%

g

0.49%

g

0.46%

g

0.43%

g

0.34%

0.30%

g

Net

investment

income

c

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

1.06%

1.16%

1.38%

1.27%

1.65%

2.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$21,382

$17,210

$17,727

$12,408

$8,254

$6,104

Portfolio

turnover

rate

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

16.46%

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

98

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.22

$12.92

$13.18

$11.69

$9.75

$10.92

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.02

0.05

0.09

0.06

0.09

0.15

Net

realized

and

unrealized

gains

(losses)

1.14

(2.41)

2.08

1.66

1.99

(1.02)

Total

from

investment

operations

........

1.16

(2.36)

2.17

1.72

2.08

(0.87)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.06)

(0.01)

(0.31)

(0.13)

(0.04)

(0.13)

Net

realized

gains

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

(0.08)

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.14)

(0.34)

(2.43)

(0.23)

(0.14)

(0.30)

Net

asset

value,

end

of

period

..........

$11.24

$10.22

$12.92

$13.18

$11.69

$9.75

Total

return

d

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

11.39%

(18.19)%

16.49%

15.07%

21.45%

(8.04)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

2.55%

2.40%

2.54%

2.78%

3.25%

3.26%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

1.24%

g

1.24%

g

1.21%

g

1.18%

g

1.09%

1.05%

g

Net

investment

income

c

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

0.29%

0.42%

0.60%

0.51%

0.90%

1.26%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,705

$5,880

$6,236

$5,083

$3,563

$2,338

Portfolio

turnover

rate

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

16.46%

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

99

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.42

$13.15

$13.36

$11.82

$9.85

$11.01

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.04

0.10

0.17

0.11

0.15

0.19

Net

realized

and

unrealized

gains

(losses)

1.17

(2.45)

2.10

1.69

2.01

(1.01)

Total

from

investment

operations

........

1.21

(2.35)

2.27

1.80

2.16

(0.82)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.08)

(0.05)

(0.36)

(0.16)

(0.09)

(0.17)

Net

realized

gains

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

(0.08)

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.16)

(0.38)

(2.48)

(0.26)

(0.19)

(0.34)

Net

asset

value,

end

of

period

..........

$11.47

$10.42

$13.15

$13.36

$11.82

$9.85

Total

return

d

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

11.70%

(17.79)%

17.07%

15.61%

22.08%

(7.53)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

2.06%

1.89%

2.04%

2.29%

2.75%

2.76%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.74%

g

0.74%

g

0.71%

g

0.67%

g

0.59%

0.55%

g

Net

investment

income

c

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

0.76

%

0.94%

1.16%

0.95%

1.40%

1.76%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,101

$996

$936

$580

$539

$425

Portfolio

turnover

rate

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

16.46%

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

100

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.69

$13.24

$13.43

$11.87

$9.89

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.08

0.15

0.13

0.18

0.22

0.24

Net

realized

and

unrealized

gains

(losses)

1.20

(2.44)

2.24

1.70

2.01

(1.01)

Total

from

investment

operations

........

1.28

(2.29)

2.37

1.88

2.23

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.11)

(0.09)

(0.44)

(0.22)

(0.15)

(0.23)

Net

realized

gains

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

(0.08)

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.19)

(0.42)

(2.56)

(0.32)

(0.25)

(0.40)

Capital

contributions

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

—

0.16

—

—

—

—

Net

asset

value,

end

of

period

..........

$11.78

$10.69

$13.24

$13.43

$11.87

$9.89

Total

return

d

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

12.03%

(15.90)%

e

17.72%

16.34%

22.72%

(7.12)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

3.17%

0.59%

0.67%

0.87%

1.18%

1.35%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.20%

h

0.15%

h

0.12%

h

0.13%

h

0.04%

—%

h

Net

investment

income

c

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

1.42%

1.29%

0.87%

1.57%

1.95%

2.31%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$8

$4

$8

$12,017

$7,296

$3,573

Portfolio

turnover

rate

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

16.46%

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(17.14)%.

See

Note

2.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

101

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$10.50

$13.22

$13.42

$11.87

$9.90

$11.06

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.07

0.16

0.24

0.21

0.23

0.25

Net

realized

and

unrealized

gains

(losses)

1.18

(2.46)

2.11

1.66

1.99

(1.02)

Total

from

investment

operations

........

1.25

(2.30)

2.35

1.87

2.22

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.11)

(0.09)

(0.43)

(0.22)

(0.15)

(0.22)

Net

realized

gains

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

(0.08)

(0.33)

(2.12)

(0.10)

(0.10)

(0.17)

Total

distributions

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

(0.19)

(0.42)

(2.55)

(0.32)

(0.25)

(0.39)

Net

asset

value,

end

of

period

..........

$11.56

$10.50

$13.22

$13.42

$11.87

$9.90

Total

return

d

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

11.94%

(17.30)%

17.60%

16.19%

22.67%

(7.16)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.56%

1.39%

1.54%

1.77%

2.25%

2.26%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.24%

g

0.24%

g

0.21%

g

0.19%

g

0.09%

0.05%

g

Net

investment

income

c

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

1.30%

1.43%

1.61%

1.74%

1.90%

2.26%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$623

$519

$505

$378

$134

$46

Portfolio

turnover

rate

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

16.46%

28.43%

87.74%

32.75%

90.64%

42.85%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2055

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

102

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.8%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

13,188

$

288,157

Domestic

Equity

59.3%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

41,502

1,589,536

a

Franklin

Growth

Fund,

Class

R6

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

33,001

4,022,850

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

536,864

7,193,975

a

Franklin

U.S.

Equity

Index

ETF

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

62,050

2,408,036

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

50,024

2,239,575

iShares

MSCI

USA

Quality

Factor

ETF

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

1,825

246,138

17,700,110

Domestic

Fixed

Income

3.8%

a

Franklin

U.S.

Core

Bond

ETF

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

22,871

489,439

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

52,292

494,683

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

39,366

141,718

1,125,840

Foreign

Equity

33.7%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

165,175

1,546,037

a

Franklin

International

Core

Equity

(IU)

Fund

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

434,763

4,860,648

a,b

Franklin

International

Growth

Fund,

Class

R6

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

45,192

737,977

iShares

Core

MSCI

EAFE

ETF

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

10,705

722,587

a

Templeton

Developing

Markets

Trust,

Class

R6

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

59,089

1,051,200

a

Templeton

Foreign

Fund,

Class

R6

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

149,961

1,136,706

10,055,155

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$25,240,918)

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

29,169,262

a

a

a

a

Short

Term

Investments

2.2%

a

Money

Market

Funds

2.2%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

669,952

669,952

Total

Money

Market

Funds

(Cost

$669,952)

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

669,952

Total

Short

Term

Investments

(Cost

$669,952

)

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

669,952

a

Total

Investments

(Cost

$25,910,870)

100.0%

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

$29,839,214

Other

Assets,

less

Liabilities

(0.0)%

†

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

(19,107)

Net

Assets

100.0%

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

$29,820,107

See

Abbreviations

on

page

155

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

103

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$9.00

$11.26

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.05

0.14

0.27

Net

realized

and

unrealized

gains

(losses)

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

0.99

(2.15)

1.58

Total

from

investment

operations

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

1.04

(2.01)

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.08)

(0.07)

(0.32)

Net

realized

gains

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

(0.03)

(0.18)

(0.27)

Total

distributions

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

(0.11)

(0.25)

(0.59)

Net

asset

value,

end

of

period

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

$9.93

$9.00

$11.26

Total

return

e

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

11.59%

(17.81)%

18.52%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

6.62%

7.64%

13.83%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.50%

h

0.44%

h

0.21%

Net

investment

income

d

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

1.08%

1.47%

2.34%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$2,765

$1,631

$325

Portfolio

turnover

rate

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

14.55%

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

104

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$8.99

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.02

0.07

0.28

Net

realized

and

unrealized

gains

(losses)

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

0.97

(2.13)

1.56

Total

from

investment

operations

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

0.99

(2.06)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.05)

(0.02)

(0.32)

Net

realized

gains

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

(0.03)

(0.18)

(0.27)

Total

distributions

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

(0.08)

(0.20)

(0.59)

Net

asset

value,

end

of

period

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

$9.90

$8.99

$11.25

Total

return

e

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

11.09%

(18.23)%

18.43%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

7.49%

8.76%

14.00%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

1.25%

h

1.10%

h

0.21%

Net

investment

income

d

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

0.38%

0.80%

2.49%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$294

$176

$68

Portfolio

turnover

rate

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

14.55%

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

105

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$9.00

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.04

0.09

0.23

Net

realized

and

unrealized

gains

(losses)

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

0.98

(2.11)

1.61

Total

from

investment

operations

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

1.02

(2.02)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.07)

(0.05)

(0.32)

Net

realized

gains

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

(0.03)

(0.18)

(0.27)

Total

distributions

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

(0.10)

(0.23)

(0.59)

Net

asset

value,

end

of

period

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

$9.92

$9.00

$11.25

Total

return

e

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

11.35%

(17.91)%

18.42%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

6.79%

7.79%

12.86%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.75%

h

0.61%

h

0.21%

Net

investment

income

d

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

0.78%

1.00%

2.02%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$40

$32

$37

Portfolio

turnover

rate

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

14.55%

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

106

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$9.02

$11.26

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.06

0.13

0.16

Net

realized

and

unrealized

gains

(losses)

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

0.99

(2.13)

1.69

Total

from

investment

operations

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

1.05

(2.00)

1.85

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.09)

(0.08)

(0.32)

Net

realized

gains

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

(0.03)

(0.18)

(0.27)

Total

distributions

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

(0.12)

(0.26)

(0.59)

Capital

contributions

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

—

0.02

—

Net

asset

value,

end

of

period

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

$9.95

$9.02

$11.26

Total

return

e

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

11.69%

(17.45)%

f

18.56%

Ratios

to

average

net

assets

g

Expenses

before

waiver

and

payments

by

affiliates

h

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

5.55%

6.87%

13.90%

Expenses

net

of

waiver

and

payments

by

affiliates

h

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

0.20%

i

0.20%

i

0.15%

Net

investment

income

d

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

1.30%

1.39%

1.38%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$10

$9

$11

Portfolio

turnover

rate

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

14.55%

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Includes

the

effect

of

a

capital

contribution.

Absent

the

capital

contribution,

the

total

return

would

have

been

(17.62)%.

See

Note

2.

g

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

h

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

i

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

LifeSmart™

2060

Retirement

Target

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

107

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Year

Ended

December

31,

2021

a

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$9.00

$11.25

$10.00

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.06

0.13

0.20

Net

realized

and

unrealized

gains

(losses)

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

0.98

(2.12)

1.64

Total

from

investment

operations

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

1.04

(1.99)

1.84

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

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

(0.09)

(0.08)

(0.32)

Net

realized

gains

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

(0.03)

(0.18)

(0.27)

Total

distributions

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

(0.12)

(0.26)

(0.59)

Net

asset

value,

end

of

period

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

$9.92

$9.00

$11.25

Total

return

e

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

11.58%

(17.59)%

18.41%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

6.19%

7.40%

14.59%

Expenses

net

of

waiver

and

payments

by

affiliates

g

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

0.25%

h

0.25%

h

0.20%

Net

investment

income

d

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

1.25%

1.35%

1.75%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$983

$888

$1,096

Portfolio

turnover

rate

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

14.55%

34.77%

77.89%

a

For

the

period

January

29,

2021

(commencement

of

operations)

to

December

31,

2021.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

g

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

The

weighted

average

indirect

expenses

is

calculated

based

on

the

Form

N1-A

method

which

may

not

correlate

to

the

underlying

fund

fee

waiver

on

the

Statement

of

Operations.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

LifeSmart™

2060

Retirement

Target

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

108

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

96.1%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

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

1,919

$

41,930

Domestic

Equity

58.2%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

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

5,610

214,857

a

Franklin

Growth

Fund,

Class

R6

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

4,484

546,573

a

Franklin

U.S.

Core

Equity

(IU)

Fund

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

72,344

969,410

a

Franklin

U.S.

Equity

Index

ETF

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

8,325

323,077

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

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

6,655

297,944

iShares

MSCI

USA

Quality

Factor

ETF

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

225

30,346

2,382,207

Domestic

Fixed

Income

3.9%

a

Franklin

U.S.

Core

Bond

ETF

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

3,225

69,015

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

7,158

67,713

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

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

5,595

20,143

156,871

Foreign

Equity

33.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

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

22,122

207,059

a

Franklin

International

Core

Equity

(IU)

Fund

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

58,332

652,149

a,b

Franklin

International

Growth

Fund,

Class

R6

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

6,213

101,458

iShares

Core

MSCI

EAFE

ETF

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

1,364

92,070

a

Templeton

Developing

Markets

Trust,

Class

R6

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

8,079

143,718

a

Templeton

Foreign

Fund,

Class

R6

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

20,587

156,048

1,352,502

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$3,813,370)

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

3,933,510

a

a

a

a

Short

Term

Investments

2.0%

a

Money

Market

Funds

2.0%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

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

82,458

82,458

Total

Money

Market

Funds

(Cost

$82,458)

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

82,458

Total

Short

Term

Investments

(Cost

$82,458

)

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

82,458

a

Total

Investments

(Cost

$3,895,828)

98.1%

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

$4,015,968

Other

Assets,

less

Liabilities

1.9%

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

75,805

Net

Assets

100.0%

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

$4,091,773

See

Abbreviations

on

page

155

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

109

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$10,313,158

$2,576,640

$8,324,907

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

38,436,884

29,339,016

101,146,475

Cost

-

Unaffiliated

repurchase

agreements

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

—

—

384,205

Value

-

Unaffiliated

issuers

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

$10,556,374

$2,409,796

$7,921,756

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

34,879,573

30,162,608

108,736,370

Value

-

Unaffiliated

repurchase

agreements

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

—

—

384,205

Receivables:

Investment

securities

sold

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

59,631

—

—

Capital

shares

sold

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

24,051

2,685

68,628

Dividends

and

interest

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

—

4,071

18,770

Affiliates

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

41,983

30,190

27,719

Total

assets

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

45,561,612

32,609,350

117,157,448

Liabilities:

Payables:

Capital

shares

redeemed

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

332

5,208

476,399

Distribution

fees

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

11,253

8,897

30,921

Transfer

agent

fees

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

12,232

7,986

26,811

Professional

fees

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

26,035

15,512

16,628

Trustees'

fees

and

expenses

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

1,239

1,247

1,172

Distributions

to

shareholders

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

—

1,929

7,111

Accrued

expenses

and

other

liabilities

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

1,034

1,595

2,100

Total

liabilities

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

52,125

42,374

561,142

Net

assets,

at

value

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

$45,509,487

$32,566,976

$116,596,306

Net

assets

consist

of:

Paid-in

capital

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

$51,810,875

$33,089,579

$112,118,586

Total

distributable

earnings

(losses)

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

(6,301,388)

(522,603)

4,477,720

Net

assets,

at

value

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

$45,509,487

$32,566,976

$116,596,306

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

110

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

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

$37,922,451

$27,378,816

$99,011,227

Shares

outstanding

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

3,809,763

2,459,877

8,439,007

Net

asset

value

per

share

a

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

$9.95

$11.13

$11.73

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

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

$10.53

$11.78

$12.41

Class

C:

Net

assets,

at

value

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

$3,444,663

$3,729,840

$11,917,265

Shares

outstanding

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

350,217

337,777

1,038,197

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$9.84

$11.04

$11.48

Class

R:

Net

assets,

at

value

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

$1,555,152

$670,527

$2,102,574

Shares

outstanding

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

156,738

60,271

179,982

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.92

$11.13

$11.68

Class

R6:

Net

assets,

at

value

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

$71,081

$40,198

$720,969

Shares

outstanding

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

7,106

3,515

61,206

Net

asset

value

and

maximum

offering

price

per

share

...........

$10.00

$11.44

$11.78

Advisor

Class:

Net

assets,

at

value

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

$2,516,140

$747,595

$2,844,271

Shares

outstanding

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

251,845

66,917

241,728

Net

asset

value

and

maximum

offering

price

per

share

...........

$9.99

$11.17

$11.77

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

111

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$3,805,766

$6,777,480

$2,303,674

Cost

-

Non-controlled

affiliates

(Note

3

f

)

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

52,538,452

103,560,248

38,320,186

Cost

-

Unaffiliated

repurchase

agreements

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

—

2,476

4,648

Value

-

Unaffiliated

issuers

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

$3,746,225

$6,632,545

$2,275,965

Value

-

Non-controlled

affiliates

(Note

3

f

)

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

57,979,218

117,230,649

44,430,927

Value

-

Unaffiliated

repurchase

agreements

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

—

2,476

4,648

Receivables:

Capital

shares

sold

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

27,550

36,464

17,594

Dividends

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

11,836

27,973

11,894

Affiliates

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

33,190

49,980

35,950

Total

assets

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

61,798,019

123,980,087

46,776,978

Liabilities:

Payables:

Capital

shares

redeemed

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

24,657

13,848

2,613

Distribution

fees

........................................

18,577

34,642

13,834

Transfer

agent

fees

......................................

21,575

27,800

19,453

Professional

fees

.......................................

15,325

17,106

14,320

Trustees'

fees

and

expenses

...............................

1,206

1,149

1,213

Distributions

to

shareholders

...............................

3,056

7,319

1,393

Accrued

expenses

and

other

liabilities

.........................

1,991

1,633

638

Total

liabilities

.......................................

86,387

103,497

53,464

Net

assets,

at

value

...............................

$61,711,632

$123,876,590

$46,723,514

Net

assets

consist

of:

Paid-in

capital

...........................................

$59,034,227

$112,230,297

$41,316,350

Total

distributable

earnings

(losses)

...........................

2,677,405

11,646,293

5,407,164

Net

assets,

at

value

...............................

$61,711,632

$123,876,590

$46,723,514

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

112

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$48,445,802

$100,668,881

$36,689,142

Shares

outstanding

......................................

3,950,058

7,933,969

2,923,931

Net

asset

value

per

share

a

................................

$12.26

$12.69

$12.55

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

..............................................

$12.97

$13.43

$13.28

Class

C:

Net

assets,

at

value

.....................................

$10,177,619

$15,390,900

$7,495,696

Shares

outstanding

......................................

844,664

1,255,049

612,261

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$12.05

$12.26

$12.24

Class

R:

Net

assets,

at

value

.....................................

$1,294,982

$4,036,754

$983,866

Shares

outstanding

......................................

105,882

318,551

78,418

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.23

$12.67

$12.55

Class

R6:

Net

assets,

at

value

.....................................

$86,158

$107,375

$260,556

Shares

outstanding

......................................

6,932

8,368

20,576

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.43

$12.83

$12.66

Advisor

Class:

Net

assets,

at

value

.....................................

$1,707,071

$3,672,680

$1,294,254

Shares

outstanding

......................................

138,493

285,814

102,431

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.33

$12.85

$12.64

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

113

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$2,567,057

$1,208,998

$934,004

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

68,106,475

31,417,586

24,976,866

Value

-

Unaffiliated

issuers

................................

$2,594,880

$1,250,739

$968,725

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

81,919,486

37,636,169

28,870,489

Receivables:

Investment

securities

sold

.................................

—

211,900

105,501

Capital

shares

sold

......................................

40,911

12,031

30,420

Dividends

.............................................

23,754

11,661

9,062

Affiliates

..............................................

28,567

42,300

60,368

Total

assets

........................................

84,607,598

39,164,800

30,044,565

Liabilities:

Payables:

Investment

securities

purchased

............................

—

216,892

171,309

Capital

shares

redeemed

.................................

71,988

8,147

7,690

Distribution

fees

........................................

23,730

12,335

10,083

Transfer

agent

fees

......................................

24,042

24,079

18,762

Professional

fees

.......................................

15,532

15,362

13,769

Trustees'

fees

and

expenses

...............................

1,186

1,224

1,226

Distributions

to

shareholders

...............................

6,276

583

—

Accrued

expenses

and

other

liabilities

.........................

1,275

1,641

1,619

Total

liabilities

.......................................

144,029

280,263

224,458

Net

assets,

at

value

...............................

$84,463,569

$38,884,537

$29,820,107

Net

assets

consist

of:

Paid-in

capital

...........................................

$72,274,418

$33,425,790

$26,551,494

Total

distributable

earnings

(losses)

...........................

12,189,151

5,458,747

3,268,613

Net

assets,

at

value

...............................

$84,463,569

$38,884,537

$29,820,107

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

114

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.....................................

$70,071,307

$28,576,278

$21,381,964

Shares

outstanding

......................................

5,314,601

2,239,778

1,853,315

Net

asset

value

per

share

a

................................

$13.18

$12.76

$11.54

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

..............................................

$13.95

$13.50

$12.21

Class

C:

Net

assets,

at

value

.....................................

$10,812,206

$7,323,553

$6,705,339

Shares

outstanding

......................................

855,797

583,317

596,318

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$12.63

$12.56

$11.24

Class

R:

Net

assets,

at

value

.....................................

$2,005,093

$1,714,407

$1,100,981

Shares

outstanding

......................................

153,009

134,139

95,959

Net

asset

value

and

maximum

offering

price

per

share

...........

$13.10

$12.78

$11.47

Class

R6:

Net

assets,

at

value

.....................................

$48,723

$94,377

$8,425

Shares

outstanding

......................................

3,535

7,326

715

Net

asset

value

and

maximum

offering

price

per

share

...........

$13.78

$12.88

$11.78

Advisor

Class:

Net

assets,

at

value

.....................................

$1,526,240

$1,175,922

$623,398

Shares

outstanding

......................................

114,444

91,334

53,928

Net

asset

value

and

maximum

offering

price

per

share

...........

$13.34

$12.87

$11.56

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

115

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$120,607

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

3,775,221

Value

-

Unaffiliated

issuers

..................................................................

$122,416

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

3,893,552

Receivables:

Investment

securities

sold

...................................................................

7,621

Capital

shares

sold

........................................................................

14,170

Dividends

...............................................................................

1,219

Affiliates

................................................................................

100,973

Total

assets

..........................................................................

4,139,951

Liabilities:

Payables:

Investment

securities

purchased

..............................................................

11,180

Distribution

fees

..........................................................................

793

Transfer

agent

fees

........................................................................

1,790

Professional

fees

.........................................................................

28,685

Trustees'

fees

and

expenses

.................................................................

9

Distributions

to

shareholders

.................................................................

5,048

Accrued

expenses

and

other

liabilities

...........................................................

673

Total

liabilities

.........................................................................

48,178

Net

assets,

at

value

.................................................................

$4,091,773

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$4,080,390

Total

distributable

earnings

(losses)

.............................................................

11,383

Net

assets,

at

value

.................................................................

$4,091,773

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

116

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,764,982

Shares

outstanding

........................................................................

278,521

Net

asset

value

per

share

a

..................................................................

$9.93

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$10.51

Class

C:

Net

assets,

at

value

.......................................................................

$293,561

Shares

outstanding

........................................................................

29,641

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$9.90

Class

R:

Net

assets,

at

value

.......................................................................

$40,209

Shares

outstanding

........................................................................

4,053

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.92

Class

R6:

Net

assets,

at

value

.......................................................................

$9,947

Shares

outstanding

........................................................................

1,000

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.95

Advisor

Class:

Net

assets,

at

value

.......................................................................

$983,074

Shares

outstanding

........................................................................

99,072

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$9.92

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

117

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$316,541

$32,879

$108,871

Non-controlled

affiliates

(Note

3

f

)

...........................

766,672

318,830

1,085,598

Interest:

Unaffiliated

issuers

......................................

138,757

865

2,133

Total

investment

income

.................................

1,221,970

352,574

1,196,602

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

57,028

40,519

144,445

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

46,883

34,119

122,740

    Class

C

..............................................

18,622

18,758

59,769

    Class

R

..............................................

4,223

1,667

4,969

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

25,397

14,295

56,970

    Class

C

..............................................

2,517

1,964

6,923

    Class

R

..............................................

1,143

349

1,154

    Class

R6

.............................................

61

49

93

    Advisor

Class

..........................................

1,783

357

1,586

Custodian

fees

(Note

4

)

....................................

1,860

43

150

Reports

to

shareholders

fees

................................

4,225

1,309

7,318

Registration

and

filing

fees

..................................

56,890

57,310

61,752

Professional

fees

.........................................

31,260

23,948

24,627

Trustees'

fees

and

expenses

................................

841

768

1,207

Other

..................................................

4,867

5,013

5,707

Total

expenses

.......................................

257,600

200,468

499,410

Expense

reductions

(Note

4

)

.............................

(2)

(2)

—

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(176,923)

(108,248)

(175,332)

Net

expenses

.......................................

80,675

92,218

324,078

Net

investment

income

..............................

1,141,295

260,356

872,524

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(729,325)

(16,032)

(54,504)

Non-controlled

affiliates

(Note

3

f

)

..........................

(266,123)

(281,030)

(961,773)

Net

realized

gain

(loss)

................................

(995,448)

(297,062)

(1,016,277)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

1,262,901

79,743

306,520

Non-controlled

affiliates

(Note

3

f

)

..........................

1,215,323

2,178,978

8,664,410

Net

change

in

unrealized

appreciation

(depreciation)

..........

2,478,224

2,258,721

8,970,930

Net

realized

and

unrealized

gain

(loss)

..........................

1,482,776

1,961,659

7,954,653

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$2,624,071

$2,222,015

$8,827,177

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

118

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$51,276

$92,030

$31,665

Non-controlled

affiliates

(Note

3

f

)

...........................

530,671

997,578

346,882

Interest:

Unaffiliated

issuers

......................................

1,488

1,501

1,552

Total

investment

income

.................................

583,435

1,091,109

380,099

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

73,976

147,980

54,593

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

57,851

119,658

42,797

    Class

C

..............................................

48,933

74,224

35,282

    Class

R

..............................................

3,192

10,018

2,470

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

35,227

70,666

35,348

    Class

C

..............................................

7,440

10,943

7,279

    Class

R

..............................................

969

2,957

1,011

    Class

R6

.............................................

108

195

61

    Advisor

Class

..........................................

1,346

2,735

1,192

Custodian

fees

(Note

4

)

....................................

55

108

18

Reports

to

shareholders

fees

................................

4,673

7,773

2,969

Registration

and

filing

fees

..................................

59,505

77,846

58,232

Professional

fees

.........................................

23,965

23,698

23,422

Trustees'

fees

and

expenses

................................

887

1,187

797

Other

..................................................

5,267

5,810

5,948

Total

expenses

.......................................

323,394

555,798

271,419

Expense

reductions

(Note

4

)

.............................

(1)

—

—

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(140,091)

(205,426)

(133,489)

Net

expenses

.......................................

183,302

350,372

137,930

Net

investment

income

..............................

400,133

740,737

242,169

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(14,329)

(16,651)

(6,067)

Non-controlled

affiliates

(Note

3

f

)

..........................

(333,081)

(484,619)

(224,297)

Net

realized

gain

(loss)

................................

(347,410)

(501,270)

(230,364)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

135,743

312,712

117,598

Non-controlled

affiliates

(Note

3

f

)

..........................

4,774,900

10,342,867

4,246,309

Net

change

in

unrealized

appreciation

(depreciation)

..........

4,910,643

10,655,579

4,363,907

Net

realized

and

unrealized

gain

(loss)

..........................

4,563,233

10,154,309

4,133,543

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$4,963,366

$10,895,046

$4,375,712

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

119

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$38,029

$18,486

$14,257

Non-controlled

affiliates

(Note

3

f

)

...........................

602,920

257,898

196,134

Interest:

Unaffiliated

issuers

......................................

2,874

1,356

—

Total

investment

income

.................................

643,823

277,740

210,391

Expenses:

Management

&

Asset

allocation

fees

(Note

3

a

)

...................

100,360

45,045

33,943

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

82,768

33,013

24,205

    Class

C

..............................................

53,560

34,545

31,131

    Class

R

..............................................

4,787

3,988

2,489

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

68,058

43,361

50,911

    Class

C

..............................................

10,968

11,322

16,339

    Class

R

..............................................

1,960

2,612

2,607

    Class

R6

.............................................

78

42

79

    Advisor

Class

..........................................

1,440

1,761

1,476

Custodian

fees

(Note

4

)

....................................

37

8

7

Reports

to

shareholders

fees

................................

7,126

4,534

5,014

Registration

and

filing

fees

..................................

59,027

57,969

71,725

Professional

fees

.........................................

23,916

23,867

23,053

Trustees'

fees

and

expenses

................................

991

760

707

Other

..................................................

6,321

5,950

5,767

Total

expenses

.......................................

421,397

268,777

269,453

Expense

reductions

(Note

4

)

.............................

—

—

(11)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(176,679)

(152,169)

(178,356)

Net

expenses

.......................................

244,718

116,608

91,086

Net

investment

income

..............................

399,105

161,132

119,305

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(12,661)

(2,458)

(2,175)

Non-controlled

affiliates

(Note

3

f

)

..........................

(942,236)

(285,985)

(322,418)

Net

realized

gain

(loss)

................................

(954,897)

(288,443)

(324,593)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

206,075

98,369

70,976

Non-controlled

affiliates

(Note

3

f

)

..........................

8,994,791

4,061,425

3,161,402

Net

change

in

unrealized

appreciation

(depreciation)

..........

9,200,866

4,159,794

3,232,378

Net

realized

and

unrealized

gain

(loss)

..........................

8,245,969

3,871,351

2,907,785

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$8,645,074

$4,032,483

$3,027,090

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

(continued)

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

120

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

........................................................................

$1,825

Non-controlled

affiliates

(Note

3

f

)

.............................................................

25,482

Total

investment

income

...................................................................

27,307

Expenses:

Management

&

A

sset

allocation

fees

(Note

3

a

)

.....................................................

4,367

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

2,865

    Class

C

................................................................................

1,129

    Class

R

................................................................................

89

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

7,659

    Class

C

................................................................................

752

    Class

R

................................................................................

119

    Class

R6

...............................................................................

2

    Advisor

Class

............................................................................

3,121

Custodian

fees

(Note

4

)

......................................................................

2

Reports

to

shareholders

fees

..................................................................

1,858

Registration

and

filing

fees

....................................................................

64,894

Professional

fees

...........................................................................

25,691

Trustees'

fees

and

expenses

..................................................................

520

Other

....................................................................................

1,553

Total

expenses

.........................................................................

114,621

Expense

reductions

(Note

4

)

...............................................................

(4)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(106,207)

Net

expenses

.........................................................................

8,410

Net

investment

income

................................................................

18,897

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(418)

Non-controlled

affiliates

(Note

3

f

)

............................................................

(52,960)

Net

realized

gain

(loss)

..................................................................

(53,378)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

7,713

Non-controlled

affiliates

(Note

3

f

)

............................................................

405,319

Net

change

in

unrealized

appreciation

(depreciation)

............................................

413,032

Net

realized

and

unrealized

gain

(loss)

............................................................

359,654

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$378,551

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

121

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$1,141,295

$2,581,261

$260,356

$772,210

Net

realized

gain

(loss)

............

(995,448)

(2,384,135)

(297,062)

(596,608)

Net

change

in

unrealized

appreciation

(depreciation)

.................

2,478,224

(7,125,716)

2,258,721

(6,961,502)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

2,624,071

(6,928,590)

2,222,015

(6,785,900)

Distributions

to

shareholders:

Class

A

........................

(772,569)

(2,225,626)

(472,883)

(1,072,841)

Class

C

........................

(61,651)

(231,774)

(52,137)

(121,787)

Class

R

........................

(32,624)

(98,684)

(10,751)

(21,475)

Class

R6

.......................

(1,521)

(6,596)

(716)

(153)

Advisor

Class

...................

(57,449)

(142,681)

(13,332)

(25,341)

Total

distributions

to

shareholders

.....

(925,814)

(2,705,361)

(549,819)

(1,241,597)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(460,282)

(1,281,795)

(1,525,224)

(2,512,663)

Class

C

........................

(850,617)

(1,666,149)

(257,568)

(1,393,273)

Class

R

........................

(254,459)

(89,444)

(12,539)

30,324

Class

R6

.......................

1,430

33,869

35,365

89

Advisor

Class

...................

2,392

58,529

93,203

(56,975)

Total

capital

share

transactions

.......

(1,561,536)

(2,944,990)

(1,666,763)

(3,932,498)

Net

increase

(decrease)

in

net

assets

.....................

136,721

(12,578,941)

5,433

(11,959,995)

Net

assets:

Beginning

of

period

................

45,372,766

57,951,707

32,561,543

44,521,538

End

of

period

.....................

$45,509,487

$45,372,766

$32,566,976

$32,561,543

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.

122

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$872,524

$2,282,063

$400,133

$956,001

Net

realized

gain

(loss)

............

(1,016,277)

(1,032,891)

(347,410)

(1,913,318)

Net

change

in

unrealized

appreciation

(depreciation)

.................

8,970,930

(23,804,738)

4,910,643

(10,135,087)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

8,827,177

(22,555,566)

4,963,366

(11,092,404)

Distributions

to

shareholders:

Class

A

........................

(1,555,702)

(3,674,030)

(635,153)

(1,583,281)

Class

C

........................

(151,513)

(429,078)

(101,069)

(305,484)

Class

R

........................

(29,795)

(69,346)

(15,966)

(45,630)

Class

R6

.......................

(12,150)

(21,254)

(1,095)

(595)

Advisor

Class

...................

(47,210)

(100,724)

(25,176)

(64,032)

Total

distributions

to

shareholders

.....

(1,796,370)

(4,294,432)

(778,459)

(1,999,022)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(4,012,697)

950,061

1,071,763

4,257,445

Class

C

........................

(947,860)

(2,391,827)

(153,060)

(228,935)

Class

R

........................

29,452

(630,963)

(90,670)

84,190

Class

R6

.......................

8,576

240,106

31,030

13,369

Advisor

Class

...................

108,997

95,139

(189,717)

218,000

Total

capital

share

transactions

.......

(4,813,532)

(1,737,484)

669,346

4,344,069

Net

increase

(decrease)

in

net

assets

.....................

2,217,275

(28,587,482)

4,854,253

(8,747,357)

Net

assets:

Beginning

of

period

................

114,379,031

142,966,513

56,857,379

65,604,736

End

of

period

.....................

$116,596,306

$114,379,031

$61,711,632

$56,857,379

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

123

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$740,737

$1,730,579

$242,169

$486,110

Net

realized

gain

(loss)

............

(501,270)

(412,477)

(230,364)

(132,501)

Net

change

in

unrealized

appreciation

(depreciation)

.................

10,655,579

(23,647,344)

4,363,907

(8,434,516)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

10,895,046

(22,329,242)

4,375,712

(8,080,907)

Distributions

to

shareholders:

Class

A

........................

(1,493,733)

(3,409,043)

(473,952)

(1,170,266)

Class

C

........................

(186,220)

(504,214)

(74,684)

(208,787)

Class

R

........................

(56,703)

(132,349)

(11,213)

(33,215)

Class

R6

.......................

(1,690)

(3,441)

(3,687)

(10,610)

Advisor

Class

...................

(59,642)

(137,211)

(17,211)

(48,604)

Total

distributions

to

shareholders

.....

(1,797,988)

(4,186,258)

(580,747)

(1,471,482)

Capital

share

transactions:

(Note

2

)

Class

A

........................

2,251,057

8,084,547

1,607,875

4,136,064

Class

C

........................

(297,865)

(297,182)

183,610

350,228

Class

R

........................

(156,332)

608,222

(216,167)

(346,086)

Class

R6

.......................

8,342

17,337

26,492

(33,477)

Advisor

Class

...................

(107,226)

390,255

34,927

502,914

Total

capital

share

transactions

.......

1,697,976

8,803,179

1,636,737

4,609,643

Net

increase

(decrease)

in

net

assets

.....................

10,795,034

(17,712,321)

5,431,702

(4,942,746)

Net

assets:

Beginning

of

period

................

113,081,556

130,793,877

41,291,812

46,234,558

End

of

period

.....................

$123,876,590

$113,081,556

$46,723,514

$41,291,812

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.

124

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$399,105

$805,299

$161,132

$329,254

Net

realized

gain

(loss)

............

(954,897)

135,213

(288,443)

(159,230)

Net

change

in

unrealized

appreciation

(depreciation)

.................

9,200,866

(17,140,638)

4,159,794

(7,235,854)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

8,645,074

(16,200,126)

4,032,483

(7,065,830)

Distributions

to

shareholders:

Class

A

........................

(980,566)

(2,450,238)

(337,666)

(960,821)

Class

C

........................

(123,196)

(373,600)

(64,601)

(222,132)

Class

R

........................

(25,644)

(96,145)

(18,199)

(66,384)

Class

R6

.......................

(673)

(205)

(1,232)

(202)

Advisor

Class

...................

(22,528)

(54,042)

(15,011)

(41,024)

Total

distributions

to

shareholders

.....

(1,152,607)

(2,974,230)

(436,709)

(1,290,563)

Capital

share

transactions:

(Note

2

)

Class

A

........................

1,829,084

4,747,600

1,347,698

295,982

Class

C

........................

(722,131)

(238,740)

72,027

168,563

Class

R

........................

(357,033)

(510,729)

(53,456)

129,424

Class

R6

.......................

34,909

12,553

83,434

3,568

Advisor

Class

...................

116,634

23,043

90,313

257,479

Total

capital

share

transactions

.......

901,463

4,033,727

1,540,016

855,016

Net

increase

(decrease)

in

net

assets

.....................

8,393,930

(15,140,629)

5,135,790

(7,501,377)

Net

assets:

Beginning

of

period

................

76,069,639

91,210,268

33,748,747

41,250,124

End

of

period

.....................

$84,463,569

$76,069,639

$38,884,537

$33,748,747

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

125

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$119,305

$234,037

$18,897

$31,001

Net

realized

gain

(loss)

............

(324,593)

(1,649)

(53,378)

(35,120)

Net

change

in

unrealized

appreciation

(depreciation)

.................

3,232,378

(4,943,792)

413,032

(382,052)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

3,027,090

(4,711,404)

378,551

(386,171)

Distributions

to

shareholders:

Class

A

........................

(324,617)

(606,049)

(29,386)

(31,483)

Class

C

........................

(83,777)

(177,071)

(2,285)

(2,940)

Class

R

........................

(15,239)

(30,805)

(394)

(783)

Class

R6

.......................

(137)

(173)

(123)

(268)

Advisor

Class

...................

(10,103)

(17,314)

(11,922)

(25,855)

Total

distributions

to

shareholders

.....

(433,873)

(831,412)

(44,110)

(61,329)

Capital

share

transactions:

(Note

2

)

Class

A

........................

2,327,485

3,373,309

917,897

1,502,222

Class

C

........................

227,078

988,485

95,496

130,123

Class

R

........................

9,297

263,716

4,863

2,063

Class

R6

.......................

3,486

(2,225)

—

17

Advisor

Class

...................

49,575

117,736

3,398

11,844

Total

capital

share

transactions

.......

2,616,921

4,741,021

1,021,654

1,646,269

Net

increase

(decrease)

in

net

assets

.....................

5,210,138

(801,795)

1,356,095

1,198,769

Net

assets:

Beginning

of

period

................

24,609,969

25,411,764

2,735,678

1,536,909

End

of

period

.....................

$29,820,107

$24,609,969

$4,091,773

$2,735,678

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

126

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds, ten

of

which

are

included

in

this

report

(Funds).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

Certain

or

all

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The

Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Funds

calculate

the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

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. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively.

Debt

securities

generally

trade

in

the

over-the-counter

market

rather

than

on

a

securities

exchange.

The

Funds'

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-

based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Funds

have

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Funds

primarily

employ

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

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.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

127

franklintempleton.com

Semiannual

Report

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

June

30,

2023.

c.

Index-Linked

Notes

Certain

or

all

Funds

invest

in

index-linked

notes.

Index-linked

notes

are

senior,

unsecured,

subordinated

debt

securities

issued

by

a

financial

institution,

and

the

value

is

based

on

the

price

movements

of

the

underlying

index.

Index-linked

notes

are

designed

to

provide

investors

access

to

the

returns

of

various

market

benchmarks

and

intended

to

replicate

the

economic

effects

that

would

apply

had

the

Fund

directly

purchased

the

underlying

referenced

asset

or

basket

of

assets.

The

risks

of

investing

in

index-linked

notes

include

unfavorable

price

movements

in

the

underlying

index

and

the

credit

risk

of

the

issuing

financial

institution.

There

may

be

no

guarantee

of

a

return

of

principal

with

index-linked

notes

and

the

appreciation

potential

may

be

limited.

Index-linked

notes

may

be

more

volatile

and

less

liquid

than

other

investments

held

by

the

Funds.

d.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

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).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

The

Franklin

LifeSmart

TM

Retirement

Income

Fund

employs

a

managed

distribution

policy.

Under

this

policy,

the

Fund

will

distribute

level

monthly

distributions

in

any

given

year

regardless

of

the

performance

of

the

Fund;

however,

the

twelfth

monthly

payment

may

be

greater

than

the

initially

anticipated

amount

if

additional

income

or

capital

gains

are

required

to

be

distributed.

These

distributions

may

include

income

and

capital

gains

generated

by

the

Underlying

Funds,

as

well

as

a

possible

return

of

capital

component,

if

necessary,

to

meet

the

annual

distribution

rate.

The

annual

payout

rate

may

be

adjusted

higher

or

lower

from

year

to

year

in

response

to

market

conditions.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

128

franklintempleton.com

Semiannual

Report

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

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)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

129

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

539,788

$5,287,240

294,253

$3,199,371

Shares

issued

in

reinvestment

of

distributions

..........

77,413

760,107

42,682

470,373

Shares

redeemed

...............................

(664,218)

(6,507,629)

(475,839)

(5,194,968)

Net

increase

(decrease)

..........................

(47,017)

$(460,282)

(138,904)

$(1,525,224)

Year

ended

December

31,

2022

Shares

sold

a

...................................

635,127

$6,640,061

360,430

$4,138,825

Shares

issued

in

reinvestment

of

distributions

..........

219,854

2,195,999

100,659

1,071,091

Shares

redeemed

...............................

(1,001,551)

(10,117,855)

(684,947)

(7,722,579)

Net

increase

(decrease)

..........................

(146,570)

$(1,281,795)

(223,858)

$(2,512,663)

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

68,961

$669,053

93,148

$1,002,150

Shares

issued

in

reinvestment

of

distributions

..........

6,214

60,326

4,756

51,952

Shares

redeemed

a

..............................

(162,196)

(1,579,996)

(121,717)

(1,311,670)

Net

increase

(decrease)

..........................

(87,021)

$(850,617)

(23,813)

$(257,568)

Year

ended

December

31,

2022

Shares

sold

...................................

67,069

$706,277

46,738

$530,032

Shares

issued

in

reinvestment

of

distributions

..........

23,051

227,867

11,499

121,107

Shares

redeemed

a

..............................

(251,814)

(2,600,293)

(179,646)

(2,044,412)

Net

increase

(decrease)

..........................

(161,694)

$(1,666,149)

(121,409)

$(1,393,273)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

13,659

$132,905

46,213

$501,117

Shares

issued

in

reinvestment

of

distributions

..........

3,301

32,313

976

10,751

Shares

redeemed

...............................

(43,039)

(419,677)

(48,366)

(524,407)

Net

increase

(decrease)

..........................

(26,079)

$(254,459)

(1,177)

$(12,539)

Year

ended

December

31,

2022

Shares

sold

...................................

10,781

$109,293

10,797

$118,769

Shares

issued

in

reinvestment

of

distributions

..........

9,919

98,683

2,022

21,475

Shares

redeemed

...............................

(29,527)

(297,420)

(9,667)

(109,920)

Net

increase

(decrease)

..........................

(8,827)

$(89,444)

3,152

$30,324

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

130

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

145

$1,430

3,111

$34,846

Shares

issued

in

reinvestment

of

distributions

..........

—

—

57

642

Shares

redeemed

...............................

—

—

(11)

(123)

Net

increase

(decrease)

..........................

145

$1,430

3,157

$35,365

Year

ended

December

31,

2022

Shares

sold

...................................

18,343

$203,725

—

$—

Capital

c

ontributions

.............................

—

—

—

89

b

Shares

issued

in

reinvestment

of

distributions

..........

67

742

—

—

Shares

redeemed

...............................

(16,261)

(170,598)

—

—

Net

increase

(decrease)

..........................

2,149

$33,869

—

$89

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

48,589

$473,298

12,865

$142,507

Shares

issued

in

reinvestment

of

distributions

..........

5,622

55,392

1,205

13,331

Shares

redeemed

...............................

(53,085)

(526,298)

(5,583)

(62,635)

Net

increase

(decrease)

..........................

1,126

$2,392

8,487

$93,203

Year

ended

December

31,

2022

Shares

sold

...................................

88,532

$916,603

1,712

$18,993

Shares

issued

in

reinvestment

of

distributions

..........

13,681

137,345

2,370

25,341

Shares

redeemed

...............................

(97,171)

(995,419)

(8,994)

(101,309)

Net

increase

(decrease)

..........................

5,042

$58,529

(4,912)

$(56,975)

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

2,021,982

$23,063,893

971,566

$11,526,514

Shares

issued

in

reinvestment

of

distributions

..........

133,394

1,546,929

52,250

631,337

Shares

redeemed

...............................

(2,503,132)

(28,623,519)

(934,016)

(11,086,088)

Net

increase

(decrease)

..........................

(347,756)

$(4,012,697)

89,800

$1,071,763

Year

ended

December

31,

2022

Shares

sold

a

...................................

1,278,837

$14,936,648

987,394

$12,064,139

Shares

issued

in

reinvestment

of

distributions

..........

331,310

3,662,968

138,880

1,581,803

Shares

redeemed

...............................

(1,494,194)

(17,649,555)

(773,024)

(9,388,497)

Net

increase

(decrease)

..........................

115,953

$950,061

353,250

$4,257,445

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

131

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

377,206

$4,203,427

259,390

$3,023,158

Shares

issued

in

reinvestment

of

distributions

..........

13,363

151,508

8,519

101,069

Shares

redeemed

a

..............................

(475,231)

(5,302,795)

(281,914)

(3,277,287)

Net

increase

(decrease)

..........................

(84,662)

$(947,860)

(14,005)

$(153,060)

Year

ended

December

31,

2022

Shares

sold

...................................

207,295

$2,410,456

260,662

$3,130,704

Shares

issued

in

reinvestment

of

distributions

..........

39,666

429,064

27,224

305,245

Shares

redeemed

a

..............................

(450,894)

(5,231,347)

(306,601)

(3,664,884)

Net

increase

(decrease)

..........................

(203,933)

$(2,391,827)

(18,715)

$(228,935)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

68,057

$772,451

60,676

$716,699

Shares

issued

in

reinvestment

of

distributions

..........

2,580

29,795

1,325

15,966

Shares

redeemed

...............................

(68,276)

(772,794)

(69,750)

(823,335)

Net

increase

(decrease)

..........................

2,361

$29,452

(7,749)

$(90,670)

Year

ended

December

31,

2022

Shares

sold

...................................

40,559

$476,198

25,207

$310,988

Shares

issued

in

reinvestment

of

distributions

..........

6,314

69,346

4,010

45,608

Shares

redeemed

...............................

(94,686)

(1,176,507)

(22,191)

(272,406)

Net

increase

(decrease)

..........................

(47,813)

$(630,963)

7,026

$84,190

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

—

$—

2,469

$29,935

Shares

issued

in

reinvestment

of

distributions

..........

1,043

12,150

89

1,095

Shares

redeemed

...............................

(307)

(3,574)

—

—

Net

increase

(decrease)

..........................

736

$8,576

2,558

$31,030

Year

ended

December

31,

2022

Shares

sold

...................................

19,066

$220,670

4,021

$47,255

Capital

c

ontributions

.............................

—

—

—

92

b

Shares

issued

in

reinvestment

of

distributions

..........

1,918

21,253

52

595

Shares

redeemed

...............................

(169)

(1,817)

(2,468)

(34,573)

Net

increase

(decrease)

..........................

20,815

$240,106

1,605

$13,369

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

132

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

37,066

$426,911

4,107

$49,725

Shares

issued

in

reinvestment

of

distributions

..........

3,772

43,884

2,053

24,938

Shares

redeemed

...............................

(31,328)

(361,798)

(21,894)

(264,380)

Net

increase

(decrease)

..........................

9,510

$108,997

(15,734)

$(189,717)

Year

ended

December

31,

2022

Shares

sold

...................................

43,449

$527,001

22,627

$274,836

Shares

issued

in

reinvestment

of

distributions

..........

8,418

93,452

5,559

63,597

Shares

redeemed

...............................

(42,545)

(525,314)

(9,688)

(120,433)

Net

increase

(decrease)

..........................

9,322

$95,139

18,498

$218,000

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

2,202,891

$26,957,979

692,739

$8,364,591

Shares

issued

in

reinvestment

of

distributions

..........

117,977

1,480,617

38,001

471,650

Shares

redeemed

...............................

(2,138,184)

(26,187,539)

(599,625)

(7,228,366)

Net

increase

(decrease)

..........................

182,684

$2,251,057

131,115

$1,607,875

Year

ended

December

31,

2022

Shares

sold

a

...................................

1,209,965

$15,192,429

555,994

$6,852,127

Shares

issued

in

reinvestment

of

distributions

..........

291,267

3,392,469

102,807

1,170,329

Shares

redeemed

...............................

(851,728)

(10,500,351)

(305,861)

(3,886,392)

Net

increase

(decrease)

..........................

649,504

$8,084,547

352,940

$4,136,064

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

502,905

$5,949,414

255,088

$3,001,541

Shares

issued

in

reinvestment

of

distributions

..........

15,348

186,186

6,159

74,684

Shares

redeemed

a

..............................

(543,457)

(6,433,465)

(245,539)

(2,892,615)

Net

increase

(decrease)

..........................

(25,204)

$(297,865)

15,708

$183,610

Year

ended

December

31,

2022

Shares

sold

...................................

178,539

$2,176,700

110,551

$1,342,369

Shares

issued

in

reinvestment

of

distributions

..........

44,659

504,112

18,751

208,790

Shares

redeemed

a

..............................

(243,419)

(2,977,994)

(99,476)

(1,200,931)

Net

increase

(decrease)

..........................

(20,221)

$(297,182)

29,826

$350,228

Class

R

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

133

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

63,250

$773,216

45,111

$543,348

Shares

issued

in

reinvestment

of

distributions

..........

4,526

56,703

902

11,213

Shares

redeemed

...............................

(79,969)

(986,251)

(64,467)

(770,728)

Net

increase

(decrease)

..........................

(12,193)

$(156,332)

(18,454)

$(216,167)

Year

ended

December

31,

2022

Shares

sold

...................................

60,332

$748,720

33,670

$402,149

Shares

issued

in

reinvestment

of

distributions

..........

11,371

132,349

2,916

33,215

Shares

redeemed

...............................

(21,524)

(272,847)

(65,079)

(781,450)

Net

increase

(decrease)

..........................

50,179

$608,222

(28,493)

$(346,086)

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

2,083

$25,827

1,916

$22,930

Shares

issued

in

reinvestment

of

distributions

..........

133

1,690

295

3,687

Shares

redeemed

...............................

(1,548)

(19,175)

(10)

(125)

Net

increase

(decrease)

..........................

668

$8,342

2,201

$26,492

Year

ended

December

31,

2022

Shares

sold

...................................

1,123

$14,120

1,639

$20,469

Shares

issued

in

reinvestment

of

distributions

..........

292

3,441

924

10,610

Shares

redeemed

...............................

(18)

(224)

(5,491)

(64,556)

Net

increase

(decrease)

..........................

1,397

$17,337

(2,928)

$(33,477)

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

22,587

$283,469

10,571

$131,118

Shares

issued

in

reinvestment

of

distributions

..........

4,576

58,113

1,369

17,115

Shares

redeemed

...............................

(35,313)

(448,808)

(9,408)

(113,306)

Net

increase

(decrease)

..........................

(8,150)

$(107,226)

2,532

$34,927

Year

ended

December

31,

2022

Shares

sold

...................................

36,349

$487,153

47,196

$647,725

Shares

issued

in

reinvestment

of

distributions

..........

11,365

133,972

4,236

48,536

Shares

redeemed

...............................

(17,375)

(230,870)

(16,048)

(193,347)

Net

increase

(decrease)

..........................

30,339

$390,255

35,384

$502,914

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

134

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

1,263,219

$15,954,250

494,159

$6,017,634

Shares

issued

in

reinvestment

of

distributions

..........

73,873

965,293

26,729

336,775

Shares

redeemed

...............................

(1,192,737)

(15,090,459)

(410,718)

(5,006,711)

Net

increase

(decrease)

..........................

144,355

$1,829,084

110,170

$1,347,698

Year

ended

December

31,

2022

Shares

sold

a

...................................

762,207

$9,891,616

524,546

$6,511,712

Shares

issued

in

reinvestment

of

distributions

..........

205,547

2,432,553

84,393

960,811

Shares

redeemed

...............................

(588,922)

(7,576,569)

(562,913)

(7,176,541)

Net

increase

(decrease)

..........................

378,832

$4,747,600

46,026

$295,982

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

293,381

$3,543,819

152,186

$1,821,315

Shares

issued

in

reinvestment

of

distributions

..........

9,885

123,092

5,244

64,570

Shares

redeemed

a

..............................

(362,768)

(4,389,042)

(151,360)

(1,813,858)

Net

increase

(decrease)

..........................

(59,502)

$(722,131)

6,070

$72,027

Year

ended

December

31,

2022

Shares

sold

...................................

175,032

$2,194,961

125,525

$1,530,233

Shares

issued

in

reinvestment

of

distributions

..........

32,863

373,406

19,786

222,132

Shares

redeemed

a

..............................

(217,057)

(2,807,107)

(126,277)

(1,583,802)

Net

increase

(decrease)

..........................

(9,162)

$(238,740)

19,034

$168,563

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

30,775

$386,506

38,461

$470,326

Shares

issued

in

reinvestment

of

distributions

..........

1,977

25,644

1,443

18,172

Shares

redeemed

...............................

(62,299)

(769,183)

(44,783)

(541,954)

Net

increase

(decrease)

..........................

(29,547)

$(357,033)

(4,879)

$(53,456)

Year

ended

December

31,

2022

Shares

sold

...................................

38,097

$489,715

63,265

$777,563

Shares

issued

in

reinvestment

of

distributions

..........

8,169

96,145

5,819

66,384

Shares

redeemed

...............................

(85,346)

(1,096,589)

(57,135)

(714,523)

Net

increase

(decrease)

..........................

(39,080)

$(510,729)

11,949

$129,424

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

135

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

58,437

$781,915

6,869

$82,564

Shares

issued

in

reinvestment

of

distributions

..........

45

616

92

1,167

Shares

redeemed

...............................

(56,127)

(747,622)

(24)

(297)

Net

increase

(decrease)

..........................

2,355

$34,909

6,937

$83,434

Year

ended

December

31,

2022

Shares

sold

...................................

1,571

$21,756

393

$5,060

Capital

c

ontributions

.............................

—

131

b

—

6

b

Shares

issued

in

reinvestment

of

distributions

..........

5

60

—

—

Shares

redeemed

...............................

(674)

(9,394)

(115)

(1,498)

Net

increase

(decrease)

..........................

902

$12,553

278

$3,568

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

12,103

$154,145

7,472

$91,343

Shares

issued

in

reinvestment

of

distributions

..........

1,702

22,528

1,179

15,011

Shares

redeemed

...............................

(4,708)

(60,039)

(1,300)

(16,041)

Net

increase

(decrease)

..........................

9,097

$116,634

7,351

$90,313

Year

ended

December

31,

2022

Shares

sold

...................................

8,574

$112,346

20,407

$264,364

Shares

issued

in

reinvestment

of

distributions

..........

4,518

54,042

3,570

41,017

Shares

redeemed

...............................

(11,004)

(143,345)

(3,959)

(47,902)

Net

increase

(decrease)

..........................

2,088

$23,043

20,018

$257,479

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

136

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

459,271

$5,058,960

108,322

$1,021,446

Shares

issued

in

reinvestment

of

distributions

..........

28,347

324,635

2,981

29,275

Shares

redeemed

...............................

(276,976)

(3,056,110)

(13,975)

(132,824)

Net

increase

(decrease)

..........................

210,642

$2,327,485

97,328

$917,897

Year

ended

December

31,

2022

Shares

sold

a

...................................

467,245

$5,255,655

152,804

$1,509,145

Shares

issued

in

reinvestment

of

distributions

..........

58,870

606,004

3,535

31,222

Shares

redeemed

...............................

(225,259)

(2,488,350)

(3,971)

(38,145)

Net

increase

(decrease)

..........................

300,856

$3,373,309

152,368

$1,502,222

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

137,374

$1,475,951

12,517

$118,071

Shares

issued

in

reinvestment

of

distributions

..........

7,527

83,693

226

2,201

Shares

redeemed

a

..............................

(123,913)

(1,332,566)

(2,635)

(24,776)

Net

increase

(decrease)

..........................

20,988

$227,078

10,108

$95,496

Year

ended

December

31,

2022

Shares

sold

...................................

149,632

$1,635,813

13,882

$134,024

Shares

issued

in

reinvestment

of

distributions

..........

17,594

176,906

309

2,736

Shares

redeemed

a

..............................

(74,585)

(824,234)

(660)

(6,637)

Net

increase

(decrease)

..........................

92,641

$988,485

13,531

$130,123

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

47,271

$518,862

3,410

$32,291

Shares

issued

in

reinvestment

of

distributions

..........

1,338

15,239

30

294

Shares

redeemed

...............................

(48,253)

(524,804)

(2,930)

(27,722)

Net

increase

(decrease)

..........................

356

$9,297

510

$4,863

Year

ended

December

31,

2022

Shares

sold

...................................

35,910

$393,368

164

$1,540

Shares

issued

in

reinvestment

of

distributions

..........

3,008

30,805

62

553

Shares

redeemed

...............................

(14,486)

(160,457)

(3)

(30)

Net

increase

(decrease)

..........................

24,432

$263,716

223

$2,063

Class

R6

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

137

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Management

and

Asset

Allocation

Fees

The

Funds,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund,

pay

an

asset

allocation

fee,

calculated

daily

and

paid

monthly,

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

326

$3,651

—

$—

Shares

issued

in

reinvestment

of

distributions

..........

5

59

—

—

Shares

redeemed

...............................

(20)

(224)

—

—

Net

increase

(decrease)

..........................

311

$3,486

—

$—

Year

ended

December

31,

2022

Shares

sold

...................................

417

$5,173

—

$—

Capital

c

ontributions

.............................

—

70

b

—

17

b

Shares

redeemed

...............................

(603)

(7,468)

—

—

Net

increase

(decrease)

..........................

(186)

$(2,225)

—

$17

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

12,689

$140,610

383

$3,640

Shares

issued

in

reinvestment

of

distributions

..........

880

10,103

37

364

Shares

redeemed

...............................

(9,090)

(101,138)

(62)

(606)

Net

increase

(decrease)

..........................

4,479

$49,575

358

$3,398

Year

ended

December

31,

2022

Shares

sold

...................................

10,495

$111,106

1,228

$11,427

Shares

issued

in

reinvestment

of

distributions

..........

1,679

17,314

56

492

Shares

redeemed

...............................

(907)

(10,684)

(8)

(75)

Net

increase

(decrease)

..........................

11,267

$117,736

1,276

$11,844

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

b

An

affiliate

of

the

Fund

voluntarily

made

a

capital

contribution

to

the

Fund.

This

contribution

was

made

to

reimburse

the

Fund

for

previously

over-accrued

transfer

agent

fees.

The

affiliate

did

not

receive

any

shares

of

the

Fund

or

other

consideration

in

exchange

for

making

this

cash

contribution.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

138

franklintempleton.com

Semiannual

Report

Franklin

LifeSmart

TM

Retirement

Income

Fund pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

 Advisers of

0.25%

per

year

of

the

average

daily

net

assets

of

the

Fund. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class

A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class

C

and

R

compensation

distribution

plans,

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$1,748

$708

$6,176

$8,107

CDSC

retained

...........................

$58

$285

$809

$411

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$11,854

$8,806

$12,429

$8,998

3.

Transactions

with

Affiliates

(continued)

a.

Management

and

Asset

Allocation

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

139

franklintempleton.com

Semiannual

Report

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2023,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

CDSC

retained

...........................

$475

$369

$4,628

$583

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

.............

$9,491

$2,743

CDSC

retained

.............................................................

$996

$12

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Transfer

agent

fees

........................

$23,896

$14,273

$57,907

$43,631

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Transfer

agent

fees

........................

$77,545

$44,917

$71,692

$55,303

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Transfer

agent

fees

..........................................................

$59,821

$11,160

3.

Transactions

with

Affiliates

(continued)

d.

Sales

Charges/Underwriting

Agreements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

140

franklintempleton.com

Semiannual

Report

f.

Investments

in

FT

Underlying

Funds

The Funds

invest in

FT Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

FT

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

and

asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2023,

were

as

follows:

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

2,252,957

$

5,108

$

(98,960)

$

(22,661)

$

99,918

$

2,236,362

247,385

$

—

ClearBridge

Tactical

Dividend

Income

Fund,

Class

IS

.......

4,254,426

976,195

(503,575)

(57,151)

410,748

5,080,643

251,517

105,391

Franklin

High

Yield

Corporate

ETF

2,000,045

42,869

(98,297)

(16,574)

81,210

2,009,253

88,280

54,621

Franklin

Investment

Grade

Corporate

ETF

............

2,580,137

127,429

(128,087)

(35,055)

78,983

2,623,407

123,629

39,312

Franklin

U.S.

Core

Bond

ETF

...

3,983,538

1,406,022

(242,805)

(41,183)

76,845

5,182,417

242,169

62,989

Franklin

U.S.

Core

Equity

(IU)

Fund

1,352,460

90,496

(593,625)

92,240

70,225

1,011,796

75,507

14,427

Franklin

U.S.

Government

Securities

Fund,

Class

R6

.....

2,338,342

939,005

(214,929)

(32,506)

33,592

3,063,504

599,512

39,005

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

108,271

5,650,947

(4,746,168)

—

—

1,013,050

1,013,050

16,029

Templeton

Developing

Markets

Trust,

Class

R6

............

434,775

36,871

(40,833)

(11,042)

49,890

469,661

26,400

—

Templeton

Foreign

Fund,

Class

R6

993,468

33,596

(197,509)

26,628

92,273

948,456

125,126

—

Western

Asset

Income

Fund,

Class

IS

.....................

6,703,412

248,145

(497,964)

(105,370)

107,524

6,455,747

1,283,449

248,434

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

141

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short

Duration

High

Income

Fund,

Class

I

........

$

5,001,984

$

186,354

$

(453,727)

$

(63,449)

$

114,115

$

4,785,277

1,011,687

$

186,464

Total

Non-Controlled

Affiliates

$32,003,815

$9,743,037

$(7,816,479)

$(266,123)

$1,215,323

$34,879,573

$766,672

Total

Affiliated

Securities

....

$32,003,815

$9,743,037

$(7,816,479)

$(266,123)

$1,215,323

$34,879,573

$766,672

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,148,635

7,237

(143,387)

(40,700)

80,533

1,052,318

116,407

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

993,724

9,610

(182,677)

14,137

31,287

866,081

22,613

6,150

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

796,484

41,123

(23,196)

(3,107)

47,382

858,686

91,740

3,751

Franklin

Growth

Fund,

Class

R6

.

2,365,638

2,179

(561,335)

123,283

256,982

2,186,747

17,939

—

Franklin

High

Yield

Corporate

ETF

564,767

39,364

(33,770)

(5,197)

22,909

588,073

25,838

15,739

Franklin

International

Aggregate

Bond

ETF

................

687,942

51,710

(50,918)

(15,063)

32,629

706,300

35,871

—

Franklin

International

Core

Equity

(IU)

Fund

................

2,121,449

624,258

(353,368)

(26,527)

277,930

2,643,742

236,471

28,416

Franklin

International

Growth

Fund,

Class

R6

................

321,494

84,764

(47,885)

350

42,640

401,363

24,578

—

Franklin

Investment

Grade

Corporate

ETF

............

740,948

30,601

(58,748)

(12,385)

24,841

725,257

34,178

10,753

Franklin

Systematic

Style

Premia

ETF

....................

311,909

29,622

(26,396)

(4,421)

13,429

324,143

14,835

—

Franklin

U.S.

Core

Bond

ETF

...

5,721,468

190,354

(335,052)

(57,369)

118,172

5,637,573

263,438

73,810

Franklin

U.S.

Core

Equity

(IU)

Fund

5,318,184

53,318

(1,115,144)

(142,685)

746,900

4,860,573

362,729

48,486

Franklin

U.S.

Equity

Index

ETF

.

462,737

10,600

(64,468)

6,307

67,013

482,189

12,425

2,868

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

1,244,111

1,060

(244,547)

(4,696)

158,153

1,154,081

25,778

9,060

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

186,396

13,281

(190,072)

(5,442)

(4,163)

—

—

1,216

Franklin

U.S.

Treasury

Bond

ETF

1,589,201

81,195

(91,656)

(19,015)

23,541

1,583,266

76,223

22,589

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

365,822

3,443,986

(3,173,789)

—

—

636,019

636,019

10,399

Templeton

Developing

Markets

Trust,

Class

R6

............

556,657

10,385

(40,483)

(5,332)

53,352

574,579

32,298

—

Templeton

Foreign

Fund,

Class

R6

527,165

78,817

(55,111)

(9)

67,161

618,023

81,533

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

3,293,679

198,021

(303,378)

(78,142)

116,373

3,226,553

341,073

66,779

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

142

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2020

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

1,039,466

$

59,254

$

(58,575)

$

(5,017)

$

1,914

$

1,037,042

288,067

$

18,814

Total

Non-Controlled

Affiliates

$30,357,876

$5,060,739

$(7,153,955)

$(281,030)

$2,178,978

$30,162,608

$318,830

Total

Affiliated

Securities

....

$30,357,876

$5,060,739

$(7,153,955)

$(281,030)

$2,178,978

$30,162,608

$318,830

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

2,917,165

78,652

(363,172)

(101,879)

203,359

2,734,125

302,448

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

4,124,126

103,143

(723,319)

19,229

172,257

3,695,436

96,487

26,006

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

3,318,843

227,791

(131,456)

(18,631)

203,139

3,599,686

384,582

15,871

Franklin

Growth

Fund,

Class

R6

.

9,776,078

57,836

(2,132,642)

434,151

1,162,578

9,298,001

76,276

—

Franklin

High

Yield

Corporate

ETF

1,653,265

174,320

(111,142)

(16,593)

68,670

1,768,520

77,703

47,052

Franklin

International

Aggregate

Bond

ETF

................

1,749,249

172,370

(129,730)

(38,396)

83,249

1,836,742

93,283

—

Franklin

International

Core

Equity

(IU)

Fund

................

8,737,714

2,862,134

(1,266,891)

(104,379)

1,156,096

11,384,674

1,018,307

119,682

Franklin

International

Growth

Fund,

Class

R6

................

1,334,547

374,891

(168,629)

(1,019)

178,411

1,718,201

105,217

—

Franklin

Investment

Grade

Corporate

ETF

............

2,168,184

152,312

(175,161)

(36,944)

72,813

2,181,204

102,790

32,175

Franklin

Systematic

Style

Premia

ETF

....................

1,090,313

116,367

(79,031)

(15,687)

48,443

1,160,405

53,108

—

Franklin

U.S.

Core

Bond

ETF

...

16,728,174

1,114,970

(1,075,084)

(187,395)

358,676

16,939,341

791,558

220,616

Franklin

U.S.

Core

Equity

(IU)

Fund

22,138,668

254,347

(4,078,675)

(537,768)

3,094,447

20,871,019

1,557,539

204,520

Franklin

U.S.

Equity

Index

ETF

.

1,973,904

13,048

(238,909)

26,104

286,558

2,060,705

53,100

12,207

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

5,175,563

30,250

(915,320)

(17,865)

668,234

4,940,862

110,361

38,566

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

783,624

73,756

(816,246)

(23,526)

(17,608)

—

—

5,121

Franklin

U.S.

Treasury

Bond

ETF

4,648,972

404,589

(305,697)

(62,869)

73,506

4,758,501

229,088

67,516

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

1,580,072

7,639,127

(7,416,534)

—

—

1,802,665

1,802,665

39,355

Templeton

Developing

Markets

Trust,

Class

R6

............

2,301,822

136,007

(199,208)

(28,042)

223,728

2,434,307

136,836

—

Templeton

Foreign

Fund,

Class

R6

2,189,180

361,950

(185,984)

(1,535)

282,187

2,645,798

349,050

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

9,628,633

848,795

(892,429)

(231,336)

338,841

9,692,504

1,024,578

199,021

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

143

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2025

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

3,128,680

$

298,116

$

(202,555)

$

(17,393)

$

6,826

$

3,213,674

892,687

$

57,890

Total

Non-Controlled

Affiliates

$107,146,776

$15,494,771

$(21,607,814)

$(961,773)

$8,664,410

$108,736,370

$1,085,598

Total

Affiliated

Securities

....

$107,146,776

$15,494,771

$(21,607,814)

$(961,773)

$8,664,410

$108,736,370

$1,085,598

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,094,160

42,751

(98,761)

(25,134)

63,107

1,076,123

119,040

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,391,404

97,077

(347,795)

8,654

106,381

2,255,721

58,896

15,653

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,880,693

236,204

(19,865)

(219)

106,203

2,203,016

235,365

9,562

Franklin

Growth

Fund,

Class

R6

.

5,674,604

99,899

(1,041,816)

75,417

875,920

5,684,024

46,629

—

Franklin

High

Yield

Corporate

ETF

652,305

88,255

(22,442)

(3,528)

24,154

738,744

32,458

19,234

Franklin

International

Aggregate

Bond

ETF

................

650,089

81,113

(25,459)

(7,232)

24,112

722,623

36,700

—

Franklin

International

Core

Equity

(IU)

Fund

................

5,195,817

1,611,898

(506,742)

5,254

621,595

6,927,822

619,662

71,862

Franklin

International

Growth

Fund,

Class

R6

................

781,964

227,095

(65,893)

82

104,654

1,047,902

64,170

—

Franklin

Investment

Grade

Corporate

ETF

............

856,547

81,618

(39,442)

(8,411)

21,978

912,290

42,992

13,145

Franklin

Systematic

Style

Premia

ETF

....................

544,509

68,838

(22,185)

(1,982)

19,034

608,214

27,836

—

Franklin

U.S.

Core

Bond

ETF

...

6,610,946

621,275

(204,877)

(35,346)

97,908

7,089,906

331,304

89,915

Franklin

U.S.

Core

Equity

(IU)

Fund

12,706,277

305,580

(1,809,346)

(243,293)

1,751,699

12,710,917

948,576

123,060

Franklin

U.S.

Equity

Index

ETF

.

1,099,105

69,619

(97,355)

2,624

180,476

1,254,469

32,325

7,305

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

2,995,238

50,082

(421,149)

(9,258)

397,034

3,011,947

67,276

23,129

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

453,627

47,090

(475,927)

(14,684)

(10,106)

—

—

3,087

Franklin

U.S.

Treasury

Bond

ETF

1,836,835

210,655

(59,796)

(12,274)

14,718

1,990,138

95,811

27,504

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

755,711

4,148,988

(3,726,043)

—

—

1,178,656

1,178,656

21,795

Templeton

Developing

Markets

Trust,

Class

R6

............

1,334,804

156,956

(115,343)

(3,746)

117,458

1,490,129

83,762

—

Templeton

Foreign

Fund,

Class

R6

1,274,672

230,022

(55,827)

(392)

165,113

1,613,588

212,874

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

3,805,315

435,800

(222,426)

(56,163)

95,171

4,057,697

428,932

80,830

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

144

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2030

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

1,297,032

$

153,322

$

(39,903)

$

(3,450)

$

(1,709)

$

1,405,292

390,359

$

24,590

Total

Non-Controlled

Affiliates

$53,891,654

$9,064,137

$(9,418,392)

$(333,081)

$4,774,900

$57,979,218

$530,671

Total

Affiliated

Securities

....

$53,891,654

$9,064,137

$(9,418,392)

$(333,081)

$4,774,900

$57,979,218

$530,671

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

1,817,990

59,380

(150,574)

(37,187)

102,030

1,791,639

198,190

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

5,384,764

184,317

(715,309)

19,898

241,759

5,115,429

133,562

35,599

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

4,245,221

512,716

(21,015)

(4,649)

243,818

4,976,091

531,634

21,620

Franklin

Growth

Fund,

Class

R6

.

12,769,707

191,156

(2,250,979)

214,662

1,940,598

12,865,144

105,539

—

Franklin

High

Yield

Corporate

ETF

955,206

123,385

(15,220)

(2,119)

32,821

1,094,073

48,070

28,318

Franklin

International

Aggregate

Bond

ETF

................

1,067,068

140,470

(31,518)

(9,086)

37,346

1,204,280

61,162

—

Franklin

International

Core

Equity

(IU)

Fund

................

11,077,804

4,171,095

(858,759)

(74,848)

1,442,607

15,757,899

1,409,472

162,459

Franklin

International

Growth

Fund,

Class

R6

................

1,745,352

502,749

(104,006)

(2,852)

238,228

2,379,471

145,712

—

Franklin

Investment

Grade

Corporate

ETF

............

1,254,204

127,477

(51,218)

(10,691)

31,327

1,351,099

63,671

19,348

Franklin

Systematic

Style

Premia

ETF

....................

1,087,488

122,777

(27,673)

(5,383)

39,830

1,217,039

55,700

—

Franklin

U.S.

Core

Bond

ETF

...

9,671,832

907,593

(186,532)

(30,868)

126,436

10,488,461

490,115

132,228

Franklin

U.S.

Core

Equity

(IU)

Fund

27,947,872

429,550

(2,882,374)

(414,668)

3,787,002

28,867,382

2,154,282

278,200

Franklin

U.S.

Equity

Index

ETF

.

2,853,686

40,623

(480,068)

43,197

394,950

2,852,388

73,500

16,643

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

6,790,007

99,437

(932,903)

(20,129)

902,250

6,838,662

152,751

52,750

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

1,026,129

98,262

(1,068,569)

(33,830)

(21,992)

—

—

6,994

Franklin

U.S.

Treasury

Bond

ETF

2,688,143

294,820

(41,168)

(8,143)

12,515

2,946,167

141,837

40,453

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

1,530,736

5,507,930

(4,830,031)

—

—

2,208,635

2,208,635

45,065

Templeton

Developing

Markets

Trust,

Class

R6

............

3,018,692

326,888

(226,695)

(30,952)

289,608

3,377,541

189,856

—

Templeton

Foreign

Fund,

Class

R6

2,862,874

491,278

(61,781)

(1,155)

372,962

3,664,178

483,401

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

5,566,784

673,397

(299,777)

(73,348)

133,998

6,001,054

634,361

118,863

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

145

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2035

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

2,052,794

$

218,866

$

(29,949)

$

(2,468)

$

(5,226)

$

2,234,017

620,560

$

39,038

Total

Non-Controlled

Affiliates

$107,414,353

$15,224,166

$(15,266,118)

$(484,619)

$10,342,867

$117,230,649

$997,578

Total

Affiliated

Securities

....

$107,414,353

$15,224,166

$(15,266,118)

$(484,619)

$10,342,867

$117,230,649

$997,578

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,221,231

126,982

(309,890)

9,913

98,638

2,146,874

56,054

14,777

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,709,541

293,157

(22,118)

(5,328)

101,896

2,077,148

221,917

8,945

Franklin

Growth

Fund,

Class

R6

.

5,263,064

217,590

(979,174)

9,775

881,774

5,393,029

44,241

—

Franklin

High

Yield

Corporate

ETF

255,736

44,950

(5,588)

(859)

8,992

303,231

13,323

7,682

Franklin

International

Core

Equity

(IU)

Fund

................

4,544,929

1,777,864

(329,435)

(3,719)

564,277

6,553,916

586,218

67,345

Franklin

International

Growth

Fund,

Class

R6

................

721,611

221,978

(45,381)

(235)

97,201

995,174

60,941

—

Franklin

Investment

Grade

Corporate

ETF

............

335,548

52,606

(19,826)

(4,101)

9,309

373,536

17,603

5,241

Franklin

Systematic

Style

Premia

ETF

....................

402,222

50,360

(9,557)

(643)

13,451

455,833

20,862

—

Franklin

U.S.

Core

Bond

ETF

...

2,584,370

386,762

(86,579)

(14,801)

37,481

2,907,233

135,852

35,761

Franklin

U.S.

Core

Equity

(IU)

Fund

10,261,687

245,792

(1,685,316)

(96,938)

1,261,135

9,986,360

745,251

96,753

Franklin

U.S.

Equity

Index

ETF

.

1,172,213

1,855,524

(214,308)

11,129

401,357

3,225,915

83,125

13,412

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

3,879,808

120,298

(1,532,786)

(71,644)

465,888

2,861,564

63,917

23,202

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

420,342

46,348

(443,266)

(14,400)

(9,024)

—

—

2,905

Franklin

U.S.

Treasury

Bond

ETF

718,725

111,830

(14,551)

(2,283)

2,516

816,237

39,296

10,938

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

714,891

3,076,776

(2,746,080)

—

—

1,045,587

1,045,587

16,281

Templeton

Developing

Markets

Trust,

Class

R6

............

1,238,555

190,767

(121,290)

(16,079)

121,526

1,413,479

79,454

—

Templeton

Foreign

Fund,

Class

R6

1,182,080

231,659

(34,541)

(515)

154,018

1,532,701

202,203

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

1,488,174

256,210

(92,118)

(22,836)

37,686

1,667,116

176,228

32,052

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

146

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2040

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

607,513

$

79,276

$

(8,250)

$

(733)

$

(1,812)

$

675,994

187,776

$

11,588

Total

Non-Controlled

Affiliates

$39,722,240

$9,386,729

$(8,700,054)

$(224,297)

$4,246,309

$44,430,927

$346,882

Total

Affiliated

Securities

....

$39,722,240

$9,386,729

$(8,700,054)

$(224,297)

$4,246,309

$44,430,927

$346,882

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

4,396,296

309,156

(644,994)

10,746

204,172

4,275,376

111,629

29,917

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

3,534,143

494,905

(75,869)

(10,306)

209,872

4,152,745

443,669

17,866

Franklin

Growth

Fund,

Class

R6

.

10,412,946

417,246

(1,897,083)

81,037

1,694,509

10,708,655

87,848

—

Franklin

International

Core

Equity

(IU)

Fund

................

9,522,302

3,031,408

(707,260)

(99,541)

1,250,921

12,997,830

1,162,597

134,711

Franklin

International

Growth

Fund,

Class

R6

................

1,422,808

477,352

(117,843)

(2,916)

193,675

1,973,076

120,825

—

Franklin

Systematic

Style

Premia

ETF

....................

726,599

109,797

(33,114)

(6,934)

30,321

826,669

37,834

—

Franklin

U.S.

Core

Bond

ETF

...

3,142,919

639,876

(177,929)

(29,238)

55,652

3,631,280

169,686

44,612

Franklin

U.S.

Core

Equity

(IU)

Fund

22,078,457

255,176

(4,878,011)

(699,082)

3,085,298

19,841,838

1,480,734

193,599

Franklin

U.S.

Equity

Index

ETF

.

2,322,826

3,708,905

(441,943)

22,072

801,162

6,413,022

165,250

26,771

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

6,733,733

231,927

(2,044,136)

(76,354)

845,858

5,691,028

127,117

43,743

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

831,174

104,246

(887,801)

(29,397)

(18,222)

—

—

5,844

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

817,913

6,034,623

(5,395,422)

—

—

1,457,114

1,457,114

28,069

Templeton

Developing

Markets

Trust,

Class

R6

............

2,447,029

370,953

(217,230)

(29,622)

238,661

2,809,791

157,942

—

Templeton

Foreign

Fund,

Class

R6

2,334,095

516,783

(114,407)

(3,426)

305,068

3,038,113

400,806

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

3,208,080

733,813

(273,140)

(68,623)

98,535

3,698,665

390,979

70,540

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

147

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2045

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

379,129

$

40,496

$

(13,998)

$

(652)

$

(691)

$

404,284

112,301

$

7,248

Total

Non-Controlled

Affiliates

$74,310,449

$17,476,662

$(17,920,180)

$(942,236)

$8,994,791

$81,919,486

$602,920

Total

Affiliated

Securities

....

$74,310,449

$17,476,662

$(17,920,180)

$(942,236)

$8,994,791

$81,919,486

$602,920

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

2,059,453

119,422

(229,649)

12,853

89,977

2,052,056

53,578

14,044

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,633,694

282,554

(13,828)

(2,435)

95,312

1,995,297

213,173

8,481

Franklin

Growth

Fund,

Class

R6

.

4,882,286

165,227

(727,549)

(33,941)

877,008

5,163,031

42,355

—

Franklin

International

Core

Equity

(IU)

Fund

................

4,361,105

1,574,263

(199,884)

(610)

538,045

6,272,919

561,084

63,761

Franklin

International

Growth

Fund,

Class

R6

................

670,060

211,028

(19,371)

(1,214)

91,581

952,084

58,303

—

Franklin

Systematic

Style

Premia

ETF

....................

325,248

46,107

(5,293)

(141)

10,727

376,648

17,238

—

Franklin

U.S.

Core

Bond

ETF

...

637,746

223,316

(43,421)

(1,774)

5,893

821,760

38,400

9,406

Franklin

U.S.

Core

Equity

(IU)

Fund

9,106,717

283,257

(1,126,832)

(102,633)

1,192,800

9,353,309

698,008

90,848

Franklin

U.S.

Equity

Index

ETF

.

1,086,644

1,778,731

(169,641)

10,300

382,113

3,088,147

79,575

12,801

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

4,251,829

326,869

(2,003,854)

(139,787)

525,225

2,960,282

66,122

24,129

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

388,008

43,492

(409,182)

(13,751)

(8,567)

—

—

2,775

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

513,740

2,494,696

(2,249,910)

—

—

758,526

758,526

13,644

Templeton

Developing

Markets

Trust,

Class

R6

............

1,147,868

186,950

(77,115)

(9,794)

109,291

1,357,200

76,290

—

Templeton

Foreign

Fund,

Class

R6

1,097,845

241,148

(16,316)

274

143,499

1,466,450

193,463

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

652,179

243,406

(66,924)

(3,235)

9,038

834,464

88,210

14,762

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

148

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2050

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

170,002

$

16,599

$

(1,991)

$

(97)

$

(517)

$

183,996

51,110

$

3,247

Total

Non-Controlled

Affiliates

$32,984,424

$8,237,065

$(7,360,760)

$(285,985)

$4,061,425

$37,636,169

$257,898

Total

Affiliated

Securities

....

$32,984,424

$8,237,065

$(7,360,760)

$(285,985)

$4,061,425

$37,636,169

$257,898

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

1,535,093

203,535

(227,940)

3,413

75,435

1,589,536

41,502

10,708

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

1,176,660

301,591

—

—

67,786

1,546,037

165,175

6,426

Franklin

Growth

Fund,

Class

R6

.

3,635,030

440,397

(698,104)

(71,814)

717,341

4,022,850

33,001

—

Franklin

International

Core

Equity

(IU)

Fund

................

3,177,361

1,423,883

(139,687)

(13,149)

412,240

4,860,648

434,763

48,312

Franklin

International

Growth

Fund,

Class

R6

................

499,649

189,524

(20,561)

(1,522)

70,887

737,977

45,192

—

Franklin

Systematic

Style

Premia

ETF

....................

241,350

46,138

(7,364)

(360)

8,393

288,157

13,188

—

Franklin

U.S.

Core

Bond

ETF

...

409,555

126,134

(49,881)

(2,093)

5,724

489,439

22,871

5,846

Franklin

U.S.

Core

Equity

(IU)

Fund

5,986,741

695,776

(287,598)

(29,718)

828,774

7,193,975

536,864

68,519

Franklin

U.S.

Equity

Index

ETF

.

808,337

1,463,521

(164,756)

5,120

295,814

2,408,036

62,050

9,852

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

3,730,960

462,088

(2,250,844)

(174,551)

471,922

2,239,575

50,024

21,744

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

290,055

53,263

(325,966)

(11,237)

(6,115)

—

—

2,113

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

418,686

2,257,999

(2,006,733)

—

—

669,952

669,952

10,868

Templeton

Developing

Markets

Trust,

Class

R6

............

856,596

249,670

(128,695)

(22,824)

96,453

1,051,200

59,089

—

Templeton

Foreign

Fund,

Class

R6

818,415

228,629

(19,372)

(209)

109,243

1,136,706

149,961

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

419,333

137,236

(66,392)

(3,276)

7,782

494,683

52,292

9,276

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

149

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

2055

Retirement

Target

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

126,941

$

19,181

$

(3,929)

$

(198)

$

(277)

$

141,718

39,366

$

2,470

Total

Non-Controlled

Affiliates

$24,130,762

$8,298,565

$(6,397,822)

$(322,418)

$3,161,402

$28,870,489

$196,134

Total

Affiliated

Securities

....

$24,130,762

$8,298,565

$(6,397,822)

$(322,418)

$3,161,402

$28,870,489

$196,134

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Non-Controlled

Affiliates

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

168,239

60,120

(23,832)

(536)

10,866

214,857

5,610

1,424

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

127,983

72,078

—

—

6,998

207,059

22,122

836

Franklin

Growth

Fund,

Class

R6

.

397,047

149,736

(82,073)

(20,114)

101,977

546,573

4,484

—

Franklin

International

Core

Equity

(IU)

Fund

................

349,433

260,401

(5,595)

(1,044)

48,954

652,149

58,332

6,268

Franklin

International

Growth

Fund,

Class

R6

................

54,227

42,377

(3,172)

(927)

8,953

101,458

6,213

—

Franklin

Systematic

Style

Premia

ETF

....................

27,485

18,124

(4,762)

(147)

1,230

41,930

1,919

—

Franklin

U.S.

Core

Bond

ETF

...

46,045

29,188

(6,537)

(242)

561

69,015

3,225

756

Franklin

U.S.

Core

Equity

(IU)

Fund

619,279

278,156

(27,706)

(4,027)

103,708

969,410

72,344

8,861

Franklin

U.S.

Equity

Index

ETF

.

88,061

211,245

(15,006)

67

38,710

323,077

8,325

1,307

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

433,828

68,168

(242,409)

(19,876)

58,233

297,944

6,655

2,667

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

32,334

16,017

(46,098)

(1,177)

(1,076)

—

—

282

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

43,913

580,459

(541,914)

—

—

82,458

82,458

1,571

Templeton

Developing

Markets

Trust,

Class

R6

............

93,071

57,505

(15,057)

(4,353)

12,552

143,718

8,079

—

Templeton

Foreign

Fund,

Class

R6

89,999

56,476

(3,197)

(59)

12,829

156,048

20,587

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

45,948

29,174

(7,776)

(346)

713

67,713

7,158

1,184

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

15,036

9,423

(4,248)

(179)

111

20,143

5,595

326

Total

Non-Controlled

Affiliates

$2,631,928

$1,938,647

$(1,029,382)

$(52,960)

$405,319

$3,893,552

$25,482

Total

Affiliated

Securities

....

$2,631,928

$1,938,647

$(1,029,382)

$(52,960)

$405,319

$3,893,552

$25,482

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

150

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

Franklin

LifeSmart

TM

Retirement

Income

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

other

than

Class

R6

do

not

exceed

0.05%

and

for

Class

R6

do

not

exceed

0.00%

based

on

the

average

net

assets

of

each

class

until

April

30,

2024.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

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,

except

Franklin

LifeSmart

TM

Retirement

Income

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

other

than

Class

R6

do

not

exceed

0.45%

and

for

Class

R6

do

not

exceed

0.40%

based

on

the

average

net

assets

of

each

class

until

April

30,

2024.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds'

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.00%

based

on

the

average

net

assets

of

the

class

until

April

30,

2024.

h.

Other

Affiliated

Transactions

At

June

30,

2023,

Templeton

International

Inc.

owned

24.3%

of

Franklin

LifeSmart

TM

2060

Retirement

Target

Fund’s

outstanding

shares.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the period

ended

June

30,

2023, the

custodian

fees

were

reduced

as

noted

in

the

Statements

of

Operations.

Effective

July

10,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains.

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

1

1

1

1

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

..............................................

$

635,970

$

139,096

$

1,072,652

Long

term

..............................................

1,519,558

—

287,912

Total

capital

loss

carryforwards

.............................

$2,155,528

$139,096

$1,360,564

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

151

franklintempleton.com

Semiannual

Report

At

June

30,

2023,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$49,182,054

$32,667,746

$111,580,601

$57,358,525

Unrealized

appreciation

.....................

$916,461

$3,037,771

$14,049,859

$7,742,288

Unrealized

depreciation

.....................

(4,662,568)

(3,133,113)

(8,588,129)

(3,375,370)

Net

unrealized

appreciation

(depreciation)

.......

$(3,746,107)

$(95,342)

$5,461,730

$4,366,918

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

a

a

a

a

a

Cost

of

investments

.......................

$111,756,912

$41,089,433

$71,400,885

$33,153,818

Unrealized

appreciation

.....................

$17,659,842

$6,896,184

$14,883,620

$6,453,369

Unrealized

depreciation

.....................

(5,551,084)

(1,274,077)

(1,770,139)

(720,279)

Net

unrealized

appreciation

(depreciation)

.......

$12,108,758

$5,622,107

$13,113,481

$5,733,090

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

a

a

a

Cost

of

investments

.........................................................

$26,256,756

$3,952,845

Unrealized

appreciation

.......................................................

$4,043,952

$149,649

Unrealized

depreciation

.......................................................

(461,494)

(86,526)

Net

unrealized

appreciation

(depreciation)

.........................................

$3,582,458

$63,123

5.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

152

franklintempleton.com

Semiannual

Report

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2023,

were

as

follows: 

7.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

8.

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.)

Franklin

LifeSmart™

Retirement

Income

Fund

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Purchases

..............................

$8,514,942

$1,915,067

$9,009,405

$5,758,056

Sales

..................................

$10,557,776

$4,147,407

$14,760,154

$5,844,442

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Purchases

..............................

$10,877,575

$6,846,910

$12,398,744

$6,135,536

Sales

..................................

$10,638,068

$6,026,142

$12,670,432

$5,144,901

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Purchases

................................................................

$6,416,791

$1,426,651

Sales

....................................................................

$4,416,295

$492,525

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

153

franklintempleton.com

Semiannual

Report

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2023,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

$

42,157,159

$

—

$

—

$

42,157,159

Index-Linked

N

otes:

Capital

Markets

........................

—

—

2,265,738

2,265,738

Short

Term

Investments

...................

1,013,050

—

—

1,013,050

Total

Investments

in

Securities

...........

$43,170,209

$—

$2,265,738

$45,435,947

Franklin

LifeSmart™

2020

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

31,936,385

—

—

31,936,385

Short

Term

Investments

...................

636,019

—

—

636,019

Total

Investments

in

Securities

...........

$32,572,404

$—

$—

$32,572,404

Franklin

LifeSmart™

2025

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

114,855,461

—

—

114,855,461

Short

Term

Investments

...................

1,802,665

384,205

—

2,186,870

Total

Investments

in

Securities

...........

$116,658,126

$384,205

$—

$117,042,331

Franklin

LifeSmart™

2030

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

60,546,787

—

—

60,546,787

Short

Term

Investments

...................

1,178,656

—

—

1,178,656

Total

Investments

in

Securities

...........

$61,725,443

$—

$—

$61,725,443

Franklin

LifeSmart™

2035

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

121,654,559

—

—

121,654,559

Short

Term

Investments

...................

2,208,635

2,476

—

2,211,111

Total

Investments

in

Securities

...........

$123,863,194

$2,476

$—

$123,865,670

Franklin

LifeSmart™

2040

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

45,661,305

—

—

45,661,305

Short

Term

Investments

...................

1,045,587

4,648

—

1,050,235

Total

Investments

in

Securities

...........

$46,706,892

$4,648

$—

$46,711,540

8.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

154

franklintempleton.com

Semiannual

Report

A

reconciliation

in

which

Level

3

inputs

are

used

in

determining

fair

value

is

presented

when

there

are

significant

Level

3

assets

and/or

liabilities

at

the

beginning

and/or

end

of

the period.

At

June

30,

2023,

the

reconciliation is

as follows:

The

Level

3

financial

instruments

include

UBS

AG

into

S&P

500

Index

(Senior

Note)

with

value

of

$2,265,738,

which

is

valued

using

recent

transactions,

private

transaction

prices

or

non-public

third-party

pricing

information

which

is

unobservable.

Level

1

Level

2

Level

3

Total

Franklin

LifeSmart™

2045

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

$

83,057,252

$

—

$

—

$

83,057,252

Short

Term

Investments

...................

1,457,114

—

—

1,457,114

Total

Investments

in

Securities

...........

$84,514,366

$—

$—

$84,514,366

Franklin

LifeSmart™

2050

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

38,128,382

—

—

38,128,382

Short

Term

Investments

...................

758,526

—

—

758,526

Total

Investments

in

Securities

...........

$38,886,908

$—

$—

$38,886,908

Franklin

LifeSmart™

2055

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

29,169,262

—

—

29,169,262

Short

Term

Investments

...................

669,952

—

—

669,952

Total

Investments

in

Securities

...........

$29,839,214

$—

$—

$29,839,214

Franklin

LifeSmart™

2060

Retirement

Target

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

...........................

3,933,510

—

—

3,933,510

Short

Term

Investments

...................

82,458

—

—

82,458

Total

Investments

in

Securities

...........

$4,015,968

$—

$—

$4,015,968

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

Balance

at

Beginning

of

Period

Purchases

Sales

a

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

LifeSmart™

Retirement

Income

Fund

Assets:

Investments

in

Securities:

Index-Linked

Notes

:

Capital

Markets

.....

$

4,556,722

$

—

$

(2,559,156)

$

—

$

—

$

—

$

(191,502)

$

459,674

$

2,265,738

$

211,693

Total

Investments

in

Securities

............

$4,556,722

$—

$(2,559,156)

$—

$—

$—

$(191,502)

$459,674

$2,265,738

$211,693

a

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

8.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

155

franklintempleton.com

Semiannual

Report

9.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Selected

Portfolio

ETF

Exchange-Traded

Fund

TIPS

Treasury

Inflation

Protected

Securities

Franklin

Fund

Allocator

Series

Shareholder

Information

156

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

LifeSmart

Retirement

Income

Fund

Franklin

LifeSmart

2020

Retirement

Target

Fund

Franklin

LifeSmart

2025

Retirement

Target

Fund

Franklin

LifeSmart

2030

Retirement

Target

Fund

Franklin

LifeSmart

2035

Retirement

Target

Fund

Franklin

LifeSmart

2040

Retirement

Target

Fund

Franklin

LifeSmart

2045

Retirement

Target

Fund

Franklin

LifeSmart

2050

Retirement

Target

Fund

Franklin

LifeSmart

2055

Retirement

Target

Fund

Franklin

LifeSmart

2060

Retirement

Target

Fund

(each

a

Fund)

March

27,

2023

15(c)

Meeting

At

a

meeting

held

on

March

27,

2023

(March

Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

(Independent

Trustees)

as

defined

in

the

Investment

Company

Act

of

1940

(1940

Act),

reviewed

and

approved

the

continuance

of

the

investment

management

agreements

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

the

period

May

1,

2023

through

June

30,

2023

(Stub

Period).

The

Independent

Trustees

noted

that

each

Fund’s

annual

contract

review

was

historically

held

at

the

February

Board

meeting

and

that

management

proposed

to

move

the

contract

review

to

the

May

Board

meeting.

The

Independent

Trustees

further

noted

management’s

explanation

that,

to

effect

this

change,

the

Board

needed

to

consider

the

renewal

of

each

Fund’s

Management

Agreement

prior

to

its

current

April

30,

2023

expiration

date.

The

Independent

Trustees

also

noted

that

management

would

ask

them

to

consider

the

continuation

of

the

Management

Agreements

again

at

the

May

Board

meeting

for

the

12-month

period

beginning

July

1,

2023.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement

for

the

Stub

Period.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

March

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

March

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

March

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors

(Factors).

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

each

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

Franklin

Fund

Allocator

Series

Shareholder

Information

157

franklintempleton.com

Semiannual

Report

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

December

31,

2022.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

LifeSmart

Retirement

Income

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

retirement

income

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund

seeks

to

provide

a

stable

and

consistent

income

with

a

modest

amount

of

risk.

Management

further

explained

that

investment

selection

had

been

a

main

detractor

of

Fund

performance

over

the

longer

periods,

primarily

with

respect

to

the

investment

in

higher

dividend-yielding

companies

which

were

out

of

favor

relative

to

higher

growth,

lower

dividend

paying

companies.

The

Board

noted

management’s

view

regarding

the

income-

related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

The

Board

further

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-

and

five-year

periods

was

in

the

first

quintile

of

the

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

LifeSmart

2020

Retirement

Target

Fund

and

Franklin

LifeSmart

2030

Retirement

Target

Fund

-

The

Performance

Universe

for

each

of

the

Franklin

LifeSmart

2020

Retirement

Target

Fund

and

Franklin

LifeSmart

2030

Retirement

Target

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2020

funds

or

2030

funds,

respectively.

Each

Fund

commenced

operations

on

July

1,

2013,

and

thus

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

each

Fund’s

annualized

total

return

and

annualized

income

return

for

the

one-,

three-

and

five-year

periods

were

below

the

medians

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

each

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers

but

since

the

adoption

of

the

new

glide

path

performance

relative

to

peers

has

improved.

Management

further

explained

that

investment

selection

had

been

a

main

detractor

of

Fund

performance

over

the

longer

period,

primarily

in

the

non-US

equity

portion

of

each

Fund’s

portfolio.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

each

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

each

Fund,

including

enhancements

the

portfolio

management

team

has

made

and

continues

to

make

to

the

Fund’s

portfolio

construction

Franklin

Fund

Allocator

Series

Shareholder

Information

158

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Report

and

the

continual

review

of

the

Fund’s

glide

path

to

ensure

consistency

with

peer

averages.

The

Board

concluded

that

each

Fund’s

Management

Agreement

should

be

continued

for

the

Stub

Period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2025

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2025

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

and

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

were

below

the

medians

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

the

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers

but

since

the

adoption

of

the

new

glide

path

performance

relative

to

peers

has

improved.

Management

further

explained

that

investment

selection

had

been

a

main

detractor

of

Fund

performance

over

the

longer

period,

primarily

in

the

non-US

equity

portion

of

the

Fund’s

portfolio.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund,

including

enhancements

the

portfolio

management

team

has

made

and

continues

to

make

to

the

Fund’s

portfolio

construction

and

the

continual

review

of

the

Fund’s

glide

path

to

ensure

consistency

with

peer

averages.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

the

Stub

Period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2035

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2035

funds.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

prior

to

May

1,

2019,

the

Fund’s

glide

path

was

one

of

the

most

conservative

amongst

its

peers

but

since

the

adoption

of

the

new

glide

path

performance

relative

to

peers

has

improved.

Management

further

explained

that

investment

selection

had

been

a

main

detractor

of

Fund

performance

over

the

longer

period,

primarily

in

the

non-US

equity

portion

of

the

Fund’s

portfolio.

The

Board

further

noted

management’s

view

regarding

the

income-related

attributes

of

the

Fund

(e.g.,

a

fund’s

investment

objective)

as

set

forth

in

the

Fund’s

registration

statement

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

these

attributes.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund,

including

enhancements

the

portfolio

management

team

has

made

and

continues

to

make

to

the

Fund’s

portfolio

construction

and

the

continual

review

of

the

Fund’s

glide

path

to

ensure

consistency

with

peer

averages.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

the

Stub

Period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

LifeSmart

2040

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2040

funds.

The

Fund

commenced

operations

on

July

1,

2013,

thus

the

Fund

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

LifeSmart

2045

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2045

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

LifeSmart

2050

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2050

funds.

The

Fund

commenced

operations

on

July

1,

2013,

thus

the

Fund

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

of

the

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

LifeSmart

2055

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

Franklin

Fund

Allocator

Series

Shareholder

Information

159

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Report

all

retail

and

institutional

mixed-asset

target

2055

funds.

The

Fund

commenced

operations

on

May

1,

2015,

thus

the

Fund

has

been

in

operation

for

less

than

ten

years.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

slightly

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

LifeSmart

2060

Retirement

Target

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

2060

funds.

The

Fund

commenced

operations

on

January

29,

2021,

thus

the

Fund

has

been

in

operation

for

less

than

three

years.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

funds

with

multiple

classes

of

shares.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

LifeSmart

Retirement

Income

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund

and

nine

mixed-asset

target

today

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

also

noted

that

the

Fund’s

investment

management

agreement

permits

the

Fund

to

pay

fees

for

services

other

than

asset

allocation

services,

including

in

order

for

the

Fund

to

employ

an

income

generation

strategy

to

generate

income

for

its

managed

distribution

policy.

The

Board

further

noted

that

the

Fund

invests

in

third-party

mutual

funds

or

exchange-traded

funds

in

excess

of

the

statutory

limitations

under

the

1940

Act

in

reliance

on

Rule

12d1-4

under

the

1940

Act.

The

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

Management

Rate

paid

by

the

Fund

is

based

on

services

provided

that

are

in

addition

to,

rather

than

duplicative

of,

the

services

provided

under

the

investment

management

agreements

of

the

underlying

funds

in

which

the

Fund

invests.

The

Board

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

2020

Retirement

Target

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund

and

seven

other

mixed-asset

target

2020

funds.

The

Board

noted

that

the

Management

Rate

was

below

the

median

of

its

Expense

Group,

but

that

the

actual

total

expense

ratio

for

the

Fund

was

above

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Management

Rate

paid

by

the

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

LifeSmart

2025

Retirement

Target

Fund,

Franklin

LifeSmart

2035

Retirement

Target

Fund,

Franklin

LifeSmart

2045

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

-

The

Expense

Group

for

each

of

the

Franklin

LifeSmart

2025

Retirement

Target

Fund,

Franklin

LifeSmart

2035

Retirement

Target

Fund,

Franklin

LifeSmart

2045

Retirement

Target

Fund

and

Franklin

LifeSmart

2055

Retirement

Target

Fund

included

the

Fund

and

ten

other

mixed-asset

target

2025,

2035,

2045,

or

2055

funds,

respectively.

The

Board

noted

that

the

Management

Rates

for

these

Funds

were

below

the

medians

of

their

respective

Expense

Groups,

but

their

actual

total

expense

ratios

were

equal

to

the

medians

of

their

respective

Expense

Groups.

The

Board

also

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

Franklin

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further

noted

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

each

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Franklin

LifeSmart

2030

Retirement

Target

Fund,

Franklin

LifeSmart

2040

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

-

The

Expense

Group

for

each

of

the

Franklin

LifeSmart

2030

Retirement

Target

Fund,

Franklin

LifeSmart

2040

Retirement

Target

Fund

and

Franklin

LifeSmart

2050

Retirement

Target

Fund

included

the

Fund

and

11

other

mixed-asset

target

2030,

2040,

or

2050

funds,

respectively.

The

Board

noted

that

the

Management

Rates

for

these

Funds

were

below

the

medians

and

in

the

first

quintile

(least

expensive)

of

their

respective

Expense

Groups,

and

that

their

actual

total

expense

ratios

were

above

the

medians

of

their

respective

Expense

Groups.

The

Board

also

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

each

Fund

invests

primarily

in

underlying

funds.

The

Board

concluded

that

the

Management

Rates

charged

to

these

Funds

are

reasonable.

Franklin

LifeSmart

2060

Retirement

Target

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund

and

10

other

mixed-asset

target

2060.

The

Board

noted

that

the

Management

Rate

and

the

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

of

the

Fund’s

Expense

Group.

The

Board

also

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Management

Rate

paid

by

the

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2022,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Funds

are

not

of

a

sufficient

size

to

likely

be

able

to

realize

economies

of

scale

and

that

the

asset

allocation

services

covered

by

the

current

Management

Rate

may

be

less

likely

to

experience

economies

of

scale

Franklin

Fund

Allocator

Series

Shareholder

Information

161

franklintempleton.com

Semiannual

Report

as

assets

grow.

The

Board

further

noted

that

the

Franklin

LifeSmart

2060

Retirement

Target

Fund

had

less

than

3

years

of

performance

so

was

omitted

from

management’s

economies

of

scale

analysis.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

the

Stub

Period.

May

24,

2023

15(c)

Meeting

At

a

meeting

held

on

May

24,

2023

(May

Meeting),

the

Board

reviewed

and

approved

the

Management

Agreements

for

an

additional

twelve-month

period

beginning

July

1,

2023.

The

Board

noted

its

review

and

consideration

of

the

information

it

received

in

connection

with

both

the

March

Meeting

and

the

May

Meeting.

In

particular,

the

Board

reviewed

and

considered

information

provided

in

response

to

a

follow-up

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees,

which

included

information

on

Fund

performance

for

the

one-,

three-

and

five-year

periods

ended

March

31,

2023,

as

applicable,

and

the

other

Factors.

The

Board

determined

that

the

conclusions

it

made

at

the

March

Meeting

had

not

changed.

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

Factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreements

for

an

additional

twelve-month

period

beginning

July

1,

2023.

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2023,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2022.

The

Franklin

Fund

Allocator

Series

Shareholder

Information

162

franklintempleton.com

Semiannual

Report

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

RTF

S

08/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

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Report

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Fund

Allocator

Series

June

30,

2023

Not

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Insured

May

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Value

No

Bank

Guarantee

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

franklintempleton.com

Semiannual

Report

1

Contents

Franklin

Conservative

Allocation

Fund

2

Franklin

Moderate

Allocation

Fund

6

Franklin

Growth

Allocation

Fund

10

Financial

Highlights

and

Schedules

of

Investments

14

Financial

Statements

35

Notes

to

Financial

Statements

40

Shareholder

Information

53

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

2

franklintempleton.com

Semiannual

Report

Franklin

Conservative

Allocation

Fund

This

semiannual

report

for

Franklin

Conservative

Allocation

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

lower

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+6.18%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Conservative

Allocation

Fund

Benchmark-

NR

(Blended

Benchmark-NR),

which

consists

of

40%

MSCI

All

Country

World

Index-NR

and

60%

Bloomberg

Multiverse

Index,

posted

a

+6.42%

cumulative

total

return.

2

The

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

3

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Thank

you

for

your

continued

participation

in

Franklin

Conservative

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition*

6/30/23

%

of

Total

Net

Assets

Domestic

Fixed

Income

54.4%

Domestic

Equity

28.8%

Foreign

Equity

9.1%

Foreign

Fixed

Income

4.1%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.6%

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Top

10

Holdings

6/30/23

Issuer

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Bond

ETF

20.4%

Franklin

U.S.

Core

Equity

(IU)

Fund

14.6%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

11.7%

Franklin

Growth

Fund,

Class

R6

6.4%

Franklin

U.S.

Treasury

Bond

ETF

5.7%

Franklin

International

Core

Equity

(IU)

Fund

4.5%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

4.2%

Schwab

U.S.

TIPS

ETF

4.2%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

3.4%

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

3.0%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

19

.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2023

Franklin

Conservative

Allocation

Fund

3

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+6.18%

+0.33%

1-Year

+5.89%

+0.06%

5-Year

+16.24%

+1.90%

10-Year

+47.16%

+3.35%

Advisor

6-Month

+6.39%

+6.39%

1-Year

+6.17%

+6.17%

5-Year

+17.71%

+3.31%

10-Year

+50.98%

+4.21%

See

page

4

for

Performance

Summary

footnotes.

Franklin

Conservative

Allocation

Fund

Performance

Summary

4

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

allocation

of

assets

among

different

strategies,

asset

classes

and

investments

may

not

prove

beneficial

or

produce

the

desired

results.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Net

expenses

are

capped

under

a

contrac-

tual

agreement,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

A

$0.1803

C

$0.1342

R

$0.1658

R6

$0.1993

Advisor

$0.1953

Total

Annual

Operating

Expenses

5

Share

Class

A

0.86%

Advisor

0.61%

Your

Fund’s

Expenses

Franklin

Conservative

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,061.80

$3.19

$1,021.70

$3.13

0.62%

C

$1,000

$1,058.60

$7.01

$1,017.99

$6.87

1.37%

R

$1,000

$1,060.90

$4.46

$1,020.46

$4.38

0.87%

R6

$1,000

$1,064.40

$1.57

$1,023.27

$1.54

0.31%

Advisor

$1,000

$1,063.90

$1.91

$1,022.94

$1.87

0.37%

6

franklintempleton.com

Semiannual

Report

Franklin

Moderate

Allocation

Fund

This

semiannual

report

for

Franklin

Moderate

Allocation

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

moderate

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+8.27%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Moderate

Allocation

Fund

Benchmark-NR

(Blended

Benchmark-NR),

which

consists

of

60%

MSCI

All

Country

World

Index-NR

and

40%

Bloomberg

Multiverse

Index,

posted

a

+8.89%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

7

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Thank

you

for

your

continued

participation

in

Franklin

Moderate

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

44.0%

Domestic

Fixed

Income

35.8%

Foreign

Equity

14.0%

Foreign

Fixed

Income

2.6%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.6%

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Top

10

Holdings

6/30/23

Issuer

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

22.3%

Franklin

U.S.

Core

Bond

ETF

13.4%

Franklin

Growth

Fund,

Class

R6

9.8%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

7.7%

Franklin

International

Core

Equity

(IU)

Fund

6.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

5.2%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

3.9%

Franklin

U.S.

Treasury

Bond

ETF

3.8%

Western

Asset

Short-Term

Bond

Fund,

Class

IS

3.1%

Schwab

U.S.

TIPS

ETF

2.7%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

26

.

Performance

Summary

as

of

June

30,

2023

Franklin

Moderate

Allocation

Fund

7

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+8.27%

+2.33%

1-Year

+9.13%

+3.15%

5-Year

+27.49%

+3.80%

10-Year

+74.82%

+5.15%

Advisor

6-Month

+8.47%

+8.47%

1-Year

+9.39%

+9.39%

5-Year

+29.08%

+5.24%

10-Year

+79.29%

+6.01%

See

page

8

for

Performance

Summary

footnotes.

Franklin

Moderate

Allocation

Fund

Performance

Summary

8

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

The

allocation

of

assets

among

different

strategies,

asset

classes

and

investments

may

not

prove

beneficial

or

produce

the

desired

results.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Small-

and

mid-cap

stocks

involve

greater

risks

and

volatility

than

large-cap

stocks.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Net

expenses

are

capped

under

a

contrac-

tual

agreement,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.1539

$0.0930

$0.2469

C

$0.1070

$0.0930

$0.2000

R

$0.1375

$0.0930

$0.2305

R6

$0.1744

$0.0930

$0.2674

Advisor

$0.1697

$0.0930

$0.2627

Total

Annual

Operating

Expenses

5

Share

Class

A

0.85%

Advisor

0.60%

Your

Fund’s

Expenses

Franklin

Moderate

Allocation

Fund

9

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,082.70

$3.21

$1,021.71

$3.12

0.62%

C

$1,000

$1,079.90

$7.07

$1,017.99

$6.86

1.37%

R

$1,000

$1,081.60

$4.50

$1,020.47

$4.37

0.87%

R6

$1,000

$1,085.20

$1.55

$1,023.31

$1.50

0.30%

Advisor

$1,000

$1,084.70

$1.92

$1,022.95

$1.87

0.37%

10

franklintempleton.com

Semiannual

Report

Franklin

Growth

Allocation

Fund

This

semiannual

report

for

Franklin

Growth

Allocation

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

consistent

with

an

acceptable

level

of

risk.

1

The

Fund

is

a

fund

of

funds,

meaning

that

it

seeks

to

achieve

its

investment

goal

by

investing

its

assets

primarily

in

other

funds

(underlying

funds),

predominantly

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange

traded

funds

(ETFs).

The

Fund

is

designed

for

investors

seeking

the

highest

level

of

long-term

total

return

that

is

consistent

with

a

higher

level

of

risk.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+10.51%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Linked

Franklin

Growth

Allocation

Fund

Benchmark-NR

(Blended

Benchmark-NR),

which

consists

of

80%

MSCI

All

Country

World

Index-NR

and

20%

Bloomberg

Multiverse

Index,

posted

a

+11.39%

cumulative

total

return.

2

The

Fund’s

equity

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

the

equity

market

performance

of

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

3

The

Fund’s

fixed

income

benchmark,

the

Bloomberg

Multiverse

Index,

a

broad-based

measure

of

the

global

fixed

income

bond

market,

posted

a

+1.59%

cumulative

total

return.

3

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

11

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

IL

Thank

you

for

your

continued

participation

in

Franklin

Growth

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

58.7%

Foreign

Equity

18.5%

Domestic

Fixed

Income

17.5%

Foreign

Fixed

Income

1.5%

Alternative

Strategies

1.0%

Short-Term

Investments

&

Other

Net

Assets

2.8%

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

and

other

fund

investments

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

Top

10

Holdings

6/30/23

Issuer

%

of

Total

Net

Assets

a

a

Franklin

U.S.

Core

Equity

(IU)

Fund

24.1%

Franklin

Growth

Fund,

Class

R6

13.2%

Franklin

International

Core

Equity

(IU)

Fund

9.2%

Franklin

U.S.

Equity

Index

ETF

7.9%

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

7.5%

Franklin

U.S.

Core

Bond

ETF

6.2%

ClearBridge

Large

Cap

Value

Fund,

Class

IS

5.2%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

3.6%

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

2.7%

Templeton

Foreign

Fund,

Class

R6

2.1%

1.

The

risk/reward

potential

is

based

on

the

Fund’s

goal

and

level

of

risk.

It

is

not

indicative

of

the

Fund’s

actual

or

implied

performance

or

portfolio

composition,

which

may

change

on

a

continual

basis.

2.

Source:

FactSet.

The

Blended

Benchmark-NR

was

calculated

internally.

3.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

33.

Performance

Summary

as

of

June

30,

2023

Franklin

Growth

Allocation

Fund

11

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+10.51%

+4.41%

1-Year

+12.56%

+6.36%

5-Year

+38.07%

+5.46%

10-Year

+107.26%

+6.95%

Advisor

6-Month

+10.68%

+10.68%

1-Year

+12.88%

+12.88%

5-Year

+39.88%

+6.94%

10-Year

+112.59%

+7.83%

See

page

12

for

Performance

Summary

footnotes.

Franklin

Growth

Allocation

Fund

Performance

Summary

12

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18,

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus,

including

the

effect

of

acquired

fund

fees

and

expenses,

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0920

$0.3637

$0.4557

C

$0.0493

$0.3637

$0.4130

R

$0.0736

$0.3637

$0.4373

R6

$0.1186

$0.3637

$0.4823

Advisor

$0.1111

$0.3637

$0.4748

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.89%

0.90%

Advisor

0.64%

0.65%

Your

Fund’s

Expenses

Franklin

Growth

Allocation

Fund

13

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,105.10

$3.38

$1,021.58

$3.25

0.65%

C

$1,000

$1,101.40

$7.28

$1,017.86

$6.99

1.40%

R

$1,000

$1,104.40

$4.69

$1,020.34

$4.50

0.90%

R6

$1,000

$1,107.40

$1.59

$1,023.28

$1.53

0.30%

Advisor

$1,000

$1,106.80

$2.08

$1,022.82

$2.00

0.40%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.17

$14.89

$14.95

$14.08

$13.33

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.11

0.27

0.23

0.22

0.32

0.39

Net

realized

and

unrealized

gains

(losses)

0.64

(2.53)

0.99

1.05

1.43

(0.90)

Total

from

investment

operations

........

0.75

(2.26)

1.22

1.27

1.75

(0.51)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.18)

(0.22)

(0.35)

(0.23)

(0.33)

(0.38)

Net

realized

gains

.................

—

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...................

(0.18)

(0.46)

(1.28)

(0.40)

(1.00)

(1.02)

Net

asset

value,

end

of

period

..........

$12.74

$12.17

$14.89

$14.95

$14.08

$13.33

Total

return

d

.......................

6.18%

(15.22)%

8.18%

9.30%

13.25%

(3.44)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.63%

0.63%

0.62%

0.63%

0.63%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.62%

0.63%

g,h

0.62%

h

0.63%

h

0.63%

g,h

0.63%

g,h

Net

investment

income

c

...............

1.74%

2.08%

1.47%

1.54%

2.25%

2.57%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$790,033

$796,888

$1,081,071

$941,777

$839,134

$778,221

Portfolio

turnover

rate

................

6.09%

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$11.87

$14.54

$14.62

$13.77

$13.06

$14.57

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.06

0.16

0.09

0.10

0.20

0.24

Net

realized

and

unrealized

gains

(losses)

0.63

(2.47)

0.99

1.05

1.40

(0.84)

Total

from

investment

operations

........

0.69

(2.31)

1.08

1.15

1.60

(0.60)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.13)

(0.12)

(0.23)

(0.13)

(0.22)

(0.27)

Net

realized

gains

.................

—

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...................

(0.13)

(0.36)

(1.16)

(0.30)

(0.89)

(0.91)

Net

asset

value,

end

of

period

..........

$12.43

$11.87

$14.54

$14.62

$13.77

$13.06

Total

return

d

.......................

5.86%

(15.90)%

7.40%

8.51%

12.35%

(4.14)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.38%

1.38%

1.37%

1.38%

1.38%

1.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.37%

1.38%

g,h

1.37%

h

1.38%

h

1.38%

g,h

1.38%

g,h

Net

investment

income

c

...............

0.97%

1.24%

0.61%

0.76%

1.50%

1.82%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$76,227

$89,012

$152,244

$212,656

$252,407

$285,547

Portfolio

turnover

rate

................

6.09%

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.11

$14.83

$14.88

$14.02

$13.28

$14.80

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.09

0.24

0.18

0.18

0.28

0.33

Net

realized

and

unrealized

gains

(losses)

0.65

(2.53)

1.01

1.05

1.42

(0.87)

Total

from

investment

operations

........

0.74

(2.29)

1.19

1.23

1.70

(0.54)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.17)

(0.19)

(0.31)

(0.20)

(0.29)

(0.34)

Net

realized

gains

.................

—

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...................

(0.17)

(0.43)

(1.24)

(0.37)

(0.96)

(0.98)

Net

asset

value,

end

of

period

..........

$12.68

$12.11

$14.83

$14.88

$14.02

$13.28

Total

return

d

.......................

6.09%

(15.48)%

7.99%

8.98%

12.93%

(3.64)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.88%

0.88%

0.87%

0.88%

0.88%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.87%

0.88%

g,h

0.87%

h

0.88%

h

0.88%

g,h

0.88%

g,h

Net

investment

income

c

...............

1.49%

1.87%

1.14%

1.28%

2.00%

2.32%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$45,698

$45,036

$55,629

$66,208

$71,153

$80,338

Portfolio

turnover

rate

................

6.09%

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

0

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.14

$14.87

$14.92

$14.06

$13.31

$14.84

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.13

0.32

0.28

0.26

0.36

0.44

Net

realized

and

unrealized

gains

(losses)

0.65

(2.55)

1.00

1.05

1.44

(0.90)

Total

from

investment

operations

........

0.78

(2.23)

1.28

1.31

1.80

(0.46)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.20)

(0.26)

(0.40)

(0.28)

(0.38)

(0.43)

Net

realized

gains

.................

—

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...................

(0.20)

(0.50)

(1.33)

(0.45)

(1.05)

(1.07)

Net

asset

value,

end

of

period

..........

$12.72

$12.14

$14.87

$14.92

$14.06

$13.31

Total

return

d

.......................

6.44%

(15.01)%

8.60%

9.61%

13.64%

(3.11)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.40%

0.40%

0.39%

0.40%

0.42%

0.40%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.31%

0.29%

g

0.30%

0.30%

0.31%

g

0.29%

g

Net

investment

income

c

...............

2.05%

2.45%

1.78%

1.86%

2.57%

2.91%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,246

$2,274

$2,852

$2,537

$2,364

$2,253

Portfolio

turnover

rate

................

6.09%

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.16

$14.89

$14.95

$14.08

$13.33

$14.86

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.12

0.29

0.27

0.25

0.36

0.43

Net

realized

and

unrealized

gains

(losses)

0.66

(2.53)

0.99

1.06

1.43

(0.90)

Total

from

investment

operations

........

0.78

(2.24)

1.26

1.31

1.79

(0.47)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.20)

(0.25)

(0.39)

(0.27)

(0.37)

(0.42)

Net

realized

gains

.................

—

(0.24)

(0.93)

(0.17)

(0.67)

(0.64)

Total

distributions

...................

(0.20)

(0.49)

(1.32)

(0.44)

(1.04)

(1.06)

Net

asset

value,

end

of

period

..........

$12.74

$12.16

$14.89

$14.95

$14.08

$13.33

Total

return

d

.......................

6.39%

(15.07)%

8.45%

9.58%

13.53%

(3.19)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.38%

0.38%

0.37%

0.38%

0.38%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.37%

0.38%

g,h

0.37%

h

0.38%

h

0.38%

g,h

0.38%

g,h

Net

investment

income

c

...............

1.99%

2.20%

1.72%

1.79%

2.50%

2.82%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$30,449

$30,231

$54,537

$48,041

$44,022

$38,031

Portfolio

turnover

rate

................

6.09%

37.16%

61.92%

48.36%

86.76%

30.70%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.23%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

Conservative

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.4%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

....................................

431,451

$

9,427,161

Domestic

Equity

28.8%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

631,562

24,188,815

a

Franklin

Growth

Fund,

Class

R6

........................................

495,951

60,456,394

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

10,321,832

138,312,552

a

Franklin

U.S.

Equity

Index

ETF

.........................................

345,550

13,410,104

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

.............................

717,803

32,136,040

iShares

MSCI

USA

Quality

Factor

ETF

...................................

27,450

3,702,182

272,206,087

Domestic

Fixed

Income

54.4%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,088,916

27,923,798

a

Franklin

Investment

Grade

Corporate

ETF

.................................

1,168,114

24,787,379

a

Franklin

U.S.

Core

Bond

ETF

..........................................

8,990,191

192,390,088

a

Franklin

U.S.

Treasury

Bond

ETF

.......................................

2,602,087

54,049,250

iShares

Floating

Rate

Bond

ETF

........................................

494,250

25,117,785

Schwab

U.S.

TIPS

ETF

...............................................

748,450

39,241,234

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

11,714,440

110,818,601

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

10,967,130

39,481,669

513,809,804

Foreign

Equity

9.1%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

1,376,915

12,887,929

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

3,801,054

42,495,781

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

384,538

6,279,513

iShares

Core

MSCI

EAFE

ETF

.........................................

91,540

6,178,950

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

479,074

8,522,719

a

Templeton

Foreign

Fund,

Class

R6

......................................

1,275,718

9,669,943

86,034,835

Foreign

Fixed

Income

4.1%

a

Franklin

High

Yield

Corporate

ETF

......................................

882,533

20,086,451

a

Franklin

International

Aggregate

Bond

ETF

................................

946,791

18,642,315

38,728,766

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$900,431,086)

...............................................................

920,206,653

a

a

a

a

Short

Term

Investments

2.8%

a

Money

Market

Funds

2.8%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

..................

25,954,258

25,954,258

Total

Money

Market

Funds

(Cost

$25,954,258)

..................................

25,954,258

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Conservative

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

d

Joint

Repurchase

Agreement,

4.985%,

7/03/23

(Maturity

Value

$73,019)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$28,238)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$16,545)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$28,236)

Collateralized

by

U.S.

Government

Agency

Securities,

0.63%

-

7.5%,

6/15/24

-

11/15/57;

and

U.S.

Treasury

Notes,

0.38%

-

2.5%,

5/31/24

-

4/30/25

(valued

at

$74,445)

........................................................

$

72,989

$

72,989

Total

Repurchase

Agreements

(Cost

$72,989)

...................................

72,989

Total

Short

Term

Investments

(Cost

$26,027,247

)

................................

26,027,247

a

Total

Investments

(Cost

$926,458,333)

100.2%

..................................

$946,233,900

Other

Assets,

less

Liabilities

(0.2)%

...........................................

(1,581,145)

Net

Assets

100.0%

...........................................................

$944,652,755

See

Abbreviations

on

page

52

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.93

$16.08

$16.17

$15.08

$14.06

$16.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.10

0.22

0.22

0.19

0.28

0.34

Net

realized

and

unrealized

gains

(losses)

0.96

(2.82)

1.77

1.60

2.15

(1.11)

Total

from

investment

operations

........

1.06

(2.60)

1.99

1.79

2.43

(0.77)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.15)

(0.17)

(0.41)

(0.22)

(0.28)

(0.33)

Net

realized

gains

.................

(0.09)

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...................

(0.24)

(0.55)

(2.08)

(0.70)

(1.41)

(1.28)

Net

asset

value,

end

of

period

..........

$13.75

$12.93

$16.08

$16.17

$15.08

$14.06

Total

return

d

.......................

8.27%

(16.14)%

12.38%

12.37%

17.40%

(4.82)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.63%

0.63%

0.63%

0.64%

0.63%

0.63%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.62%

0.63%

g,h

0.62%

0.64%

g,h

0.63%

g,h

0.63%

h

Net

investment

income

c

...............

1.47%

1.59%

1.29%

1.29%

1.78%

2.02%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,395,605

$1,349,466

$1,794,149

$1,573,566

$1,456,531

$1,318,198

Portfolio

turnover

rate

................

6.75%

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.41

$15.49

$15.64

$14.60

$13.65

$15.66

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.04

0.11

0.07

0.07

0.15

0.17

Net

realized

and

unrealized

gains

(losses)

0.95

(2.72)

1.73

1.56

2.09

(1.02)

Total

from

investment

operations

........

0.99

(2.61)

1.80

1.63

2.24

(0.85)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.11)

(0.09)

(0.28)

(0.11)

(0.16)

(0.21)

Net

realized

gains

.................

(0.09)

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...................

(0.20)

(0.47)

(1.95)

(0.59)

(1.29)

(1.16)

Net

asset

value,

end

of

period

..........

$13.20

$12.41

$15.49

$15.64

$14.60

$13.65

Total

return

d

.......................

7.99%

(16.85)%

11.55%

11.57%

16.52%

(5.54)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.38%

1.38%

1.37%

1.39%

1.38%

1.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.37%

1.38%

g,h

1.37%

h

1.39%

g,h

1.38%

g,h

1.38%

h

Net

investment

income

c

...............

0.70%

0.79%

0.43%

0.50%

1.03%

1.27%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$122,056

$130,268

$205,894

$289,283

$339,845

$375,494

Portfolio

turnover

rate

................

6.75%

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

23

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.90

$16.05

$16.15

$15.05

$14.04

$16.08

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.08

0.19

0.17

0.15

0.23

0.27

Net

realized

and

unrealized

gains

(losses)

0.97

(2.82)

1.77

1.61

2.15

(1.07)

Total

from

investment

operations

........

1.05

(2.63)

1.94

1.76

2.38

(0.80)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.14)

(0.14)

(0.37)

(0.18)

(0.24)

(0.29)

Net

realized

gains

.................

(0.09)

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...................

(0.23)

(0.52)

(2.04)

(0.66)

(1.37)

(1.24)

Net

asset

value,

end

of

period

..........

$13.72

$12.90

$16.05

$16.15

$15.05

$14.04

Total

return

d

.......................

8.16%

(16.37)%

12.05%

12.17%

17.05%

(5.04)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.88%

0.88%

0.87%

0.89%

0.88%

0.88%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.87%

0.88%

g,h

0.87%

h

0.89%

g,h

0.88%

g,h

0.88%

h

Net

investment

income

c

...............

1.21%

1.34%

1.01%

1.01%

1.53%

1.77%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$52,111

$52,069

$69,211

$68,789

$78,999

$87,277

Portfolio

turnover

rate

................

6.75%

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

24

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.92

$16.08

$16.17

$15.08

$14.06

$16.11

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.12

0.27

0.27

0.24

0.34

0.41

Net

realized

and

unrealized

gains

(losses)

0.97

(2.83)

1.78

1.60

2.15

(1.12)

Total

from

investment

operations

........

1.09

(2.56)

2.05

1.84

2.49

(0.71)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.17)

(0.22)

(0.47)

(0.27)

(0.34)

(0.39)

Net

realized

gains

.................

(0.09)

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...................

(0.26)

(0.60)

(2.14)

(0.75)

(1.47)

(1.34)

Net

asset

value,

end

of

period

..........

$13.75

$12.92

$16.08

$16.17

$15.08

$14.06

Total

return

d

.......................

8.52%

(15.91)%

12.74%

12.76%

17.81%

(4.49)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.33%

0.33%

0.33%

0.33%

0.34%

0.35%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.28%

g

0.30%

0.30%

g

0.29%

g

0.29%

Net

investment

income

c

...............

1.80%

1.97%

1.60%

1.61%

2.12%

2.36%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$6,535

$6,065

$7,261

$6,767

$6,666

$5,141

Portfolio

turnover

rate

................

6.75%

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

25

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.94

$16.10

$16.19

$15.09

$14.07

$16.12

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.11

0.25

0.27

0.23

0.32

0.39

Net

realized

and

unrealized

gains

(losses)

0.98

(2.83)

1.76

1.61

2.15

(1.11)

Total

from

investment

operations

........

1.09

(2.58)

2.03

1.84

2.47

(0.72)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.17)

(0.20)

(0.45)

(0.26)

(0.32)

(0.38)

Net

realized

gains

.................

(0.09)

(0.38)

(1.67)

(0.48)

(1.13)

(0.95)

Total

distributions

...................

(0.26)

(0.58)

(2.12)

(0.74)

(1.45)

(1.33)

Net

asset

value,

end

of

period

..........

$13.77

$12.94

$16.10

$16.19

$15.09

$14.07

Total

return

d

.......................

8.47%

(15.97)%

12.64%

12.72%

17.68%

(4.57)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.38%

0.38%

0.38%

0.39%

0.38%

0.38%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.37%

0.38%

g,h

0.37%

0.39%

g,h

0.38%

g,h

0.38%

g

Net

investment

income

c

...............

1.71%

1.78%

1.55%

1.53%

2.03%

2.27%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$49,462

$48,288

$78,346

$66,421

$61,026

$55,052

Portfolio

turnover

rate

................

6.75%

33.29%

56.07%

44.49%

71.70%

33.65%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

Moderate

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

26

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.4%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

....................................

732,898

$

16,013,748

Domestic

Equity

44.0%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

1,665,825

63,801,100

a

Franklin

Growth

Fund,

Class

R6

........................................

1,309,983

159,686,944

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

27,070,259

362,741,468

a

Franklin

U.S.

Equity

Index

ETF

.........................................

913,125

35,436,555

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

.............................

1,896,617

84,911,543

iShares

MSCI

USA

Quality

Factor

ETF

...................................

72,525

9,781,447

716,359,057

Domestic

Fixed

Income

35.8%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

3,142,536

28,408,529

a

Franklin

Investment

Grade

Corporate

ETF

.................................

1,322,723

28,068,182

a

Franklin

U.S.

Core

Bond

ETF

..........................................

10,179,841

217,848,597

a

Franklin

U.S.

Treasury

Bond

ETF

.......................................

2,946,497

61,203,162

iShares

Floating

Rate

Bond

ETF

........................................

559,700

28,443,954

Schwab

U.S.

TIPS

ETF

...............................................

847,492

44,434,006

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

13,241,881

125,268,198

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

13,859,180

49,893,047

583,567,675

Foreign

Equity

14.0%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,583,331

33,539,977

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

9,996,828

111,764,533

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

1,018,159

16,626,544

iShares

Core

MSCI

EAFE

ETF

.........................................

242,472

16,366,860

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,257,514

22,371,172

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,377,440

25,600,992

226,270,078

Foreign

Fixed

Income

2.6%

a

Franklin

High

Yield

Corporate

ETF

......................................

999,370

22,745,661

a

Franklin

International

Aggregate

Bond

ETF

................................

964,863

18,998,152

41,743,813

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$1,432,263,640)

..............................................................

1,583,954,371

a

a

a

a

Short

Term

Investments

2.7%

a

Money

Market

Funds

2.7%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

..................

44,341,275

44,341,275

Total

Money

Market

Funds

(Cost

$44,341,275)

..................................

44,341,275

Total

Short

Term

Investments

(Cost

$44,341,275

)

................................

44,341,275

a

Total

Investments

(Cost

$1,476,604,915)

100.1%

................................

$1,628,295,646

Other

Assets,

less

Liabilities

(0.1)%

...........................................

(2,527,413)

Net

Assets

100.0%

...........................................................

$1,625,768,233

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Moderate

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

27

See

Abbreviations

on

page

52

.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

28

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.77

$19.99

$19.64

$18.13

$16.54

$19.34

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.09

0.20

0.23

0.19

0.25

0.30

Net

realized

and

unrealized

gains

(losses)

1.56

(3.65)

2.97

2.32

3.36

(1.54)

Total

from

investment

operations

........

1.65

(3.45)

3.20

2.51

3.61

(1.24)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.09)

(0.18)

(0.48)

(0.22)

(0.25)

(0.30)

Net

realized

gains

.................

(0.36)

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...................

(0.45)

(0.77)

(2.85)

(1.00)

(2.02)

(1.56)

Net

asset

value,

end

of

period

..........

$16.97

$15.77

$19.99

$19.64

$18.13

$16.54

Total

return

d

.......................

10.51%

(17.16)%

16.41%

14.58%

21.90%

(6.45)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.66%

0.67%

0.66%

0.68%

0.68%

0.67%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.65%

0.66%

g

0.66%

h

0.67%

g

0.65%

g

0.65%

g

Net

investment

income

c

...............

1.08%

1.15%

1.07%

1.07%

1.32%

1.48%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,050,334

$977,212

$1,258,769

$1,074,822

$974,391

$837,327

Portfolio

turnover

rate

................

12.44%

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

29

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.12

$19.24

$19.03

$17.62

$16.12

$18.81

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.02

0.06

0.04

0.05

0.10

0.10

Net

realized

and

unrealized

gains

(losses)

1.51

(3.50)

2.91

2.25

3.27

(1.43)

Total

from

investment

operations

........

1.53

(3.44)

2.95

2.30

3.37

(1.33)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.05)

(0.09)

(0.37)

(0.11)

(0.10)

(0.10)

Net

realized

gains

.................

(0.36)

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...................

(0.41)

(0.68)

(2.74)

(0.89)

(1.87)

(1.36)

Net

asset

value,

end

of

period

..........

$16.24

$15.12

$19.24

$19.03

$17.62

$16.12

Total

return

d

.......................

10.14%

(17.82)%

15.59%

13.74%

20.95%

(7.13)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

1.41%

1.42%

1.41%

1.42%

1.43%

1.42%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

1.40%

1.41%

g

1.41%

h

1.42%

g,h

1.40%

g

1.40%

g

Net

investment

income

c

...............

0.32%

0.36%

0.20%

0.28%

0.57%

0.73%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$94,030

$95,210

$141,604

$186,526

$202,689

$206,933

Portfolio

turnover

rate

................

12.44%

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

30

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.50

$19.68

$19.38

$17.89

$16.34

$19.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.07

0.15

0.16

0.14

0.18

0.22

Net

realized

and

unrealized

gains

(losses)

1.54

(3.59)

2.93

2.30

3.33

(1.49)

Total

from

investment

operations

........

1.61

(3.44)

3.09

2.44

3.51

(1.27)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.07)

(0.15)

(0.42)

(0.17)

(0.19)

(0.23)

Net

realized

gains

.................

(0.36)

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...................

(0.43)

(0.74)

(2.79)

(0.95)

(1.96)

(1.49)

Net

asset

value,

end

of

period

..........

$16.68

$15.50

$19.68

$19.38

$17.89

$16.34

Total

return

d

.......................

10.44%

(17.40)%

16.14%

14.30%

21.56%

(6.68)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.91%

0.92%

0.91%

0.92%

0.93%

0.92%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.90%

0.91%

g

0.91%

h

0.92%

g,h

0.90%

g

0.90%

g

Net

investment

income

c

...............

0.83%

0.88%

0.77%

0.77%

1.07%

1.23%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$39,604

$37,341

$54,097

$54,297

$62,973

$72,100

Portfolio

turnover

rate

................

12.44%

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

31

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.86

$20.10

$19.73

$18.20

$16.60

$19.40

Income

from

investment

operations

a

:

Net

investment

income

b

,c

............

0.12

0.26

0.29

0.26

0.32

0.40

Net

realized

and

unrealized

gains

(losses)

1.58

(3.68)

3.01

2.34

3.37

(1.57)

Total

from

investment

operations

........

1.70

(3.42)

3.30

2.60

3.69

(1.17)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.12)

(0.23)

(0.56)

(0.29)

(0.32)

(0.37)

Net

realized

gains

.................

(0.36)

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...................

(0.48)

(0.82)

(2.93)

(1.07)

(2.09)

(1.63)

Net

asset

value,

end

of

period

..........

$17.08

$15.86

$20.10

$19.73

$18.20

$16.60

Total

return

d

.......................

10.74%

(16.92)%

16.85%

15.06%

22.30%

(6.07)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.34%

0.34%

0.34%

0.35%

0.37%

0.36%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.30%

0.29%

g

0.30%

0.30%

g

0.27%

g

0.28%

g

Net

investment

income

c

...............

1.50%

1.51%

1.37%

1.44%

1.70%

1.85%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$5,286

$4,071

$5,434

$5,592

$4,806

$4,224

Portfolio

turnover

rate

................

12.44%

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

32

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.88

$20.12

$19.76

$18.22

$16.61

$19.42

Income

from

investment

operations

a

:

Net

investment

income

b,c

............

0.11

0.24

0.28

0.24

0.30

0.36

Net

realized

and

unrealized

gains

(losses)

1.58

(3.68)

2.98

2.34

3.38

(1.56)

Total

from

investment

operations

........

1.69

(3.44)

3.26

2.58

3.68

(1.20)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

and

exchange

traded

funds

..............

(0.11)

(0.21)

(0.53)

(0.26)

(0.30)

(0.35)

Net

realized

gains

.................

(0.36)

(0.59)

(2.37)

(0.78)

(1.77)

(1.26)

Total

distributions

...................

(0.47)

(0.80)

(2.90)

(1.04)

(2.07)

(1.61)

Net

asset

value,

end

of

period

..........

$17.10

$15.88

$20.12

$19.76

$18.22

$16.61

Total

return

d

.......................

10.68%

(16.99)%

16.71%

14.90%

22.22%

(6.23)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.41%

0.42%

0.41%

0.43%

0.43%

0.42%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.40%

0.41%

g

0.41%

h

0.42%

g

0.40%

g

0.40%

g

Net

investment

income

c

...............

1.33%

1.39%

1.32%

1.32%

1.57%

1.73%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$47,795

$43,957

$60,851

$51,693

$44,684

$38,685

Portfolio

turnover

rate

................

12.44%

29.59%

59.90%

39.22%

63.65%

30.79%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

and

exchange

traded

funds

was

0.22%

for

the

period

ended

June

30,

2023.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

Growth

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

33

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

97.2%

Alternative

Strategies

1.0%

a

Franklin

Systematic

Style

Premia

ETF

....................................

549,832

$

12,013,774

Domestic

Equity

58.7%

a

ClearBridge

Large

Cap

Value

Fund,

Class

IS

...............................

1,694,710

64,907,411

a

Franklin

Growth

Fund,

Class

R6

........................................

1,335,224

162,763,760

a

Franklin

U.S.

Core

Equity

(IU)

Fund

.....................................

22,261,592

298,305,339

a

Franklin

U.S.

Equity

Index

ETF

.........................................

2,513,375

97,539,057

a

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

.............................

2,070,451

92,694,091

iShares

MSCI

USA

Quality

Factor

ETF

...................................

73,975

9,977,008

726,186,666

Domestic

Fixed

Income

17.5%

a

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

...............

1,568,493

14,179,179

a

Franklin

Investment

Grade

Corporate

ETF

.................................

468,522

9,942,037

a

Franklin

U.S.

Core

Bond

ETF

..........................................

3,606,063

77,169,748

a

Franklin

U.S.

Treasury

Bond

ETF

.......................................

1,043,693

21,679,069

iShares

Floating

Rate

Bond

ETF

........................................

198,225

10,073,794

Schwab

U.S.

TIPS

ETF

...............................................

300,165

15,737,651

a

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

.............................

4,681,159

44,283,766

a

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............................

6,632,381

23,876,572

216,941,816

Foreign

Equity

18.5%

a

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

............................

3,622,102

33,902,877

a

Franklin

International

Core

Equity

(IU)

Fund

...............................

10,140,439

113,370,110

a,b

Franklin

International

Growth

Fund,

Class

R6

..............................

1,037,485

16,942,137

iShares

Core

MSCI

EAFE

ETF

.........................................

247,172

16,684,110

a

Templeton

Developing

Markets

Trust,

Class

R6

.............................

1,276,258

22,704,627

a

Templeton

Foreign

Fund,

Class

R6

......................................

3,441,805

26,088,882

229,692,743

Foreign

Fixed

Income

1.5%

a

Franklin

High

Yield

Corporate

ETF

......................................

353,956

8,056,039

a

Franklin

International

Aggregate

Bond

ETF

................................

482,549

9,501,390

17,557,429

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$999,079,625)

...............................................................

1,202,392,428

a

a

a

a

Short

Term

Investments

2.8%

a

Money

Market

Funds

2.8%

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

..................

35,056,161

35,056,161

Total

Money

Market

Funds

(Cost

$35,056,161)

..................................

35,056,161

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Growth

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

34

s

Short

Term

Investments

(continued)

a

a

Principal

Amount

a

Value

Repurchase

Agreements

0.0%

†

d

Joint

Repurchase

Agreement,

4.985%,

7/03/23

(Maturity

Value

$121,983)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$47,172)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$27,640)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$47,171)

Collateralized

by

U.S.

Government

Agency

Securities,

0.63%

-

7.5%,

6/15/24

-

11/15/57;

and

U.S.

Treasury

Notes,

0.38%

-

2.5%,

5/31/24

-

4/30/25

(valued

at

$124,366)

.......................................................

$

121,933

$

121,933

Total

Repurchase

Agreements

(Cost

$121,933)

..................................

121,933

Total

Short

Term

Investments

(Cost

$35,178,094

)

................................

35,178,094

a

Total

Investments

(Cost

$1,034,257,719)

100.0%

................................

$1,237,570,522

Other

Assets,

less

Liabilities

(0.0)%

...........................................

(520,772)

Net

Assets

100.0%

...........................................................

$1,237,049,750

See

Abbreviations

on

page

52

.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(f)

regarding

investments

in

FT

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

d

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(unaudited)

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

35

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

.................................

$79,132,373

$104,279,349

$54,077,876

Cost

-

Controlled

affiliates

(Note

3

f

)

..........................

—

36,373,338

36,537,565

Cost

-

Non-controlled

affiliates

(Note

3

f

)

......................

847,252,971

1,335,952,228

943,520,345

Cost

-

Unaffiliated

repurchase

agreements

....................

72,989

—

121,933

Value

-

Unaffiliated

issuers

................................

$74,240,151

$99,026,267

$52,472,563

Value

-

Controlled

affiliates

(Not

e

3f)

.........................

—

33,539,977

33,902,877

Value

-

Non-controlled

affiliates

(Note

3

f

)

......................

871,920,760

1,495,729,402

1,151,073,149

Value

-

Unaffiliated

repurchase

agreements

....................

72,989

—

121,933

Receivables:

Investment

securities

sold

.................................

—

—

7,261,434

Capital

shares

sold

......................................

583,621

754,563

275,469

Dividends

and

interest

...................................

107,104

331,173

361,337

Total

assets

........................................

946,924,625

1,629,381,382

1,245,468,762

Liabilities:

Payables:

Investment

securities

purchased

............................

—

—

6,125,522

Capital

shares

redeemed

.................................

1,329,942

2,219,116

1,122,462

Asset

allocation

fees

.....................................

205,337

323,637

303,540

Distribution

fees

........................................

244,101

405,531

304,208

Transfer

agent

fees

......................................

290,221

440,718

411,176

Trustees'

fees

and

expenses

...............................

998

570

496

Distributions

to

shareholders

...............................

132,479

140,399

83,253

Accrued

expenses

and

other

liabilities

.........................

68,792

83,178

68,355

Total

liabilities

.......................................

2,271,870

3,613,149

8,419,012

Net

assets,

at

value

...............................

$944,652,755

$1,625,768,233

$1,237,049,750

Net

assets

consist

of:

Paid-in

capital

...........................................

$953,243,402

$1,507,642,950

$1,056,681,680

Total

distributable

earnings

(losses)

...........................

(8,590,647)

118,125,283

180,368,070

Net

assets,

at

value

...............................

$944,652,755

$1,625,768,233

$1,237,049,750

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Assets

and

Liabilities

(unaudited)

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

36

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Class

A:

Net

assets,

at

value

.....................................

$790,032,964

$1,395,604,548

$1,050,334,292

Shares

outstanding

......................................

62,016,029

101,467,023

61,876,072

Net

asset

value

per

share

a

................................

$12.74

$13.75

$16.97

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%

)

..............................................

$13.48

$14.55

$17.96

Class

C:

Net

assets,

at

value

.....................................

$76,227,304

$122,056,224

$94,029,625

Shares

outstanding

......................................

6,133,908

9,249,950

5,791,287

Net

asset

value

and

maximum

offering

price

per

share

a

...........

$12.43

$13.20

$16.24

Class

R:

Net

assets,

at

value

.....................................

$45,697,647

$52,110,905

$39,604,428

Shares

outstanding

......................................

3,604,794

3,797,654

2,374,848

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.68

$13.72

$16.68

Class

R6:

Net

assets,

at

value

.....................................

$2,245,559

$6,534,586

$5,286,185

Shares

outstanding

......................................

176,581

475,233

309,447

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.72

$13.75

$17.08

Advisor

Class:

Net

assets,

at

value

.....................................

$30,449,281

$49,461,970

$47,795,220

Shares

outstanding

......................................

2,390,284

3,592,229

2,795,192

Net

asset

value

and

maximum

offering

price

per

share

...........

$12.74

$13.77

$17.10

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Operations

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

37

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

......................................

$993,420

$1,304,797

$681,146

Controlled

affiliates

(Note

3f)

...............................

—

146,517

146,784

Non-controlled

affiliates

(Note

3

f

)

...........................

10,235,532

15,217,988

9,398,991

Interest:

Unaffiliated

issuers

......................................

14,438

30,399

43,560

Total

investment

income

.................................

11,243,390

16,699,701

10,270,481

Expenses:

Asset

allocation

fees

(Note

3

a

)

...............................

1,190,137

1,996,591

1,484,232

Distribution

fees:

(Note

3c

)

    Class

A

..............................................

990,304

1,705,553

1,255,733

    Class

C

..............................................

412,097

631,641

470,539

    Class

R

..............................................

112,052

129,157

94,589

Transfer

agent

fees:

(Note

3e

)

    Class

A

..............................................

382,272

701,680

624,879

    Class

C

..............................................

39,787

64,960

58,533

    Class

R

..............................................

21,625

26,567

23,535

    Class

R6

.............................................

1,298

1,650

1,274

    Advisor

Class

..........................................

14,660

24,974

28,738

Custodian

fees

(Note

4

)

....................................

1,454

1,890

771

Reports

to

shareholders

fees

................................

52,423

68,135

62,441

Registration

and

filing

fees

..................................

73,629

108,158

88,580

Professional

fees

.........................................

27,758

28,658

27,915

Trustees'

fees

and

expenses

................................

6,265

9,783

7,091

Other

..................................................

11,240

15,150

11,587

Total

expenses

.......................................

3,337,001

5,514,547

4,240,437

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

............

(45,753)

(76,976)

(57,894)

Net

expenses

.......................................

3,291,248

5,437,571

4,182,543

Net

investment

income

..............................

7,952,142

11,262,130

6,087,938

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

....................................

(760,604)

(785,481)

(360,374)

Controlled

affiliates

(Not

e

3f)

.............................

—

(59,049)

(21,784)

Non-controlled

affiliates

(Note

3

f

)

..........................

(8,902,807)

(10,096,831)

(13,734,867)

Net

realized

gain

(loss)

................................

(9,663,411)

(10,941,361)

(14,117,025)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

....................................

2,329,408

3,664,696

2,580,750

Controlled

affiliates

(Not

e

3f)

.............................

—

1,754,942

1,662,173

Non-controlled

affiliates

(Note

3

f

)

..........................

57,009,850

122,487,670

123,575,052

Net

change

in

unrealized

appreciation

(depreciation)

..........

59,339,258

127,907,308

127,817,975

Net

realized

and

unrealized

gain

(loss)

..........................

49,675,847

116,965,947

113,700,950

Net

increase

(decrease)

in

net

assets

resulting

from

operations

........

$57,627,989

$128,228,077

$119,788,888

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

38

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

............

$7,952,142

$22,134,340

$11,262,130

$27,255,711

Net

realized

gain

(loss)

............

(9,663,411)

(17,054,629)

(10,941,361)

(8,428,828)

Net

change

in

unrealized

appreciation

(depreciation)

.................

59,339,258

(206,801,104)

127,907,308

(362,316,855)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.

57,627,989

(201,721,393)

128,228,077

(343,489,972)

Distributions

to

shareholders:

Class

A

........................

(11,280,464)

(31,213,370)

(24,980,173)

(58,905,309)

Class

C

........................

(870,618)

(3,086,852)

(1,883,236)

(5,421,869)

Class

R

........................

(593,895)

(1,580,604)

(870,474)

(2,135,695)

Class

R6

.......................

(35,070)

(94,744)

(125,118)

(273,579)

Advisor

Class

...................

(468,803)

(1,374,009)

(939,129)

(2,593,327)

Total

distributions

to

shareholders

.....

(13,248,850)

(37,349,579)

(28,798,130)

(69,329,779)

Capital

share

transactions:

(Note

2

)

Class

A

........................

(43,745,192)

(90,653,150)

(38,807,114)

(99,590,743)

Class

C

........................

(16,677,136)

(37,709,251)

(16,043,916)

(37,562,809)

Class

R

........................

(1,421,619)

(218,090)

(3,206,058)

(3,900,918)

Class

R6

.......................

(131,791)

(58,553)

80,970

240,973

Advisor

Class

...................

(1,191,328)

(15,182,389)

(1,841,971)

(15,072,697)

Total

capital

share

transactions

.......

(63,167,066)

(143,821,433)

(59,818,089)

(155,886,194)

Net

increase

(decrease)

in

net

assets

.....................

(18,787,927)

(382,892,405)

39,611,858

(568,705,945)

Net

assets:

Beginning

of

period

................

963,440,682

1,346,333,087

1,586,156,375

2,154,862,320

End

of

period

.....................

$944,652,755

$963,440,682

$1,625,768,233

$1,586,156,375

Franklin

Fund

Allocator

Series

Financial

Statements

Statements

of

Changes

in

Net

Assets

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

39

Franklin

Growth

Allocation

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$6,087,938

$13,730,891

Net

realized

gain

(loss)

.................................................

(14,117,025)

18,666,913

Net

change

in

unrealized

appreciation

(depreciation)

...........................

127,817,975

(290,586,885)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

119,788,888

(258,189,081)

Distributions

to

shareholders:

Class

A

.............................................................

(27,661,825)

(47,605,496)

Class

C

.............................................................

(2,349,262)

(4,561,016)

Class

R

.............................................................

(1,015,408)

(1,846,046)

Class

R6

............................................................

(145,392)

(215,043)

Advisor

Class

........................................................

(1,316,051)

(2,350,580)

Total

distributions

to

shareholders

..........................................

(32,487,938)

(56,578,181)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(846,034)

(20,082,840)

Class

C

.............................................................

(7,985,632)

(17,621,289)

Class

R

.............................................................

(519,993)

(5,879,068)

Class

R6

............................................................

872,612

(237,165)

Advisor

Class

........................................................

437,296

(4,377,827)

Total

capital

share

transactions

............................................

(8,041,751)

(48,198,189)

Net

increase

(decrease)

in

net

assets

...................................

79,259,199

(362,965,451)

Net

assets:

Beginning

of

period

.....................................................

1,157,790,551

1,520,756,002

End

of

period

..........................................................

$1,237,049,750

$1,157,790,551

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

40

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen

separate

funds, three

of

which

are

included

in

this

report

(Funds).

The

Funds

follow

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

Codification

Topic

946,

Financial

Services

–

Investment

Companies

(ASC

946)

and

apply

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP),

including,

but

not

limited

to,

ASC

946.

The

Funds

invest

primarily

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

The

Funds

offer

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class. Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sale

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports,

in

which

each

Fund

invests,

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Funds'

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The Funds'

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The Funds calculate the

net

asset

value

(NAV)

per

share

each

business

day

as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

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. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

ETFs

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price

of

the

day,

respectively. 

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

b.

Joint

Repurchase

Agreement

Certain

or

all

Funds

enter

into

a

joint

repurchase

agreement

whereby

their

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Funds'

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Funds,

certain

MRAs

may

permit

the

non-defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Funds

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Funds

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the

Funds

at

period

end,

as

indicated

in

the

Schedules

of

Investments,

had

been

entered

into

on

June

30,

2023.

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

41

franklintempleton.com

Semiannual

Report

c.

Income

Taxes

It

is each

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. Each

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

Each

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

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).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

d.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Dividend

income

and

realized

capital

gain

distributions

by

Underlying

Funds

and

ETFs

are

recorded

on

the

ex-dividend

date.

Distributions

to shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Funds

indirectly

bear

their

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Funds

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

e.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

f.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

42

franklintempleton.com

Semiannual

Report

2.

Shares

of

Beneficial

Interest

At

June

30,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Funds'

shares

were

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

3,651,035

$45,686,774

7,981,963

$107,093,570

Shares

issued

in

reinvestment

of

distributions

..........

871,883

11,034,046

1,798,533

24,636,177

Shares

redeemed

...............................

(8,007,644)

(100,466,012)

(12,710,671)

(170,536,861)

Net

increase

(decrease)

..........................

(3,484,726)

$(43,745,192)

(2,930,175)

$(38,807,114)

Year

ended

December

31,

2022

Shares

sold

a

...................................

7,910,216

$104,157,892

10,662,506

$148,875,879

Shares

issued

in

reinvestment

of

distributions

..........

2,479,973

30,540,378

4,491,793

58,119,022

Shares

redeemed

...............................

(17,477,429)

(225,351,420)

(22,309,824)

(306,585,644)

Net

increase

(decrease)

..........................

(7,087,240)

$(90,653,150)

(7,155,525)

$(99,590,743)

Class

C

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

574,434

$7,004,690

1,757,127

$22,598,227

Shares

issued

in

reinvestment

of

distributions

..........

69,903

862,457

142,254

1,870,554

Shares

redeemed

a

..............................

(2,007,747)

(24,544,283)

(3,144,418)

(40,512,697)

Net

increase

(decrease)

..........................

(1,363,410)

$(16,677,136)

(1,245,037)

$(16,043,916)

Year

ended

December

31,

2022

Shares

sold

...................................

898,458

$11,629,680

1,498,953

$20,181,807

Shares

issued

in

reinvestment

of

distributions

..........

255,929

3,064,586

434,361

5,397,337

Shares

redeemed

a

..............................

(4,125,906)

(52,403,517)

(4,734,054)

(63,141,953)

Net

increase

(decrease)

..........................

(2,971,519)

$(37,709,251)

(2,800,740)

$(37,562,809)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

378,424

$4,733,166

440,438

$5,931,230

Shares

issued

in

reinvestment

of

distributions

..........

47,067

592,828

63,566

868,795

Shares

redeemed

...............................

(540,011)

(6,747,613)

(743,688)

(10,006,083)

Net

increase

(decrease)

..........................

(114,520)

$(1,421,619)

(239,684)

$(3,206,058)

Year

ended

December

31,

2022

Shares

sold

...................................

1,465,369

$19,794,235

536,756

$7,455,847

Shares

issued

in

reinvestment

of

distributions

..........

128,907

1,579,898

165,320

2,132,506

Shares

redeemed

...............................

(1,626,058)

(21,592,223)

(976,726)

(13,489,271)

Net

increase

(decrease)

..........................

(31,782)

$(218,090)

(274,650)

$(3,900,918)

Class

R6

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

43

franklintempleton.com

Semiannual

Report

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Shares

Amount

Shares

Amount

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

19,233

$240,185

45,656

$609,074

Shares

issued

in

reinvestment

of

distributions

..........

2,777

35,070

9,135

125,118

Shares

redeemed

...............................

(32,638)

(407,046)

(48,933)

(653,222)

Net

increase

(decrease)

..........................

(10,628)

$(131,791)

5,858

$80,970

Year

ended

December

31,

2022

Shares

sold

...................................

26,230

$346,902

47,746

$664,252

Shares

issued

in

reinvestment

of

distributions

..........

7,694

94,744

21,105

273,579

Shares

redeemed

...............................

(38,478)

(500,199)

(51,082)

(696,858)

Net

increase

(decrease)

..........................

(4,554)

$(58,553)

17,769

$240,973

Advisor

Class

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

347,138

$4,361,243

500,226

$6,739,023

Shares

issued

in

reinvestment

of

distributions

..........

33,322

421,757

63,077

865,121

Shares

redeemed

...............................

(475,232)

(5,974,328)

(703,167)

(9,446,115)

Net

increase

(decrease)

..........................

(94,772)

$(1,191,328)

(139,864)

$(1,841,971)

Year

ended

December

31,

2022

Shares

sold

...................................

868,164

$11,375,506

1,049,264

$14,705,181

Shares

issued

in

reinvestment

of

distributions

..........

99,291

1,225,306

180,660

2,345,137

Shares

redeemed

...............................

(2,144,368)

(27,783,201)

(2,364,283)

(32,123,015)

Net

increase

(decrease)

..........................

(1,176,913)

$(15,182,389)

(1,134,359)

$(15,072,697)

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

A

Class

A

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

a

...................................

5,675,320

$93,886,911

Shares

issued

in

reinvestment

of

distributions

..........

1,608,455

27,357,970

Shares

redeemed

...............................

(7,378,570)

(122,090,915)

Net

increase

(decrease)

..........................

(94,795)

$(846,034)

Year

ended

December

31,

2022

Shares

sold

a

...................................

6,242,529

$106,513,403

Shares

issued

in

reinvestment

of

distributions

..........

3,003,201

47,091,130

Shares

redeemed

...............................

(10,229,231)

(173,687,373)

Net

increase

(decrease)

..........................

(983,501)

$(20,082,840)

Class

C

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

44

franklintempleton.com

Semiannual

Report

Franklin

Growth

Allocation

Fund

Shares

Amount

Class

C

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

1,159,384

$18,367,331

Shares

issued

in

reinvestment

of

distributions

..........

143,847

2,338,610

Shares

redeemed

a

..............................

(1,809,784)

(28,691,573)

Net

increase

(decrease)

..........................

(506,553)

$(7,985,632)

Year

ended

December

31,

2022

Shares

sold

...................................

1,043,908

$17,169,928

Shares

issued

in

reinvestment

of

distributions

..........

301,764

4,542,612

Shares

redeemed

a

..............................

(2,409,585)

(39,333,829)

Net

increase

(decrease)

..........................

(1,063,913)

$(17,621,289)

Class

R

Class

R

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

168,153

$2,734,891

Shares

issued

in

reinvestment

of

distributions

..........

60,644

1,013,386

Shares

redeemed

...............................

(262,805)

(4,268,270)

Net

increase

(decrease)

..........................

(34,008)

$(519,993)

Year

ended

December

31,

2022

Shares

sold

...................................

257,803

$4,277,975

Shares

issued

in

reinvestment

of

distributions

..........

119,491

1,843,215

Shares

redeemed

...............................

(717,374)

(12,000,258)

Net

increase

(decrease)

..........................

(340,080)

$(5,879,068)

Class

R6

Class

R6

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

53,589

$880,664

Shares

issued

in

reinvestment

of

distributions

..........

8,494

145,392

Shares

redeemed

...............................

(9,236)

(153,444)

Net

increase

(decrease)

..........................

52,847

$872,612

Year

ended

December

31,

2022

Shares

sold

...................................

20,382

$347,602

Shares

issued

in

reinvestment

of

distributions

..........

13,634

215,043

Shares

redeemed

...............................

(47,819)

(799,810)

Net

increase

(decrease)

..........................

(13,803)

$(237,165)

Advisor

Class

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

45

franklintempleton.com

Semiannual

Report

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Funds

are

also

officers

and/or

directors/trustees

of

certain

of

the

FT

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Asset

Allocation

Fees

The

Funds

pay

an

asset

allocation

fee

to

Advisers

of

0.25%

per

year

of

the

average

daily

net

assets

of

each

of

the

Funds

for

investment

advisory

services,

consisting

principally

of

determining

the

allocation

of

assets

of

the

Funds

among

the

Underlying

Funds

and

ETFs. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Funds

and

is

not

paid

by

the

Funds

for

the

services.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Funds’

Class A

reimbursement

distribution

plans,

the

Funds

reimburse

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plans,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Funds’

Class C

and

R

compensation

distribution

plans,

Franklin

Growth

Allocation

Fund

Shares

Amount

Advisor

Class

Shares:

Six

Months

ended

June

30,

2023

Shares

sold

...................................

383,202

$6,332,233

Shares

issued

in

reinvestment

of

distributions

..........

68,620

1,175,518

Shares

redeemed

...............................

(424,812)

(7,070,455)

Net

increase

(decrease)

..........................

27,010

$437,296

Year

ended

December

31,

2022

Shares

sold

...................................

526,427

$9,021,799

Shares

issued

in

reinvestment

of

distributions

..........

133,174

2,102,385

Shares

redeemed

...............................

(916,123)

(15,502,011)

Net

increase

(decrease)

..........................

(256,522)

$(4,377,827)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(

Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

46

franklintempleton.com

Semiannual

Report

the

Funds

pay

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

each

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31

for

each

Fund.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Funds.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Funds

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Funds'

shares

for

the

period:

e.

Transfer

Agent

Fees

Each

class

of

shares

pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class

reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6,

reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2023,

the

Funds

paid

transfer

agent

fees

as

noted

in

the

Statements

of

Operations

of

which

the

following

amounts

were

retained

by

Investor

Services:

f.

Investments

in

FT

Underlying

Funds

The Funds

invest in FT

Underlying

Funds

which

are

managed

by

Advisers

(or

an

affiliate

of

Advisers).

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Funds

do

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

Class

A

....................................................................................

0.25%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..................

$22,372

$78,334

$83,324

CDSC

retained

...........................

$9,576

$5,624

$5,892

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Transfer

agent

fees

........................

$216,492

$430,501

$414,733

3.

Transactions

with

Affiliates

(continued)

c.

Distribution

Fees

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

47

franklintempleton.com

Semiannual

Report

management

or

policies.

Asset

allocation

fees

paid

by

the

Funds

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statements

of

Operations,

in

an

amount

not

to

exceed

the

asset

allocation

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Investments

in

FT

Underlying

Funds

for

the

period

ended

June

30,

2023,

were

as

follows:

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

$

30,701,244

$

438,365

$

(4,284,856)

$

(1,097,278)

$

2,166,323

$

27,923,798

3,088,916

$

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

26,259,497

173,247

(3,426,901)

164,834

1,018,138

24,188,815

631,562

173,247

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

12,220,962

236,369

(241,570)

(30,283)

702,451

12,887,929

1,376,915

57,002

Franklin

Growth

Fund,

Class

R6

.

62,248,347

—

(12,128,782)

4,425,914

5,910,915

60,456,394

495,951

—

Franklin

High

Yield

Corporate

ETF

19,487,415

1,742,943

(1,752,334)

(266,895)

875,322

20,086,451

882,533

545,075

Franklin

International

Aggregate

Bond

ETF

................

18,456,792

1,571,889

(1,856,388)

(548,130)

1,018,152

18,642,315

946,791

—

Franklin

International

Core

Equity

(IU)

Fund

................

37,040,769

7,205,263

(6,017,442)

38,508

4,228,683

42,495,781

3,801,054

443,458

Franklin

International

Growth

Fund,

Class

R6

................

5,491,269

1,059,474

(992,296)

(1,052)

722,118

6,279,513

384,538

—

Franklin

Investment

Grade

Corporate

ETF

............

25,563,434

1,465,923

(2,675,769)

(535,910)

969,701

24,787,379

1,168,114

373,022

Franklin

Systematic

Style

Premia

ETF

....................

9,183,135

908,393

(928,279)

(186,717)

450,629

9,427,161

431,451

—

Franklin

U.S.

Core

Bond

ETF

...

197,196,243

10,216,672

(17,148,612)

(2,879,218)

5,005,003

192,390,088

8,990,191

2,556,716

Franklin

U.S.

Core

Equity

(IU)

Fund

145,722,174

2,304,765

(26,554,809)

(3,477,254)

20,317,676

138,312,552

10,321,832

1,351,461

Franklin

U.S.

Equity

Index

ETF

.

11,904,898

3,017,296

(3,459,610)

148,826

1,798,694

13,410,104

345,550

80,781

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

33,567,342

—

(5,643,295)

17,885

4,194,108

32,136,040

717,803

251,994

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

5,018,427

352,624

(5,075,610)

(180,990)

(114,451)

—

—

34,582

Franklin

U.S.

Treasury

Bond

ETF

54,806,603

3,906,058

(4,827,397)

(983,117)

1,147,103

54,049,250

2,602,087

782,345

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

21,171,800

58,988,053

(54,205,595)

—

—

25,954,258

25,954,258

560,142

Templeton

Developing

Markets

Trust,

Class

R6

............

8,417,149

264,928

(890,169)

(111,692)

842,503

8,522,719

479,074

—

Templeton

Foreign

Fund,

Class

R6

9,012,492

835,376

(1,307,530)

135,355

994,250

9,669,943

1,275,718

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

113,500,451

8,665,394

(12,692,162)

(3,261,564)

4,606,482

110,818,601

11,714,440

2,304,997

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

48

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Conservative

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

$

39,756,727

$

3,061,716

$

(3,218,795)

$

(274,029)

$

156,050

$

39,481,669

10,967,130

$

720,710

Total

Non-Controlled

Affiliates

$886,727,170

$106,414,748

$(169,328,201)

$(8,902,807)

$57,009,850

$871,920,760

$10,235,532

Total

Affiliated

Securities

....

$886,727,170

$106,414,748

$(169,328,201)

$(8,902,807)

$57,009,850

$871,920,760

$10,235,532

Franklin

Moderate

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

30,484,612

1,652,637

(293,165)

(59,049)

1,754,942

33,539,977

3,583,331

146,517

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

30,242,539

635,122

(3,519,377)

(1,004,220)

2,054,465

28,408,529

3,142,536

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

66,028,359

448,991

(5,766,904)

78,351

3,012,303

63,801,100

1,665,825

448,991

Franklin

Growth

Fund,

Class

R6

.

156,477,591

—

(23,418,219)

6,545,198

20,082,374

159,686,944

1,309,983

—

Franklin

High

Yield

Corporate

ETF

21,023,462

2,527,626

(1,464,911)

(223,626)

883,110

22,745,661

999,370

606,554

Franklin

International

Aggregate

Bond

ETF

................

18,200,828

1,711,377

(1,380,366)

(408,114)

874,427

18,998,152

964,863

—

Franklin

International

Core

Equity

(IU)

Fund

................

95,199,975

16,970,821

(11,412,064)

(374,122)

11,379,923

111,764,533

9,996,828

1,165,020

Franklin

International

Growth

Fund,

Class

R6

................

13,932,824

2,600,314

(1,743,338)

(1,513)

1,838,257

16,626,544

1,018,159

—

Franklin

Investment

Grade

Corporate

ETF

............

27,577,576

2,354,377

(2,319,707)

(458,262)

914,198

28,068,182

1,322,723

414,982

Franklin

Systematic

Style

Premia

ETF

....................

15,078,234

1,593,124

(1,107,053)

(223,442)

672,885

16,013,748

732,898

—

Franklin

U.S.

Core

Bond

ETF

...

212,737,140

17,298,938

(14,353,193)

(2,479,459)

4,645,171

217,848,597

10,179,841

2,838,617

Franklin

U.S.

Core

Equity

(IU)

Fund

366,931,589

5,067,123

(52,526,457)

(7,052,389)

50,321,602

362,741,468

27,070,259

3,526,452

Franklin

U.S.

Equity

Index

ETF

.

30,983,474

6,815,120

(7,460,000)

357,873

4,740,088

35,436,555

913,125

209,584

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

83,628,823

441,270

(10,062,163)

(212,841)

11,116,454

84,911,543

1,896,617

658,078

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

12,629,280

891,543

(12,758,610)

(474,228)

(287,985)

—

—

90,103

Franklin

U.S.

Treasury

Bond

ETF

59,125,865

5,991,037

(4,041,098)

(821,445)

948,803

61,203,162

2,946,497

868,333

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

34,816,251

91,950,351

(82,425,327)

—

—

44,341,275

44,341,275

950,889

Templeton

Developing

Markets

Trust,

Class

R6

............

21,301,187

741,565

(1,520,730)

(202,932)

2,052,082

22,371,172

1,257,514

—

Templeton

Foreign

Fund,

Class

R6

22,864,626

2,058,041

(2,210,897)

50,988

2,838,234

25,600,992

3,377,440

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

49

franklintempleton.com

Semiannual

Report

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Moderate

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

$

122,445,969

$

12,817,320

$

(11,365,432)

$

(2,937,172)

$

4,307,513

$

125,268,198

13,241,881

$

2,546,289

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

48,281,843

4,796,542

(3,023,628)

(255,476)

93,766

49,893,047

13,859,180

894,096

Total

Non-Controlled

Affiliates

$1,459,507,435

$177,710,602

$(253,879,474)

$(10,096,831)

$122,487,670

$1,495,729,402

$15,217,988

Total

Affiliated

Securities

....

$1,489,992,047

$179,363,239

$(254,172,639)

$(10,155,880)

$124,242,612

$1,529,269,379

$15,364,505

Franklin

Growth

Allocation

Fund

Controlled

Affiliates

Franklin

Emerging

Market

Core

Equity

(IU)

Fund

...........

29,248,769

3,102,144

(88,425)

(21,784)

1,662,173

33,902,877

3,622,102

146,784

Non-Controlled

Affiliates

BrandywineGLOBAL

-

Global

Opportunities

Bond

Fund,

Class

IS

14,819,283

405,618

(1,562,806)

(395,463)

912,547

14,179,179

1,568,493

—

ClearBridge

Large

Cap

Value

Fund,

Class

IS

.................

65,445,907

1,290,913

(4,971,669)

69,672

3,072,588

64,907,411

1,694,710

451,519

Franklin

Growth

Fund,

Class

R6

.

155,208,167

—

(19,205,712)

3,382,164

23,379,141

162,763,760

1,335,224

—

Franklin

High

Yield

Corporate

ETF

6,940,921

1,259,509

(364,771)

(51,785)

272,165

8,056,039

353,956

208,871

Franklin

International

Aggregate

Bond

ETF

................

8,895,257

839,958

(462,732)

(136,812)

365,719

9,501,390

482,549

—

Franklin

International

Core

Equity

(IU)

Fund

................

93,936,658

17,045,103

(8,543,812)

(742,486)

11,674,647

113,370,110

10,140,439

1,176,087

Franklin

International

Growth

Fund,

Class

R6

................

13,737,178

2,564,616

(1,179,521)

(3,032)

1,822,896

16,942,137

1,037,485

—

Franklin

Investment

Grade

Corporate

ETF

............

9,106,040

1,505,305

(817,173)

(157,971)

305,836

9,942,037

468,522

142,826

Franklin

Systematic

Style

Premia

ETF

....................

11,082,650

1,172,070

(579,151)

(116,291)

454,496

12,013,774

549,832

—

Franklin

U.S.

Core

Bond

ETF

...

70,247,628

11,160,187

(4,895,726)

(804,836)

1,462,495

77,169,748

3,606,063

972,961

Franklin

U.S.

Core

Equity

(IU)

Fund

337,617,838

2,985,838

(78,934,511)

(12,590,129)

49,226,303

298,305,339

22,261,592

2,985,838

Franklin

U.S.

Equity

Index

ETF

.

34,657,128

61,768,732

(11,394,299)

454,754

12,052,742

97,539,057

2,513,375

408,874

Franklin

U.S.

Large

Cap

Multifactor

Index

ETF

...............

98,772,934

6,125,522

(23,819,132)

(659,371)

12,274,138

92,694,091

2,070,451

671,547

Franklin

U.S.

Low

Volatility

High

Dividend

Index

ETF

.........

12,481,875

876,337

(12,596,485)

(479,253)

(282,474)

—

—

90,826

Franklin

U.S.

Treasury

Bond

ETF

19,522,543

3,147,249

(1,004,505)

(145,320)

159,102

21,679,069

1,043,693

297,445

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

23,941,645

70,638,030

(59,523,514)

—

—

35,056,161

35,056,161

706,401

Templeton

Developing

Markets

Trust,

Class

R6

............

21,426,214

1,343,574

(1,907,595)

(254,580)

2,097,014

22,704,627

1,276,258

—

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

50

franklintempleton.com

Semiannual

Report

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Funds

so

that

the

operating expenses

(excluding

interest

expense, distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Funds

do

not

exceed

0.45%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2024.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Funds'

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2024.

4.

Expense

Offset

Arrangement

The

Funds

have entered

into

an

arrangement

with

their

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Funds'

custodian

expenses.

During

the

period

ended

June

30,

2023,

there

were

no

credits

earned.

Effective

July

10,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

5.

Income

Taxes

At

June

30,

2023,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Growth

Allocation

Fund

(continued)

Non-Controlled

Affiliates

(continued)

Templeton

Foreign

Fund,

Class

R6

$

22,540,275

$

2,051,546

$

(1,370,163)

$

(4,338)

$

2,871,562

$

26,088,882

3,441,805

$

—

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

............

40,431,845

7,460,453

(4,045,490)

(1,011,118)

1,448,076

44,283,766

4,681,159

865,865

Western

Asset

Short-Term

Bond

Fund,

Class

IS

............

22,308,813

2,700,438

(1,050,066)

(88,672)

6,059

23,876,572

6,632,381

419,931

Total

Non-Controlled

Affiliates

$1,083,120,799

$196,340,998

$(238,228,833)

$(13,734,867)

$123,575,052

$1,151,073,149

$9,398,991

Total

Affiliated

Securities

....

$1,112,369,568

$199,443,142

$(238,317,258)

$(13,756,651)

$125,237,225

$1,184,976,026

$9,545,775

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

a

a

a

a

Cost

of

investments

.......................

$945,392,770

$1,499,666,320

$1,043,529,063

Unrealized

appreciation

.....................

$98,340,322

$237,204,044

$232,019,189

Unrealized

depreciation

.....................

(97,499,192)

(108,574,718)

(37,977,730)

Net

unrealized

appreciation

(depreciation)

.......

$841,130

$128,629,326

$194,041,459

3.

Transactions

with

Affiliates

(continued)

f.

Investments

in

FT

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

51

franklintempleton.com

Semiannual

Report

6.

Investment

Transactions

Purchases

and

sales

of

Underlying

Funds

and

ETFs

(excluding

short

term

securities)

for

the

period

ended

June

3

0

,

202

3

,

were

as

follows:

7.

Credit

Facility

The

Funds,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Funds

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Funds

and

other

costs

incurred

by

the

Funds,

pay

their

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

their

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statements

of

Operations.

During

the

period ended

June

30,

2023,

the

Funds

did

not

use

the

Global

Credit

Facility.

8.

Fair

Value

Measurements

The Funds

follow

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Funds'

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Funds' financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Funds'

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2023,

in

valuing

the

Funds'

assets

carried

at

fair

value,

is

as

follows:

Franklin

Conservative

Allocation

Fund

Franklin

Moderate

Allocation

Fund

Franklin

Growth

Allocation

Fund

Purchases

..............................

$56,805,505

$105,706,012

$144,955,477

Sales

..................................

$122,776,522

$179,781,040

$182,483,396

Level

1

Level

2

Level

3

Total

Franklin

Conservative

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

920,206,653

$

—

$

—

$

920,206,653

Short

Term

Investments

...................

25,954,258

72,989

—

26,027,247

Total

Investments

in

Securities

...........

$946,160,911

$72,989

$—

$946,233,900

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

52

franklintempleton.com

Semiannual

Report

9.

Subsequent

Events

The

Funds

have

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Moderate

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

$

1,583,954,371

$

—

$

—

$

1,583,954,371

Short

Term

Investments

...................

44,341,275

—

—

44,341,275

Total

Investments

in

Securities

...........

$1,628,295,646

$—

$—

$1,628,295,646

Franklin

Growth

Allocation

Fund

Assets:

Investments

in

Securities:

a

Investments

in

Underlying

Funds

and

Exchange

Traded

Funds

..........................

1,202,392,428

—

—

1,202,392,428

Short

Term

Investments

...................

35,056,161

121,933

—

35,178,094

Total

Investments

in

Securities

...........

$1,237,448,589

$121,933

$—

$1,237,570,522

a

For

detailed

categories,

see

the

accompanying

schedule

of

investments.

Selected

Portfolio

ETF

Exchange-Traded

Fund

8.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

53

franklintempleton.com

Semiannual

Report

BOARD

APPROVAL

OF

INVESTMENT

MANAGEMENT

AGREEMENTS

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

Conservative

Allocation

Fund

Franklin

Growth

Allocation

Fund

Franklin

Moderate

Allocation

Fund

(each

a

Fund)

March

27,

2023

15(c)

Meeting

At

a

meeting

held

on

March

27,

2023

(March

Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreements

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

each

Fund

(each

a

Management

Agreement)

for

the

period

May

1,

2023

through

June

30,

2023

(Stub

Period).

The

Independent

Trustees

noted

that

each

Fund’s

annual

contract

review

was

historically

held

at

the

February

Board

meeting

and

that

management

proposed

to

move

the

contract

review

to

the

May

Board

meeting.

The

Independent

Trustees

further

noted

management’s

explanation

that,

to

effect

this

change,

the

Board

needed

to

consider

the

renewal

of

each

Fund’s

Management

Agreement

prior

to

its

current

April

30,

2023

expiration

date.

The

Independent

Trustees

also

noted

that

management

would

ask

them

to

consider

the

continuation

of

the

Management

Agreements

again

at

the

May

Board

meeting

for

the

12-month

period

beginning

July

1,

2023.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement

for

the

Stub

Period.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

March

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

March

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

March

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors

(Factors).

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

Franklin

Fund

Allocator

Series

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Information

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Report

party

servicing

arrangements.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

December

31,

2022.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Conservative

Allocation

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

conservative

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

acceptable.

Franklin

Moderate

Allocation

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

moderate

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

the

performance

of

the

Fund

with

management

and

management

explained

that

the

Fund

was

more

globally

focused

than

its

asset

allocation

fund

peers,

which

has

been

a

headwind

for

the

Fund

given

the

strength

of

US

equities

and

the

US

dollar

for

the

last

five

years.

Management

further

explained

that

investment

selection

had

been

a

main

detractor

of

Fund

performance

over

longer

periods,

primarily

in

the

non-US

equity

portion

of

the

Fund’s

portfolio.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund,

including

enhancements

the

portfolio

management

team

has

made

and

continues

to

make

to

the

Fund’s

portfolio

construction.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

the

Stub

Period,

while

management’s

efforts

continue

to

be

closely

monitored.

Franklin

Growth

Allocation

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

mixed-asset

target

allocation

growth

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

discussed

the

performance

of

the

Fund

with

management

and

management

explained

that

the

Fund

was

more

globally

focused

than

its

asset

allocation

fund

peers,

which

has

been

a

headwind

for

the

Fund

given

the

strength

of

US

equities

and

the

US

dollar

for

the

last

five

years.

Management

further

explained

that

investment

selection

had

been

a

main

detractor

of

Fund

performance

over

the

longer

period,

primarily

in

the

non-US

equity

portion

of

the

Fund’s

portfolio.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund,

including

enhancements

the

portfolio

management

team

has

made

and

continues

to

make

to

the

Fund’s

portfolio

construction.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

the

Stub

Period,

while

management’s

efforts

continue

to

be

closely

monitored.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

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Fund

Allocator

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Information

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franklintempleton.com

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payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

each

Fund

and

for

Class

A

shares

and

Investor

Class

shares

for

the

other

funds

in

each

Fund’s

respective

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Franklin

Conservative

Allocation

Fund

included

the

Fund

and

13

other

mixed-asset

target

allocation

conservative

funds.

The

Expense

Group

for

the

Franklin

Moderate

Allocation

Fund

included

the

Fund

and

11

other

mixed-asset

target

allocation

moderate

funds.

The

Expense

Group

for

the

Franklin

Growth

Allocation

Fund

included

the

Fund

and

eight

other

mixed-asset

target

allocation

growth

funds.

The

Board

noted

that

the

Management

Rates

and

the

actual

total

expense

ratios

for

the

Funds

were

above

the

medians

of

their

respective

Expense

Groups.

The

Board

discussed

these

expenses

with

management

and

management

explained

that

the

Management

Rate

paid

by

each

Fund

is

solely

for

asset

allocation

services

as

the

Fund

invests

primarily

in

underlying

funds.

Management

further

explained

that

each

Fund’s

total

expenses

(including

underlying

fund

expenses)

were

in

the

first

quintile

(least

expensive)

of

the

Fund’s

respective

Expense

Group.

The

Board

noted

that

each

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2022,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

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Allocator

Series

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Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that,

due

to

the

use

of

the

Management

Rate

for

allocation

services,

the

Funds

would

not

likely

experience

economies

of

scale.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

the

Stub

Period.

May

24,

2023

15(c)

Meeting

At

a

meeting

held

on

May

24,

2023

(May

Meeting),

the

Board

reviewed

and

approved

the

Management

Agreements

for

an

additional

twelve-month

period

beginning

July

1,

2023.

The

Board

noted

its

review

and

consideration

of

the

information

it

received

in

connection

with

both

the

March

Meeting

and

the

May

Meeting.

In

particular,

the

Board

reviewed

and

considered

information

provided

in

response

to

a

follow-up

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees,

which

included

information

on

Fund

performance

for

the

one-,

three-

and

five-year

periods

ended

March

31,

2023

and

the

other

Factors.

The

Board

determined

that

the

conclusions

it

made

at

the

March

Meeting

had

not

changed.

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

Factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreements

for

an

additional

twelve-month

period

beginning

July

1,

2023.

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Franklin

Fund

Allocator

Series

Shareholder

Information

57

franklintempleton.com

Semiannual

Report

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2023,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2022.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

each

Fund's

financial

reports

every

six

months.

In

addition,

you

will

receive

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

FAS

S

08/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

Franklin

Fund

Allocator

Series

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Semiannual

Report

FRANKLIN

COREFOLIO

ALLOCATION

FUND

A

Series

of

Franklin

Fund

Allocator

Series

June

30,

2023

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

.

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

franklintempleton.com

Semiannual

Report

1

Contents

Fund

Overview

2

Performance

Summary

3

Your

Fund’s

Expenses

5

Financial

Highlights

and

Schedule

of

Investments

6

Financial

Statements

12

Notes

to

Financial

Statements

16

Shareholder

Information

22

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

2

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

This

semiannual

report

for

Franklin

Corefolio

Allocation

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

capital

appreciation

through

investments

in

a

combination

of

Franklin

Growth

Fund,

Franklin

Growth

Opportunities

Fund,

Franklin

Mutual

Shares

Fund

and

Templeton

Growth

Fund.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+15.29%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

benchmarks,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

which

is

a

broad

measure

of

U.S.

stock

performance,

posted

a

+16.89%

cumulative

total

return,

and

the

MSCI

World

Index,

which

tracks

equity

performance

in

global

developed

markets,

posted

a

+15.43%

cumulative

total

return.

1

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

3

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Thank

you

for

your

continued

participation

in

Franklin

Corefolio

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Thomas

A.

Nelson,

CFA

Wylie

Tollette,

CFA

Berkeley

Belknap

Portfolio

Management

Team

Portfolio

Composition

*

6/30/23

%

of

Total

Net

Assets

Domestic

Equity

75.4%

Foreign

Equity

24.6%

Short-Term

Investments

&

Other

Net

Assets

†

0.0%

*

The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class

based

on

its

predominant

investments

under

normal

market

conditions.

†

Rounds

to

less

than

0.1%.

1.

Source:

Morningstar.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

11

.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2023

Franklin

Corefolio

Allocation

Fund

3

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+15.29%

+8.94%

1-Year

+17.98%

+11.46%

5-Year

+41.37%

+5.96%

10-Year

+135.74%

+8.34%

Advisor

6-Month

+15.39%

+15.39%

1-Year

+18.25%

+18.25%

5-Year

+43.14%

+7.44%

10-Year

+141.78%

+9.23%

See

page

4

for

Performance

Summary

footnotes.

Franklin

Corefolio

Allocation

Fund

Performance

Summary

4

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Investments

in

underlying

funds

are

subject

to

the

same

risks

as,

and

indirectly

bear

the

fees

and

expenses

of,

the

underlying

funds.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

securities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets.

The

Fund’s

prospectus

also

includes

a

description

of

the

main

investment

risks.

1.

The

total

annual

operating

expenses

are

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

Long-Term

Capital

Gain

Total

A

$0.0304

$0.7867

$0.8171

C

$0.0304

$0.7867

$0.8171

R

$0.0304

$0.7867

$0.8171

R6

$0.0304

$0.7867

$0.8171

Advisor

$0.0304

$0.7867

$0.8171

Total

Annual

Operating

Expenses

5

Share

Class

A

1.03%

Advisor

0.78%

Your

Fund’s

Expenses

Franklin

Corefolio

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,152.90

$2.23

$1,022.72

$2.09

0.42%

C

$1,000

$1,148.70

$6.22

$1,019.01

$5.84

1.17%

R

$1,000

$1,151.50

$3.56

$1,021.48

$3.35

0.67%

R6

$1,000

$1,154.50

$0.48

$1,024.34

$0.46

0.09%

Advisor

$1,000

$1,153.90

$0.90

$1,023.96

$0.84

0.17%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.85

$24.42

$21.92

$20.04

$17.32

$19.68

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.04)

0.05

0.22

0.12

0.20

0.17

Net

realized

and

unrealized

gains

(losses)

2.77

(5.16)

3.21

3.32

4.17

(1.51)

Total

from

investment

operations

........

2.73

(5.11)

3.43

3.44

4.37

(1.34)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(0.03)

(0.01)

(0.22)

(0.18)

(0.20)

(0.15)

Net

realized

gains

.................

(0.79)

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...................

(0.82)

(1.46)

(0.93)

(1.56)

(1.65)

(1.02)

Net

asset

value,

end

of

period

..........

$19.76

$17.85

$24.42

$21.92

$20.04

$17.32

Total

return

d

.......................

15.29%

(20.84)%

15.76%

18.28%

25.79%

(7.10)%

Ratios

to

average

net

assets

e

Expenses

f,g

........................

0.42%

0.41%

0.42%

0.43%

0.44%

0.41%

Net

investment

income

(loss)

c

..........

(0.42)%

0.26%

0.91%

0.64%

1.02%

0.76%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$764,424

$690,297

$931,489

$812,250

$717,806

$593,983

Portfolio

turnover

rate

................

—%

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

period

ended

June

30,

2023.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

7

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.34

$23.94

$21.57

$19.76

$17.10

$19.43

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

,c

........

(0.11)

(0.10)

(0.01)

(0.03)

0.04

(0.10)

Net

realized

and

unrealized

gains

(losses)

2.69

(5.05)

3.20

3.25

4.12

(1.35)

Total

from

investment

operations

........

2.58

(5.15)

3.19

3.22

4.16

(1.45)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(0.03)

(—)

d

(0.11)

(0.03)

(0.05)

(0.01)

Net

realized

gains

.................

(0.79)

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...................

(0.82)

(1.45)

(0.82)

(1.41)

(1.50)

(0.88)

Net

asset

value,

end

of

period

..........

$19.10

$17.34

$23.94

$21.57

$19.76

$17.10

Total

return

e

.......................

14.87%

(21.44)%

14.88%

17.41%

24.83%

(7.76)%

Ratios

to

average

net

assets

f

Expenses

g

,

h

........................

1.17%

1.16%

1.17%

1.18%

1.19%

1.16%

Net

investment

income

(loss)

c

..........

(1.17)%

(0.53)%

(0.05)%

(0.18)%

0.27%

0.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$41,632

$39,781

$61,517

$73,513

$75,745

$72,124

Portfolio

turnover

rate

................

—%

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

period

ended

June

30,

2023.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.81

$24.42

$21.95

$20.07

$17.34

$19.68

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

,c

........

(0.06)

0.01

0.16

0.07

0.14

0.10

Net

realized

and

unrealized

gains

(losses)

2.76

(5.17)

3.21

3.32

4.19

(1.48)

Total

from

investment

operations

........

2.70

(5.16)

3.37

3.39

4.33

(1.38)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(0.03)

(—)

d

(0.19)

(0.13)

(0.15)

(0.09)

Net

realized

gains

.................

(0.79)

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...................

(0.82)

(1.45)

(0.90)

(1.51)

(1.60)

(0.96)

Net

asset

value,

end

of

period

..........

$19.69

$17.81

$24.42

$21.95

$20.07

$17.34

Total

return

e

.......................

15.15%

(21.04)%

15.46%

18.00%

25.51%

(7.30)%

Ratios

to

average

net

assets

f

Expenses

g

,

h

........................

0.67%

0.66%

0.66%

0.67%

0.67%

0.65%

Net

investment

income

(loss)

c

..........

(0.67)%

0.04%

0.68%

0.38%

0.79%

0.52%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,768

$1,488

$1,764

$1,498

$1,387

$1,412

Portfolio

turnover

rate

................

—%

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Amount

rounds

to

less

than

$0.01

per

share.

e

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

h

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

period

ended

June

30,

2023.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.92

$24.52

$21.97

$20.07

$17.34

$19.67

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b,c

........

(0.01)

0.12

0.30

0.21

0.70

0.27

Net

realized

and

unrealized

gains

(losses)

2.78

(5.19)

3.23

3.31

3.75

(1.52)

Total

from

investment

operations

........

2.77

(5.07)

3.53

3.52

4.45

(1.25)

Less

distributions

from:

Net

investment

income

..............

(0.03)

(0.08)

(0.27)

(0.24)

(0.27)

(0.21)

Net

realized

gains

.................

(0.79)

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...................

(0.82)

(1.53)

(0.98)

(1.62)

(1.72)

(1.08)

Net

asset

value,

end

of

period

..........

$19.87

$17.92

$24.52

$21.97

$20.07

$17.34

Total

return

d

.......................

15.45%

(20.60)%

16.16%

18.69%

26.24%

(6.78)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

..........................

0.12%

0.13%

0.13%

0.13%

0.12%

0.23%

Expenses

net

of

waiver

and

payments

by

affiliates

f

..........................

0.09%

0.08%

0.09%

0.09%

0.09%

0.09%

Net

investment

income

(loss)

c

..........

(0.09)%

0.62%

1.26%

1.05%

1.37%

1.08%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,665

$4,379

$5,349

$4,393

$3,385

$75

Portfolio

turnover

rate

................

—%

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

period

ended

June

30,

2023.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Corefolio

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$17.93

$24.52

$21.98

$20.08

$17.35

$19.71

Income

from

investment

operations

a

:

Net

investment

income

(loss)

b

,c

........

(0.02)

0.09

0.28

0.17

0.27

0.24

Net

realized

and

unrealized

gains

(losses)

2.78

(5.17)

3.22

3.34

4.16

(1.53)

Total

from

investment

operations

........

2.76

(5.08)

3.50

3.51

4.43

(1.29)

Less

distributions

from:

Net

investment

income

and

short

term

gains

received

from

Underlying

funds

...

(0.03)

(0.06)

(0.25)

(0.23)

(0.25)

(0.20)

Net

realized

gains

.................

(0.79)

(1.45)

(0.71)

(1.38)

(1.45)

(0.87)

Total

distributions

...................

(0.82)

(1.51)

(0.96)

(1.61)

(1.70)

(1.07)

Net

asset

value,

end

of

period

..........

$19.87

$17.93

$24.52

$21.98

$20.08

$17.35

Total

return

d

.......................

15.39%

(20.63)%

16.05%

18.59%

26.10%

(6.85)%

Ratios

to

average

net

assets

e

Expenses

f

,g

........................

0.17%

0.16%

0.17%

0.18%

0.19%

0.16%

Net

investment

income

(loss)

c

..........

(0.17)%

0.48%

1.16%

0.90%

1.27%

1.01%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$54,478

$48,963

$69,322

$61,166

$52,512

$40,399

Portfolio

turnover

rate

................

—%

9.00%

3.58%

9.29%

2.12%

3.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

in

which

the

Fund

invests.

d

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.62%

for

the

period

ended

June

30,

2023.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

Corefolio

Allocation

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

a

Shares

a

Value

a

Investments

In

Underlying

Funds

100.0%

Domestic

Equity

75.4%

a

Franklin

Growth

Fund,

Class

R6

........................................

1,811,176

$

220,782,372

a,b

Franklin

Growth

Opportunities

Fund,

Class

R6

.............................

4,649,433

232,843,608

a

Franklin

Mutual

Shares

Fund,

Class

R6

...................................

8,316,903

200,354,200

653,980,180

Foreign

Equity

24.6%

a

Templeton

Growth

Fund,

Inc.,

Class

R6

...................................

8,844,970

213,252,234

Total

Investments

In

Underlying

Funds

(Cost

$582,738,190)

......................

867,232,414

a

a

a

a

Short

Term

Investments

0.0%

†

A

A

Money

Market

Funds

0.0%

†

a,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

..................

44

44

Total

Money

Market

Funds

(Cost

$44)

..........................................

44

Total

Short

Term

Investments

(Cost

$44

)

.......................................

44

a

Total

Investments

(Cost

$582,738,234)

100.0%

..................................

$867,232,458

Other

Assets,

less

Liabilities

(0.0)%

†

..........................................

(264,922)

Net

Assets

100.0%

...........................................................

$866,967,536

†

Rounds

to

less

than

0.1%

of

net

assets.

a

See

Note

3(e)

regarding

investments

in

Underlying

Funds.

b

Non-income

producing.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

Franklin

Corefolio

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Non-controlled

affiliates

(Note

3

e

)

........................................................

$582,738,234

Value

-

Non-controlled

affiliates

(Note

3

e

)

.......................................................

867,232,458

Cash

....................................................................................

918,927

Receivables:

Capital

shares

sold

........................................................................

104,329

Dividends

...............................................................................

44

Affiliates

................................................................................

15

Total

assets

..........................................................................

868,255,773

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

818,621

Administrative

fees

........................................................................

20,895

Distribution

fees

..........................................................................

187,840

Transfer

agent

fees

........................................................................

178,347

Trustees'

fees

and

expenses

.................................................................

729

Distributions

to

shareholders

.................................................................

30,835

Accrued

expenses

and

other

liabilities

...........................................................

50,970

Total

liabilities

.........................................................................

1,288,237

Net

assets,

at

value

.................................................................

$866,967,536

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$599,128,450

Total

distributable

earnings

(losses)

.............................................................

267,839,086

Net

assets,

at

value

.................................................................

$866,967,536

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

Franklin

Corefolio

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$764,424,299

Shares

outstanding

........................................................................

38,686,829

Net

asset

value

per

share

a

..................................................................

$19.76

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$20.91

Class

C:

Net

assets,

at

value

.......................................................................

$41,632,132

Shares

outstanding

........................................................................

2,180,073

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$19.10

Class

R:

Net

assets,

at

value

.......................................................................

$1,768,147

Shares

outstanding

........................................................................

89,799

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$19.69

Class

R6:

Net

assets,

at

value

.......................................................................

$4,665,237

Shares

outstanding

........................................................................

234,736

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$19.87

Advisor

Class:

Net

assets,

at

value

.......................................................................

$54,477,721

Shares

outstanding

........................................................................

2,741,555

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$19.87

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

Franklin

Corefolio

Allocation

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

e

)

.............................................................

$2,447

Expenses:

Administrative

fees

(Note

3

a

)

..................................................................

122,877

Distribution

fees:

(Note

3b

)

    Class

A

................................................................................

901,972

    Class

C

................................................................................

202,143

    Class

R

................................................................................

4,026

Transfer

agent

fees:

(Note

3d

)

    Class

A

................................................................................

385,452

    Class

C

................................................................................

21,549

    Class

R

................................................................................

862

    Class

R6

...............................................................................

1,244

    Advisor

Class

............................................................................

27,295

Reports

to

shareholders

fees

..................................................................

42,606

Registration

and

filing

fees

....................................................................

47,787

Professional

fees

...........................................................................

21,910

Trustees'

fees

and

expenses

..................................................................

5,029

Other

....................................................................................

9,107

Total

expenses

.........................................................................

1,793,859

Expenses

waived/paid

by

affiliates

(Note

3

e

and

3

f

)

..............................................

(796)

Net

expenses

.........................................................................

1,793,063

Net

investment

income

(loss)

............................................................

(1,790,616)

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

(4,239,913)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Non-controlled

affiliates

(Note

3

e

)

...........................................................

123,483,411

Net

realized

and

unrealized

gain

(loss)

............................................................

119,243,498

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$117,452,882

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

15

Franklin

Corefolio

Allocation

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

(loss)

............................................

$(1,790,616)

$1,986,878

Net

realized

gain

(loss)

.................................................

(4,239,913)

28,812,870

Net

change

in

unrealized

appreciation

(depreciation)

...........................

123,483,411

(251,528,197)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

117,452,882

(220,728,449)

Distributions

to

shareholders:

Class

A

.............................................................

(30,556,126)

(54,119,499)

Class

C

.............................................................

(1,730,997)

(3,448,107)

Class

R

.............................................................

(70,346)

(110,722)

Class

R6

............................................................

(188,496)

(348,810)

Advisor

Class

........................................................

(2,174,074)

(4,174,776)

Total

distributions

to

shareholders

..........................................

(34,720,039)

(62,201,914)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

1,174,449

5,167,883

Class

C

.............................................................

(2,074,059)

(5,536,290)

Class

R

.............................................................

121,920

208,379

Class

R6

............................................................

(171,308)

464,883

Advisor

Class

........................................................

275,320

(1,907,511)

Total

capital

share

transactions

............................................

(673,678)

(1,602,656)

Net

increase

(decrease)

in

net

assets

...................................

82,059,165

(284,533,019)

Net

assets:

Beginning

of

period

.....................................................

784,908,371

1,069,441,390

End

of

period

..........................................................

$866,967,536

$784,908,371

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

Franklin

Corefolio

Allocation

Fund

16

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds.

The

Trust

follows

the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

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.

Franklin

Corefolio

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

invests

in

affiliated

mutual

funds

managed

by

Franklin

Templeton

(Underlying

Funds).

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Fund’s

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and

excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2023,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

Dividend

income

and

capital

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

17

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

gain

distributions

by

Underlying

Funds

are

recorded

on

the

ex-dividend

date.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds.

Since

the

Underlying

Funds

have

varied

expense

levels

and

the

Fund

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the

Fund

will

vary.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

d.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

e.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Funds,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

June

30,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

Six

Months

Ended

June

30,

2023

Year

Ended

December

31,

2022

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

2,425,309

$46,602,970

2,733,896

$54,219,315

Shares

issued

in

reinvestment

of

distributions

..........

1,518,432

29,975,012

3,024,029

53,107,120

Shares

redeemed

...............................

(3,927,500)

(75,403,533)

(5,228,844)

(102,158,552)

Net

increase

(decrease)

..........................

16,241

$1,174,449

529,081

$5,167,883

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

18

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Administrative

Fees

The

Fund

pays

an

administrative

fee

to

FT

Services

of

0.03%

per

year

of

the

average

daily

net

assets

of

the

Fund

for

administrative

services

including

monitoring

and

rebalancing

the

percentage

of

the

Fund's

investment

in

the

Underlying

Funds.

Six

Months

Ended

June

30,

2023

Year

Ended

December

31,

2022

Shares

Amount

Shares

Amount

Class

C

Shares:

Shares

sold

...................................

385,651

$7,187,252

335,519

$6,607,551

Shares

issued

in

reinvestment

of

distributions

..........

90,386

1,724,635

199,486

3,415,189

Shares

redeemed

a

..............................

(590,072)

(10,985,946)

(810,536)

(15,559,030)

Net

increase

(decrease)

..........................

(114,035)

$(2,074,059)

(275,531)

$(5,536,290)

Class

R

Shares:

Shares

sold

...................................

29,674

$570,314

9,274

$180,323

Shares

issued

in

reinvestment

of

distributions

..........

3,576

70,346

6,313

110,722

Shares

redeemed

...............................

(26,970)

(518,740)

(4,317)

(82,666)

Net

increase

(decrease)

..........................

6,280

$121,920

11,270

$208,379

Class

R6

Shares:

Shares

sold

...................................

10,018

$191,134

43,576

$837,894

Shares

issued

in

reinvestment

of

distributions

..........

9,461

187,806

18,840

333,021

Shares

redeemed

...............................

(29,083)

(550,248)

(36,280)

(706,032)

Net

increase

(decrease)

..........................

(9,604)

$(171,308)

26,136

$464,883

Advisor

Class

Shares:

Shares

sold

...................................

235,791

$4,560,284

388,759

$7,596,976

Shares

issued

in

reinvestment

of

distributions

..........

98,326

1,951,838

212,472

3,754,731

Shares

redeemed

...............................

(324,055)

(6,236,802)

(697,139)

(13,259,218)

Net

increase

(decrease)

..........................

10,062

$275,320

(95,908)

$(1,907,511)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

2.

Shares

of

Beneficial

Interest

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

19

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

b.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31. 

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

c.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

Fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund's

shares

for

the

period:

d.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2023,

the

Fund

paid

transfer

agent

fees

of

$436,402,

of

which

$228,599

was retained

by

Investor

Services.

e.

Investments

in

Underlying

Funds

The Fund

invests in Underlying

Funds

which

are

managed

by

Advisers,

an

affiliate

of

FT

Services

or

by

an

affiliate

of

Advisers.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Fund

does

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Administrative

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

Institutional

Fiduciary

Trust

Money

Market

Portfolio

(Sweep

Money

Fund),

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Sweep

Money

Fund.

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$43,298

CDSC

retained

..............................................................................

$1,888

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

20

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

Investments

in

Underlying

Funds

for

the

period

ended

June

30,

2023,

were

as

follows:

f.

Waiver

and

Expense

Reimbursements

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2024.

4.

Income

Taxes

At

June

3

0

,

202

3

,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

5.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2023,

aggregated $–

and

$36,736,414,

respectively.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

Corefolio

Allocation

Fund

Non-Controlled

Affiliates

Franklin

Growth

Fund,

Class

R6

.

$

194,783,881

$

—

$

(9,171,504)

$

(1,227,273)

$

36,397,268

$

220,782,372

1,811,176

$

—

Franklin

Growth

Opportunities

Fund,

Class

R6

............

193,509,671

—

(9,381,156)

(3,262,653)

51,977,746

232,843,608

4,649,433

—

Franklin

Mutual

Shares

Fund,

Class

R6

.....................

198,576,524

—

(8,854,530)

(70,429)

10,702,635

200,354,200

8,316,903

—

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

......

2,229

7,413,826

(7,416,011)

—

—

44

44

2,447

Templeton

Growth

Fund,

Inc.,

Class

R6

.....................

197,855,255

—

(9,329,225)

320,442

24,405,762

213,252,234

8,844,970

—

Total

Non-Controlled

Affiliates

$784,727,560

$7,413,826

$(44,152,426)

$(4,239,913)

$123,483,411

$867,232,458

$2,447

Total

Affiliated

Securities

....

$784,727,560

$7,413,826

$(44,152,426)

$(4,239,913)

$123,483,411

$867,232,458

$2,447

Cost

of

investments

..........................................................................

$593,356,725

Unrealized

appreciation

........................................................................

$284,494,224

Unrealized

depreciation

........................................................................

(10,618,491)

Net

unrealized

appreciation

(depreciation)

..........................................................

$273,875,733

3.

Transactions

with

Affiliates

(continued)

e.

Investments

in

Underlying

Funds

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

21

franklintempleton.com

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

(continued)

6.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the Statement

of

Operations.

During

the

period

ended

June

30,

2023,

the Fund

did

not

use

the

Global

Credit

Facility.

7.

Fair

Value

Measurements

The Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund’s

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the Fund’s financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the Fund’s

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

At

June

30,

2023,

all

of

the

Fund’s

investments

in

financial

instruments

carried

at

fair

value

were

valued

using

Level

1

inputs.

8.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Franklin

Fund

Allocator

Series

Shareholder

Information

22

franklintempleton.com

Semiannual

Report

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2023,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2022.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Franklin

Fund

Allocator

Series

Shareholder

Information

23

franklintempleton.com

Semiannual

Report

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

470

S

08/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

A

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

Franklin

Corefolio

Allocation

Fund

Fund

Administrator

Distributor

Shareholder

Services

Franklin

Templeton

Services,

LLC

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

SEMIANNUAL

REPORT

FRANKLIN

GLOBAL

ALLOCATION

FUND

A

Series

of

Franklin

Fund

Allocator

Series

June

30,

2023

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

.

The

Securities

and

Exchange

Commission

has

adopted

new

regulations

that

will

result

in

changes

to

the

design

and

delivery

of

annual

and

semiannual

shareholder

reports

beginning

in

July

2024.

If

you

have

previously

elected

to

receive

shareholder

reports

electronically,

you

will

continue

to

do

so

and

need

not

take

any

action.

Otherwise,

paper

copies

of

the

Fund’s

shareholder

reports

will

be

mailed

to

you

beginning

in

July

2024.

If

you

would

like

to

receive

shareholder

reports

and

other

communications

from

the

Fund

electronically

instead

of

by

mail,

you

may

make

that

request

at

any

time

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

enrolling

at

franklintempleton.com.

You

may

access

franklintempleton.com

by

scanning

the

code

below.

franklintempleton.com

Semiannual

Report

1

Contents

Fund

Overview

2

Performance

Summary

3

Your

Fund’s

Expenses

5

Financial

Highlights

and

Schedule

of

Investments

6

Financial

Statements

20

Notes

to

Financial

Statements

24

Shareholder

Information

36

Visit

franklintempleton.com

for

fund

updates,

to

access

your

account,

or

to

find

helpful

financial

planning

tools.

2

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

This

semiannual

report

for

Franklin

Global

Allocation

Fund

covers

the

period

ended

June

30,

2023.

Fund

Overview

Your

Fund’s

Goal

and

Main

Investments

The

Fund

seeks

the

highest

level

of

long-term

total

return

that

is

consistent

with

an

acceptable

level

of

risk.

Under

normal

market

conditions,

the

Fund

invests

in

a

diversified

portfolio

of

debt

and

equity

securities

and,

to

a

lesser

extent,

alternative

strategies.

*

Categories

within

the

Other

category

are

listed

in

full

in

the

Fund's

Schedule

of

Investments

(SOI),

which

can

be

found

later

in

this

report.

Performance

Overview

The

Fund’s

Class

A

shares

posted

a

+6.86%

cumulative

total

return

for

the

six

months

under

review.

In

comparison,

the

Fund’s

primary

benchmark,

the

MSCI

All

Country

World

Index

(ACWI)-NR,

which

measures

equity

market

performance

in

global

developed

and

emerging

markets,

posted

a

+13.93%

cumulative

total

return.

1

The

Fund’s

Custom

60%

MSCI

ACWI-NR

+

30%

Bloomberg

Global

Aggregate

Bond

Index

+

10%

cash

and

cash

equivalents

(Blended

Benchmark)

posted

a

+8.92%

cumulative

total

return.

2

You

can

find

the

Fund’s

long-term

performance

data

in

the

Performance

Summary

beginning

on

page

3

.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Prior

to

period-end,

Todd

Brighton

stepped

off

the

Fund

effective

May

31,

2023.

In

addition,

Gene

Podkaminer,

CFA,

Head

of

Research

for

FTIS,

elected

to

leave

the

company

to

pursue

other

opportunities

effective

June

1,

2023.

We

thank

Gene

for

his

service

and

contributions

to

the

firm.

Thank

you

for

your

continued

participation

in

Franklin

Global

Allocation

Fund.

We

look

forward

to

serving

your

future

investment

needs.

Wylie

Tollette,

CFA

Kimberly

Strand,

CFA

Richard

Hsu,

CFA

Portfolio

Management

Team

Portfolio

Composition

6/30/23

%

of

Total

Net

Assets

Financial

Services

25.6%

Capital

Markets

11.3%

Banks

5.2%

Pharmaceuticals

4.6%

Semiconductors

&

Semiconductor

Equipment

4.6%

Software

4.5%

Oil,

Gas

&

Consumable

Fuels

3.0%

Metals

&

Mining

2.8%

Technology

Hardware,

Storage

&

Peripherals

2.4%

Broadline

Retail

1.9%

Interactive

Media

&

Services

1.8%

Insurance

1.7%

Electric

Utilities

1.6%

Food

Products

1.5%

Other

*

24.3

%

Short-Term

Investments

&

Other

Net

Assets

3.2%

1.

Source:

Morningstar.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

2.

Source:

FactSet.

The

Blended

Benchmark

was

calculated

internally.

The

indexes

are

unmanaged

and

include

reinvestment

of

any

income

or

distributions.

They

do

not

reflect

any

fees,

expenses

or

sales

charges.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

The

dollar

value,

number

of

shares

or

principal

amount,

and

names

of

all

portfolio

holdings

are

listed

in

the

Fund’s

Schedule

of

Investments

(SOI).

The

SOI

begins

on

page

11

.

CFA

®

is

a

trademark

owned

by

CFA

Institute.

Performance

Summary

as

of

June

30,

2023

Franklin

Global

Allocation

Fund

3

franklintempleton.com

Semiannual

Report

The

performance

table

does

not

reflect

any

taxes

that

a

shareholder

would

pay

on

Fund

dividends,

capital

gain

distributions,

if

any,

or

any

realized

gains

on

the

sale

of

Fund

shares.

Total

return

reflects

reinvestment

of

the

Fund’s

dividends

and

capital

gain

distributions,

if

any,

and

any

unrealized

gains

or

losses.

Your

dividend

income

will

vary

depending

on

dividends

or

interest

paid

by

securities

in

the

Fund’s

portfolio,

adjusted

for

operating

expenses

of

each

class.

Capital

gain

distributions

are

net

profits

realized

from

the

sale

of

portfolio

securities.

Performance

as

of

6/30/23

1

Cumulative

total

return

excludes

sales

charges.

Average

annual

total

return

includes

maximum

sales

charges.

Sales

charges

will

vary

depending

on

the

size

of

the

investment

and

the

class

of

share

purchased.

The

maximum

is

5.50%

and

the

minimum

is

0%.

Class

A:

5.50%

maximum

initial

sales

charge;

Advisor

Class:

no

sales

charges.

For

other

share

classes,

visit

franklintempleton.com.

Performance

data

represent

past

performance,

which

does

not

guarantee

future

results.

Investment

return

and

principal

value

will

fluctuate,

and

you

may

have

a

gain

or

loss

when

you

sell

your

shares.

Current

performance

may

differ

from

figures

shown.

For

most

recent

month-end

performance,

go

to

franklintempleton.com

or

call

(800)

342-5236

.

Share

Class

Cumulative

Total

Return

2

Average

Annual

Total

Return

3

–

A

4

6-Month

+6.86%

+1.02%

1-Year

+7.79%

+1.88%

5-Year

+14.99%

+1.68%

10-Year

+57.98%

+4.09%

Advisor

6-Month

+7.08%

+7.08%

1-Year

+8.07%

+8.07%

5-Year

+16.49%

+3.10%

10-Year

+62.07%

+4.95%

See

page

4

for

Performance

Summary

footnotes.

Franklin

Global

Allocation

Fund

Performance

Summary

4

franklintempleton.com

Semiannual

Report

Each

class

of

shares

is

available

to

certain

eligible

investors

and

has

different

annual

fees

and

expenses,

as

described

in

the

prospectus.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

All

investments

involve

risks,

including

possible

loss

of

principal.

Equity

securities

are

subject

to

price

fluctuation

and

possible

loss

of

principal.

Fixed

income

secu-

rities

involve

interest

rate,

credit,

inflation

and

reinvestment

risks,

and

possible

loss

of

principal.

As

interest

rates

rise,

the

value

of

fixed

income

securities

falls.

Low-rated,

high-yield

bonds

are

subject

to

greater

price

volatility,

illiquidity

and

possibility

of

default.

The

investment

style

may

become

out

of

favor,

which

may

have

a

negative

impact

on

performance.

International

investments

are

subject

to

special

risks,

including

currency

fluctuations

and

social,

economic

and

political

uncertainties,

which

could

increase

volatility.

These

risks

are

magnified

in

emerging

markets

.

To

the

extent

the

portfolio

invests

in

a

concentration

of

certain

securities,

regions

or

industries

,

it

is

subject

to

increased

volatility.

To

the

extent

the

Fund

invests

in

alternative

strategies

,

it

may

be

exposed

to

potentially

significant

fluctuations

in

value.

The

manager

may

consider

environmental,

social

and

governance

(ESG)

criteria

in

the

research

or

investment

process;

however,

ESG

considerations

may

not

be

a

determinative

factor

in

security

selection.

In

addition,

the

manager

may

not

assess

every

investment

for

ESG

criteria,

and

not

every

ESG

factor

may

be

identified

or

evaluated.

These

and

other

risks

are

discussed

in

the

Fund’s

prospectus.

1.

Gross

expenses

are

the

Fund’s

total

annual

operating

expenses

as

of

the

Fund's

prospectus

available

at

the

time

of

publication.

Actual

expenses

may

be

higher

and

may

impact

portfolio

returns.

Net

expenses

reflect

contractual

fee

waivers,

expense

caps

and/or

reimbursements,

which

cannot

be

terminated

prior

to

4/30/24

without

Board

consent.

Additional

amounts

may

be

voluntarily

waived

and/or

reimbursed

and

may

be

modified

or

discontinued

at

any

time

without

notice.

2.

Cumulative

total

return

represents

the

change

in

value

of

an

investment

over

the

periods

indicated.

3.

Average

annual

total

return

represents

the

average

annual

change

in

value

of

an

investment

over

the

periods

indicated.

Return

for

less

than

one

year,

if

any,

has

not

been

annualized.

4.

Prior

to

9/10/18

these

shares

were

offered

at

a

higher

initial

sales

charge

of

5.75%,

thus

actual

returns

(with

sales

charges)

would

have

differed.

Average

annual

total

returns

(with

sales

charges)

have

been

restated

to

reflect

the

current

maximum

initial

sales

charge

of

5.50%.

5.

Figures

are

as

stated

in

the

Fund’s

current

prospectus

and

may

differ

from

the

expense

ratios

disclosed

in

the

Your

Fund’s

Expenses

and

Financial

Highlights

sections

in

this

report.

In

periods

of

market

volatility,

assets

may

decline

significantly,

causing

total

annual

Fund

operating

expenses

to

become

higher

than

the

figures

shown.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Distributions

(1/1/23–6/30/23)

Share

Class

Net

Investment

Income

A

$0.1359

C

$0.0900

R

$0.1220

R6

$0.1552

Advisor

$0.1504

Total

Annual

Operating

Expenses

5

Share

Class

With

Fee

Waiver

Without

Fee

Waiver

A

0.98%

0.99%

Advisor

0.73%

0.74%

Your

Fund’s

Expenses

Franklin

Global

Allocation

Fund

5

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/23

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

Ending

Account

Value

6/30/23

Expenses

Paid

During

Period

1/1/23–6/30/23

1,2

a

Net

Annualized

Expense

Ratio

2

A

$1,000

$1,068.60

$4.77

$1,020.18

$4.66

0.93%

C

$1,000

$1,064.80

$8.60

$1,016.47

$8.39

1.68%

R

$1,000

$1,067.30

$6.05

$1,018.94

$5.91

1.18%

R6

$1,000

$1,071.00

$3.09

$1,021.81

$3.01

0.60%

Advisor

$1,000

$1,070.80

$3.49

$1,021.42

$3.41

0.68%

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

A

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.62

$14.95

$13.49

$14.43

$12.63

$14.54

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.13

0.18

0.19

c

0.34

c

0.42

c

0.41

c

Net

realized

and

unrealized

gains

(losses)

0.74

(1.95)

1.39

(0.27)

1.82

(1.82)

Total

from

investment

operations

........

0.87

(1.77)

1.58

0.07

2.24

(1.41)

Less

distributions

from:

Net

investment

income

..............

(0.14)

(0.56)

(0.12)

(0.47)

(0.44)

(0.50)

Net

realized

gains

.................

—

—

—

(0.54)

—

—

Total

distributions

...................

(0.14)

(0.56)

(0.12)

(1.01)

(0.44)

(0.50)

Net

asset

value,

end

of

period

..........

$13.35

$12.62

$14.95

$13.49

$14.43

$12.63

Total

return

d

.......................

6.86%

(11.83)%

11.74%

1.55%

17.81%

(9.82)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.97%

0.94%

0.94%

f

0.42%

f

0.40%

f

0.39%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.93%

g

0.91%

g

0.88%

f,g

0.42%

f,h

0.40%

f,h

0.39%

f,h

Net

investment

income

...............

2.04%

1.31%

1.33%

c

2.73%

c

2.99%

c

2.66%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$2,471,017

$2,417,274

$3,006,324

$2,952,287

$3,397,662

$3,209,751

Portfolio

turnover

rate

................

18.91%

15.46%

97.19%

i

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

7

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

C

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.50

$14.79

$13.40

$14.33

$12.54

$14.33

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.08

0.07

0.08

c

0.23

c

0.29

c

0.18

c

Net

realized

and

unrealized

gains

(losses)

0.73

(1.91)

1.38

(0.26)

1.82

(1.67)

Total

from

investment

operations

........

0.81

(1.84)

1.46

(0.03)

2.11

(1.49)

Less

distributions

from:

Net

investment

income

..............

(0.09)

(0.45)

(0.07)

(0.36)

(0.32)

(0.30)

Net

realized

gains

.................

—

—

—

(0.54)

—

—

Total

distributions

...................

(0.09)

(0.45)

(0.07)

(0.90)

(0.32)

(0.30)

Net

asset

value,

end

of

period

..........

$13.22

$12.50

$14.79

$13.40

$14.33

$12.54

Total

return

d

.......................

6.48%

(12.45)%

10.89%

0.79%

16.91%

(10.54)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.72%

1.69%

1.68%

f

1.17%

f

1.15%

f

1.14%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.68%

g

1.66%

g

1.62%

f,g

1.17%

f,h

1.15%

f,h

1.14%

f,h

Net

investment

income

...............

1.29%

0.56%

0.58%

c

1.85%

c

2.24%

c

1.91%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$77,707

$84,086

$131,347

$201,506

$300,699

$362,833

Portfolio

turnover

rate

................

18.91%

15.46%

97.19%

i

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Rat

ios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.66

$14.99

$13.54

$14.48

$12.68

$14.58

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.12

0.14

0.15

c

0.31

c

0.37

c

0.34

c

Net

realized

and

unrealized

gains

(losses)

0.73

(1.95)

1.40

(0.28)

1.83

(1.78)

Total

from

investment

operations

........

0.85

(1.81)

1.55

0.03

2.20

(1.44)

Less

distributions

from:

Net

investment

income

..............

(0.12)

(0.52)

(0.10)

(0.43)

(0.40)

(0.46)

Net

realized

gains

.................

—

—

—

(0.54)

—

—

Total

distributions

...................

(0.12)

(0.52)

(0.10)

(0.97)

(0.40)

(0.46)

Net

asset

value,

end

of

period

..........

$13.39

$12.66

$14.99

$13.54

$14.48

$12.68

Total

return

d

.......................

6.73%

(12.06)%

11.50%

1.28%

17.44%

(10.01)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

1.22%

1.19%

1.19%

f

0.67%

f

0.65%

f

0.64%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

1.18%

1.16%

g

1.13%

f,g

0.67%

f,h

0.65%

f,h

0.64%

f,h

Net

investment

income

...............

1.79%

1.06%

1.08%

c

2.47%

c

2.74%

c

2.41%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$4,074

$3,906

$5,229

$4,975

$5,699

$5,513

Portfolio

turnover

rate

................

18.91%

15.46%

97.19%

i

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Class

R6

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$13.03

$15.43

$13.89

$14.81

$12.95

$14.62

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.16

0.22

0.25

c

0.96

c

0.46

c

0.37

c

Net

realized

and

unrealized

gains

(losses)

0.77

(2.02)

1.43

(0.83)

1.88

(1.75)

Total

from

investment

operations

........

0.93

(1.80)

1.68

0.13

2.34

(1.38)

Less

distributions

from:

Net

investment

income

..............

(0.16)

(0.60)

(0.14)

(0.51)

(0.48)

(0.29)

Net

realized

gains

.................

—

—

—

(0.54)

—

—

Total

distributions

...................

(0.16)

(0.60)

(0.14)

(1.05)

(0.48)

(0.29)

Net

asset

value,

end

of

period

..........

$13.80

$13.03

$15.43

$13.89

$14.81

$12.95

Total

return

d

.......................

7.10%

(11.62)%

12.14%

1.94%

18.18%

(9.57)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.67%

0.66%

0.67%

f

0.21%

f

3.23%

f

0.08%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.60%

g

0.59%

g

0.54%

f

0.07%

f

0.07%

f

0.07%

f

Net

investment

income

...............

2.41%

1.61%

1.69%

c

7.33%

c

3.32%

c

2.98%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$1,648

$1,087

$573

$631

$5

$4

Portfolio

turnover

rate

................

18.91%

15.46%

97.19%

i

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year

.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

hi

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Financial

Highlights

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

2021

2020

2019

2018

Advisor

Class

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$12.72

$15.07

$13.58

$14.52

$12.71

$14.63

Income

from

investment

operations

a

:

Net

investment

income

b

.............

0.15

0.21

0.23

c

0.37

c

0.45

c

0.43

c

Net

realized

and

unrealized

gains

(losses)

0.75

(1.97)

1.40

(0.27)

1.83

(1.81)

Total

from

investment

operations

........

0.90

(1.76)

1.63

0.10

2.28

(1.38)

Less

distributions

from:

Net

investment

income

..............

(0.15)

(0.59)

(0.14)

(0.50)

(0.47)

(0.54)

Net

realized

gains

.................

—

—

—

(0.54)

—

—

Total

distributions

...................

(0.15)

(0.59)

(0.14)

(1.04)

(0.47)

(0.54)

Net

asset

value,

end

of

period

..........

$13.47

$12.72

$15.07

$13.58

$14.52

$12.71

Total

return

d

.......................

7.08%

(11.64)%

12.01%

1.79%

18.06%

(9.60)%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

..........................

0.72%

0.69%

0.69%

f

0.17%

f

0.15%

f

0.14%

f

Expenses

net

of

waiver

and

payments

by

affiliates

..........................

0.68%

g

0.66%

g

0.63%

f,g

0.17%

f,h

0.15%

f,h

0.14%

f,h

Net

investment

income

...............

2.30%

1.56%

1.58%

c

2.89%

c

3.24%

c

2.91%

c

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$103,580

$98,974

$122,896

$123,049

$156,275

$145,522

Portfolio

turnover

rate

................

18.91%

15.46%

97.19%

i

4.07%

0.29%

0.73%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

reflect

sales

commissions

or

contingent

deferred

sales

charges,

if

applicable,

and

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

h

Benefit

of

waiver

and

payments

by

affiliates

rounds

to

less

than

0.01%.

i

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited),

June

30,

2023

Franklin

Global

Allocation

Fund

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

54.4%

Aerospace

&

Defense

0.7%

Raytheon

Technologies

Corp.

............................

United

States

180,000

$

17,632,800

Air

Freight

&

Logistics

1.0%

Deutsche

Post

AG

.....................................

Germany

279,900

13,677,798

United

Parcel

Service,

Inc.,

B

............................

United

States

64,600

11,579,550

25,257,348

Automobiles

0.8%

Mercedes-Benz

Group

AG

..............................

Germany

28,000

2,253,962

Toyota

Motor

Corp.

....................................

Japan

1,137,000

18,276,499

20,530,461

Banks

3.0%

Bank

of

America

Corp.

.................................

United

States

530,600

15,222,914

Citigroup,

Inc.

........................................

United

States

207,100

9,534,884

Commonwealth

Bank

of

Australia

.........................

Australia

175,000

11,713,052

JPMorgan

Chase

&

Co.

.................................

United

States

133,300

19,387,152

Royal

Bank

of

Canada

.................................

Canada

118,000

11,269,993

US

Bancorp

.........................................

United

States

419,000

13,843,760

80,971,755

Beverages

1.1%

Coca-Cola

Co.

(The)

...................................

United

States

101,400

6,106,308

Constellation

Brands,

Inc.,

A

.............................

United

States

32,300

7,949,999

PepsiCo,

Inc.

........................................

United

States

75,500

13,984,110

28,040,417

Biotechnology

0.3%

AbbVie,

Inc.

.........................................

United

States

52,600

7,086,798

Broadline

Retail

1.7%

a

Amazon.com,

Inc.

.....................................

United

States

260,000

33,893,600

b

JD.com,

Inc.,

A

.......................................

China

106,853

1,822,297

a,b

PDD

Holdings,

Inc.,

ADR

................................

China

120,465

8,328,950

44,044,847

Capital

Markets

1.4%

Hong

Kong

Exchanges

&

Clearing

Ltd.

.....................

Hong

Kong

82,000

3,106,839

Morgan

Stanley

.......................................

United

States

244,600

20,888,840

S&P

Global,

Inc.

......................................

United

States

33,700

13,509,993

37,505,672

Chemicals

0.6%

Linde

plc

............................................

United

States

44,000

16,767,520

Communications

Equipment

0.2%

Cisco

Systems,

Inc.

...................................

United

States

112,500

5,820,750

Consumer

Staples

Distribution

&

Retail

1.0%

a

Dollar

Tree,

Inc.

......................................

United

States

60,000

8,610,000

Target

Corp.

.........................................

United

States

63,000

8,309,700

Walmart,

Inc.

........................................

United

States

54,200

8,519,156

25,438,856

Diversified

Telecommunication

Services

0.4%

Verizon

Communications,

Inc.

............................

United

States

311,500

11,584,685

Electric

Utilities

1.6%

Duke

Energy

Corp.

....................................

United

States

65,000

5,833,100

Iberdrola

SA

.........................................

Spain

1,669,066

21,797,998

NextEra

Energy,

Inc.

...................................

United

States

112,816

8,370,947

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Electric

Utilities

(continued)

Southern

Co.

(The)

....................................

United

States

100,000

$

7,025,000

43,027,045

Electrical

Equipment

0.2%

Mitsubishi

Electric

Corp.

................................

Japan

338,700

4,788,814

Electronic

Equipment,

Instruments

&

Components

0.5%

TE

Connectivity

Ltd.

...................................

United

States

93,000

13,034,880

Entertainment

0.8%

Electronic

Arts,

Inc.

....................................

United

States

87,000

11,283,900

Nintendo

Co.

Ltd.

.....................................

Japan

201,000

9,164,525

20,448,425

Financial

Services

0.9%

Mastercard,

Inc.,

A

....................................

United

States

28,000

11,012,400

Visa,

Inc.,

A

..........................................

United

States

54,000

12,823,920

23,836,320

Food

Products

1.5%

Mondelez

International,

Inc.,

A

............................

United

States

148,500

10,831,590

Nestle

SA

...........................................

United

States

233,441

28,082,562

38,914,152

Ground

Transportation

0.7%

Canadian

National

Railway

Co.

...........................

Canada

95,000

11,504,416

Union

Pacific

Corp.

....................................

United

States

38,500

7,877,870

19,382,286

Health

Care

Equipment

&

Supplies

0.5%

Medtronic

plc

........................................

United

States

153,900

13,558,590

Health

Care

Providers

&

Services

1.1%

Elevance

Health,

Inc.

..................................

United

States

23,400

10,396,386

UnitedHealth

Group,

Inc.

................................

United

States

40,000

19,225,600

29,621,986

Hotels,

Restaurants

&

Leisure

0.6%

McDonald's

Corp.

.....................................

United

States

53,000

15,815,730

a,b,c

Meituan

Dianping,

B,

144A,

Reg

S

........................

China

44,392

696,094

16,511,824

Household

Durables

0.7%

Sony

Group

Corp.

.....................................

Japan

206,600

18,652,411

Household

Products

0.8%

Procter

&

Gamble

Co.

(The)

.............................

United

States

138,000

20,940,120

Independent

Power

and

Renewable

Electricity

Producers

0.7%

RWE

AG

............................................

Germany

447,600

19,506,543

Industrial

Conglomerates

1.0%

Hitachi

Ltd.

..........................................

Japan

69,500

4,321,866

Honeywell

International,

Inc.

.............................

United

States

70,000

14,525,000

Siemens

AG

.........................................

Germany

49,697

8,285,292

27,132,158

Industrial

REITs

0.5%

Prologis,

Inc.

.........................................

United

States

110,000

13,489,300

Insurance

1.7%

AIA

Group

Ltd.

.......................................

Hong

Kong

897,000

9,110,206

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Insurance

(continued)

Allianz

SE

...........................................

Germany

25,000

$

5,823,626

MetLife,

Inc.

.........................................

United

States

184,011

10,402,142

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

..

Germany

21,000

7,884,388

Sun

Life

Financial,

Inc.

.................................

Canada

253,000

13,189,537

46,409,899

Interactive

Media

&

Services

1.6%

a

Alphabet,

Inc.,

A

......................................

United

States

300,000

35,910,000

b

Tencent

Holdings

Ltd.

..................................

China

161,925

6,865,679

42,775,679

IT

Services

0.8%

Cognizant

Technology

Solutions

Corp.,

A

....................

United

States

145,900

9,524,352

Fujitsu

Ltd.

..........................................

Japan

92,000

11,914,077

21,438,429

Life

Sciences

Tools

&

Services

1.0%

Danaher

Corp.

.......................................

United

States

91,097

21,863,280

a

Illumina,

Inc.

.........................................

United

States

29,000

5,437,210

27,300,490

Machinery

1.3%

Deere

&

Co.

.........................................

United

States

32,171

13,035,367

Stanley

Black

&

Decker,

Inc.

.............................

United

States

68,300

6,400,393

Xylem,

Inc.

..........................................

United

States

125,000

14,077,500

33,513,260

Marine

Transportation

0.2%

AP

Moller

-

Maersk

A/S,

B

...............................

Denmark

3,500

6,154,408

Media

0.3%

Comcast

Corp.,

A

.....................................

United

States

217,700

9,045,435

Metals

&

Mining

2.4%

Agnico

Eagle

Mines

Ltd.

................................

Canada

210,000

10,486,525

BHP

Group

Ltd.

......................................

Australia

665,000

19,846,923

Fortescue

Metals

Group

Ltd.

.............................

Australia

615,000

9,123,759

Newmont

Corp.

.......................................

United

States

220,000

9,385,200

Rio

Tinto

plc

.........................................

Australia

229,000

14,552,883

63,395,290

Multi-Utilities

0.3%

Dominion

Energy,

Inc.

..................................

United

States

150,000

7,768,500

Oil,

Gas

&

Consumable

Fuels

2.4%

Canadian

Natural

Resources

Ltd.

.........................

Canada

260,000

14,618,253

Chevron

Corp.

.......................................

United

States

192,000

30,211,200

TotalEnergies

SE

.....................................

France

301,019

17,281,469

Woodside

Energy

Group

Ltd.

............................

Australia

120,166

2,782,249

64,893,171

Pharmaceuticals

3.9%

AstraZeneca

plc

......................................

United

Kingdom

172,000

24,656,935

Bristol-Myers

Squibb

Co.

................................

United

States

472,595

30,222,450

Eli

Lilly

&

Co.

........................................

United

States

40,000

18,759,200

Novo

Nordisk

A/S,

B

...................................

Denmark

185,800

30,016,743

103,655,328

Semiconductors

&

Semiconductor

Equipment

4.3%

Analog

Devices,

Inc.

...................................

United

States

49,200

9,584,652

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

Applied

Materials,

Inc.

..................................

United

States

93,000

$

13,442,220

Broadcom,

Inc.

.......................................

United

States

19,916

17,275,736

Lam

Research

Corp.

...................................

United

States

9,400

6,042,884

NVIDIA

Corp.

........................................

United

States

17,800

7,529,756

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.,

ADR

...........

Taiwan

323,500

32,647,620

Texas

Instruments,

Inc.

.................................

United

States

83,100

14,959,662

Tokyo

Electron

Ltd.

....................................

Japan

88,900

12,805,907

114,288,437

Software

4.5%

a

Adobe,

Inc.

..........................................

United

States

25,000

12,224,750

Intuit,

Inc.

...........................................

United

States

27,000

12,371,130

Microsoft

Corp.

.......................................

United

States

123,400

42,022,636

Oracle

Corp.

.........................................

United

States

96,125

11,447,526

a

Salesforce,

Inc.

.......................................

United

States

47,000

9,929,220

a

ServiceNow,

Inc.

......................................

United

States

15,000

8,429,550

a

Synopsys,

Inc.

.......................................

United

States

26,948

11,733,429

a

Workday,

Inc.,

A

......................................

United

States

51,000

11,520,390

119,678,631

Specialized

REITs

0.5%

American

Tower

Corp.

..................................

United

States

61,500

11,927,310

Specialty

Retail

1.3%

Lowe's

Cos.,

Inc.

......................................

United

States

63,900

14,422,230

TJX

Cos.,

Inc.

(The)

...................................

United

States

142,924

12,118,526

Tractor

Supply

Co.

....................................

United

States

37,667

8,328,174

34,868,930

Technology

Hardware,

Storage

&

Peripherals

2.4%

Apple,

Inc.

..........................................

United

States

231,774

44,957,203

Samsung

Electronics

Co.

Ltd.

............................

South

Korea

345,600

19,031,026

63,988,229

Textiles,

Apparel

&

Luxury

Goods

0.4%

NIKE,

Inc.,

B

.........................................

United

States

95,000

10,485,150

Trading

Companies

&

Distributors

0.3%

ITOCHU

Corp.

.......................................

Japan

208,300

8,275,147

Wireless

Telecommunication

Services

0.5%

KDDI

Corp.

..........................................

Japan

418,300

12,920,200

Total

Common

Stocks

(Cost

$1,357,779,330)

....................................

1,446,308,686

Management

Investment

Companies

9.4%

Capital

Markets

9.4%

iShares

Core

MSCI

Emerging

Markets

ETF

..................

United

States

1,870,778

92,210,648

d

Templeton

Global

Bond

Fund,

Class

R6

....................

United

States

14,684,117

111,892,968

VanEck

J.P.

Morgan

EM

Local

Currency

Bond

ETF

............

United

States

1,725,000

44,091,000

248,194,616

Total

Management

Investment

Companies

(Cost

$296,182,783)

...................

248,194,616

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

7.0%

Automobile

Components

0.1%

c

Dornoch

Debt

Merger

Sub,

Inc.

,

Senior

Note

,

144A,

6.625

%

,

10/15/29

..........................................

United

States

3,250,000

$

2,655,330

Automobiles

0.1%

c

Jaguar

Land

Rover

Automotive

plc

,

Senior

Note

,

144A,

5.5

%

,

7/15/29

...........................................

United

Kingdom

1,600,000

1,366,933

Banks

1.2%

c

Australia

&

New

Zealand

Banking

Group

Ltd.

,

Sub.

Bond

,

144A,

2.57%

to

11/24/30,

FRN

thereafter

,

11/25/35

................

Australia

6,687,000

5,085,129

e,f

Bank

of

America

Corp.

,

U

,

Junior

Sub.

Bond

,

FRN

,

8.631

%

,

(

3-month

USD

LIBOR

+

3.135

%

),

Perpetual

.......................

United

States

3,994,000

3,994,015

Mitsubishi

UFJ

Financial

Group,

Inc.

,

Senior

Bond

,

3.287

%

,

7/25/27

Japan

1,690,000

1,568,290

c

Societe

Generale

SA

,

Senior

Note

,

144A,

2.625

%

,

1/22/25

......

France

6,354,000

5,973,840

Sumitomo

Mitsui

Financial

Group,

Inc.

,

Sub.

Bond

,

2.142

%

,

9/23/30

Japan

5,500,000

4,409,084

c

UniCredit

SpA

,

Senior

Bond

,

144A,

3.127%

to

6/02/31,

FRN

thereafter

,

6/03/32

...................................

Italy

8,500,000

6,710,971

e

US

Bancorp

,

Junior

Sub.

Bond

,

3.7%

to

1/14/27,

FRN

thereafter

,

Perpetual

..........................................

United

States

1,670,000

1,243,148

e,f

Wells

Fargo

&

Co.

,

S

,

Junior

Sub.

Bond

,

FRN

,

5.9

%

,

(

3-month

USD

LIBOR

+

3.11

%

),

Perpetual

............................

United

States

1,504,000

1,487,080

Westpac

Banking

Corp.

,

Sub.

Bond

,

2.894%

to

2/03/25,

FRN

thereafter

,

2/04/30

...................................

Australia

1,503,000

1,405,060

31,876,617

Beverages

0.1%

Anheuser-Busch

InBev

Worldwide,

Inc.

,

Senior

Bond

,

4

%

,

4/13/28

Belgium

4,000,000

3,871,633

Biotechnology

0.1%

c

Grifols

Escrow

Issuer

SA

,

Senior

Note

,

144A,

4.75

%

,

10/15/28

...

Spain

1,600,000

1,390,304

Broadline

Retail

0.2%

b

Alibaba

Group

Holding

Ltd.

,

Senior

Bond

,

3.4

%

,

12/06/27

.......

China

6,300,000

5,861,641

Capital

Markets

0.5%

Deutsche

Bank

AG

,

Senior

Bond,

3.547%

to

9/17/30,

FRN

thereafter,

9/18/31

.....

Germany

5,000,000

4,155,401

Senior

Note,

2.129%

to

11/23/25,

FRN

thereafter,

11/24/26

....

Germany

3,000,000

2,670,545

Nomura

Holdings,

Inc.

,

Senior

Bond

,

3.103

%

,

1/16/30

..........

Japan

6,225,000

5,311,998

12,137,944

Chemicals

0.5%

c

Braskem

Idesa

SAPI

,

Senior

Secured

Bond

,

144A,

6.99

%

,

2/20/32

Mexico

7,600,000

4,930,023

c

Braskem

Netherlands

Finance

BV

,

Senior

Bond

,

144A,

4.5

%

,

1/31/30

...........................................

Brazil

1,258,000

1,081,649

Nutrien

Ltd.

,

Senior

Bond

,

2.95

%

,

5/13/30

...................

Canada

7,800,000

6,782,483

12,794,155

Commercial

Services

&

Supplies

0.1%

c

APX

Group,

Inc.

,

Senior

Note

,

144A,

5.75

%

,

7/15/29

...........

United

States

3,200,000

2,781,753

Communications

Equipment

0.0%

†

c

CommScope

Technologies

LLC

,

Senior

Note

,

144A,

5

%

,

3/15/27

..

United

States

954,000

665,402

Consumer

Finance

0.4%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

,

Senior

Bond,

3.4%,

10/29/33

...........................

Ireland

3,400,000

2,734,420

Senior

Note,

2.45%,

10/29/26

..........................

Ireland

4,750,000

4,246,129

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Consumer

Finance

(continued)

c,e

Volkswagen

International

Finance

NV

,

Senior

Bond

,

Reg

S,

3.5%

to

6/16/25,

FRN

thereafter

,

Perpetual

.......................

Germany

3,200,000

EUR

$

3,284,813

10,265,362

Containers

&

Packaging

0.1%

c,g

ARD

Finance

SA

,

Senior

Secured

Note

,

144A,

PIK,

6.5

%

,

6/30/27

.

Luxembourg

1,500,000

1,217,439

c

Mauser

Packaging

Solutions

Holding

Co.

,

Secured

Note

,

144A,

9.25

%

,

4/15/27

.....................................

United

States

954,000

881,665

2,099,104

Diversified

Telecommunication

Services

0.1%

c

Altice

France

Holding

SA

,

Senior

Note

,

144A,

6

%

,

2/15/28

......

Luxembourg

1,243,000

607,486

c

Altice

France

SA

,

Senior

Secured

Note

,

144A,

5.125

%

,

7/15/29

...

France

1,675,000

1,190,747

1,798,233

Financial

Services

0.3%

c

Siemens

Financieringsmaatschappij

NV

,

Senior

Bond

,

144A,

2.35

%

,

10/15/26

..........................................

Germany

5,800,000

5,341,566

c

Woodside

Finance

Ltd.

,

Senior

Bond

,

144A,

4.5

%

,

3/04/29

......

Australia

4,000,000

3,774,823

9,116,389

Food

Products

0.0%

†

c

JBS

USA

LUX

SA

/

JBS

USA

Food

Co.

/

JBS

USA

Finance,

Inc.

,

Senior

Bond

,

144A,

3.75

%

,

12/01/31

.....................

United

States

1,600,000

1,314,719

Ground

Transportation

0.2%

c

Ashtead

Capital,

Inc.

,

Senior

Bond

,

144A,

5.5

%

,

8/11/32

........

United

Kingdom

6,000,000

5,807,164

Health

Care

Providers

&

Services

0.3%

c

DaVita,

Inc.

,

Senior

Note

,

144A,

4.625

%

,

6/01/30

.............

United

States

1,600,000

1,375,341

c

Fresenius

Medical

Care

US

Finance

III,

Inc.

,

Senior

Bond

,

144A,

2.375

%

,

2/16/31

.....................................

Germany

9,000,000

6,833,901

8,209,242

Household

Products

0.2%

c

Kimberly-Clark

de

Mexico

SAB

de

CV

,

Senior

Bond

,

144A,

2.431

%

,

7/01/31

...........................................

Mexico

6,180,000

5,248,334

Interactive

Media

&

Services

0.2%

b,c

Tencent

Holdings

Ltd.

,

Senior

Note

,

144A,

2.39

%

,

6/03/30

.......

China

6,290,000

5,228,979

Media

0.0%

†

c

DISH

DBS

Corp.

,

Senior

Secured

Note

,

144A,

5.25

%

,

12/01/26

...

United

States

1,600,000

1,286,476

Metals

&

Mining

0.4%

ArcelorMittal

SA

,

Senior

Bond

,

4.25

%

,

7/16/29

...............

Luxembourg

6,000,000

5,681,665

c

Glencore

Funding

LLC

,

Senior

Bond

,

144A,

2.5

%

,

9/01/30

......

Australia

7,000,000

5,737,066

11,418,731

Oil,

Gas

&

Consumable

Fuels

0.4%

c

Aker

BP

ASA

,

Senior

Bond

,

144A,

3.1

%

,

7/15/31

..............

Norway

7,900,000

6,542,596

Canadian

Natural

Resources

Ltd.

,

Senior

Bond

,

3.85

%

,

6/01/27

..

Canada

5,500,000

5,197,520

11,740,116

Paper

&

Forest

Products

0.2%

Suzano

Austria

GmbH

,

Senior

Bond

,

3.75

%

,

1/15/31

...........

Brazil

4,805,000

4,104,309

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Corporate

Bonds

(continued)

Pharmaceuticals

0.7%

c

1375209

BC

Ltd.

,

Senior

Secured

Note

,

144A,

9

%

,

1/30/28

......

Canada

523,000

$

524,912

AstraZeneca

plc

,

Senior

Bond

,

4

%

,

1/17/29

..................

United

Kingdom

4,000,000

3,860,202

c

Bausch

Health

Cos.,

Inc.

,

Senior

Secured

Note

,

144A,

5.75

%

,

8/15/27

...........................................

United

States

1,200,000

736,608

c

Bayer

US

Finance

II

LLC

,

Senior

Note

,

144A,

4.25

%

,

12/15/25

...

Germany

7,000,000

6,756,566

Takeda

Pharmaceutical

Co.

Ltd.

,

Senior

Note

,

5

%

,

11/26/28

.....

Japan

6,500,000

6,465,143

18,343,431

Semiconductors

&

Semiconductor

Equipment

0.3%

c

SK

Hynix,

Inc.

,

Senior

Note

,

144A,

1.5

%

,

1/19/26

.............

South

Korea

8,000,000

7,090,545

Wireless

Telecommunication

Services

0.3%

Vodafone

Group

plc

,

Senior

Bond

,

6.15

%

,

2/27/37

.............

United

Kingdom

6,500,000

6,807,070

Total

Corporate

Bonds

(Cost

$202,834,059)

.....................................

185,279,916

Foreign

Government

and

Agency

Securities

13.1%

c

Australia

Government

Bond

,

Reg

S,

1.5

%

,

6/21/31

............

Australia

12,170,000

AUD

6,731,433

c

Belgium

Government

Bond

,

Senior

Bond

,

Reg

S,

4

%

,

3/28/32

....

Belgium

3,150,000

EUR

3,701,190

c

Bundesrepublik

Deutschland

,

Reg

S,

Zero

Cpn.,

8/15/30

.............................

Germany

10,500,000

EUR

9,683,887

Reg

S,

2.3%,

2/15/33

.................................

Germany

50,100,000

EUR

54,230,415

Reg

S,

1%,

5/15/38

..................................

Germany

7,400,000

EUR

6,588,801

Canada

Government

Bond

,

2.5%,

12/01/32

.....................................

Canada

18,000,000

CAD

12,732,211

2.75%,

6/01/33

.....................................

Canada

16,400,000

CAD

11,849,548

c

Canada

Housing

Trust

No.

1

,

Senior

Bond

,

144A,

2.65

%

,

12/15/28

Canada

18,100,000

CAD

12,821,528

China

Government

Bond

,

2.5%,

7/25/27

......................................

China

121,580,000

CNY

16,804,341

2.44%,

10/15/27

.....................................

China

47,210,000

CNY

6,508,434

2.6%,

9/01/32

......................................

China

159,360,000

CNY

21,742,605

Ecopetrol

SA

,

Senior

Bond

,

4.625

%

,

11/02/31

................

Colombia

1,650,000

1,275,227

European

Investment

Bank

,

Senior

Bond

,

2.125

%

,

4/13/26

......

Supranational

h

14,750,000

13,811,964

c

Finland

Government

Bond

,

Senior

Bond,

144A,

Reg

S,

0.75%,

4/15/31

................

Finland

1,892,000

EUR

1,757,741

Senior

Bond,

144A,

Reg

S,

1.375%,

4/15/47

...............

Finland

1,567,000

EUR

1,257,457

c

France

Government

Bond

,

Reg

S,

2.5%,

5/25/30

.................................

France

4,120,000

EUR

4,408,066

Reg

S,

Zero

Cpn.,

11/25/30

............................

France

4,350,000

EUR

3,857,871

Reg

S,

1.5%,

5/25/31

.................................

France

4,410,000

EUR

4,371,266

Reg

S,

2%,

11/25/32

.................................

France

13,000,000

EUR

13,150,064

c

Italy

Buoni

Poliennali

del

Tesoro

,

Senior

Bond,

144A,

Reg

S,

4.75%,

9/01/44

................

Italy

1,860,000

EUR

2,152,947

Senior

Bond,

144A,

Reg

S,

3.25%,

9/01/46

................

Italy

1,884,000

EUR

1,761,161

Senior

Bond,

144A,

Reg

S,

1.7%,

9/01/51

.................

Italy

2,786,000

EUR

1,823,016

Japan

Government

Bond

,

0.1%,

6/20/31

......................................

Japan

4,150,000,000

JPY

28,379,956

0.5%,

9/20/46

......................................

Japan

1,435,000,000

JPY

8,757,063

Mexico

Government

Bond

,

Senior

Bond

,

3.5

%

,

2/12/34

.........

Mexico

16,500,000

13,861,149

c

Netherlands

Government

Bond

,

144A,

Reg

S,

0.5%,

1/15/40

............................

Netherlands

1,410,000

EUR

1,084,328

144A,

Reg

S,

3.75%,

1/15/42

...........................

Netherlands

865,000

EUR

1,082,924

Petroleos

Mexicanos

,

Senior

Note

,

6.5

%

,

3/13/27

.............

Mexico

4,500,000

4,007,147

Spain

Bonos

Y

Obligaciones

del

Estado

,

c

Senior

Bond,

144A,

Reg

S,

1.95%,

4/30/26

................

Spain

2,563,000

EUR

2,693,563

c

Senior

Bond,

144A,

Reg

S,

2.9%,

10/31/46

................

Spain

1,610,000

EUR

1,521,182

6%,

1/31/29

........................................

Spain

3,760,000

EUR

4,674,843

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

Foreign

Government

and

Agency

Securities

(continued)

c

United

Kingdom

Gilt

,

Reg

S,

3.25%,

1/31/33

................................

United

Kingdom

34,400,000

GBP

$

39,844,329

Reg

S,

1.75%,

9/07/37

................................

United

Kingdom

8,700,000

GBP

7,899,902

Reg

S,

1.25%,

10/22/41

...............................

United

Kingdom

22,300,000

GBP

17,002,333

Reg

S,

1.5%,

7/22/47

.................................

United

Kingdom

5,110,000

GBP

3,670,574

Total

Foreign

Government

and

Agency

Securities

(Cost

$391,717,723)

............

347,500,466

U.S.

Government

and

Agency

Securities

11.3%

U.S.

Treasury

Bonds

,

4%,

11/15/42

.......................................

United

States

33,500,000

33,301,094

3.875%,

2/15/43

.....................................

United

States

45,500,000

44,376,719

3.875%,

5/15/43

.....................................

United

States

16,200,000

15,810,187

U.S.

Treasury

Notes

,

0.125%,

8/31/23

.....................................

United

States

32,000,000

31,737,989

2.25%,

3/31/24

.....................................

United

States

32,000,000

31,252,378

0.375%,

9/15/24

.....................................

United

States

32,000,000

30,168,125

1.75%,

3/15/25

.....................................

United

States

16,700,000

15,800,418

0.875%,

11/15/30

....................................

United

States

13,000,000

10,523,398

i

Index

Linked,

0.125%,

1/15/31

..........................

United

States

32,100,000

33,262,005

1.875%,

2/15/32

.....................................

United

States

25,000,000

21,419,434

4.125%,

11/15/32

....................................

United

States

15,100,000

15,432,672

3.5%,

2/15/33

......................................

United

States

19,500,000

18,997,266

Total

U.S.

Government

and

Agency

Securities

(Cost

$318,620,903)

................

302,081,685

Mortgage-Backed

Securities

1.6%

Government

National

Mortgage

Association

(GNMA)

Fixed

Rate

1.6%

GNMA

II,

Single-family,

30

Year,

3%,

7/20/51

.................

United

States

29,329,665

26,345,968

GNMA

II,

Single-family,

30

Year,

3%,

8/20/51

.................

United

States

18,987,999

17,044,544

43,390,512

Total

Mortgage-Backed

Securities

(Cost

$50,781,203)

............................

43,390,512

Total

Long

Term

Investments

(Cost

$2,617,916,001)

.............................

2,572,755,881

a

Short

Term

Investments

2.8%

a

a

Country

Shares

a

Value

a

a

a

Money

Market

Funds

2.8%

d,j

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

....

United

States

73,163,403

73,163,403

Total

Money

Market

Funds

(Cost

$73,163,403)

..................................

73,163,403

Total

Short

Term

Investments

(Cost

$73,163,403

)

................................

73,163,403

a

Total

Investments

(Cost

$2,691,079,404)

99.6%

..................................

$2,645,919,284

Other

Assets,

less

Liabilities

0.4%

.............................................

12,106,763

Net

Assets

100.0%

...........................................................

$2,658,026,047

Franklin

Fund

Allocator

Series

Schedule

of

Investments

(unaudited)

Franklin

Global

Allocation

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

At

June

30,

2023,

the

Fund

had

the

following

forward

exchange

contracts

outstanding.

See

Note

1(c). 

See

Note 7 regarding

other

derivative

information.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Variable

interest

entity

(VIE).

See

the

Fund’s

statement

of

information

regarding

investments

made

through

a

VIE

structure.

c

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

June

30,

2023,

the

aggregate

value

of

these

securities

was

$307,215,152,

representing

11.6%

of

net

assets.

d

See

Note

3(f)

regarding

investments

in

affiliated

management

investment

companies.

e

Perpetual

security

with

no

stated

maturity

date.

f

The

coupon

rate

shown

represents

the

rate

at

period

end.

g

Income

may

be

received

in

additional

securities

and/or

cash.

h

A

supranational

organization

is

an

entity

formed

by

two

or

more

central

governments

through

international

treaties.

i

Principal

amount

of

security

is

adjusted

for

inflation.

See

Note

1(e).

j

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Forward

Exchange

Contracts

Currency

Counter-

party

a

Type

Quantity

Contract

Amount

*

Settlement

Date

Unrealized

Appreciation

Unrealized

Depreciation

a

a

a

a

a

a

a

a

OTC

Forward

Exchange

Contracts

Australian

Dollar

....

BZWS

Buy

40,271,000

27,135,204

7/28/23

$

—

$

(293,415)

Australian

Dollar

....

BZWS

Sell

40,271,000

26,762,637

7/28/23

—

(79,152)

British

Pound

......

JPHQ

Buy

52,671,766

66,478,861

7/28/23

424,579

—

British

Pound

......

JPHQ

Sell

106,301,766

132,505,365

7/28/23

—

(2,518,659)

Canadian

Dollar

....

BZWS

Buy

88,088,000

65,589,817

7/28/23

931,969

—

Canadian

Dollar

....

BZWS

Sell

136,374,000

100,619,518

7/28/23

21,007

(2,387,616)

Chinese

Yuan

......

BZWS

Buy

169,906,000

24,140,753

7/28/23

—

(724,338)

Chinese

Yuan

......

BZWS

Sell

493,922,000

71,712,605

7/28/23

3,640,361

—

Euro

.............

BZWS

Buy

89,936,140

99,339,773

7/28/23

—

(1,070,769)

Euro

.............

BZWS

Sell

202,113,140

224,030,304

7/28/23

3,264,969

(74,219)

Hong

Kong

Dollar

...

HSBK

Buy

177,580,500

22,693,602

7/28/23

—

(20,796)

Hong

Kong

Dollar

...

HSBK

Sell

177,580,500

22,710,246

7/28/23

37,440

—

Japanese

Yen

......

JPHQ

Buy

13,647,306,000

102,921,170

7/28/23

—

(7,966,954)

Japanese

Yen

......

JPHQ

Sell

18,844,221,000

142,898,034

7/28/23

11,785,108

—

Total

Forward

Exchange

Contracts

...................................................

$20,105,433

$(15,135,918)

Net

unrealized

appreciation

(depreciation)

............................................

$4,969,515

*

In

U.S.

dollars

unless

otherwise

indicated.

a

May

be

comprised

of

multiple

contracts

with

the

same

counterparty,

currency

and

settlement

date.

See

Abbreviations

on

page

35.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Franklin

Global

Allocation

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

...................................................................

$2,478,257,561

Cost

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

212,821,843

Value

-

Unaffiliated

issuers

..................................................................

$2,460,862,913

Value

-

Non-controlled

affiliates

(Note

3

f

)

........................................................

185,056,371

Cash

....................................................................................

69,518

Foreign

currency,

at

value

(cost

$685,937)

........................................................

684,529

Receivables:

Capital

shares

sold

........................................................................

191,880

Dividends

and

interest

.....................................................................

10,693,021

European

Union

tax

reclaims

(Not

e

1d)

.........................................................

137,667

Unrealized

appreciation

on

OTC

forward

exchange

contracts

..........................................

20,105,433

Total

assets

..........................................................................

2,677,801,332

Liabilities:

Payables:

Capital

shares

redeemed

...................................................................

1,961,200

Management

fees

.........................................................................

1,180,188

Distribution

fees

..........................................................................

571,503

Transfer

agent

fees

........................................................................

629,866

Trustees'

fees

and

expenses

.................................................................

19

Unrealized

depreciation

on

OTC

forward

exchange

contracts

..........................................

15,135,918

Accrued

expenses

and

other

liabilities

...........................................................

296,591

Total

liabilities

.........................................................................

19,775,285

Net

assets,

at

value

.................................................................

$2,658,026,047

Net

assets

consist

of:

Paid-in

capital

.............................................................................

$2,793,399,533

Total

distributable

earnings

(losses)

.............................................................

(135,373,486)

Net

assets,

at

value

.................................................................

$2,658,026,047

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Assets

and

Liabilities

(continued)

June

30,

2023

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

Franklin

Global

Allocation

Fund

Class

A:

Net

assets,

at

value

.......................................................................

$2,471,017,271

Shares

outstanding

........................................................................

185,075,476

Net

asset

value

per

share

a

..................................................................

$13.35

Maximum

offering

price

per

share

(net

asset

value

per

share

÷

94.50%)

................................

$14.13

Class

C:

Net

assets,

at

value

.......................................................................

$77,707,313

Shares

outstanding

........................................................................

5,879,664

Net

asset

value

and

maximum

offering

price

per

share

a

.............................................

$13.22

Class

R:

Net

assets,

at

value

.......................................................................

$4,073,854

Shares

outstanding

........................................................................

304,215

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.39

Class

R6:

Net

assets,

at

value

.......................................................................

$1,647,630

Shares

outstanding

........................................................................

119,415

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.80

Advisor

Class:

Net

assets,

at

value

.......................................................................

$103,579,979

Shares

outstanding

........................................................................

7,691,058

Net

asset

value

and

maximum

offering

price

per

share

.............................................

$13.47

a

Redemption

price

is

equal

to

net

asset

value

less

contingent

deferred

sales

charges,

if

applicable.

Franklin

Fund

Allocator

Series

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2023

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

22

Franklin

Global

Allocation

Fund

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$1,378,851)

Unaffiliated

issuers

........................................................................

$22,336,476

Non-controlled

affiliates

(Note

3

f

)

.............................................................

3,729,667

Interest:

Unaffiliated

issuers

........................................................................

12,974,317

Other

income

(Not

e

1d)

......................................................................

4,643

Total

investment

income

...................................................................

39,045,103

Expenses:

Management

fees

(Note

3

a

)

...................................................................

7,635,521

Distribution

fees:

(Note

3c

)

    Class

A

................................................................................

3,049,129

    Class

C

................................................................................

401,734

    Class

R

................................................................................

9,919

Transfer

agent

fees:

(Note

3e

)

    Class

A

................................................................................

1,334,898

    Class

C

................................................................................

43,861

    Class

R

................................................................................

2,172

    Class

R6

...............................................................................

388

    Advisor

Class

............................................................................

55,816

Custodian

fees

(Note

4

)

......................................................................

53,865

Reports

to

shareholders

fees

..................................................................

178,027

Registration

and

filing

fees

....................................................................

53,543

Professional

fees

...........................................................................

24,886

Trustees'

fees

and

expenses

..................................................................

15,486

Other

....................................................................................

46,242

Total

expenses

.........................................................................

12,905,487

Expense

reductions

(Note

4

)

...............................................................

(22,162)

Expenses

waived/paid

by

affiliates

(Note

3

f

and

3

g

)

..............................................

(496,000)

Net

expenses

.........................................................................

12,387,325

Net

investment

income

................................................................

26,657,778

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

......................................................................

(11,501,093)

Foreign

currency

transactions

................................................................

811,067

Forward

exchange

contracts

.................................................................

(29,456,838)

Net

realized

gain

(loss)

..................................................................

(40,146,864)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

......................................................................

151,346,778

Non-controlled

affiliates

(Note

3

f

)

............................................................

(3,361,993)

Translation

of

other

assets

and

liabilities

denominated

in

foreign

currencies

..............................

(27,645)

Forward

exchange

contracts

.................................................................

41,373,698

Net

change

in

unrealized

appreciation

(depreciation)

............................................

189,330,838

Net

realized

and

unrealized

gain

(loss)

............................................................

149,183,974

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

$175,841,752

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

23

Franklin

Global

Allocation

Fund

Six

Months

Ended

June

30,

2023

(unaudited)

Year

Ended

December

31,

2022

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

.................................................

$26,657,778

$36,718,229

Net

realized

gain

(loss)

.................................................

(40,146,864)

97,043,653

Net

change

in

unrealized

appreciation

(depreciation)

...........................

189,330,838

(512,856,658)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

................

175,841,752

(379,094,776)

Distributions

to

shareholders:

Class

A

.............................................................

(24,994,776)

(106,716,361)

Class

C

.............................................................

(527,312)

(3,250,769)

Class

R

.............................................................

(36,956)

(156,511)

Class

R6

............................................................

(18,100)

(36,753)

Advisor

Class

........................................................

(1,154,002)

(4,736,101)

Total

distributions

to

shareholders

..........................................

(26,731,146)

(114,896,495)

Capital

share

transactions:

(Note

2

)

Class

A

.............................................................

(84,692,446)

(133,699,940)

Class

C

.............................................................

(11,007,467)

(28,759,274)

Class

R

.............................................................

(55,579)

(567,930)

Class

R6

............................................................

477,969

628,289

Advisor

Class

........................................................

(1,134,188)

(4,651,727)

Total

capital

share

transactions

............................................

(96,411,711)

(167,050,582)

Net

increase

(decrease)

in

net

assets

...................................

52,698,895

(661,041,853)

Net

assets:

Beginning

of

period

.....................................................

2,605,327,152

3,266,369,005

End

of

period

..........................................................

$2,658,026,047

$2,605,327,152

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

Franklin

Global

Allocation

Fund

24

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Fund

Allocator

Series (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds.

The

Trust

follows the

accounting

and

reporting

guidance

in

Financial

Accounting

Standards

Board

(FASB)

Accounting

Standards

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.

Franklin

Global

Allocation

Fund

(Fund)

is

included

in

this

report.

The

Fund

offers

five

classes

of

shares:

Class

A,

Class

C,

Class

R,

Class

R6

and

Advisor

Class.

Class

C

shares

automatically

convert

to

Class

A

shares

on

a

monthly

basis,

after

they

have

been

held

for

8

years.

Each

class

of

shares

may

differ

by

its

initial

sales

load,

contingent

deferred

sales

charges,

voting

rights

on

matters

affecting

a

single

class,

its

exchange

privilege

and

fees

due

to

differing

arrangements

for

distribution

and

transfer

agent

fees.

The

following

summarizes

the Fund’s

significant

accounting

policies. 

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust’s

Board

of

Trustees

(the

Board),

the

Board

has

designated

the

Fund’s

investment

manager

as

the

valuation

designee

and

has

responsibility

for

oversight

of

valuation.

The

investment

manager

is

assisted

by

the

Fund’s

administrator

in

performing

this

responsibility,

including

leading

the

cross-

functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities,

exchange

traded

funds

and

derivative

financial

instruments

listed

on

an

exchange

or

on

the

NASDAQ

National

Market

System

are

valued

at

the

last

quoted

sale

price

or

the

official

closing

price of

the

day,

respectively.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-

counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities.

Debt

securities

generally

trade

in

the

OTC

market rather

than

on

a

securities

exchange.

The

Fund’s

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Securities

denominated

in

a

foreign

currency

are

converted

into

their

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

date

that

the

values

of

the

foreign

debt

securities

are

determined.

Investments

in

open-end mutual

funds

are

valued

at

the

closing

NAV.

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Fund’s pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund’s net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the

Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

and

other

relevant

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

25

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

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

Fund’s

business

day.

Events

can occur

between

the

time

at

which

trading

in

a

foreign

security

is

completed

and

4

p.m.

Eastern

time

that

might

call

into

question

the

reliability

of

the

value

of

a

portfolio

security

held

by

the

Fund.

As

a

result,

differences

may

arise

between

the

value

of

the

Fund’s

portfolio

securities

as

determined

at

the

foreign

market

close

and

the

latest

indications

of

value

at

4

p.m.

Eastern

time.

In

order

to

minimize

the

potential

for

these

differences,

an

independent

pricing

service

may

be

used

to

adjust

the

value

of

the

Fund’s

portfolio

securities

to

the

latest

indications

of

fair

value

at

4

p.m.

Eastern

time.

At

June

30,

2023,

certain

securities

may

have

been

fair

valued

using

these

procedures,

in

which

case

the

securities

were

categorized

as

Level

2

within

the

fair

value

hierarchy

(referred

to

as

“market

level

fair

value”).

See

the

Fair

Value

Measurements

note

for

more

information.

When

the

last

day

of

the

reporting

period

is

a

non-business

day,

certain

foreign

markets

may

be

open

on

those

days

that

the

Fund’s

NAV

is

not

calculated,

which

could

result

in

differences

between

the

value

of

the

Fund’s

portfolio

securities

on

the

last

business

day

and

the

last

calendar

day

of

the

reporting

period.

Any

security

valuation

changes

due

to

an

open

foreign

market

are

adjusted

and

reflected

by

the

Fund

for

financial

reporting

purposes.

b.

Foreign

Currency

Translation 

Portfolio

securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

based

on

the

exchange

rate

of

such

currencies

against

U.S.

dollars

on

the

date

of

valuation.

The

Fund

may

enter

into

foreign

currency

exchange

contracts

to

facilitate

transactions

denominated

in

a

foreign

currency.

Purchases

and

sales

of

securities,

income

and

expense

items

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

at

the

exchange

rate

in

effect

on

the

transaction

date.

Portfolio

securities

and

assets

and

liabilities

denominated

in

foreign

currencies

contain

risks

that

those

currencies

will

decline

in

value

relative

to

the

U.S.

dollar.

Occasionally,

events

may

impact

the

availability

or

reliability

of

foreign

exchange

rates

used

to

convert

the

U.S.

dollar

equivalent

value.

If

such

an

event

occurs,

the

foreign

exchange

rate

will

be

valued

at

fair

value

using

procedures

established

and

approved

by

the

Board.

The

Fund

does

not

separately

report

the

effect

of

changes

in

foreign

exchange

rates

from

changes

in

market

prices

on

securities

held.

Such

changes

are

included

in

net

realized

and

unrealized

gain

or

loss

from

investments

in

the

Statement

of

Operations.

Realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

the

trade

and

settlement

dates

on

securities

transactions

and

the

difference

between

the

recorded

amounts

of

dividends,

interest,

and

foreign

withholding

taxes

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

foreign

exchange

gains

and

losses

arise

from

changes

in

foreign

exchange

rates

on

foreign

denominated

assets

and

liabilities

other

than

investments

in

securities

held

at

the

end

of

the

reporting

period.

c.

Derivative

Financial

Instruments

The

Fund

invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

terms

are

contract

specific

for

OTC

derivatives.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund,

if

any,

is

held

in

segregated

accounts

with

the

Fund’s

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

OTC

forward

exchange

contracts

primarily

to

manage

and/or

gain

exposure

to

certain

foreign

currencies.

A

forward

exchange

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

foreign

currency at

a

specific

exchange

rate

on

a

future

date.

See

Note

7

regarding

other

derivative

information.

d.

Income

Taxes

It

is

the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code.

The Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

be

subject

to

foreign

taxation

related

to

income

received,

capital

gains

on

the

sale

of

securities

and

certain

foreign

currency

transactions

in

the

foreign

jurisdictions

in

which

it

invests.

Foreign

taxes,

if

any,

are

recorded

based

on

the

tax

regulations

and

rates

that

exist

in

the

foreign

markets

in

which

the

Fund

invests.

When

a

capital

gain

tax

is

determined

to

apply,

the

Fund

records

an

estimated

deferred

tax

liability

in

an

amount

that

would

be

payable

if

the

securities

were

disposed

of

on

the

valuation

date.

As

a

result

of

several

court

cases,

in

certain

countries

across

the

European

Union,

the

Fund

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

Statement

of

Operations

and

any

related

receivable,

if

any,

is

reflected

as

European

Union

tax

reclaims

in

the

Statement

of

Assets

and

Liabilities.

Any

fees

associated

with

these

filings

are

reflected

in

other

expenses

in

the

Statement

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

Fund,

if

any,

reduce

the

amount

of

foreign

taxes

Fund

shareholders

can

use

as

tax

deductions

or

credits

on

their

income

tax

returns.

In

the

event

that

EU

reclaims

received

by

the

Fund

during

a

fiscal

year

exceed

foreign

withholding

taxes

paid

by

the

Fund,

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

and

the

Fund

previously

passed

through

to

its

shareholders

foreign

taxes

incurred

by

the

Fund

to

be

used

as

a

credit

or

deduction

on

a

shareholder’s

income

tax

return,

the

Fund

will

enter

into

a

closing

agreement

with

the

Internal

Revenue

Service

(IRS)

in

order

to

pay

the

associated

tax

liability

on

behalf

of

the

Fund's

shareholders.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

June

30,

2023,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests.

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Dividend

income

is

recorded

on

the

ex-dividend

date

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

Distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

Realized

and

unrealized

gains

and

losses

and

net

investment

income,

excluding

class

specific

expenses,

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

net

assets

of

each

class.

Differences

in

per

share

distributions

by

class

are

generally

due

to

differences

in

class

specific

expenses.

Inflation-indexed

bonds

are

adjusted

for

inflation

through

periodic

increases

or

decreases

in

the

security's

interest

accruals,

face

amount,

or

principal

redemption

value,

by

amounts

corresponding

to

the

rate

of

inflation

as

measured

by

an

index.

Any

increase

or

decrease

in

the

face

amount

or

principal

redemption

value

will

be

included

as

interest

income

in

the

Statement

of

Operations.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

d.

Income

Taxes

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

28

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2023,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

and/or

directors

trustees

of

the

following

subsidiaries:

Six

Months

Ended

June

30,

2023

Year

Ended

December

31,

2022

Shares

Amount

Shares

Amount

Class

A

Shares:

Shares

sold

a

...................................

8,878,024

$115,950,896

7,094,859

$95,572,611

Shares

issued

in

reinvestment

of

distributions

..........

1,795,181

23,929,762

8,057,770

102,184,037

Shares

redeemed

...............................

(17,166,302)

(224,573,104)

(24,651,356)

(331,456,588)

Net

increase

(decrease)

..........................

(6,493,097)

$(84,692,446)

(9,498,727)

$(133,699,940)

Class

C

Shares:

Shares

sold

...................................

1,015,169

$13,095,931

777,416

$10,368,466

Shares

issued

in

reinvestment

of

distributions

..........

39,651

523,387

256,144

3,218,338

Shares

redeemed

a

..............................

(1,904,530)

(24,626,785)

(3,182,498)

(42,346,078)

Net

increase

(decrease)

..........................

(849,710)

$(11,007,467)

(2,148,938)

$(28,759,274)

Class

R

Shares:

Shares

sold

...................................

31,317

$410,504

27,257

$361,197

Shares

issued

in

reinvestment

of

distributions

..........

2,754

36,822

12,261

155,961

Shares

redeemed

...............................

(38,394)

(502,905)

(79,784)

(1,085,088)

Net

increase

(decrease)

..........................

(4,323)

$(55,579)

(40,266)

$(567,930)

Class

R6

Shares:

Shares

sold

...................................

96,735

$1,303,406

78,093

$1,075,723

Shares

issued

in

reinvestment

of

distributions

..........

1,187

16,337

2,360

30,825

Shares

redeemed

...............................

(61,940)

(841,774)

(34,142)

(478,259)

Net

increase

(decrease)

..........................

35,982

$477,969

46,311

$628,289

Advisor

Class

Shares:

Shares

sold

...................................

895,693

$11,795,614

1,413,291

$19,566,458

Shares

issued

in

reinvestment

of

distributions

..........

78,588

1,056,222

337,358

4,313,476

Shares

redeemed

...............................

(1,061,275)

(13,986,024)

(2,125,026)

(28,531,661)

Net

increase

(decrease)

..........................

(86,994)

$(1,134,188)

(374,377)

$(4,651,727)

a

May

include

a

portion

of

Class

C

shares

that

were

automatically

converted

to

Class

A.

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Distributors,

LLC

(Distributors)

Principal

underwriter

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

29

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

June

30,

2023,

the

annualized

gross

effective

investment

management

fee

rate

was 0.581%

of

the

Fund’s

average daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

each

share

class,

with

the

exception

of

Class

R6

and

Advisor

Class

shares,

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund’s

Class

A

reimbursement

distribution

plan,

the

Fund

reimburses

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate.

Under

the

Class

A

reimbursement

distribution

plan,

costs

exceeding

the

maximum

for

the

current

plan

year

cannot

be

reimbursed

in

subsequent

periods.

In

addition,

under

the

Fund’s

Class

C

and

R

compensation

distribution

plans,

the

Fund

pays

Distributors

for

costs

incurred

in

connection

with

the

servicing,

sale

and

distribution

of

the

Fund's

shares

up

to

the

maximum

annual

plan

rate

for

each

class.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

The

maximum

annual

plan

rates,

based

on

the

average

daily

net

assets,

for

each

class,

are

as

follows:

The

Board

has

set

the

current

rate

at

0.25%

per

year

for

Class

A

shares

until

further

notice

and

approval

by

the

Board.

d.

Sales

Charges/Underwriting

Agreements

Front-end

sales

charges

and

contingent

deferred

sales

charges

(CDSC)

do

not

represent

expenses

of

the

Fund.

These

charges

are

deducted

from

the

proceeds

of

sales

of

fund

shares

prior

to

investment

or

from

redemption

proceeds

prior

to

remittance,

as

applicable.

Distributors

has

advised

the

Fund

of

the

following

commission

transactions

related

to

the

sales

and

redemptions

of

the

Fund’s

shares

for

the

period:

Annualized

Fee

Rate

Net

Assets

0.600%

Up

to

and

including

$1

billion

0.570%

Over

$1

billion,

up

to

and

including

$5

billion

0.550%

In

excess

of

$5

billion

Class

A

....................................................................................

0.35%

Class

C

....................................................................................

1.00%

Class

R

....................................................................................

0.50%

Sales

charges

retained

net

of

commissions

paid

to

unaffiliated

brokers/dealers

..............................

$48,766

CDSC

retained

..............................................................................

$3,868

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

30

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

e.

Transfer

Agent

Fees

Each

class

of

shares pays

transfer

agent

fees

to

Investor

Services

for

its

performance

of

shareholder

servicing

obligations.

Effective

October

1,

2022,

the

fees

are

based

on

an

annualized

asset

based

fee

of

0.016%

plus

a

reduced

transaction

based

fee.

Prior

to

October

1,

2022,

the

fees

were

based

on

an

annualized

asset

based

fee

of

0.02%

plus

a

transaction

based

fee.

In

addition,

each

class reimburses

Investor

Services

for

out

of

pocket

expenses

incurred

and,

except

for

Class

R6, reimburses

shareholder

servicing

fees

paid

to

third

parties.

These

fees

are

allocated

daily

based

upon

their

relative

proportion

of

such

classes'

aggregate

net

assets.

Class

R6

pays

Investor

Services

transfer

agent

fees

specific

to

that

class.

For

the

period

ended

June

30,

2023,

the

Fund

paid

transfer

agent

fees

of

$1,437,135,

of

which

$599,628

was

retained

by

Investor

Services.

f.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

June

30,

2023,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

g.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

interest

expense, distribution

fees,

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

for

each

class

of

the

Fund

do

not

exceed

0.73%

based

on

the

average

net

assets

of

each

class

until

April

30,

2024.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund’s

fiscal

year

end.

Investor

Services

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

so

that

the

Class

R6

transfer

agent

fees

do

not

exceed

0.03%

based

on

the

average

net

assets

of

the

class

until

April

30,

2024.

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Global

Allocation

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

4.699%

$

31,640,989

$

420,043,853

$

(378,521,439)

$

—

$

—

$

73,163,403

73,163,403

$

1,527,362

Templeton

Global

Bond

Fund,

Class

R6

...............

113,052,656

2,202,305

—

—

(3,361,993)

111,892,968

14,684,117

2,202,305

Total

Affiliated

Securities

...

$144,693,645

$422,246,158

$(378,521,439)

$—

$(3,361,993)

$185,056,371

$3,729,667

3.

Transactions

with

Affiliates

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

31

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

4.

Expense

Offset

Arrangement

The

Fund

has

previously

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund’s

custodian

expenses.

During

the

period

ended

June

30,

2023,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations.

Effective

June

12,

2023,

earned

credits,

if

any,

will

be

recognized

as

income.

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

December

31,

2022,

the

capital

loss

carryforwards

were

as

follows:

For

tax

purposes,

the

Fund

may

elect

to

defer

any

portion

of

a

post-October

capital

loss

or

late-year

ordinary

loss

to

the

first

day

of

the

following

fiscal

year.

At

December

31,

2022,

the

Fund

deferred

late-year

ordinary

losses

of

$23,584,955.

At

June

30,

2023,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

foreign

currency

transactions,

bond

discounts

and

premiums,

tax

straddles,

and

corporate

actions.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2023,

aggregated 

$476,420,722

and

$490,784,614,

respectively.

7.

Other

Derivative

Information

At

June

30,

2023,

the

Fund's

investments

in

derivative

contracts

are

reflected

in

the

Statement

of

Assets

and

Liabilities

as

follows:

Capital

loss

carryforwards

not

subject

to

expiration:

Long

term

................................................................................

$55,098,879

Cost

of

investments

..........................................................................

$2,666,465,407

Unrealized

appreciation

........................................................................

$257,735,733

Unrealized

depreciation

........................................................................

(273,312,341)

Net

unrealized

appreciation

(depreciation)

..........................................................

$(15,576,608)

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

Global

Allocation

Fund

Foreign

exchange

contracts

..

Unrealized

appreciation

on

OTC

forward

exchange

contracts

$

20,105,433

Unrealized

depreciation

on

OTC

forward

exchange

contracts

$

15,135,918

Total

....................

$20,105,433

$15,135,918

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

32

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

For

the

period

ended

June

30,

2023,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2023,

the

average

month

end

contract

value

of

forward

exchange

contracts

was

$1,003,130,329.

At

June

30,

2023,

the

Fund's

OTC

derivative

assets

and

liabilities

are

as

follows:

At

June

3

0,

2023

,

OTC

derivative

assets,

which

may

be

offset

against

OTC

derivative

liabilities

and

collateral

received

from

the

counterparty,

are

as

follows:

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

Global

Allocation

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Foreign

exchange

contracts

.....

Forward

exchange

contracts

$(29,456,838)

Forward

exchange

contracts

$41,373,698

Total

.......................

$(29,456,838)

$41,373,698

Gross

Amounts

of

Assets

and

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Assets

a

Liabilities

a

Franklin

Global

Allocation

Fund

Derivatives

Forward

exchange

contracts

.............................

$

20,105,433

$

15,135,918

Total

.............................................

$20,105,433

$15,135,918

a

Absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Assets

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Received

Cash

Collateral

Received

Net

Amount

(Not

less

than

zero)

Franklin

Global

Allocation

Fund

Counterparty

BZWS

...................

$7,858,306

$(4,629,509)

$—

$(3,228,797)

$—

HSBK

...................

37,440

(20,796)

—

—

16,644

JPHQ

...................

12,209,687

(10,485,613)

(1,724,074)

—

—

Total

...................

$20,105,433

$(15,135,918)

$

(

1,724,07

4)

$(3,228,797)

$16,644

$

1

7.

Other

Derivative

Information

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

33

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

At

June

30,

2023,

OTC

derivative

liabilities,

which

may

be

offset

against

OTC

derivative

assets

and

collateral

pledged

to

the

counterparty,

are

as

follows:

See

Note

1(c) regarding

derivative

financial

instruments. 

See

Abbreviations

on

page

35

.

8.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2.675

billion

(Global

Credit

Facility)

which

matures

on

February

2,

2024.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the Statement

of

Operations.

During

the

period

ended

June

30,

2023,

the Fund

did

not

use

the

Global

Credit

Facility.

9.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Amounts

Not

Offset

in

the

Statement

of

Assets

and

Liabilities

Gross

Amounts

of

Liabilities

Presented

in

the

Statement

of

Assets

and

Liabilities

Financial

Instruments

Available

for

Offset

Financial

Instruments

Collateral

Pledged

Cash

Collateral

Pledged

Net

Amount

(Not

less

than

zero)

Franklin

Global

Allocation

Fund

Counterparty

BZWS

...................

$4,629,509

$(4,629,509)

$—

$—

$—

HSBK

...................

20,796

(20,796)

—

—

—

JPHQ

...................

10,485,613

(10,485,613)

—

—

—

Total

...................

$15,135,918

$(15,135,918)

$—

$—

$—

7.

Other

Derivative

Information

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

34

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

June

30,

2023,

in

valuing

the

Fund's

assets

and

liabilities

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

...................

$

17,632,800

$

—

$

—

$

17,632,800

Air

Freight

&

Logistics

...................

11,579,550

13,677,798

—

25,257,348

Automobiles

..........................

—

20,530,461

—

20,530,461

Banks

...............................

69,258,703

11,713,052

—

80,971,755

Beverages

...........................

28,040,417

—

—

28,040,417

Biotechnology

.........................

7,086,798

—

—

7,086,798

Broadline

Retail

.......................

42,222,550

1,822,297

—

44,044,847

Capital

Markets

........................

34,398,833

3,106,839

—

37,505,672

Chemicals

...........................

16,767,520

—

—

16,767,520

Communications

Equipment

..............

5,820,750

—

—

5,820,750

Consumer

Staples

Distribution

&

Retail

......

25,438,856

—

—

25,438,856

Diversified

Telecommunication

Services

.....

11,584,685

—

—

11,584,685

Electric

Utilities

........................

21,229,047

21,797,998

—

43,027,045

Electrical

Equipment

....................

—

4,788,814

—

4,788,814

Electronic

Equipment,

Instruments

&

Components

........................

13,034,880

—

—

13,034,880

Entertainment

.........................

11,283,900

9,164,525

—

20,448,425

Financial

Services

......................

23,836,320

—

—

23,836,320

Food

Products

........................

10,831,590

28,082,562

—

38,914,152

Ground

Transportation

..................

19,382,286

—

—

19,382,286

Health

Care

Equipment

&

Supplies

.........

13,558,590

—

—

13,558,590

Health

Care

Providers

&

Services

..........

29,621,986

—

—

29,621,986

Hotels,

Restaurants

&

Leisure

.............

15,815,730

696,094

—

16,511,824

Household

Durables

....................

—

18,652,411

—

18,652,411

Household

Products

....................

20,940,120

—

—

20,940,120

Independent

Power

and

Renewable

Electricity

Producers

..........................

—

19,506,543

—

19,506,543

Industrial

Conglomerates

................

14,525,000

12,607,158

—

27,132,158

Industrial

REITs

.......................

13,489,300

—

—

13,489,300

Insurance

............................

23,591,679

22,818,220

—

46,409,899

Interactive

Media

&

Services

..............

35,910,000

6,865,679

—

42,775,679

IT

Services

...........................

9,524,352

11,914,077

—

21,438,429

Life

Sciences

Tools

&

Services

............

27,300,490

—

—

27,300,490

Machinery

............................

33,513,260

—

—

33,513,260

Marine

Transportation

...................

—

6,154,408

—

6,154,408

Media

...............................

9,045,435

—

—

9,045,435

Metals

&

Mining

.......................

19,871,725

43,523,565

—

63,395,290

Multi-Utilities

..........................

7,768,500

—

—

7,768,500

Oil,

Gas

&

Consumable

Fuels

.............

44,829,453

20,063,718

—

64,893,171

Pharmaceuticals

.......................

48,981,650

54,673,678

—

103,655,328

Semiconductors

&

Semiconductor

Equipment

.

101,482,530

12,805,907

—

114,288,437

Software

.............................

119,678,631

—

—

119,678,631

Specialized

REITs

......................

11,927,310

—

—

11,927,310

Specialty

Retail

........................

34,868,930

—

—

34,868,930

Technology

Hardware,

Storage

&

Peripherals

.

44,957,203

19,031,026

—

63,988,229

Textiles,

Apparel

&

Luxury

Goods

..........

10,485,150

—

—

10,485,150

Trading

Companies

&

Distributors

..........

—

8,275,147

—

8,275,147

9.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Notes

to

Financial

Statements

(unaudited)

35

franklintempleton.com

Semiannual

Report

Franklin

Global

Allocation

Fund

(continued)

10.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure.

Abbreviations

Level

1

Level

2

Level

3

Total

Franklin

Global

Allocation

Fund

(continued)

Assets:

(continued)

Investments

in

Securities:

Common

Stocks:

Wireless

Telecommunication

Services

.......

$

—

$

12,920,200

$

—

$

12,920,200

Management

Investment

Companies

.........

248,194,616

—

—

248,194,616

Corporate

Bonds

........................

—

185,279,916

—

185,279,916

Foreign

Government

and

Agency

Securities

....

—

347,500,466

—

347,500,466

U.S.

Government

and

Agency

Securities

.......

—

302,081,685

—

302,081,685

Mortgage-Backed

Securities

................

—

43,390,512

—

43,390,512

Short

Term

Investments

...................

73,163,403

—

—

73,163,403

Total

Investments

in

Securities

...........

$1,382,474,528

$1,263,444,756

a

$—

$2,645,919,284

Other

Financial

Instruments:

Forward

exchange

contracts

...............

$

—

$

20,105,433

$

—

$

20,105,433

Total

Other

Financial

Instruments

.........

$—

$20,105,433

$—

$20,105,433

Liabilities:

Other

Financial

Instruments:

Forward

exchange

contracts

................

$

—

$

15,135,918

$

—

$

15,135,918

Total

Other

Financial

Instruments

.........

$—

$15,135,918

$—

$15,135,918

a

Includes

foreign

securities

valued

at

$385,192,175,

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.

Counterparty

BZWS

Barclays

Bank

plc

HSBK

HSBC

Bank

plc

JPHQ

JPMorgan

Chase

Bank

NA

Cu

r

rency

AUD

Australian

Dollar

CAD

Canadian

Dollar

CNY

Chinese

Yuan

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

Selected

Portfolio

ADR

American

Depositary

Receipt

ETF

Exchange-Traded

Fund

FRN

Floating

Rate

Note

GNMA

Government

National

Mortgage

Association

LIBOR

London

Interbank

Offered

Rate

PIK

Payment-In-Kind

9.

Fair

Value

Measurements

(continued)

Franklin

Fund

Allocator

Series

Shareholder

Information

36

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FUND

ALLOCATOR

SERIES

Franklin

Global

Allocation

Fund

(Fund)

March

27,

2023

15(c)

Meeting

At

a

meeting

held

on

March

27,

2023

(March

Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Fund

Allocator

Series

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

the

period

May

1,

2023

through

June

30,

2023

(Stub

Period).

The

Independent

Trustees

noted

that

the

Fund’s

annual

contract

review

was

historically

held

at

the

February

Board

meeting

and

that

management

proposed

to

move

the

contract

review

to

the

May

Board

meeting.

The

Independent

Trustees

further

noted

management’s

explanation

that,

to

effect

this

change,

the

Board

needed

to

consider

the

renewal

of

the

Fund’s

Management

Agreement

prior

to

its

current

April

30,

2023

expiration

date.

The

Independent

Trustees

also

noted

that

management

would

ask

them

to

consider

the

continuation

of

the

Management

Agreement

again

at

the

May

Board

meeting

for

the

12-month

period

beginning

July

1,

2023.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement

for

the

Stub

Period.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

March

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

March

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

prior

to

and

at

the

March

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors

(Factors).

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

the

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Fund

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-party

servicing

arrangements.

The

Board

acknowledged

management’s

continued

development

of

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

continuing

geopolitical

concerns.

Franklin

Fund

Allocator

Series

Shareholder

Information

37

franklintempleton.com

Semiannual

Report

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

technological

innovation

and

advancement

and

investments

to

promote

alternative

investing.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

December

31,

2022.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

flexible

portfolio

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-year

period

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that,

effective

February

1,

2021,

the

Fund

was

repositioned

from

a

fund-of-funds

to

a

directly

managed

allocation

fund.

The

Board

discussed

the

Fund’s

performance

with

management

and

management

explained

that

the

Fund

has

had

improved

performance

relative

to

peers

since

the

Fund’s

change

in

strategy

and

enhancements

to

the

Fund’s

portfolio

management

team.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

the

Fund

and

for

Class

A

and

Class

M

shares

for

other

funds

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

11

other

flexible

portfolio

funds.

The

Board

noted

that

the

Fund’s

Management

Rate

and

total

expense

ratio

were

below

the

median

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

further

noted

that

the

Fund’s

total

expense

ratio

reflected

a

fee

waiver

from

management.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

Franklin

Fund

Allocator

Series

Shareholder

Information

38

franklintempleton.com

Semiannual

Report

September

30,

2022,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

the

Stub

Period.

May

24,

2023

15(c)

Meeting

At

a

meeting

held

on

May

24,

2023

(May

Meeting),

the

Board

reviewed

and

approved

the

Management

Agreement

for

an

additional

twelve-month

period

beginning

July

1,

2023.

The

Board

noted

its

review

and

consideration

of

the

information

it

received

in

connection

with

both

the

March

Meeting

and

the

May

Meeting.

In

particular,

the

Board

reviewed

and

considered

information

provided

in

response

to

a

follow-up

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees,

which

included

information

on

Fund

performance

for

the

one-,

three-

and

five-year

periods

ended

March

31,

2023

and

the

other

Factors.

The

Board

determined

that

the

conclusions

it

made

at

the

March

Meeting

had

not

changed.

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

Factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

twelve-month

period

beginning

July

1,

2023.

Liquidity

Risk

Management

Program

Each

of

the

Franklin

Templeton

and

Legg

Mason

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

Franklin

Fund

Allocator

Series

Shareholder

Information

39

franklintempleton.com

Semiannual

Report

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2023,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2022.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

Householding

of

Reports

and

Prospectuses

You

will

receive,

or

receive

notice

of

the

availability

of,

the

Fund’s

financial

reports

every

six

months.

In

addition,

you

will

receive

as

an

annual

updated

summary

prospectus

(detail

prospectus

available

upon

request).

To

reduce

Fund

expenses,

we

try

to

identify

related

shareholders

in

a

Franklin

Fund

Allocator

Series

Shareholder

Information

40

franklintempleton.com

Semiannual

Report

household

and

send

only

one

copy

of

the

financial

reports

(to

the

extent

received

by

mail)

and

summary

prospectus.

This

process,

called

“householding,”

will

continue

indefinitely

unless

you

instruct

us

otherwise.

If

you

prefer

not

to

have

these

documents

householded,

please

call

us

at

(800)

632-2301.

At

any

time

you

may

view

current

prospectuses/

summary

prospectuses

and

financial

reports

on

our

website.

If

you

choose,

you

may

receive

these

documents

through

electronic

delivery.

481

S

08/23

©

2023

Franklin

Templeton

Investments.

All

rights

reserved.

Authorized

for

distribution

only

when

accompanied

or

preceded

by

a

summary

prospectus

and/or

prospectus.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

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areas

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Semiannual

Report

Franklin

Global

Allocation

Fund

Investment

Manager

Distributor

Shareholder

Services

Franklin

Advisers,

Inc.

Franklin

Distributors,

LLC

(800)

DIAL

BEN

®

/

342-5236

franklintempleton.com

(800)

632-2301

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.      

N/A

Item 5.  Audit Committee of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-

End Management Investment Companies.                  N/A

Item 8.  Portfolio Managers of Closed-End Management Investment

Companies.                                            N/A

Item 9. Purchases of Equity Securities by Closed-End Management

Investment Company and

Affiliated Purchasers.         N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b) 

Changes in Internal Controls

. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12.  Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                       N/A

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.

(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN FUND ALLOCATOR SERIES

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 28, 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  August 28, 2023

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  August 28, 2023