UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-07851
Franklin Fund Allocator Series
(Exact name of registrant as specified in charter)
One Franklin Parkway, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code:(650)312-2000
Date of fiscal year end: 7/31
Date of reporting period: 7/31/23
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
1
franklintempleton.com
Annual
Report
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
This
annual
report
for
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
covers
the
fiscal
year
ended
July
31,
2023.
Fund
Overview
Q.
What
is
the
Fund’s
investment
strategy?
A.
The
Fund
invests
in
both
growth
and
value
stocks,
or
in
stocks
with
characteristics
of
both
(“core”
style
of
investing).
We
employ
a
multi-factor
selection
process
that
includes
using
a
proprietary
model
to
assign
a
quantitative
factor
score
for
each
issuer
in
the
Fund’s
investible
universe
based
on
that
issuer’s
exposure
to
quality,
value
and
momentum.
We
further
analyze
each
security
based
on
the
assigned
factor
scores
but
take
into
account
certain
sector
weight
limits
and
security
weight
limit
constraints.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
Global
emerging
market
stocks,
as
measured
by
the
MSCI
Emerging
Markets
Index-NR,
posted
a
+8.35%
total
return
for
the
12
months
under
review.
1
Emerging
market
(EM)
stocks
are
sensitive
to
interest
rate
changes
in
developed
markets,
and
indications
that
central
banks
were
nearing
the
end
of
their
rate
hiking
cycles
benefited
emerging
markets.
The
declining
value
of
the
U.S.
dollar
relative
to
many
other
currencies
also
boosted
emerging
market
stocks.
The
Asia
region,
specifically
China,
proved
a
drag
on
returns,
due
to
a
delayed
reopening
of
the
economy,
alongside
regulatory
issues
and
problems
in
the
country’s
real
estate
sector.
Markets
elsewhere
in
Asia
were
relatively
strong,
as
were
European
and
Latin
American
EM
regions.
Value
stocks
outperformed
their
growth
counterparts
in
the
EM
region
during
the
year,
in
contrast
to
developed
markets.
Q.
How
did
we
response
to
these
changing
market
conditions?
A.
The
Fund
follows
a
multi-factor
composite
model,
constructed
using
quality,
value
and
momentum
characteristics.
During
the
period,
the
Fund
navigated
a
volatile
equity
market
and
factor
volatility,
while
benefiting
from
tight
portfolio
construction
and
risk
management.
Performance
Overview
The
Fund
posted
a
+10.24%
cumulative
total
return
for
the
12
months
ended
July
31,
2023.
In
comparison,
the
MSCI
EM
Index,
which
measures
performance
of
global
emerging
market
stocks,
posted
a
+8.83%
cumulative
total
return
for
the
same
period.
1
You
can
find
more
of
the
Fund’s
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.
Q.
What
were
the
leading
contributors
to
performance?
A.
During
the
period
under
review,
the
Fund
outperformed
its
investable
universe,
as
represented
by
the
MSCI
Emerging
Markets
Index.
Stock
selection
within
the
financials,
consumer
discretionary
and
information
technology
(IT)
sectors
contributed,
as
did
an
overweight
to
the
IT
sector.
Overweight
positions
in
Itau
Unibanco,
Akbank
(not
held
at
period-end)
and
Itausa
contributed
within
the
financials
sector.
Elsewhere,
overweight
holdings
in
Vipshop
and
PDD
added
relative
value
in
the
consumer
discretionary
sector,
as
did
an
underweight
position
in
JD.com
(not
held
at
period-end).
Among
IT
names,
overweight
positions
in
Wistron
and
Inventec
proved
positive.
Q.
What
were
the
leading
detractors
from
performance?
A.
Stock
selection
within
the
energy
and
materials
sectors
detracted
from
relative
performance
during
the
12-month
period.
Overweight
positions
in
energy
firm
Adaro
Energy
Indonesia
detracted,
as
did
a
lack
of
exposure
to
mining
business
Posco
Holdings
(not
held
at
period-end).
Geographic
Composition
7/31/23
%
of
Total
Net
Assets
Asia
75.1%
Latin
America
&
Caribbean
10.6%
Middle East & Africa
9.0%
Europe
4.5%
Short-Term
Investments
&
Other
Net
Assets
0.8%
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sale
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
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
20
.
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
2
franklintempleton.com
Annual
Report
Elsewhere,
overweight
positions
in
Evergreen
Marine
Corp.
Taiwan
and
Adani
Power
detracted.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
During
the
12-month
period,
we
increased
allocations
to
the
consumer
discretionary,
financials
and
IT
sectors.
In
contrast,
we
decreased
positions
in
materials,
real
estate
and
utilities
stocks.
Thank
you
for
your
participation
in
Franklin
Emerging
Market
Core
Equity
(IU)
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Chandra
Seethamraju,
Ph.D.
Sundaram
Chettiappan,
CFA
Todd
Brighton,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
July
31,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Portfolio
Composition
7/31/23
%
of
Total
Net
Assets
Banks
15.4%
Semiconductors
&
Semiconductor
Equipment
9.4%
Technology
Hardware,
Storage
&
Peripherals
6.8%
Interactive
Media
&
Services
5.2%
Broadline
Retail
5.1%
Oil,
Gas
&
Consumable
Fuels
4.6%
Metals
&
Mining
3.6%
Chemicals
3.5%
Insurance
3.2%
Automobiles
2.7%
Hotels,
Restaurants
&
Leisure
2.4%
Electronic
Equipment,
Instruments
&
Components
2.3%
IT
Services
2.2%
Wireless
Telecommunication
Services
2.0%
Other
*
30.8%
Short-Term
Investments
&
Other
Net
Assets
0.8%
*
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.
Top
10
Holdings
7/31/23
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
6.4%
Semiconductors
&
Semiconductor
Equipment,
Taiwan
Tencent
Holdings
Ltd.
4.0%
Interactive
Media
&
Services,
China
Samsung
Electronics
Co.
Ltd.
3.7%
Technology
Hardware,
Storage
&
Peripherals,
South
Korea
Alibaba
Group
Holding
Ltd.
2.4%
Broadline
Retail,
China
Petroleo
Brasileiro
SA
1.7%
Oil,
Gas
&
Consumable
Fuels,
Brazil
BYD
Co.
Ltd.
1.5%
Automobiles,
China
Tata
Consultancy
Services
Ltd.
1.5%
IT
Services,
India
Wistron
Corp.
1.3%
Technology
Hardware,
Storage
&
Peripherals,
Taiwan
KB
Financial
Group,
Inc.
1.2%
Banks,
South
Korea
Itausa
SA
1.1%
Banks,
Brazil
Top
10
Countries
7/31/23
a
%
of
Total
Net
Assets
a
a
China
29.4%
Taiwan
14.9%
India
13.8%
South
Korea
11.2%
Brazil
6.5%
Mexico
3.5%
Saudi
Arabia
3.4%
South
Africa
3.1%
Indonesia
2.3%
Turkey
1.6%
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Performance
Summary
as
of
July
31,
2023
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
3
franklintempleton.com
Annual
Report
The
performance
table
and
graph
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.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
7/31/23
1
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.
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
1-Year
+10.24%
+10.24%
3-Year
+3.01%
+0.99%
Since
Inception
(9/30/19)
4
+11.21%
+2.81%
See
page
5
for
Performance
Summary
footnotes.
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Performance
Summary
4
franklintempleton.com
Annual
Report
See
page
5
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
9/30/19–7/31/23
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Performance
Summary
5
franklintempleton.com
Annual
Report
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.
Stock
prices
fluctuate,
sometimes
rapidly
and
dramatically,
due
to
factors
affecting
individual
companies,
particular
industries
or
sectors,
or
general
market
conditions.
Investing
in
foreign
securities
typically
involves
more
risks
than
investing
in
U.S.
securities,
and
includes
risks
associated
with
internal
and
external
political
and
economic
developments,
trading
practices,
availability
of
information,
limited
markets,
and
currency
exchange
rate
fluctuations
and
policies.
Investments
in
emerging
markets
are
subject
to
all
of
the
risks
of
foreign
investing
generally,
and
have
additional
heightened
risks
due
to
a
lack
of
established
legal,
political,
business
and
social
frameworks
to
support
securities
markets.
To
the
extent
that
the
Fund
invests
a
significant
portion
of
its
assets
in
a
specific
geographic
region
or
a
particular
country,
the
Fund
will
generally
have
more
exposure
to
the
specific
regional
or
country
economic
risks.
There
can
be
no
assurance
that
the
Fund’s
multi-factor
stock
selection
process
will
enhance
performance.
Exposure
to
such
investment
factors
may
detract
from
performance
in
some
market
environments,
perhaps
for
extended
periods.
The
Fund
may
have
investments
in
both
growth
and
value
stocks,
or
in
stocks
with
characteristics
of
both.
Growth
stock
prices
reflect
projec-
tions
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramatically
if
the
company
fails
to
meet
those
projections.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
investment
manager
if
other
investors
fail
to
recognize
the
company’s
value
and
bid
up
the
price,
the
markets
favor
faster-growing
companies,
or
the
factors
that
the
investment
manager
believes
will
increase
the
price
of
the
security
do
not
occur.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
To
the
extent
that
the
Fund
has
exposure
to
Russian
investments
or
investments
in
countries
affected
by
the
invasion,
the
Fund’s
ability
to
price,
buy,
sell,
receive
or
deliver
such
investments
may
be
impaired.
The
Fund
could
determine
at
any
time
that
certain
of
the
most
affected
securities
have
zero
value.
In
addition,
any
exposure
that
the
Fund
may
have
to
counterparties
in
Russia
or
in
countries
affected
by
the
invasion
could
negatively
impact
the
Fund’s
portfolio.
The
extent
and
duration
of
Russia’s
military
actions
and
the
repercussions
of
such
actions
(including
any
retaliatory
actions
or
countermeasures
that
may
be
taken
by
those
subject
to
sanctions)
are
impossible
to
predict,
but
could
result
in
significant
market
disruptions,
including
in
the
oil
and
natural
gas
markets,
and
may
negatively
affect
global
supply
chains,
inflation
and
global
growth.
These
and
any
related
events
could
significantly
impact
the
Fund’s
performance
and
the
value
of
an
investment
in
the
Fund,
even
beyond
any
direct
exposure
the
Fund
may
have
to
Russian
issuers
or
issuers
in
other
countries
affected
by
the
invasion.
1.
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations),
interest
expense
and
acquired
fund
fees
and
expenses
of
the
Funds
do
not
exceed
0.00%
based
on
the
average
net
assets
of
each
class
until
11/30/23.
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.
Since
Inception
returns
are
based
on
the
performance
inception
date
of
9/30/19.
5.
Source:
FactSet.
The
MSCI
EM
Index
is
a
free
float-adjusted,
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
global
emerging
markets.
6.
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
(8/1/22–7/31/23)
Net
Investment
Income
$0.3657
Total
Annual
Operating
Expenses
6
With
Fee
Waiver
Without
Fee
Waiver
0.00%
0.17%
Your
Fund’s
Expenses
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
6
franklintempleton.com
Annual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
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)
Beginning
Account
Value
2/1/23
Ending
Account
Value
7/31/23
Expenses
Paid
During
Period
2/1/23–7/31/23
1,2
Ending
Account
Value
7/31/23
Expenses
Paid
During
Period
2/1/23–7/31/23
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,037.50
$0.00
$1,024.79
$0.00
0.00%
7
franklintempleton.com
Annual
Report
Franklin
International
Core
Equity
(IU)
Fund
This
annual
report
for
Franklin
International
Core
Equity
(IU)
Fund
covers
the
fiscal
year
ended
July
31,
2023.
Fund
Overview
Q.
What
is
the
Fund’s
investment
strategy?
A.
The
Fund
invests
in
both
growth
and
value
stocks,
or
in
stocks
with
characteristics
of
both
(“core”
style
of
investing).
We
employ
a
multi-factor
selection
process
that
includes
using
a
proprietary
model
to
assign
a
quantitative
factor
score
for
each
issuer
in
the
Fund’s
investible
universe
based
on
that
issuer’s
exposure
to
quality,
value
and
momentum.
We
further
analyze
each
security
based
on
the
assigned
factor
scores,
but
take
into
account
certain
sector
weight
limits
and
security
weight
limit
constraints.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
International
equity
markets
rose
during
the
12-month
period,
in
U.S.-dollar
terms,
outperforming
global
equities.
European
developed
market
equities,
as
measured
by
the
MSCI
Europe
Index-NR,
posted
a
+19.62%
total
return.
1
Economic
growth
in
the
eurozone
was
tepid
during
the
period,
as
higher
interest
rates,
declining
business
confidence
and
stalled
consumer
spending
weighed
on
the
region.
The
ongoing
war
in
Ukraine
disrupted
supply
chains,
weakened
the
economic
outlook
and
contributed
to
record
high
inflation
across
the
eurozone,
as
energy
prices
soared
at
the
beginning
of
the
period.
However,
governments
spent
significant
sums
to
subsidize
consumers
and
find
alternative
supplies.
Consequently,
the
price
of
natural
gas
in
Europe
declined
notably
after
peaking
in
late
August
2022,
providing
a
tailwind
for
European
stocks.
Elsewhere,
economic
activity
in
Japan
rebounded
from
a
contraction
in
the
third
quarter
of
2022,
benefiting
from
higher
private
consumption.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
The
Fund
follows
a
multi-factor
composite
model,
constructed
using
quality,
value
and
momentum
characteristics.
During
the
period,
the
Fund
navigated
a
volatile
equity
market
and
factor
volatility,
while
benefiting
from
tight
portfolio
construction
and
risk
management.
Performance
Overview
The
Fund
posted
a
+15.44%
cumulative
total
return
for
the
12
months
ended
July
31,
2023.
In
comparison,
the
MSCI
EAFE
Index,
which
measures
equity
market
performance
of
developed
markets,
excluding
the
U.S.
and
Canada,
posted
a
+17.42%
cumulative
total
return
for
the
same
period.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
9
.
Geographic
Composition
7/31/23
%
of
Total
Net
Assets
Europe
57.1%
Asia
26.8%
North
America
7.9%
Australia
&
New
Zealand
6.5%
Other
0.5%
Short-Term
Investments
&
Other
Net
Assets
1.2%
Portfolio
Composition
7/31/23
%
of
Total
Net
Assets
Pharmaceuticals
10.0%
Banks
7.8%
Oil,
Gas
&
Consumable
Fuels
5.1%
Insurance
4.2%
Semiconductors
&
Semiconductor
Equipment
4.0%
Textiles,
Apparel
&
Luxury
Goods
3.8%
Food
Products
3.5%
Automobiles
3.4%
Chemicals
3.1%
Capital
Markets
3.1%
Metals
&
Mining
2.6%
Machinery
2.5%
Personal
Care
Products
2.5%
Beverages
1.9%
Other
*
41.3%
Short-Term
Investments
&
Other
Net
Assets
1.2%
*
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.
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
29
.
Franklin
International
Core
Equity
(IU)
Fund
8
franklintempleton.com
Annual
Report
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.
Q.
What
were
the
leading
contributors
to
performance?
A.
During
the
period
under
review,
the
Fund
underperformed
its
investable
universe,
as
represented
by
the
MSCI
EAFE
Index.
Stock
selection
among
our
Australian
holdings
contributed,
notably
an
overweight
position
in
mining
firm
BHP
Group
and
an
underweight
to
Commonwealth
Bank
of
Australia.
In
Japan,
overweight
positions
in
Advantest,
Mitsubishi
and
Sumitomo
Mitsui
Financial
Group
added
relative
value.
In
Europe,
selection
among
U.K.
stocks
contributed,
notably
overweight
positions
in
3i
Group
and
Standard
Chartered.
Elsewhere,
overweight
holdings
in
BMW
(not
held
at
period-
end),
Cie
de
Saint-Gobain
and
ING
Groep
(not
held
at
period-end)
proved
positive.
Q.
What
were
the
leading
detractors
from
performance?
A.
Stock
selection
within
the
health
care
and
energy
sectors
contributed
to
relative
results,
as
did
an
underweight
to
the
financials
sector.
An
overweight
position
in
oil
and
gas
business
Equinor
ASA
detracted,
as
did
overweight
holdings
in
pharmaceutical
businesses
GSK,
Roche
and
Bayer
(not
held
at
period-end).
Overweight
positions
in
health
care
equipment
suppliers
Sonova
Holding
(not
held
at
period-end)
and
Olympus
also
proved
negative
during
the
12-month
period.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
During
the
12-month
period,
we
increased
allocation
to
the
consumer
discretionary,
industrials,
IT
and
materials
sectors.
In
contrast,
we
decreased
positions
in
the
communication
services
and
consumer
staples
sectors.
Thank
you
for
your
participation
in
Franklin
International
Core
Equity
(IU)
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Chandra
Seethamraju,
Ph.D.
Sundaram
Chettiappan,
CFA
Todd
Brighton,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
July
31,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Top
10
Holdings
7/31/23
Company
Industry,
Country
%
of
Total
Net
Assets
a
a
Novo
Nordisk
A/S
2.6%
Pharmaceuticals,
Denmark
Novartis
AG
2.3%
Pharmaceuticals,
Switzerland
Nestle
SA
2.1%
Food
Products,
United
States
L'Oreal
SA
1.7%
Personal
Care
Products,
France
BHP
Group
Ltd.
1.5%
Metals
&
Mining,
Australia
LVMH
Moet
Hennessy
Louis
Vuitton
SE
1.5%
Textiles,
Apparel
&
Luxury
Goods,
France
UniCredit
SpA
1.3%
Banks,
Italy
ASML
Holding
NV
1.3%
Semiconductors
&
Semiconductor
Equipment,
Netherlands
Cie
de
Saint-Gobain
1.3%
Building
Products,
France
GSK
plc
1.2%
Pharmaceuticals,
United
States
Top
10
Countries
7/31/23
a
%
of
Total
Net
Assets
a
a
Japan
24.2%
United
Kingdom
12.5%
France
9.9%
United
States
7.9%
Australia
6.3%
Germany
6.3%
Netherlands
6.2%
Switzerland
5.4%
Spain
3.7%
Denmark
3.4%
Performance
Summary
as
of
July
31,
2023
Franklin
International
Core
Equity
(IU)
Fund
9
franklintempleton.com
Annual
Report
The
performance
table
and
graph
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.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
7/31/23
1
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.
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
1-Year
+15.44%
+15.44%
3-Year
+27.71%
+8.49%
Since
Inception
(8/19/19)
4
+34.83%
+7.86%
See
page
11
for
Performance
Summary
footnotes.
Franklin
International
Core
Equity
(IU)
Fund
Performance
Summary
10
franklintempleton.com
Annual
Report
See
page
11
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
8/19/19–7/31/23
Franklin
International
Core
Equity
(IU)
Fund
Performance
Summary
11
franklintempleton.com
Annual
Report
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.
Stock
prices
fluctuate,
sometimes
rapidly
and
dramatically,
due
to
factors
affecting
individual
companies,
particular
industries
or
sectors,
or
general
market
conditions.
Investing
in
foreign
securities
typically
involves
more
risks
than
investing
in
U.S.
securities,
and
includes
risks
associated
with
internal
and
external
political
and
economic
developments,
trading
practices,
availability
of
information,
limited
markets,
and
currency
exchange
rate
fluctu-
ations
and
policies.
To
the
extent
that
the
Fund
invests
a
significant
portion
of
its
assets
in
a
specific
geographic
region
or
a
particular
country,
the
Fund
will
generally
have
more
exposure
to
the
specific
regional
or
country
economic
risks.
There
can
be
no
assurance
that
the
Fund’s
multi-factor
stock
selection
process
will
enhance
performance.
Exposure
to
such
investment
factors
may
detract
from
performance
in
some
market
environments,
perhaps
for
extended
periods.
The
Fund
may
have
investments
in
both
growth
and
value
stocks,
or
in
stocks
with
characteristics
of
both.
Growth
stock
prices
reflect
projections
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramatically
if
the
company
fails
to
meet
those
projections.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
investment
manager
if
other
investors
fail
to
recognize
the
compa-
ny’s
value
and
bid
up
the
price,
the
markets
favor
faster-growing
companies,
or
the
factors
that
the
investment
manager
believes
will
increase
the
price
of
the
security
do
not
occur.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations),
interest
expense
and
acquired
fund
fees
and
expenses
of
the
Funds
do
not
exceed
0.00%
based
on
the
average
net
assets
of
each
class
until
11/30/23.
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.
Since
Inception
returns
are
based
on
the
performance
inception
date
of
8/19/19.
5.
Source:
FactSet.
The
MSCI
EAFE
Index
is
a
free
float-adjusted
market
capitalization-weighted
index
designed
to
measure
the
equity
market
performance
of
developed
markets
excluding
the
U.S.
and
Canada.
6.
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
(8/1/22–7/31/23)
Net
Investment
Income
$0.3820
Total
Annual
Operating
Expenses
6
With
Fee
Waiver
Without
Fee
Waiver
0.00%
0.04%
Your
Fund’s
Expenses
Franklin
International
Core
Equity
(IU)
Fund
12
franklintempleton.com
Annual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
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)
Beginning
Account
Value
2/1/23
Ending
Account
Value
7/31/23
Expenses
Paid
During
Period
2/1/23–7/31/23
1,2
Ending
Account
Value
7/31/23
Expenses
Paid
During
Period
2/1/23–7/31/23
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,072.10
$0.00
$1,024.79
$0.00
0.00%
13
franklintempleton.com
Annual
Report
1.
Source:
Morningstar.
The
index
is
unmanaged
and
includes
reinvestment
of
any
income
or
distributions.
It
does
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
37
.
Franklin
U.S.
Core
Equity
(IU)
Fund
This
annual
report
for
Franklin
U.S.
Core
Equity
(IU)
Fund
covers
the
fiscal
year
ended
July
31,
2023.
Fund
Overview
Q.
What
is
the
Fund’s
investment
strategy?
A.
The
Fund
invests
in
both
growth
and
value
stocks,
or
in
stocks
with
characteristics
of
both
(“core”
style
of
investing).
We
employ
a
multi-factor
selection
process
that
includes
using
a
proprietary
model
to
assign
a
quantitative
factor
score
for
each
issuer
in
the
Fund’s
investible
universe
based
on
that
issuer’s
exposure
to
quality,
value
and
momentum.
We
further
analyze
each
security
based
on
the
assigned
factor
scores,
but
take
into
account
certain
sector
weight
limits
and
security
weight
limit
constraints.
Q.
What
were
the
overall
market
conditions
during
the
Fund’s
reporting
period?
A.
Global
equities,
as
measured
by
the
MSCI
All
Country
World
Index-NR
(net
of
tax
withholding
when
dividends
are
paid),
posted
a
+12.91%
total
return
for
the
12
months
ended
July
31,
2023.
1
In
the
U.S.,
gross
domestic
product
(GDP)
expanded
in
the
second
half
of
2022
and
the
first
half
of
2023
amid
rising
investment
and
resilient
spending
on
services.
The
labor
market
remained
strong,
as
hiring
continued
at
a
brisk
pace
and
unemployment
remained
very
low
by
historic
standards.
The
U.S.
Federal
Reserve
(Fed)
raised
the
federal
funds
target
rate
seven
times
during
the
period,
pausing
at
one
meeting
only
to
resume
tightening
in
July
2023,
ending
at
a
range
of
5.25%–5.50%.
U.S.
inflation
cooled
to
3.0%
in
June
2023,
while
economic
data
remained
relatively
robust.
U.S.
equity
markets
were
volatile
during
the
second
half
of
2022,
influenced
by
the
aggressive
tightening
cycle,
but
rose
sharply
during
the
first
half
of
2023,
as
markets
were
driven
forward
by
a
small
group
of
large-cap
technology
stocks.
Q.
How
did
we
respond
to
these
changing
market
conditions?
A.
The
Fund
follows
a
multi-factor
composite
model,
constructed
using
quality,
value
and
momentum
characteristics.
During
the
period,
the
Fund
navigated
a
Portfolio
Composition
7/31/23
%
of
Total
Net
Assets
Software
8.9%
Technology
Hardware,
Storage
&
Peripherals
7.7%
Interactive
Media
&
Services
6.4%
Semiconductors
&
Semiconductor
Equipment
5.9%
Oil,
Gas
&
Consumable
Fuels
4.8%
Biotechnology
4.4%
Health
Care
Providers
&
Services
3.6%
Financial
Services
3.6%
Broadline
Retail
3.1%
Banks
3.1%
Health
Care
Equipment
&
Supplies
3.1%
Pharmaceuticals
2.8%
Specialty
Retail
2.7%
Automobiles
2.6%
Other
*
36.4%
Short-Term
Investments
&
Other
Net
Assets
0.9%
*
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.
Top
10
Holdings
7/31/23
Company
Industry
%
of
Total
Net
Assets
a
a
Apple,
Inc.
7.2%
Technology
Hardware,
Storage
&
Peripherals
Microsoft
Corp.
6.4%
Software
Alphabet,
Inc.
3.8%
Interactive
Media
&
Services
Meta
Platforms,
Inc.
2.7%
Interactive
Media
&
Services
Amazon.com,
Inc.
2.6%
Broadline
Retail
NVIDIA
Corp.
2.5%
Semiconductors
&
Semiconductor
Equipment
Visa,
Inc.
1.8%
Financial
Services
JPMorgan
Chase
&
Co.
1.5%
Banks
PepsiCo,
Inc.
1.5%
Beverages
Merck
&
Co.,
Inc.
1.5%
Pharmaceuticals
Franklin
U.S.
Core
Equity
(IU)
Fund
14
franklintempleton.com
Annual
Report
volatile
equity
market
and
factor
volatility,
while
benefiting
from
tight
portfolio
construction
and
risk
management.
Performance
Overview
The
Fund
posted
a
+9.31%
cumulative
total
return
for
the
12
months
ended
July
31,
2023.
In
comparison,
the
Standard
&
Poor’s
®
500
Index
(S&P
500
®
),
which
is
designed
to
measure
total
U.S.
equity
market
performance,
posted
a
+13.02%
cumulative
total
return
for
the
same
period.
1
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
15
.
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.
Q.
What
were
the
leading
contributors
to
performance?
A.
During
the
period
under
review,
the
Fund
underperformed
its
investable
universe,
as
represented
by
the
S&P
500
®
Index.
The
leading
contributor
to
performance
was
selection
within
the
communication
services
sector,
notably
within
the
interactive
media
and
services
sub-sector,
where
an
overweight
allocation
to
Meta
Platforms
was
additive.
Elsewhere,
an
underweight
allocation
to
the
financials
sector
contributed
to
relative
results.
Q.
What
were
the
leading
detractors
from
performance?
A.
Selection
among
information
technology
(IT),
consumer
discretionary
and
financials
stocks
detracted
from
relative
results
during
the
12-month
period.
Underweight
allocations
to
Nvidia
and
Tesla
held
back
relative
performance,
as
did
overweight
allocations
to
Gilead
Sciences
within
the
Health
Care
sector
and
American
Electric
Power
Co.
among
utilities.
Q.
Were
there
any
significant
changes
to
the
Fund
during
the
reporting
period?
A.
Across
the
12-month
period,
we
increased
allocation
to
the
communication
services,
consumer
discretionary
health
care
and
IT
sectors.
In
contrast,
we
reduced
allocation
to
the
financials,
industrials,
real
estate
and
utilities
sectors.
Thank
you
for
your
participation
in
Franklin
U.S.
Core
Equity
(IU)
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Chandra
Seethamraju,
Ph.D.
Sundaram
Chettiappan,
CFA
Todd
Brighton,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
July
31,
2023,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
July
31,
2023
Franklin
U.S.
Core
Equity
(IU)
Fund
15
franklintempleton.com
Annual
Report
The
performance
table
and
graph
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.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
7/31/23
1
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.
Cumulative
Total
Return
2
Average
Annual
Total
Return
3
–
1-Year
+9.31%
+9.31%
3-Year
+41.47%
+12.26%
Since
Inception
(8/19/19)
4
+62.81%
+13.13%
See
page
17
for
Performance
Summary
footnotes.
Franklin
U.S.
Core
Equity
(IU)
Fund
Performance
Summary
16
franklintempleton.com
Annual
Report
See
page
17
for
Performance
Summary
footnotes
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
index
includes
reinvestment
of
any
income
or
distributions.
It
differs
from
the
Fund
in
composition
and
does
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
8/19/19–7/31/23
Franklin
U.S.
Core
Equity
(IU)
Fund
Performance
Summary
17
franklintempleton.com
Annual
Report
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.
Stock
prices
fluctuate,
sometimes
rapidly
and
dramatically,
due
to
factors
affecting
individual
companies,
particular
industries
or
sectors,
or
general
market
conditions.
To
the
extent
the
Fund
focuses
on
particular
countries,
regions,
industries,
sectors
or
types
of
investment
from
time
to
time,
the
Fund
may
be
subject
to
greater
risks
of
adverse
developments
in
such
areas
of
focus
than
a
fund
that
invests
in
a
wider
variety
of
countries,
regions,
indus-
tries,
sectors
or
investments.
There
can
be
no
assurance
that
the
Fund’s
multi-factor
stock
selection
process
will
enhance
performance.
Exposure
to
such
investment
factors
may
detract
from
performance
in
some
market
environments,
perhaps
for
extended
periods.
The
Fund
may
have
investments
in
both
growth
and
value
stocks,
or
in
stocks
with
characteristics
of
both.
Growth
stock
prices
reflect
projections
of
future
earnings
or
revenues,
and
can,
therefore,
fall
dramatically
if
the
company
fails
to
meet
those
projections.
A
value
stock
may
not
increase
in
price
as
anticipated
by
the
investment
manager
if
other
investors
fail
to
recognize
the
company’s
value
and
bid
up
the
price,
the
markets
favor
faster-growing
companies,
or
the
factors
that
the
investment
manager
believes
will
increase
the
price
of
the
security
do
not
occur.
U.S.
securities
can
be
volatile
in
response
to
various
forces
including
political
and
economic
events,
federal
and
state
budget
deficits;
unpredictability
of
U.S.
legislation
on
financial
reform,
health
care,
tax
reform
and
infrastructure;
risks
of
trade
wars;
and
persistently
low
interest
rates.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations),
interest
expense
and
acquired
fund
fees
and
expenses
of
the
Funds
do
not
exceed
0.00%
based
on
the
average
net
assets
of
each
class
until
11/30/23.
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.
Since
Inception
returns
are
based
on
the
performance
inception
date
of
8/19/19.
5.
Source:
FactSet.
The
Standard
&
Poor’s
®
500
Index
(S&P
500
®
)
is
a
market
capitalization-weighted
index
of
500
stocks
designed
to
measure
total
U.S.
equity
market
performance.
6.
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
(8/1/22–7/31/23)
Net
Investment
Income
Long-Term
Capital
Gain
Total
$0.2143
$0.4087
$0.6230
Total
Annual
Operating
Expenses
6
With
Fee
Waiver
Without
Fee
Waiver
0.00%
0.01%
Your
Fund’s
Expenses
Franklin
U.S.
Core
Equity
(IU)
Fund
18
franklintempleton.com
Annual
Report
Shareholders
of
mutual
funds
incur
ongoing
costs,
such
as
management
fees
(if
any),
custodian
fees
and
other
Fund
expenses,
which
are
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
the
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
Fund
costs
only
and
do
not
reflect
any
program
fees
that
you
may
pay.
Therefore,
the
table
is
useful
in
comparing
ongoing
costs
of
investing
in
the
Fund
only,
and
will
not
help
you
determine
the
relative
total
costs
of
participating
in
any
one
investment
program.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value.”
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
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)
Beginning
Account
Value
2/1/23
Ending
Account
Value
7/31/23
Expenses
Paid
During
Period
2/1/23–7/31/23
1,2
Ending
Account
Value
7/31/23
Expenses
Paid
During
Period
2/1/23–7/31/23
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,101.00
$0.00
$1,024.79
$0.00
0.00%
Franklin
Fund
Allocator
Series
Financial
Highlights
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
Year
Ended
July
31,
Year
Ended
July
31,
2020
a
2023
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$9.23
$11.83
$10.57
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.36
0.35
0.28
0.33
Net
realized
and
unrealized
gains
(losses)
........................
0.55
(2.58)
1.34
0.45
Total
from
investment
operations
.................................
0.91
(2.23)
1.62
0.78
Less
distributions
from:
Net
investment
income
.......................................
(0.37)
(0.37)
(0.36)
(0.21)
Net
realized
gains
..........................................
—
—
—
(—)
d
Total
distributions
............................................
(0.37)
(0.37)
(0.36)
(0.21)
Net
asset
value,
end
of
year
....................................
$9.77
$9.23
$11.83
$10.57
Total
return
e
................................................
10.24%
(19.15)%
15.57%
7.96%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.
0.15%
0.17%
0.14%
0.17%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
—%
—%
—%
0.01%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..
—%
—%
g
—%
g
—%
Net
investment
income
........................................
3.92%
3.27%
2.41%
3.44%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$126,22
6
$109,129
$116,643
$138,590
Portfolio
turnover
rate
.........................................
108.11%
125.41%
108.13%
102.39%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Amount
rounds
to
less
than
$0.01
per
share.
e
Total
return
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
Schedule
of
Investments,
July
31,
2023
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
95.6%
Aerospace
&
Defense
0.3%
Bharat
Electronics
Ltd.
.................................
India
146,810
$
233,620
Hanwha
Aerospace
Co.
Ltd.
.............................
South
Korea
1,396
133,606
367,226
Air
Freight
&
Logistics
0.4%
a
ZTO
Express
Cayman,
Inc.,
ADR
.........................
China
17,800
494,840
Automobile
Components
0.7%
Hankook
Tire
&
Technology
Co.
Ltd.
.......................
South
Korea
6,572
198,852
Hyundai
Mobis
Co.
Ltd.
.................................
South
Korea
3,019
550,278
Tube
Investments
of
India
Ltd.
............................
India
3,743
140,356
889,486
Automobiles
2.7%
BYD
Co.
Ltd.,
A
.......................................
China
19,000
725,724
BYD
Co.
Ltd.,
H
......................................
China
34,000
1,210,990
a,b
Li
Auto,
Inc.,
A
........................................
China
44,800
961,705
c
Yadea
Group
Holdings
Ltd.,
144A,
Reg
S
...................
China
212,000
482,430
3,380,849
Banks
13.6%
Abu
Dhabi
Islamic
Bank
PJSC
...........................
United
Arab
Emirates
247,252
756,653
c
Banco
del
Bajio
SA,
144A,
Reg
S
.........................
Mexico
133,034
405,578
Bancolombia
SA
......................................
Colombia
15,237
129,715
Bank
Central
Asia
Tbk.
PT
..............................
Indonesia
2,073,700
1,255,898
Bank
of
Beijing
Co.
Ltd.,
A
...............................
China
222,895
145,779
Bank
of
Jiangsu
Co.
Ltd.,
A
..............................
China
163,100
165,082
Bank
of
Shanghai
Co.
Ltd.,
A
.............................
China
150,900
130,396
Bank
of
the
Philippine
Islands
............................
Philippines
60,778
126,743
BDO
Unibank,
Inc.
....................................
Philippines
127,112
336,185
China
Construction
Bank
Corp.,
H
.........................
China
864,000
503,580
China
Merchants
Bank
Co.
Ltd.,
A
.........................
China
175,200
874,911
China
Minsheng
Banking
Corp.
Ltd.,
A
......................
China
372,600
209,727
China
Minsheng
Banking
Corp.
Ltd.,
H
.....................
China
1,089,500
415,271
Commercial
International
Bank
Egypt
SAE
..................
Egypt
119,896
195,828
b
Grupo
Financiero
Inbursa
SAB
de
CV,
O
....................
Mexico
382,200
927,828
Haci
Omer
Sabanci
Holding
A/S
..........................
Turkey
191,874
410,308
Hana
Financial
Group,
Inc.
..............................
South
Korea
41,174
1,265,710
HDFC
Bank
Ltd.
......................................
India
44,259
888,642
Hong
Leong
Bank
Bhd.
.................................
Malaysia
115,800
503,106
Hong
Leong
Financial
Group
Bhd.
.........................
Malaysia
41,800
169,647
ICICI
Bank
Ltd.
.......................................
India
107,508
1,310,391
Industrial
Bank
Co.
Ltd.,
A
...............................
China
216,506
505,727
KB
Financial
Group,
Inc.
................................
South
Korea
37,643
1,503,985
Komercni
Banka
A/S
...................................
Czech
Republic
5,665
185,506
Metropolitan
Bank
&
Trust
Co.
............................
Philippines
327,890
358,466
Qatar
Islamic
Bank
SAQ
................................
Qatar
160,164
930,118
b
Santander
Bank
Polska
SA
..............................
Poland
3,586
355,893
Shinhan
Financial
Group
Co.
Ltd.
.........................
South
Korea
50,349
1,382,398
Taiwan
Business
Bank
.................................
Taiwan
1,066,000
488,495
Yapi
ve
Kredi
Bankasi
A/S
...............................
Turkey
556,997
294,326
17,131,892
Beverages
1.8%
Ambev
SA
...........................................
Brazil
189,400
595,198
Arca
Continental
SAB
de
CV
.............................
Mexico
88,700
888,645
Fomento
Economico
Mexicano
SAB
de
CV
..................
Mexico
11,200
126,936
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Beverages
(continued)
b
United
Spirits
Ltd.
.....................................
India
48,416
$
598,434
2,209,213
Biotechnology
0.8%
c
3SBio,
Inc.,
144A,
Reg
S
................................
China
326,500
314,527
Celltrion,
Inc.
.........................................
South
Korea
5,873
674,028
988,555
Broadline
Retail
5.1%
a,b
Alibaba
Group
Holding
Ltd.
..............................
China
235,700
3,012,043
MINISO
Group
Holding
Ltd.,
ADR
.........................
China
6,700
140,767
momo.com,
Inc.
......................................
Taiwan
15,000
285,947
Naspers
Ltd.,
N
.......................................
South
Africa
1,563
307,185
a,b
PDD
Holdings,
Inc.,
ADR
................................
China
9,500
853,290
a,b
Vipshop
Holdings
Ltd.,
ADR
.............................
China
60,622
1,141,512
Woolworths
Holdings
Ltd.
...............................
South
Africa
167,459
749,285
6,490,029
Capital
Markets
1.3%
CITIC
Securities
Co.
Ltd.,
A
..............................
China
131,982
446,333
East
Money
Information
Co.
Ltd.,
A
........................
China
97,900
221,038
Guotai
Junan
Securities
Co.
Ltd.,
A
........................
China
80,600
176,081
Hithink
RoyalFlush
Information
Network
Co.
Ltd.,
A
............
China
6,200
164,363
Huatai
Securities
Co.
Ltd.,
A
.............................
China
88,000
209,350
b,d,e
Jio
Financial
Services
Ltd.
...............................
India
34,540
109,974
Mirae
Asset
Securities
Co.
Ltd.
...........................
South
Korea
22,323
121,057
Reinet
Investments
SCA
................................
Luxembourg
5,575
135,093
1,583,289
Chemicals
3.5%
Asian
Paints
Ltd.
......................................
India
27,540
1,131,409
Berger
Paints
India
Ltd.
.................................
India
43,404
360,518
Kumho
Petrochemical
Co.
Ltd.
...........................
South
Korea
2,978
279,752
Ningxia
Baofeng
Energy
Group
Co.
Ltd.,
A
..................
China
62,000
123,139
Orbia
Advance
Corp.
SAB
de
CV
.........................
Mexico
96,800
219,614
b,c,d,f
PhosAgro
PJSC,
GDR,
Reg
S
............................
Russia
32,310
—
PI
Industries
Ltd.
......................................
India
12,970
570,642
Pidilite
Industries
Ltd.
..................................
India
5,512
175,400
Sahara
International
Petrochemical
Co.
.....................
Saudi
Arabia
61,071
616,256
Saudi
Aramco
Base
Oil
Co.
..............................
Saudi
Arabia
8,603
339,944
Tianqi
Lithium
Corp.,
A
.................................
China
16,000
149,472
Wanhua
Chemical
Group
Co.
Ltd.,
A
.......................
China
32,700
448,533
4,414,679
Communications
Equipment
0.2%
ZTE
Corp.,
A
.........................................
China
43,000
236,027
Construction
&
Engineering
0.7%
Gamuda
Bhd.
........................................
Malaysia
201,200
191,853
b
Larsen
&
Toubro
Ltd.
...................................
India
19,481
635,708
827,561
Construction
Materials
0.8%
Ambuja
Cements
Ltd.
..................................
India
22,845
128,761
Shree
Cement
Ltd.
....................................
India
955
280,145
UltraTech
Cement
Ltd.
.................................
India
5,738
580,815
989,721
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Consumer
Finance
0.5%
Cholamandalam
Investment
and
Finance
Co.
Ltd.
.............
India
22,606
$
311,513
Shriram
Finance
Ltd.
...................................
India
7,375
170,041
Srisawad
Corp.
PCL
...................................
Thailand
125,700
173,762
655,316
Consumer
Staples
Distribution
&
Retail
1.7%
BGF
retail
Co.
Ltd.
....................................
South
Korea
1,364
178,530
Bid
Corp.
Ltd.
........................................
South
Africa
9,141
216,570
Nahdi
Medical
Co.
.....................................
Saudi
Arabia
6,363
294,851
President
Chain
Store
Corp.
.............................
Taiwan
23,000
203,949
Raia
Drogasil
SA
......................................
Brazil
37,100
227,292
Sumber
Alfaria
Trijaya
Tbk.
PT
...........................
Indonesia
2,852,900
510,835
Wal-Mart
de
Mexico
SAB
de
CV
..........................
Mexico
133,200
554,518
2,186,545
Containers
&
Packaging
0.1%
Klabin
SA
...........................................
Brazil
26,700
129,868
Diversified
Consumer
Services
0.2%
a,b,c
East
Buy
Holding
Ltd.,
144A,
Reg
S
.......................
China
57,000
278,727
Diversified
REITs
0.1%
Fibra
Uno
Administracion
SA
de
CV
.......................
Mexico
84,000
126,214
Diversified
Telecommunication
Services
1.6%
c
China
Tower
Corp.
Ltd.,
H,
144A,
Reg
S
....................
China
7,706,000
871,059
Chunghwa
Telecom
Co.
Ltd.
.............................
Taiwan
228,000
839,493
LG
Uplus
Corp.
.......................................
South
Korea
37,183
291,137
2,001,689
Electric
Utilities
0.6%
b
Enel
Americas
SA
.....................................
Chile
2,821,116
381,330
Enel
Chile
SA
........................................
Chile
4,582,534
316,210
d,f
Inter
RAO
UES
PJSC
..................................
Russia
8,656,700
—
697,540
Electrical
Equipment
1.4%
ABB
India
Ltd.
........................................
India
5,287
293,062
Havells
India
Ltd.
.....................................
India
35,214
571,831
NARI
Technology
Co.
Ltd.,
A
.............................
China
35,460
120,839
TBEA
Co.
Ltd.,
A
......................................
China
54,070
124,232
Voltronic
Power
Technology
Corp.
.........................
Taiwan
11,000
612,646
1,722,610
Electronic
Equipment,
Instruments
&
Components
2.3%
Delta
Electronics,
Inc.
..................................
Taiwan
36,000
419,459
Foxconn
Industrial
Internet
Co.
Ltd.,
A
......................
China
102,900
322,448
Hon
Hai
Precision
Industry
Co.
Ltd.
........................
Taiwan
142,000
490,438
Kingboard
Holdings
Ltd.
................................
China
115,000
319,999
Largan
Precision
Co.
Ltd.
...............................
Taiwan
12,000
830,767
Unisplendour
Corp.
Ltd.,
A
...............................
China
27,500
105,184
Zhen
Ding
Technology
Holding
Ltd.
........................
Taiwan
123,000
411,399
2,899,694
Entertainment
1.3%
NCSoft
Corp.
........................................
South
Korea
762
164,911
a
NetEase,
Inc.
........................................
China
56,100
1,221,853
a,b
Tencent
Music
Entertainment
Group,
ADR
...................
China
40,300
281,697
1,668,461
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Financial
Services
0.6%
Far
East
Horizon
Ltd.
..................................
China
231,000
$
173,745
FirstRand
Ltd.
........................................
South
Africa
155,654
633,337
807,082
Food
Products
2.0%
Britannia
Industries
Ltd.
.................................
India
18,890
1,101,232
IOI
Corp.
Bhd.
........................................
Malaysia
165,300
152,934
Nestle
India
Ltd.
......................................
India
1,176
322,531
Nestle
Malaysia
Bhd.
..................................
Malaysia
11,900
353,384
Orion
Corp.
..........................................
South
Korea
4,137
367,319
Uni-President
China
Holdings
Ltd.
.........................
China
235,000
203,175
2,500,575
Gas
Utilities
0.3%
ENN
Energy
Holdings
Ltd.
...............................
China
9,500
115,469
Indraprastha
Gas
Ltd.
..................................
India
55,087
310,544
426,013
Ground
Transportation
0.1%
Daqin
Railway
Co.
Ltd.,
A
...............................
China
159,300
159,709
Health
Care
Equipment
&
Supplies
0.2%
Shandong
Weigao
Group
Medical
Polymer
Co.
Ltd.,
H
.........
China
130,000
167,886
Shenzhen
Mindray
Bio-Medical
Electronics
Co.
Ltd.,
A
..........
China
2,900
120,420
288,306
Health
Care
Providers
&
Services
1.1%
Dr.
Sulaiman
Al
Habib
Medical
Services
Group
Co.
............
Saudi
Arabia
12,599
970,588
Sinopharm
Group
Co.
Ltd.,
H
............................
China
113,200
356,482
1,327,070
Hotels,
Restaurants
&
Leisure
2.4%
Indian
Hotels
Co.
Ltd.,
A
................................
India
123,708
595,101
a,b,c
Meituan
Dianping,
B,
144A,
Reg
S
........................
China
55,710
1,063,490
OPAP
SA
...........................................
Greece
23,021
404,920
Yum
China
Holdings,
Inc.
...............................
China
15,983
975,283
3,038,794
Household
Durables
0.4%
Gree
Electric
Appliances,
Inc.
of
Zhuhai,
A
...................
China
28,500
154,858
Haier
Smart
Home
Co.
Ltd.,
A
............................
China
55,100
190,946
LG
Electronics,
Inc.
....................................
South
Korea
2,378
201,926
547,730
Household
Products
0.1%
Kimberly-Clark
de
Mexico
SAB
de
CV,
A
....................
Mexico
61,900
145,352
Independent
Power
and
Renewable
Electricity
Producers
0.7%
b
Adani
Power
Ltd.
.....................................
India
107,912
359,002
Engie
Brasil
Energia
SA
................................
Brazil
35,000
325,970
Ratch
Group
PCL
.....................................
Thailand
192,000
203,418
888,390
Industrial
Conglomerates
1.2%
Bidvest
Group
Ltd.
(The)
................................
South
Africa
33,354
517,677
KOC
Holding
A/S
.....................................
Turkey
134,710
675,108
Mytilineos
SA
........................................
Greece
8,445
351,477
1,544,262
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Insurance
3.2%
Bupa
Arabia
for
Cooperative
Insurance
Co.
..................
Saudi
Arabia
13,293
$
611,405
DB
Insurance
Co.
Ltd.
..................................
South
Korea
8,179
482,450
OUTsurance
Group
Ltd.
................................
South
Africa
143,277
309,884
Ping
An
Insurance
Group
Co.
of
China
Ltd.,
A
................
China
115,500
853,900
Powszechny
Zaklad
Ubezpieczen
SA
......................
Poland
46,782
473,263
Samsung
Fire
&
Marine
Insurance
Co.
Ltd.
..................
South
Korea
2,901
553,167
Samsung
Life
Insurance
Co.
Ltd.
..........................
South
Korea
13,874
757,174
4,041,243
Interactive
Media
&
Services
5.2%
a
Autohome,
Inc.,
ADR
...................................
China
13,400
428,398
a,b
Baidu,
Inc.,
A
.........................................
China
34,950
683,287
a,b,c
Kuaishou
Technology,
144A,
Reg
S
........................
China
49,200
431,803
a
Tencent
Holdings
Ltd.
..................................
China
109,300
5,023,457
6,566,945
IT
Services
2.2%
Elm
Co.
............................................
Saudi
Arabia
3,536
640,949
HCL
Technologies
Ltd.
.................................
India
11,477
156,011
Tata
Consultancy
Services
Ltd.
...........................
India
46,327
1,930,142
2,727,102
Life
Sciences
Tools
&
Services
0.7%
Divi's
Laboratories
Ltd.
.................................
India
3,571
160,177
WuXi
AppTec
Co.
Ltd.,
A
................................
China
23,200
233,607
c
WuXi
AppTec
Co.
Ltd.,
H,
144A,
Reg
S
.....................
China
55,540
528,309
922,093
Machinery
0.5%
Doosan
Bobcat,
Inc.
...................................
South
Korea
8,059
368,779
Shenzhen
Inovance
Technology
Co.
Ltd.,
A
..................
China
13,800
137,365
Weichai
Power
Co.
Ltd.,
A
...............................
China
73,100
135,208
641,352
Marine
Transportation
0.3%
Evergreen
Marine
Corp.
Taiwan
Ltd.
.......................
Taiwan
84,000
278,036
Yang
Ming
Marine
Transport
Corp.
........................
Taiwan
63,000
93,278
371,314
Media
0.1%
MultiChoice
Group
....................................
South
Africa
24,383
120,706
Metals
&
Mining
2.6%
African
Rainbow
Minerals
Ltd.
............................
South
Africa
16,009
180,741
Anglo
American
Platinum
Ltd.
............................
South
Africa
2,632
131,577
CMOC
Group
Ltd.,
A
...................................
China
190,200
164,776
Gold
Fields
Ltd.
.......................................
South
Africa
30,388
471,409
Hindalco
Industries
Ltd.
.................................
India
48,986
276,182
Kumba
Iron
Ore
Ltd.
...................................
South
Africa
11,403
312,874
b,d,f
MMC
Norilsk
Nickel
PJSC
...............................
Russia
3,164
—
b,d,f
Novolipetsk
Steel
PJSC
................................
Russia
347,890
—
b,d,f
Severstal
PAO
.......................................
Russia
48,409
—
Southern
Copper
Corp.
.................................
Mexico
3,485
304,728
Vale
SA
.............................................
Brazil
36,600
535,302
Vedanta
Ltd.
.........................................
India
106,920
359,848
Zijin
Mining
Group
Co.
Ltd.,
H
............................
China
326,000
563,032
3,300,469
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
25
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Oil,
Gas
&
Consumable
Fuels
4.1%
Adaro
Energy
Indonesia
Tbk.
PT
..........................
Indonesia
2,306,200
$
368,924
MOL
Hungarian
Oil
&
Gas
plc
............................
Hungary
44,343
350,073
b
ORLEN
SA
..........................................
Poland
27,085
482,914
Petroleo
Brasileiro
SA
..................................
Brazil
213,900
1,574,627
Reliance
Industries
Ltd.
.................................
India
34,263
1,063,739
Turkiye
Petrol
Rafinerileri
A/S
............................
Turkey
178,438
684,758
Ultrapar
Participacoes
SA
...............................
Brazil
54,100
216,119
United
Tractors
Tbk.
PT
................................
Indonesia
249,200
455,258
5,196,412
Paper
&
Forest
Products
0.1%
Indah
Kiat
Pulp
&
Paper
Tbk.
PT
..........................
Indonesia
309,100
187,636
Passenger
Airlines
0.3%
b,c
InterGlobe
Aviation
Ltd.,
144A,
Reg
S
......................
India
10,382
327,602
Personal
Care
Products
0.8%
Colgate-Palmolive
India
Ltd.
.............................
India
21,428
526,589
Hindustan
Unilever
Ltd.
.................................
India
17,450
543,636
1,070,225
Pharmaceuticals
1.4%
China
Medical
System
Holdings
Ltd.
.......................
China
176,000
296,370
CSPC
Pharmaceutical
Group
Ltd.
.........................
China
1,471,600
1,229,168
Kalbe
Farma
Tbk.
PT
..................................
Indonesia
1,404,400
178,376
1,703,914
Real
Estate
Management
&
Development
1.6%
DLF
Ltd.
............................................
India
34,876
220,221
Emaar
Properties
PJSC
................................
United
Arab
Emirates
688,798
1,267,421
NEPI
Rockcastle
NV
...................................
Romania
81,392
487,778
1,975,420
Semiconductors
&
Semiconductor
Equipment
9.4%
b
Daqo
New
Energy
Corp.,
ADR
...........................
China
9,100
355,537
Global
Unichip
Corp.
...................................
Taiwan
8,000
417,646
Novatek
Microelectronics
Corp.
...........................
Taiwan
95,000
1,282,308
Taiwan
Semiconductor
Manufacturing
Co.
Ltd.
...............
Taiwan
450,000
8,110,565
Tongwei
Co.
Ltd.,
A
....................................
China
50,300
245,514
United
Microelectronics
Corp.
............................
Taiwan
913,000
1,369,372
Zhejiang
Jingsheng
Mechanical
&
Electrical
Co.
Ltd.,
A
.........
China
14,100
122,095
11,903,037
Software
0.3%
Beijing
Kingsoft
Office
Software,
Inc.,
A
.....................
China
2,064
117,528
Hundsun
Technologies,
Inc.,
A
............................
China
20,700
119,395
Tata
Elxsi
Ltd.
........................................
India
1,620
141,257
378,180
Specialty
Retail
0.7%
JUMBO
SA
..........................................
Greece
11,511
343,525
c
Topsports
International
Holdings
Ltd.,
144A,
Reg
S
............
China
322,000
297,641
Zhongsheng
Group
Holdings
Ltd.
.........................
China
63,500
223,100
864,266
Technology
Hardware,
Storage
&
Peripherals
6.8%
Inventec
Corp.
.......................................
Taiwan
441,000
895,384
Lenovo
Group
Ltd.
....................................
China
1,226,000
1,411,331
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Technology
Hardware,
Storage
&
Peripherals
(continued)
Samsung
Electronics
Co.
Ltd.
............................
South
Korea
85,221
$
4,654,720
Wistron
Corp.
........................................
Taiwan
359,000
1,617,367
8,578,802
Textiles,
Apparel
&
Luxury
Goods
1.2%
ANTA
Sports
Products
Ltd.
..............................
China
86,400
1,023,899
Bosideng
International
Holdings
Ltd.
.......................
China
672,000
308,069
Pou
Chen
Corp.
......................................
Taiwan
127,000
126,136
1,458,104
Tobacco
0.4%
ITC
Ltd.
............................................
India
97,322
551,524
Trading
Companies
&
Distributors
0.1%
c
BOC
Aviation
Ltd.,
144A,
Reg
S
..........................
China
16,300
136,627
Transportation
Infrastructure
0.7%
Grupo
Aeroportuario
del
Sureste
SAB
de
CV,
B
...............
Mexico
17,350
490,754
International
Container
Terminal
Services,
Inc.
................
Philippines
46,280
182,916
Promotora
y
Operadora
de
Infraestructura
SAB
de
CV
.........
Mexico
17,090
177,034
850,704
Water
Utilities
0.1%
Guangdong
Investment
Ltd.
.............................
China
138,000
119,467
Wireless
Telecommunication
Services
2.0%
Advanced
Info
Service
PCL
..............................
Thailand
196,000
1,294,958
China
United
Network
Communications
Ltd.,
A
...............
China
262,100
189,764
Etihad
Etisalat
Co.
....................................
Saudi
Arabia
63,968
798,751
Intouch
Holdings
PCL,
F
................................
Thailand
132,400
298,056
2,581,529
Total
Common
Stocks
(Cost
$109,509,597)
.....................................
120,617,987
Preferred
Stocks
3.6%
Banks
1.8%
g
Itau
Unibanco
Holding
SA,
5.35%
.........................
Brazil
145,000
878,221
g
Itausa
SA,
6.37%
.....................................
Brazil
695,330
1,443,994
2,322,215
Electric
Utilities
0.3%
g
Cia
Energetica
de
Minas
Gerais,
8.91%
.....................
Brazil
150,000
401,912
Metals
&
Mining
1.0%
g
Gerdau
SA,
11.71%
...................................
Brazil
202,495
1,252,573
Oil,
Gas
&
Consumable
Fuels
0.5%
g
Petroleo
Brasileiro
SA,
42.38%
...........................
Brazil
94,200
619,746
Total
Preferred
Stocks
(Cost
$3,604,060)
.......................................
4,596,446
Total
Long
Term
Investments
(Cost
$113,113,657)
...............................
125,214,433
a
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
See
Abbreviations
on
page
60
.
Short
Term
Investments
1.1%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
1.1%
h,i
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.842%
....
United
States
1,411,873
$
1,411,873
Total
Money
Market
Funds
(Cost
$1,411,873)
...................................
1,411,873
Total
Short
Term
Investments
(Cost
$1,411,873
)
.................................
1,411,873
a
Total
Investments
(Cost
$114,525,530)
100.3%
..................................
$126,626,306
Other
Assets,
less
Liabilities
(0.3)%
...........................................
(400,179)
Net
Assets
100.0%
...........................................................
$126,226,127
a
Variable
interest
entity
(VIE).
See
the
Fund’s
statement
of
additional
information
and/or
notes
to
financial
statements
regarding
investments
made
through
a
VIE
structure.
At
July
31,
2023,
the
aggregate
value
of
these
securities
was
$15,876,102,
representing
12.6%
of
net
assets.
b
Non-income
producing.
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
July
31,
2023,
the
aggregate
value
of
these
securities
was
$5,137,793,
representing
4.1%
of
net
assets.
d
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
e
See
Note
8
regarding
restricted
securities.
f
See
Note
7
regarding
investments
in
Russian
securities.
g
Variable
rate
security.
The
rate
shown
represents
the
yield
at
period
end.
h
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
i
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
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International
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accompanying
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of
these
financial
statements.
28
a
Year
Ended
July
31,
Year
Ended
July
31,
2020
a
2023
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$10.18
$13.09
$10.31
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.37
0.34
0.35
0.25
Net
realized
and
unrealized
gains
(losses)
........................
1.16
(2.26)
2.80
0.30
Total
from
investment
operations
.................................
1.53
(1.92)
3.15
0.55
Less
distributions
from:
Net
investment
income
.......................................
(0.38)
(0.42)
(0.37)
(0.24)
Net
realized
gains
..........................................
—
(0.57)
—
—
Total
distributions
............................................
(0.38)
(0.99)
(0.37)
(0.24)
Net
asset
value,
end
of
year
....................................
$11.33
$10.18
$13.09
$10.31
Total
return
d
................................................
15.44%
(15.56)%
31.00%
5.58%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.
0.03%
0.04%
0.04%
0.08%
Expenses
net
of
waiver
and
payments
by
affiliates
....................
—%
—%
—%
0.01%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
..
—%
f
—%
—%
f
—%
Net
investment
income
........................................
3.62%
2.94%
2.93%
2.57%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$944,165
$800,757
$360,375
$281,150
Portfolio
turnover
rate
.........................................
101.79%
125.21%
103.80%
94.98%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
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Investments,
July
31,
2023
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a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
98.8%
Aerospace
&
Defense
1.4%
BAE
Systems
plc
.....................................
United
Kingdom
892,331
$
10,671,857
Dassault
Aviation
SA
...................................
France
14,543
2,825,399
13,497,256
Air
Freight
&
Logistics
0.6%
DHL
Group
..........................................
Germany
18,984
976,307
DSV
A/S
............................................
Denmark
10,979
2,197,467
Nippon
Express
Holdings,
Inc.
............................
Japan
42,800
2,509,417
5,683,191
Automobile
Components
0.5%
Bridgestone
Corp.
.....................................
Japan
50,000
2,074,770
Continental
AG
.......................................
Germany
23,019
1,837,996
Valeo
..............................................
France
46,173
1,043,797
4,956,563
Automobiles
3.4%
Bayerische
Motoren
Werke
AG
...........................
Germany
93,612
11,417,015
Mazda
Motor
Corp.
....................................
Japan
305,100
3,026,743
Stellantis
NV
.........................................
United
States
565,376
11,601,371
Toyota
Motor
Corp.
....................................
Japan
331,800
5,578,806
31,623,935
Banks
7.8%
a
ABN
AMRO
Bank
NV,
CVA,
144A,
Reg
S
...................
Netherlands
234,748
3,991,832
AIB
Group
plc
........................................
Ireland
775,325
3,647,197
Banco
Bilbao
Vizcaya
Argentaria
SA
.......................
Spain
1,127,520
8,937,960
HSBC
Holdings
plc
....................................
United
Kingdom
766,665
6,368,489
Mitsubishi
UFJ
Financial
Group,
Inc.
.......................
Japan
290,800
2,341,596
NatWest
Group
plc
....................................
United
Kingdom
1,669,036
5,239,379
Standard
Chartered
plc
.................................
United
Kingdom
1,008,802
9,690,481
Sumitomo
Mitsui
Financial
Group,
Inc.
......................
Japan
240,300
11,258,460
Swedbank
AB,
A
......................................
Sweden
488,908
8,967,449
UniCredit
SpA
........................................
Italy
502,191
12,716,761
73,159,604
Beverages
1.9%
a
Budweiser
Brewing
Co.
APAC
Ltd.,
144A,
Reg
S
..............
China
949,700
2,316,386
Carlsberg
A/S,
B
......................................
Denmark
9,503
1,425,364
Coca-Cola
HBC
AG
...................................
Italy
61,886
1,820,941
Heineken
Holding
NV
..................................
Netherlands
60,346
4,947,323
Pernod
Ricard
SA
.....................................
France
34,249
7,551,621
18,061,635
Biotechnology
0.8%
CSL
Ltd.
............................................
United
States
31,542
5,681,229
b
Swedish
Orphan
Biovitrum
AB
............................
Sweden
95,477
1,868,788
7,550,017
Broadline
Retail
0.8%
Next
plc
............................................
United
Kingdom
70,716
6,395,867
Wesfarmers
Ltd.
......................................
Australia
43,462
1,452,159
7,848,026
Building
Products
1.3%
Cie
de
Saint-Gobain
...................................
France
177,658
12,016,341
Capital
Markets
3.1%
3i
Group
plc
.........................................
United
Kingdom
426,159
10,812,580
Franklin
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financial
statements.
30
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Capital
Markets
(continued)
Deutsche
Bank
AG
....................................
Germany
870,645
$
9,652,096
Deutsche
Boerse
AG
...................................
Germany
32,511
6,229,723
Nomura
Holdings,
Inc.
..................................
Japan
293,000
1,212,134
Singapore
Exchange
Ltd.
...............................
Singapore
145,200
1,061,462
28,967,995
Chemicals
3.1%
Air
Liquide
SA
........................................
France
24,583
4,420,277
BASF
SE
...........................................
Germany
32,059
1,718,872
ICL
Group
Ltd.
.......................................
Israel
349,740
2,328,774
Nitto
Denko
Corp.
.....................................
Japan
75,200
5,347,548
OCI
NV
.............................................
Netherlands
60,530
1,725,248
Shin-Etsu
Chemical
Co.
Ltd.
.............................
Japan
255,400
8,414,115
Solvay
SA
...........................................
Belgium
43,202
5,188,959
29,143,793
Commercial
Services
&
Supplies
0.2%
Brambles
Ltd.
........................................
Australia
99,275
939,218
Dai
Nippon
Printing
Co.
Ltd.
.............................
Japan
30,700
872,678
1,811,896
Communications
Equipment
0.2%
Telefonaktiebolaget
LM
Ericsson,
B
........................
Sweden
336,767
1,694,106
Construction
&
Engineering
0.6%
ACS
Actividades
de
Construccion
y
Servicios
SA
..............
Spain
118,780
4,155,153
Eiffage
SA
...........................................
France
16,325
1,698,567
5,853,720
Construction
Materials
0.6%
CRH
plc
............................................
Ireland
90,627
5,399,224
Consumer
Staples
Distribution
&
Retail
1.6%
Carrefour
SA
.........................................
France
81,838
1,636,183
Jeronimo
Martins
SGPS
SA
.............................
Portugal
66,532
1,811,551
Koninklijke
Ahold
Delhaize
NV
............................
Netherlands
309,550
10,670,733
MatsukiyoCocokara
&
Co.
...............................
Japan
15,900
930,494
15,048,961
Containers
&
Packaging
0.1%
Smurfit
Kappa
Group
plc
................................
Ireland
24,368
964,354
Diversified
Consumer
Services
0.1%
Pearson
plc
.........................................
United
Kingdom
94,003
1,039,861
Diversified
REITs
0.3%
Stockland
...........................................
Australia
898,536
2,553,669
Diversified
Telecommunication
Services
1.9%
Deutsche
Telekom
AG
..................................
Germany
147,405
3,213,903
Spark
New
Zealand
Ltd.
................................
New
Zealand
487,416
1,569,511
Swisscom
AG
........................................
Switzerland
13,732
8,829,939
Telenor
ASA
.........................................
Norway
394,203
4,219,629
17,832,982
Electric
Utilities
1.6%
BKW
AG
............................................
Switzerland
12,340
2,208,046
Chubu
Electric
Power
Co.,
Inc.
...........................
Japan
382,800
4,795,643
Endesa
SA
..........................................
Spain
152,430
3,267,305
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statements.
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a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Electric
Utilities
(continued)
Origin
Energy
Ltd.
.....................................
Australia
851,959
$
4,850,231
15,121,225
Electrical
Equipment
1.6%
Mitsubishi
Electric
Corp.
................................
Japan
239,100
3,450,484
Prysmian
SpA
........................................
Italy
146,258
5,832,587
Schneider
Electric
SE
..................................
United
States
34,613
6,174,555
15,457,626
Electronic
Equipment,
Instruments
&
Components
1.2%
Ibiden
Co.
Ltd.
.......................................
Japan
26,800
1,628,886
Keyence
Corp.
.......................................
Japan
8,900
3,993,806
TDK
Corp.
..........................................
Japan
77,400
2,965,061
Yokogawa
Electric
Corp.
................................
Japan
128,000
2,403,700
10,991,453
Entertainment
0.6%
Capcom
Co.
Ltd.
......................................
Japan
101,700
4,573,144
Square
Enix
Holdings
Co.
Ltd.
............................
Japan
30,700
1,422,002
5,995,146
Financial
Services
1.4%
Edenred
............................................
France
48,395
3,143,558
EXOR
NV
...........................................
Netherlands
47,962
4,482,242
Industrivarden
AB,
A
...................................
Sweden
75,187
2,135,092
ORIX
Corp.
..........................................
Japan
68,500
1,317,703
Washington
H
Soul
Pattinson
&
Co.
Ltd.
....................
Australia
98,289
2,180,800
13,259,395
Food
Products
3.5%
Danone
SA
..........................................
France
21,920
1,338,705
MEIJI
Holdings
Co.
Ltd.
.................................
Japan
119,200
2,753,987
Nestle
SA
...........................................
United
States
159,041
19,484,461
Nissin
Foods
Holdings
Co.
Ltd.
...........................
Japan
36,000
3,035,360
a
WH
Group
Ltd.,
144A,
Reg
S
............................
Hong
Kong
3,382,000
1,845,826
Yakult
Honsha
Co.
Ltd.
.................................
Japan
75,000
4,161,438
32,619,777
Gas
Utilities
0.6%
Tokyo
Gas
Co.
Ltd.
....................................
Japan
228,900
5,190,554
Ground
Transportation
0.5%
Keisei
Electric
Railway
Co.
Ltd.
...........................
Japan
60,300
2,502,766
Kintetsu
Group
Holdings
Co.
Ltd.
.........................
Japan
59,900
2,009,442
4,512,208
Health
Care
Equipment
&
Supplies
1.7%
BioMerieux
..........................................
France
20,887
2,242,410
Cochlear
Ltd.
........................................
Australia
10,534
1,694,630
EssilorLuxottica
SA
....................................
France
20,673
4,159,274
Hoya
Corp.
..........................................
Japan
27,600
3,214,280
Olympus
Corp.
.......................................
Japan
281,800
4,598,112
15,908,706
Health
Care
Providers
&
Services
0.3%
Sonic
Healthcare
Ltd.
..................................
Australia
127,681
3,016,822
Health
Care
Technology
0.1%
M3,
Inc.
............................................
Japan
38,900
899,517
Franklin
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32
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Hotels,
Restaurants
&
Leisure
1.4%
Compass
Group
plc
...................................
United
Kingdom
151,828
$
3,950,362
Genting
Singapore
Ltd.
.................................
Singapore
2,366,500
1,674,014
InterContinental
Hotels
Group
plc
.........................
United
Kingdom
21,106
1,559,947
a
La
Francaise
des
Jeux
SAEM,
144A,
Reg
S
.................
France
58,688
2,240,757
Lottery
Corp.
Ltd.
(The)
.................................
Australia
1,190,907
4,144,232
13,569,312
Household
Durables
1.6%
Barratt
Developments
plc
...............................
United
Kingdom
154,148
902,357
Panasonic
Holdings
Corp.
...............................
Japan
545,500
6,733,320
Sekisui
House
Ltd.
....................................
Japan
326,800
6,667,275
Taylor
Wimpey
plc
.....................................
United
Kingdom
816,839
1,199,053
15,502,005
Household
Products
0.5%
Reckitt
Benckiser
Group
plc
.............................
United
Kingdom
45,416
3,402,342
Unicharm
Corp.
.......................................
Japan
35,700
1,320,853
4,723,195
Independent
Power
and
Renewable
Electricity
Producers
0.1%
RWE
AG
............................................
Germany
29,187
1,256,283
Industrial
Conglomerates
1.8%
CK
Hutchison
Holdings
Ltd.
..............................
United
Kingdom
1,319,500
8,137,635
Hitachi
Ltd.
..........................................
Japan
110,700
7,246,923
Siemens
AG
.........................................
Germany
10,225
1,742,930
17,127,488
Industrial
REITs
0.3%
Goodman
Group
......................................
Australia
213,930
2,958,044
Insurance
4.2%
Ageas
SA/NV
........................................
Belgium
53,032
2,245,222
Helvetia
Holding
AG
...................................
Switzerland
18,231
2,697,724
Japan
Post
Holdings
Co.
Ltd.
............................
Japan
1,005,300
7,341,294
Legal
&
General
Group
plc
..............................
United
Kingdom
929,308
2,785,123
Medibank
Pvt
Ltd.
.....................................
Australia
833,354
1,967,471
MS&AD
Insurance
Group
Holdings,
Inc.
....................
Japan
245,300
9,123,524
Muenchener
Rueckversicherungs-Gesellschaft
AG
in
Muenchen
..
Germany
18,548
6,982,951
QBE
Insurance
Group
Ltd.
..............................
Australia
103,950
1,103,627
Sampo
OYJ,
A
.......................................
Finland
73,375
3,233,682
Zurich
Insurance
Group
AG
..............................
Switzerland
4,853
2,346,284
39,826,902
Interactive
Media
&
Services
0.3%
a
Auto
Trader
Group
plc,
144A,
Reg
S
.......................
United
Kingdom
281,494
2,334,683
IT
Services
0.9%
NEC
Corp.
..........................................
Japan
58,900
2,980,071
Otsuka
Corp.
........................................
Japan
52,400
2,182,111
TIS,
Inc.
............................................
Japan
123,800
3,140,038
8,302,220
Leisure
Products
0.2%
Bandai
Namco
Holdings,
Inc.
............................
Japan
89,000
2,013,586
Life
Sciences
Tools
&
Services
0.6%
b
QIAGEN
NV
.........................................
United
States
126,970
5,958,169
Machinery
2.5%
Atlas
Copco
AB,
A
.....................................
Sweden
512,928
7,286,631
Franklin
Fund
Allocator
Series
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of
Investments
Franklin
International
Core
Equity
(IU)
Fund
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accompanying
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an
integral
part
of
these
financial
statements.
Annual
Report
33
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Machinery
(continued)
Atlas
Copco
AB,
B
.....................................
Sweden
192,206
$
2,373,548
Komatsu
Ltd.
........................................
Japan
298,800
8,370,718
SKF
AB,
B
..........................................
Sweden
200,574
3,821,442
Volvo
AB,
A
..........................................
Sweden
51,890
1,176,661
Wartsila
OYJ
Abp
.....................................
Finland
76,931
966,561
23,995,561
Marine
Transportation
0.6%
AP
Moller
-
Maersk
A/S,
A
...............................
Denmark
1,753
3,524,835
Kuehne
+
Nagel
International
AG
.........................
Switzerland
2,970
929,248
SITC
International
Holdings
Co.
Ltd.
.......................
China
736,000
1,612,660
6,066,743
Media
0.3%
Hakuhodo
DY
Holdings,
Inc.
.............................
Japan
129,400
1,488,672
Publicis
Groupe
SA
....................................
France
17,596
1,418,814
2,907,486
Metals
&
Mining
2.6%
BHP
Group
Ltd.
......................................
Australia
464,852
14,467,063
BlueScope
Steel
Ltd.
...................................
Australia
277,694
4,095,170
Fortescue
Metals
Group
Ltd.
.............................
Australia
433,945
6,379,308
24,941,541
Multi-Utilities
1.1%
Centrica
plc
.........................................
United
Kingdom
2,426,556
4,300,396
E.ON
SE
............................................
Germany
461,865
5,843,273
10,143,669
Office
REITs
0.1%
Japan
Real
Estate
Investment
Corp.
.......................
Japan
236
949,215
Oil,
Gas
&
Consumable
Fuels
5.1%
BP
plc
..............................................
United
Kingdom
1,854,379
11,505,855
Equinor
ASA
.........................................
Norway
289,055
8,841,143
Inpex
Corp.
..........................................
Japan
110,000
1,420,345
OMV
AG
............................................
Austria
32,947
1,484,532
Repsol
SA
...........................................
Spain
452,785
6,913,487
Shell
plc
............................................
Netherlands
245,695
7,446,759
TotalEnergies
SE
.....................................
France
177,654
10,794,621
48,406,742
Paper
&
Forest
Products
0.2%
Mondi
plc
...........................................
Austria
123,063
2,158,683
Passenger
Airlines
0.2%
b
Qantas
Airways
Ltd.
...................................
Australia
236,134
1,037,519
Singapore
Airlines
Ltd.
.................................
Singapore
177,500
1,005,618
2,043,137
Personal
Care
Products
2.5%
Beiersdorf
AG
........................................
Germany
58,649
7,596,053
L'Oreal
SA
..........................................
France
33,570
15,615,142
23,211,195
Pharmaceuticals
10.0%
AstraZeneca
plc
......................................
United
Kingdom
57,907
8,320,186
GSK
plc
............................................
United
States
661,092
11,768,672
Ipsen
SA
............................................
France
21,740
2,740,073
Novartis
AG
.........................................
Switzerland
208,215
21,798,281
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
International
Core
Equity
(IU)
Fund
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notes
are
an
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part
of
these
financial
statements.
34
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Pharmaceuticals
(continued)
Novo
Nordisk
A/S,
B
...................................
Denmark
152,682
$
24,621,768
Orion
OYJ,
B
........................................
Finland
55,338
2,126,893
Otsuka
Holdings
Co.
Ltd.
...............................
Japan
229,300
8,430,747
Roche
Holding
AG
....................................
United
States
27,365
8,484,072
Sanofi
SA
...........................................
United
States
47,430
5,060,509
Shionogi
&
Co.
Ltd.
....................................
Japan
21,900
917,787
94,268,988
Professional
Services
1.7%
Randstad
NV
........................................
Netherlands
64,258
3,764,929
RELX
plc
...........................................
United
Kingdom
70,886
2,385,885
Wolters
Kluwer
NV
....................................
Netherlands
75,441
9,474,446
15,625,260
Real
Estate
Management
&
Development
1.3%
CK
Asset
Holdings
Ltd.
.................................
Hong
Kong
378,000
2,188,984
Daiwa
House
Industry
Co.
Ltd.
...........................
Japan
179,500
4,878,618
Hulic
Co.
Ltd.
........................................
Japan
199,600
1,699,436
Nomura
Real
Estate
Holdings,
Inc.
........................
Japan
52,200
1,294,719
Swire
Pacific
Ltd.,
A
...................................
Hong
Kong
252,500
2,110,666
12,172,423
Retail
REITs
0.2%
Vicinity
Ltd.
..........................................
Australia
1,753,324
2,331,229
Semiconductors
&
Semiconductor
Equipment
4.0%
Advantest
Corp.
......................................
Japan
75,100
10,387,073
ASML
Holding
NV
.....................................
Netherlands
17,418
12,477,104
Disco
Corp.
..........................................
Japan
20,500
3,853,506
STMicroelectronics
NV
.................................
Singapore
206,737
11,058,615
37,776,298
Software
1.7%
b
Check
Point
Software
Technologies
Ltd.
....................
Israel
19,723
2,607,578
Oracle
Corp.
Japan
....................................
Japan
23,000
1,612,269
Sage
Group
plc
(The)
..................................
United
Kingdom
558,424
6,717,313
SAP
SE
............................................
Germany
6,859
935,732
WiseTech
Global
Ltd.
..................................
Australia
76,123
4,396,030
16,268,922
Specialty
Retail
1.1%
Industria
de
Diseno
Textil
SA
.............................
Spain
260,150
9,958,881
Nitori
Holdings
Co.
Ltd.
.................................
Japan
7,000
857,168
10,816,049
Technology
Hardware,
Storage
&
Peripherals
0.6%
FUJIFILM
Holdings
Corp.
...............................
Japan
33,500
1,945,200
Logitech
International
SA
...............................
Switzerland
15,475
1,094,003
Seiko
Epson
Corp.
....................................
Japan
133,900
2,198,867
5,238,070
Textiles,
Apparel
&
Luxury
Goods
3.8%
Burberry
Group
plc
....................................
United
Kingdom
218,131
6,226,846
Cie
Financiere
Richemont
SA
............................
Switzerland
33,412
5,380,123
Hermes
International
...................................
France
1,993
4,411,436
LVMH
Moet
Hennessy
Louis
Vuitton
SE
....................
France
15,231
14,147,351
Swatch
Group
AG
(The),
I
...............................
Switzerland
13,462
4,308,140
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
International
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
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accompanying
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financial
statements.
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35
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
(continued)
Textiles,
Apparel
&
Luxury
Goods
(continued)
Swatch
Group
AG
(The),
N
..............................
Switzerland
28,226
$
1,694,951
36,168,847
Tobacco
0.9%
Imperial
Brands
plc
....................................
United
Kingdom
158,057
3,734,313
Japan
Tobacco,
Inc.
...................................
Japan
210,400
4,668,693
8,403,006
Trading
Companies
&
Distributors
1.8%
Marubeni
Corp.
.......................................
Japan
278,800
4,936,155
Mitsubishi
Corp.
......................................
Japan
228,800
11,706,888
16,643,043
Transportation
Infrastructure
0.2%
a
Aena
SME
SA,
144A,
Reg
S
.............................
Spain
9,939
1,587,325
Wireless
Telecommunication
Services
1.0%
KDDI
Corp.
..........................................
Japan
316,800
9,323,963
Total
Common
Stocks
(Cost
$797,841,424)
.....................................
932,698,840
Rights
Rights
0.0%
Tobacco
0.0%
b,c
Swedish
Match
AB,
2/23/28
..............................
Sweden
314,685
—
Total
Rights
(Cost
$3,314,738)
................................................
—
Total
Long
Term
Investments
(Cost
$801,156,162)
...............................
932,698,840
a
Short
Term
Investments
0.7%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
0.7%
d,e
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.842%
....
United
States
7,035,498
7,035,498
Total
Money
Market
Funds
(Cost
$7,035,498)
...................................
7,035,498
Total
Short
Term
Investments
(Cost
$7,035,498
)
.................................
7,035,498
a
Total
Investments
(Cost
$808,191,660)
99.5%
...................................
$939,734,338
Other
Assets,
less
Liabilities
0.5%
.............................................
4,430,573
Net
Assets
100.0%
...........................................................
$944,164,911
See
Abbreviations
on
page
60
.
a
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
July
31,
2023,
the
aggregate
value
of
these
securities
was
$14,316,809,
representing
1.5%
of
net
assets.
b
Non-income
producing.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
9
regarding
fair
value
measurements.
d
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
e
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
Fund
Allocator
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Core
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36
a
Year
Ended
July
31,
Year
Ended
July
31,
2020
a
2023
2022
2021
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
year)
Net
asset
value,
beginning
of
year
................................
$13.12
$14.99
$11.31
$10.00
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.20
0.24
0.21
0.21
Net
realized
and
unrealized
gains
(losses)
........................
0.94
(0.81)
3.74
1.27
Total
from
investment
operations
.................................
1.14
(0.57)
3.95
1.48
Less
distributions
from:
Net
investment
income
.......................................
(0.21)
(0.20)
(0.20)
(0.17)
Net
realized
gains
..........................................
(0.41)
(1.10)
(0.07)
—
Total
distributions
............................................
(0.62)
(1.30)
(0.27)
(0.17)
Net
asset
value,
end
of
year
....................................
$13.64
$13.12
$14.99
$11.31
Total
return
d
................................................
9.31%
(4.42)%
35.39%
15.09%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
and
expense
reduction
.
0.01%
0.01%
0.01%
0.03%
Expenses
net
of
waiver
and
payments
by
affiliates
and
expense
reduction
f
.
—%
—%
—%
—%
Net
investment
income
........................................
1.59%
1.73%
1.60%
2.12%
Supplemental
data
Net
assets,
end
of
year
(000’s)
..................................
$1,802,029
$2,053,864
$1,316,677
$722,523
Portfolio
turnover
rate
.........................................
95.10%
128.24%
98.39%
60.94%
a
For
the
period
August
19,
2019
(effective
date)
to
July
31,
2020.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchases
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year,
except
for
non-recurring
expenses,
if
any.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
Franklin
Fund
Allocator
Series
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Investments,
July
31,
2023
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Core
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37
a
a
Shares
a
Value
a
Common
Stocks
99.1%
Aerospace
&
Defense
1.2%
Lockheed
Martin
Corp.
...............................................
46,976
$
20,968,677
Air
Freight
&
Logistics
0.5%
Expeditors
International
of
Washington,
Inc.
...............................
71,892
9,151,852
Automobile
Components
0.1%
BorgWarner,
Inc.
....................................................
47,533
2,210,285
a
Phinia,
Inc.
........................................................
9,506
269,685
2,479,970
Automobiles
2.6%
General
Motors
Co.
..................................................
490,269
18,811,621
a
Tesla,
Inc.
.........................................................
94,169
25,183,616
Thor
Industries,
Inc.
.................................................
21,895
2,528,654
46,523,891
Banks
3.1%
Citigroup,
Inc.
......................................................
441,280
21,031,405
First
Citizens
BancShares,
Inc.,
A
.......................................
4,627
6,622,625
JPMorgan
Chase
&
Co.
...............................................
176,421
27,867,461
55,521,491
Beverages
1.9%
Molson
Coors
Beverage
Co.,
B
.........................................
88,867
6,200,251
PepsiCo,
Inc.
......................................................
148,501
27,837,997
34,038,248
Biotechnology
4.4%
a
Biogen,
Inc.
.......................................................
67,133
18,138,665
Gilead
Sciences,
Inc.
................................................
271,649
20,683,355
a
Regeneron
Pharmaceuticals,
Inc.
.......................................
24,167
17,929,739
a
Vertex
Pharmaceuticals,
Inc.
...........................................
61,538
21,682,299
78,434,058
Broadline
Retail
3.1%
a
Amazon.com,
Inc.
...................................................
350,020
46,790,673
eBay,
Inc.
.........................................................
198,119
8,818,277
55,608,950
Building
Products
0.5%
a
Builders
FirstSource,
Inc.
.............................................
53,770
7,766,001
Owens
Corning
.....................................................
15,460
2,164,245
9,930,246
Capital
Markets
1.2%
Affiliated
Managers
Group,
Inc.
.........................................
15,233
2,111,903
Evercore,
Inc.,
A
....................................................
15,490
2,092,080
Jefferies
Financial
Group,
Inc.
..........................................
53,228
1,958,258
MarketAxess
Holdings,
Inc.
............................................
18,713
5,037,914
SEI
Investments
Co.
.................................................
43,317
2,728,538
State
Street
Corp.
...................................................
106,144
7,689,071
21,617,764
Chemicals
1.2%
CF
Industries
Holdings,
Inc.
...........................................
91,717
7,528,131
Linde
plc
..........................................................
20,917
8,171,645
LyondellBasell
Industries
NV,
A
.........................................
25,235
2,494,732
Franklin
Fund
Allocator
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Franklin
U.S.
Core
Equity
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The
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of
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38
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Chemicals
(continued)
Mosaic
Co.
(The)
...................................................
78,984
$
3,219,388
21,413,896
Commercial
Services
&
Supplies
0.3%
Cintas
Corp.
.......................................................
3,581
1,797,805
a
Clean
Harbors,
Inc.
..................................................
11,159
1,855,295
Rollins,
Inc.
........................................................
54,308
2,217,396
5,870,496
Communications
Equipment
1.7%
Cisco
Systems,
Inc.
.................................................
512,759
26,683,978
Motorola
Solutions,
Inc.
...............................................
16,127
4,622,482
31,306,460
Construction
&
Engineering
0.2%
EMCOR
Group,
Inc.
.................................................
19,944
4,288,758
Construction
Materials
0.1%
Eagle
Materials,
Inc.
.................................................
12,236
2,255,951
Consumer
Finance
0.4%
Synchrony
Financial
.................................................
204,580
7,066,193
Consumer
Staples
Distribution
&
Retail
2.4%
Kroger
Co.
(The)
....................................................
308,538
15,007,288
a
Performance
Food
Group
Co.
..........................................
26,652
1,592,724
Walmart,
Inc.
......................................................
170,118
27,195,063
43,795,075
Containers
&
Packaging
0.2%
Graphic
Packaging
Holding
Co.
.........................................
132,713
3,211,655
Distributors
0.1%
Genuine
Parts
Co.
..................................................
17,335
2,699,406
Diversified
Telecommunication
Services
0.5%
AT&T,
Inc.
.........................................................
619,598
8,996,563
Electric
Utilities
1.0%
American
Electric
Power
Co.,
Inc.
.......................................
168,419
14,271,826
OGE
Energy
Corp.
..................................................
83,497
3,018,417
17,290,243
Electrical
Equipment
0.7%
Acuity
Brands,
Inc.
..................................................
10,251
1,693,875
Hubbell,
Inc.,
B
.....................................................
22,714
7,086,768
nVent
Electric
plc
...................................................
70,894
3,748,875
12,529,518
Electronic
Equipment,
Instruments
&
Components
0.9%
a
Arrow
Electronics,
Inc.
...............................................
24,370
3,473,700
Jabil,
Inc.
.........................................................
54,608
6,043,467
a
Keysight
Technologies,
Inc.
............................................
11,444
1,843,400
National
Instruments
Corp.
............................................
55,283
3,261,697
Vontier
Corp.
.......................................................
60,097
1,858,800
16,481,064
Entertainment
1.3%
a
Activision
Blizzard,
Inc.
...............................................
57,728
5,354,849
Franklin
Fund
Allocator
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Schedule
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Investments
Franklin
U.S.
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an
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part
of
these
financial
statements.
Annual
Report
39
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Entertainment
(continued)
Electronic
Arts,
Inc.
..................................................
55,671
$
7,590,741
a
Netflix,
Inc.
........................................................
18,378
8,067,391
World
Wrestling
Entertainment,
Inc.,
A
....................................
18,161
1,906,905
22,919,886
Financial
Services
3.6%
a
Berkshire
Hathaway,
Inc.,
B
............................................
59,587
20,972,241
Mastercard,
Inc.,
A
..................................................
13,191
5,200,947
MGIC
Investment
Corp.
...............................................
123,229
2,062,853
Visa,
Inc.,
A
........................................................
135,854
32,296,571
Voya
Financial,
Inc.
..................................................
24,052
1,786,102
Western
Union
Co.
(The)
..............................................
158,181
1,926,645
64,245,359
Food
Products
0.9%
Hershey
Co.
(The)
..................................................
69,808
16,147,288
Gas
Utilities
0.1%
Atmos
Energy
Corp.
.................................................
17,723
2,157,066
Ground
Transportation
0.3%
a
Avis
Budget
Group,
Inc.
..............................................
8,468
1,865,416
Landstar
System,
Inc.
................................................
15,291
3,113,094
4,978,510
Health
Care
Equipment
&
Supplies
3.1%
a
Boston
Scientific
Corp.
...............................................
390,832
20,264,639
a
Edwards
Lifesciences
Corp.
...........................................
35,706
2,930,392
a
Hologic,
Inc.
.......................................................
116,805
9,276,653
a
IDEXX
Laboratories,
Inc.
..............................................
35,525
19,706,783
Zimmer
Biomet
Holdings,
Inc.
..........................................
22,512
3,110,033
55,288,500
Health
Care
Providers
&
Services
3.6%
Cardinal
Health,
Inc.
.................................................
119,222
10,905,236
a
Centene
Corp.
.....................................................
25,594
1,742,696
HCA
Healthcare,
Inc.
.................................................
9,277
2,530,858
Humana,
Inc.
......................................................
44,515
20,335,788
McKesson
Corp.
....................................................
41,833
16,833,599
UnitedHealth
Group,
Inc.
..............................................
25,738
13,032,951
65,381,128
Health
Care
REITs
0.3%
Medical
Properties
Trust,
Inc.
..........................................
246,435
2,486,529
Omega
Healthcare
Investors,
Inc.
.......................................
98,084
3,128,880
5,615,409
Hotels,
Restaurants
&
Leisure
1.6%
a
Booking
Holdings,
Inc.
...............................................
3,954
11,746,544
Boyd
Gaming
Corp.
.................................................
31,700
2,165,744
McDonald's
Corp.
...................................................
43,791
12,839,521
Yum!
Brands,
Inc.
...................................................
12,754
1,755,843
28,507,652
Household
Durables
1.4%
Lennar
Corp.,
A
.....................................................
119,831
15,198,166
a
NVR,
Inc.
.........................................................
887
5,593,812
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
40
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Household
Durables
(continued)
Toll
Brothers,
Inc.
...................................................
47,356
$
3,804,107
24,596,085
Household
Products
1.4%
Clorox
Co.
(The)
....................................................
9,717
1,471,931
Colgate-Palmolive
Co.
...............................................
257,269
19,619,334
Kimberly-Clark
Corp.
.................................................
12,647
1,632,728
Procter
&
Gamble
Co.
(The)
...........................................
11,470
1,792,761
24,516,754
Industrial
Conglomerates
1.1%
General
Electric
Co.
.................................................
173,806
19,855,597
Industrial
REITs
0.2%
First
Industrial
Realty
Trust,
Inc.
........................................
55,471
2,867,851
Insurance
2.3%
American
International
Group,
Inc.
......................................
143,847
8,671,097
Aon
plc,
A
.........................................................
13,159
4,191,141
a
Arch
Capital
Group
Ltd.
...............................................
175,346
13,622,631
Hartford
Financial
Services
Group,
Inc.
(The)
..............................
36,086
2,593,862
Old
Republic
International
Corp.
........................................
114,476
3,156,103
Primerica,
Inc.
......................................................
15,434
3,282,812
RLI
Corp.
.........................................................
12,815
1,709,649
Unum
Group
.......................................................
82,842
4,026,950
41,254,245
Interactive
Media
&
Services
6.4%
a
Alphabet,
Inc.,
A
....................................................
270,261
35,869,040
a
Alphabet,
Inc.,
C
....................................................
238,752
31,780,279
a
Meta
Platforms,
Inc.,
A
...............................................
150,919
48,082,793
115,732,112
IT
Services
0.8%
Amdocs
Ltd.
.......................................................
50,511
4,729,850
Cognizant
Technology
Solutions
Corp.,
A
..................................
47,072
3,108,164
a
DXC
Technology
Co.
.................................................
75,389
2,084,506
a
Gartner,
Inc.
.......................................................
7,005
2,476,898
a
VeriSign,
Inc.
......................................................
8,979
1,894,120
14,293,538
Life
Sciences
Tools
&
Services
0.9%
a
Medpace
Holdings,
Inc.
...............................................
9,933
2,514,738
a
Mettler-Toledo
International,
Inc.
........................................
10,375
13,046,251
15,560,989
Machinery
1.3%
Allison
Transmission
Holdings,
Inc.
......................................
38,905
2,283,334
PACCAR,
Inc.
......................................................
142,845
12,303,240
Snap-on,
Inc.
......................................................
25,072
6,830,616
Timken
Co.
(The)
...................................................
27,089
2,515,484
23,932,674
Media
1.7%
Comcast
Corp.,
A
...................................................
602,086
27,250,412
Nexstar
Media
Group,
Inc.,
A
...........................................
9,730
1,816,786
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
U.S.
Core
Equity
(IU)
Fund
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statements.
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Report
41
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Media
(continued)
Omnicom
Group,
Inc.
................................................
20,157
$
1,705,685
30,772,883
Metals
&
Mining
1.1%
Nucor
Corp.
.......................................................
56,146
9,662,165
Reliance
Steel
&
Aluminum
Co.
.........................................
8,957
2,623,147
Steel
Dynamics,
Inc.
.................................................
79,181
8,439,111
20,724,423
Multi-Utilities
0.8%
Consolidated
Edison,
Inc.
.............................................
159,196
15,101,333
Oil,
Gas
&
Consumable
Fuels
4.8%
Cheniere
Energy,
Inc.
................................................
35,158
5,690,674
Chevron
Corp.
.....................................................
68,525
11,214,802
Exxon
Mobil
Corp.
...................................................
145,794
15,634,949
HF
Sinclair
Corp.
...................................................
39,150
2,039,323
Marathon
Oil
Corp.
..................................................
88,218
2,317,487
Marathon
Petroleum
Corp.
............................................
168,296
22,386,734
PDC
Energy,
Inc.
...................................................
36,728
2,787,288
Range
Resources
Corp.
..............................................
98,647
3,100,475
Valero
Energy
Corp.
.................................................
164,806
21,245,141
86,416,873
Pharmaceuticals
2.8%
Bristol-Myers
Squibb
Co.
..............................................
188,193
11,703,723
Johnson
&
Johnson
.................................................
69,010
11,561,245
Merck
&
Co.,
Inc.
...................................................
257,655
27,478,906
50,743,874
Professional
Services
1.1%
a
CACI
International,
Inc.,
A
.............................................
5,279
1,849,973
Science
Applications
International
Corp.
..................................
22,470
2,726,510
Verisk
Analytics,
Inc.,
A
...............................................
66,765
15,285,179
19,861,662
Residential
REITs
0.2%
Mid-America
Apartment
Communities,
Inc.
................................
20,887
3,125,948
Retail
REITs
0.2%
Brixmor
Property
Group,
Inc.
...........................................
125,855
2,861,943
Semiconductors
&
Semiconductor
Equipment
5.9%
Broadcom,
Inc.
.....................................................
13,232
11,890,937
a
Cirrus
Logic,
Inc.
....................................................
23,729
1,917,303
KLA
Corp.
.........................................................
28,442
14,617,766
a
Lattice
Semiconductor
Corp.
...........................................
58,653
5,333,904
Microchip
Technology,
Inc.
............................................
33,853
3,180,151
NVIDIA
Corp.
......................................................
96,015
44,866,849
a
ON
Semiconductor
Corp.
.............................................
180,611
19,460,835
QUALCOMM,
Inc.
...................................................
33,540
4,432,982
105,700,727
Software
8.9%
a
Cadence
Design
Systems,
Inc.
.........................................
84,370
19,743,424
Dolby
Laboratories,
Inc.,
A
.............................................
24,953
2,211,085
a
Dropbox,
Inc.,
A
....................................................
110,778
2,985,467
a
Fair
Isaac
Corp.
....................................................
11,753
9,848,661
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
U.S.
Core
Equity
(IU)
Fund
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42
a
a
Shares
a
Value
a
Common
Stocks
(continued)
Software
(continued)
a
Manhattan
Associates,
Inc.
............................................
26,363
$
5,025,315
Microsoft
Corp.
.....................................................
341,566
114,738,851
a
Synopsys,
Inc.
.....................................................
8,232
3,719,218
a
Teradata
Corp.
.....................................................
43,475
2,471,554
160,743,575
Specialized
REITs
1.1%
CubeSmart
........................................................
94,099
4,080,132
Gaming
and
Leisure
Properties,
Inc.
.....................................
32,095
1,523,229
Public
Storage
.....................................................
36,652
10,326,701
VICI
Properties,
Inc.,
A
...............................................
49,842
1,569,026
Weyerhaeuser
Co.
..................................................
56,084
1,910,221
19,409,309
Specialty
Retail
2.7%
a
AutoNation,
Inc.
....................................................
12,778
2,057,002
a
AutoZone,
Inc.
.....................................................
1,933
4,797,165
Best
Buy
Co.,
Inc.
...................................................
22,266
1,849,191
Lowe's
Cos.,
Inc.
....................................................
43,600
10,214,172
Murphy
USA,
Inc.
...................................................
8,330
2,557,560
a
O'Reilly
Automotive,
Inc.
..............................................
11,563
10,704,910
TJX
Cos.,
Inc.
(The)
.................................................
62,772
5,431,661
a
Ulta
Beauty,
Inc.
....................................................
23,716
10,548,877
48,160,538
Technology
Hardware,
Storage
&
Peripherals
7.7%
Apple,
Inc.
........................................................
656,245
128,919,329
Hewlett
Packard
Enterprise
Co.
.........................................
608,530
10,576,252
139,495,581
Textiles,
Apparel
&
Luxury
Goods
0.3%
a
Deckers
Outdoor
Corp.
...............................................
11,020
5,991,464
a
Tobacco
0.3%
Altria
Group,
Inc.
....................................................
127,823
5,805,721
Trading
Companies
&
Distributors
0.4%
MSC
Industrial
Direct
Co.,
Inc.,
A
........................................
18,306
1,847,442
WW
Grainger,
Inc.
...................................................
7,382
5,451,533
7,298,975
Water
Utilities
0.1%
Essential
Utilities,
Inc.
................................................
38,548
1,630,195
Wireless
Telecommunication
Services
0.1%
a
T-Mobile
US,
Inc.
...................................................
14,298
1,969,835
a
Total
Common
Stocks
(Cost
$1,418,487,238)
....................................
1,785,145,927
a
a
a
a
Franklin
Fund
Allocator
Series
Schedule
of
Investments
Franklin
U.S.
Core
Equity
(IU)
Fund
(continued)
franklintempleton.com
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43
Short
Term
Investments
0.9%
a
a
Shares
a
Value
a
Money
Market
Funds
0.9%
b,c
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.842%
..................
15,977,991
$
15,977,991
Total
Money
Market
Funds
(Cost
$15,977,991)
..................................
15,977,991
Total
Short
Term
Investments
(Cost
$15,977,991
)
................................
15,977,991
a
Total
Investments
(Cost
$1,434,465,229)
100.0%
................................
$1,801,123,918
Other
Assets,
less
Liabilities
0.0%
†
............................................
904,712
Net
Assets
100.0%
...........................................................
$1,802,028,630
See
Abbreviations
on
page
60
.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
See
Note
3(d)
regarding
investments
in
affiliated
management
investment
companies.
c
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
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Series
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Liabilities
July
31,
2023
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44
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
.................................
$113,113,657
$801,156,162
$1,418,487,238
Cost
-
Non-controlled
affiliates
(Note
3
d
)
......................
1,411,873
7,035,498
15,977,991
Value
-
Unaffiliated
issuers
................................
$125,214,433
$932,698,840
$1,785,145,927
Value
-
Non-controlled
affiliates
(Note
3
d
)
.....................
1,411,873
7,035,498
15,977,991
Cash
..................................................
—
1,280
117,333
Foreign
currency,
at
value
(cost
$300,156,
$3,016
and
$–,
respectively)
301,500
3,004
—
Receivables:
Investment
securities
sold
.................................
73,599
245
70,968,186
Capital
shares
sold
......................................
329,255
25,044,842
1,670,568
Dividends
.............................................
667,253
2,740,893
777,754
European
Union
tax
reclaims
(Note
1
c
)
.......................
—
246,125
—
Affiliates
..............................................
35,533
65,813
26,102
Total
assets
........................................
128,033,446
967,836,540
1,874,683,861
Liabilities:
Payables:
Investment
securities
purchased
............................
75
23,392,031
—
Capital
shares
redeemed
.................................
1,537,284
212,321
72,615,532
Trustees'
fees
and
expenses
...............................
69
346
883
Deferred
tax
.............................................
204,802
—
—
Accrued
expenses
and
other
liabilities
.........................
65,089
66,931
38,816
Total
liabilities
.......................................
1,807,319
23,671,629
72,655,231
Net
assets,
at
value
...............................
$126,226,127
$944,164,911
$1,802,028,630
Net
assets
consist
of:
Paid-in
capital
...........................................
$130,193,742
$849,516,702
$1,532,440,651
Total
distributable
earnings
(losses)
...........................
(3,967,615)
94,648,209
269,587,979
Net
assets,
at
value
...............................
$126,226,127
$944,164,911
$1,802,028,630
Shares
outstanding
.......................................
12,918,022
83,313,594
132,115,970
Net
asset
value
per
share
..................................
$9.77
$11.33
$13.64
Franklin
Fund
Allocator
Series
Financial
Statements
Statements
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Operations
for
the
year
ended
July
31,
2023
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45
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Investment
income:
Dividends:
(net
of
foreign
taxes
of
$597,090,
$3,077,632
and
$3,123,
respectively)
Unaffiliated
issuers
......................................
$4,342,135
$29,563,779
$28,946,877
Non-controlled
affiliates
(Note
3
d
)
...........................
28,795
264,565
599,230
Other
income
a
...........................................
1,639
157,850
b
32,090
Total
investment
income
.................................
4,372,569
29,986,194
29,578,197
Expenses:
Custodian
fees
(Note
4
)
....................................
49,452
82,893
13,681
Reports
to
shareholders
fees
................................
(1,932)
(1,828)
(1,840)
Registration
and
filing
fees
..................................
48,169
54,660
59,176
Professional
fees
.........................................
59,233
45,307
29,267
Trustees'
fees
and
expenses
................................
789
9,414
22,471
Interest
expense
.........................................
9,870
18,991
686
European
Union
tax
reclaims
filing
fees
(Note
1c)
.................
—
11,750
—
Other
..................................................
1,392
1,474
19,783
Total
expenses
.......................................
166,973
222,661
143,224
Expense
reductions
(Note
4
)
.............................
—
(28)
(456)
Expenses
waived/paid
by
affiliates
(Note
3
d
and
3
e
)
............
(166,973)
(222,633)
(142,768)
Net
expenses
.......................................
—
—
—
Net
investment
income
..............................
4,372,569
29,986,194
29,578,197
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
(net
of
foreign
taxes
of
$32,349,
$–
and
$–,
respectively)
Unaffiliated
issuers
....................................
(8,605,555)
(5,786,645)
(62,038,691)
Foreign
currency
transactions
..............................
5,190
341,201
9
Net
realized
gain
(loss)
................................
(8,600,365)
(5,445,444)
(62,038,682)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
....................................
15,974,292
97,656,437
186,885,919
Translation
of
other
assets
and
liabilities
denominated
in
foreign
currencies
...........................................
40,400
85,626
—
Change
in
deferred
taxes
on
unrealized
appreciation
.............
(137,638)
—
—
Net
change
in
unrealized
appreciation
(depreciation)
..........
15,877,054
97,742,063
186,885,919
Net
realized
and
unrealized
gain
(loss)
..........................
7,276,689
92,296,619
124,847,237
Net
increase
(decrease)
in
net
assets
resulting
from
operations
........
$11,649,258
$122,282,813
$154,425,434
a
Other
income
includes
payments
by
Advisers
for
acquired
fund
fees
and
expenses
(See
Note
3e)
.
b
Other
income
includes
income
from
EU
reclaims
(See
Note
1c)
.
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Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Year
Ended
July
31,
2023
Year
Ended
July
31,
2022
Year
Ended
July
31,
2023
Year
Ended
July
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
............
$4,372,569
$3,678,471
$29,986,194
$11,937,300
Net
realized
gain
(loss)
............
(8,600,365)
(5,771,077)
(5,445,444)
(23,331,941)
Net
change
in
unrealized
appreciation
(depreciation)
.................
15,877,054
(21,114,530)
97,742,063
(28,023,908)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.
11,649,258
(23,207,136)
122,282,813
(39,418,549)
Distributions
to
shareholders
.........
(4,506,203)
(3,917,204)
(30,622,815)
(33,759,067)
Capital
share
transactions
(Note
2
)
.....
9,954,236
19,610,017
51,747,446
513,559,733
Net
increase
(decrease)
in
net
assets
.....................
17,097,291
(7,514,323)
143,407,444
440,382,117
Net
assets:
Beginning
of
year
..................
109,128,836
116,643,159
800,757,467
360,375,350
End
of
year
......................
$126,226,127
$109,128,836
$944,164,911
$800,757,467
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.
Annual
Report
47
Franklin
U.S.
Core
Equity
(IU)
Fund
Year
Ended
July
31,
2023
Year
Ended
July
31,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$29,578,197
$23,185,045
Net
realized
gain
(loss)
.................................................
(62,038,682)
51,240,154
Net
change
in
unrealized
appreciation
(depreciation)
...........................
186,885,919
(65,826,833)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
154,425,434
8,598,366
Distributions
to
shareholders
..............................................
(91,270,972)
(118,026,381)
Capital
share
transactions
(Note
2
)
..........................................
(314,989,416)
846,614,494
Net
increase
(decrease)
in
net
assets
...................................
(251,834,954)
737,186,479
Net
assets:
Beginning
of
year
.......................................................
2,053,863,584
1,316,677,105
End
of
year
...........................................................
$1,802,028,630
$2,053,863,584
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
48
franklintempleton.com
Annual
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
following
summarizes
the
Funds’
significant
accounting
policies.
a.
Financial
Instrument
Valuation
The Funds'
investments
in
financial
instruments
are
carried
at
fair
value
daily.
Fair
value
is
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
on
the
measurement
date.
The Funds calculate the
net
asset
value
(NAV)
per
share
each
business
day
as
of
4
p.m.
Eastern
time
or
the
regularly
scheduled
close
of
the
New
York
Stock
Exchange
(NYSE),
whichever
is
earlier.
Under
compliance
policies
and
procedures
approved
by
the
Trust’s
Board
of
Trustees
(the
Board),
the
Board
has
designated
the
Funds’
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Funds'
administrator
in
performing
this
responsibility,
including
leading
the
cross-
functional
Valuation
Committee
(VC).
The
Funds
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
and
exchange
traded
funds
listed
on
an
exchange
or
on
the
NASDAQ
National
Market
System
are
valued
at
the
last
quoted
sale
price
or
the
official
closing
price of
the
day,
respectively.
Foreign
equity
securities
are
valued
as
of
the
close
of
trading
on
the
foreign
stock
exchange
on
which
the
security
is
primarily
traded,
or
as
of
4
p.m.
Eastern
time.
The
value
is
then
converted
into
its
U.S.
dollar
equivalent
at
the
foreign
exchange
rate
in
effect
at
4
p.m.
Eastern
time
on
the
day
that
the
value
of
the
security
is
determined.
Over-the-counter
(OTC)
securities
are
valued
within
the
range
of
the
most
recent
quoted
bid
and
ask
prices.
Securities
that
trade
in
multiple
markets
or
on
multiple
exchanges
are
valued
according
to
the
broadest
and
most
representative
market.
Certain
equity
securities
are
valued
based
upon
fundamental
characteristics
or
relationships
to
similar
securities.
Investments
in
open-end
mutual
funds
are
valued
at
the
closing
NAV.
The
Funds
have
procedures
to
determine
the
fair
value
of
financial
instruments
for
which
market
prices
are
not
reliable
or
readily
available.
Under
these
procedures,
the
Funds
primarily
employ
a
market-based
approach
which
may
use
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
and
other
relevant
information
for
the
investment
to
determine
the
fair
value
of
the
investment.
An
income-based
valuation
approach
may
also
be
used
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
to
calculate
fair
value.
Discounts
may
also
be
applied
due
to
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
Due
to
the
inherent
uncertainty
of
valuations
of
such
investments,
the
fair
values
may
differ
significantly
from
the
values
that
would
have
been
used
had
an
active
market
existed.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Funds'
business
day.
Events
can
occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the Funds'
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time.
In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Funds'
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time.
At
July
31,
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
Funds'
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Funds'
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
49
franklintempleton.com
Annual
Report
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Funds
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Funds
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Funds
do
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statements
of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Income
and
Deferred
Taxes
It
is each
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. Each
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and
excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Funds
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
the
Funds
invest.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Funds
invest.
When
a
capital
gain
tax
is
determined
to
apply,
certain
or
all
Funds
record
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
As
a
result
of
several
court
cases,
in
certain
countries
across
the
European
Union,
certain
or
all
Funds
filed
additional
tax
reclaims
for
previously
withheld
taxes
on
dividends
earned
in
those
countries
(EU
reclaims). Income
recognized,
if
any,
for
EU
reclaims
is
reflected
as
other
income
in
the
Statements of
Operations
and
any
related
receivable,
if
any,
is
reflected
as
European
Union
tax
reclaims
in
the
Statements
of
Assets
and
Liabilities.
Any
fees
associated
with
these
filings
are
reflected
as
European
Union
tax
reclaim
filing
fees
in
the
Statements
of
Operations.
When
uncertainty
exists
as
to
the
ultimate
resolution
of
these
proceedings,
the
likelihood
of
receipt
of
these
EU
reclaims,
and
the
potential
timing
of
payment,
no
amounts
are
reflected
in
the
financial
statements.
For
U.S.
income
tax
purposes,
EU
reclaims
received
by
the
Funds,
if
any,
reduce
the
amount
of
foreign
taxes
Fund
shareholders
can
use
as
tax
deductions
or credits
on
their income
tax
returns.
Each
Fund
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
July
31,
2023,
each
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
50
franklintempleton.com
Annual
Report
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.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Funds.
Distributions
to
shareholders
are
recorded
on
the
ex-
dividend
date. Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Common
expenses
incurred
by
the
Trust
are
allocated
among
the
Funds
based
on
the
ratio
of
net
assets
of
each
Fund
to
the
combined
net
assets
of
the
Trust
or
based
on
the
ratio
of
number
of
shareholders
of
each
Fund
to
the
combined
number
of
shareholders
of
the
Trust.
Fund
specific
expenses
are
charged
directly
to
the
Fund
that
incurred
the
expense.
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.
2.
Shares
of
Beneficial
Interest
At
July
31,
2023,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Funds’
shares
were
as
follows:
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Shares
Amount
Shares
Amount
Class
A
Year
ended
July
31,
2023
Shares
sold
...................................
1,550,202
$13,989,446
15,474,480
$163,181,228
Shares
issued
in
reinvestment
of
distributions
..........
502,987
4,506,203
2,946,671
30,622,815
Shares
redeemed
...............................
(957,954)
(8,541,413)
(13,775,976)
(142,056,597)
Net
increase
(decrease)
..........................
1,095,235
$9,954,236
4,645,175
$51,747,446
Year
ended
July
31,
2022
Shares
sold
...................................
3,389,370
$35,059,730
60,523,652
$614,058,141
Shares
issued
in
reinvestment
of
distributions
..........
381,790
3,917,204
2,902,155
33,759,067
Shares
redeemed
...............................
(1,809,754)
(19,366,917)
(12,298,376)
(134,257,475)
Net
increase
(decrease)
..........................
1,961,406
$19,610,017
51,127,431
$513,559,733
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
51
franklintempleton.com
Annual
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
trustees
of
the
following
subsidiaries:
a.
Management
Fees
Advisers
provides
investment
management
services
to
the
Funds.
The
Funds
do
not
pay
a
fee
for
these
services.
Advisers
and
its
affiliates,
receive
compensation
from
the
investment
companies
that
invest
in
the
Funds.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Funds
and
is
not
paid
by
the
Funds
for
the
services.
c.
Transfer
Agent
Fees
Investor
Services
provides
shareholder
services
to
the
Funds.
The
Funds
do
not
pay
a
fee
for
these
services.
d.
Investments
in
Affiliated
Management
Investment
Companies
Certain
or
all
Funds
invest
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
do
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Advisers
has
contractually
agreed
to
reimburse
expenses
of
the
Funds
in
an
amount
equal
to
fees
indirectly
borne
by
the
Funds
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statements
of
Operations.
During
the
year
ended
July
31,
2023,
investments
in
affiliated
management
investment
companies
were
as
follows:
Franklin
U.S.
Core
Equity
(IU)
Fund
Shares
Amount
Class
A
Year
ended
July
31,
2023
Shares
sold
...................................
6,260,327
$78,691,449
Shares
issued
in
reinvestment
of
distributions
..........
7,452,212
91,270,972
Shares
redeemed
...............................
(38,143,023)
(484,951,837)
Net
increase
(decrease)
..........................
(24,430,484)
$(314,989,416)
Year
ended
July
31,
2022
Shares
sold
...................................
80,697,663
$1,013,215,277
Shares
issued
in
reinvestment
of
distributions
..........
8,310,364
118,026,381
Shares
redeemed
...............................
(20,294,121)
(284,627,164)
Net
increase
(decrease)
..........................
68,713,906
$846,614,494
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
52
franklintempleton.com
Annual
Report
e.
Waiver
and
Expense
Reimbursements
Advisers
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
and
to
assume
as
its
own
expense
certain
expenses
otherwise
payable
by
the
Funds
so
that
the
operating
expenses
(excluding
certain
non-routine
expenses
or
costs,
including
those
relating
to
litigation,
indemnification,
reorganizations,
and
liquidations),
interest
expense
and
acquired
fund
fees
and
expenses
of
the
Funds
do
not
exceed
0.00%
based
on
the
average
net
assets
of
each
class
until
November
30,
2023.
Total
expenses
waived
or
paid
are
not
subject
to
recapture
subsequent
to
the
Funds’
fiscal
year
end.
Acquired
fund
fees
and
expenses
are
indirect
expenses,
and
therefore
Advisers
may
make
payments,
if
necessary,
to
the
Funds
to
offset
these
estimated
indirect
expenses.
Payments
by
Advisers
for
the
year
ended
July
31,
2023,
are
reflected
as
other
income
in
the
Statements
of
Operations.
aa
Value
at
Beginning
of
Year
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Year
Number
of
Shares
Held
at
End
of
Year
Investment
Income
a
a
a
a
a
a
a
a
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.842%
$
2,085,742
$
33,457,871
$
(34,131,740)
$
—
$
—
$
1,411,873
1,411,873
$
28,795
Total
Affiliated
Securities
...
$2,085,742
$33,457,871
$(34,131,740)
$—
$—
$1,411,873
$28,795
Franklin
International
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.842%
7,114,441
165,587,271
(165,666,214)
—
—
7,035,498
7,035,498
264,565
Total
Affiliated
Securities
...
$7,114,441
$165,587,271
$(165,666,214)
$—
$—
$7,035,498
$264,565
Franklin
U.S.
Core
Equity
(IU)
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
4.842%
19,849,812
68,730,606
(72,602,427)
—
—
15,977,991
15,977,991
599,230
Total
Affiliated
Securities
...
$19,849,812
$68,730,606
$(72,602,427)
$—
$—
$15,977,991
$599,230
3.
Transactions
with
Affiliates
(continued)
d.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
53
franklintempleton.com
Annual
Report
f.
Other
Affiliated
Transactions
At
July
31,
2023,
the
shares
of
the
Funds
were
owned
by
the
following
entities:
4.
Expense
Offset
Arrangement
The
Funds
have
previously
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 year
ended
July
31,
2023,
the
custodian
fees
were
reduced
as
noted
in
the
Statements
of
Operations.
For
Emerging
Market
Core
Equity
(IU)
Fund
,
effective
June
12,
2023,
earned
credits,
if
any,
will
be
recognized
as
income
.
For
International
Core
Equity
(IU)
Fund,
effective
May
8
,
2023,
earned
credits,
if
any,
will
be
recognized
as
income.
For
U.S.
Core
Equity
(IU)
Fund,
effective
April
17
,
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
July
31,
2023,
the
capital
loss
carryforwards
were
as
follows:
Shares
Percentage
of
Outstanding
Shares
a
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
Growth
Allocation
Fund
3,672,856
28.4%
Franklin
Moderate
Allocation
Fund
3,566,671
27.6%
Franklin
Conservative
Allocation
Fund
1,347,956
10.4%
Superior
Officer
Council
Balanced
Fund
1,028,000
8.0%
Other
affiliates
b
3,302,539
25.6%
Total
12,918,022
100.0%
Franklin
International
Core
Equity
(IU)
Fund
Franklin
Growth
Allocation
Fund
10,781,806
12.9%
Franklin
Moderate
Allocation
Fund
10,450,234
12.5%
Franklin
Growth
Allocation
529
Portfolio
4,823,991
5.8%
Franklin
Aggressive
Growth
Allocation
529
Portfolio
4,504,056
5.4%
Other
affiliates
b
52,753,507
63.4%
Total
83,313,594
100.0%
Franklin
U.S.
Core
Equity
(IU)
Fund
Franklin
Moderate
Allocation
Fund
25,290,257
19.1%
Franklin
Growth
Allocation
Fund
22,302,656
16.9%
Franklin
Conservative
Allocation
Fund
9,529,573
7.2%
Other
affiliates
b
74,993,484
56.8%
Total
132,115,970
100.0%
a
Investment
activities
of
significant
shareholders
could
have
a
material
impact
on
the
Fund.
b
Comprised
of
affiliated
shareholders
whose
individual
ownership
is
less
than
5%
and
would
not
have
a
material
impact
on
the
Fund.
3.
Transactions
with
Affiliates
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
54
franklintempleton.com
Annual
Report
The
tax
character
of
distributions
paid
during
the
years
ended
July
31,
2023
and
2022,
was
as
follows:
At
July
31,
2023,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
ordinary
income
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatments
of
wash
sales,
passive
foreign
investment
company
shares,
corporate
actions
and
REITs.
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
1
1
1
1
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
.............................
$
9,035,808
$
29,902,582
$
78,013,202
Long
term
.............................
3,504,193
—
7,242,319
Total
capital
loss
carryforwards
............
$12,540,001
$2
9,902,582
$85,255,521
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
2023
2022
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$4,506,203
$3,917,204
$30,622,815
$20,770,073
Long
term
capital
gain
....................
—
—
—
12,988,994
$4,506,203
$3,917,204
$30,622,815
$33,759,067
Franklin
U.S.
Core
Equity
(IU)
Fund
2023
2022
Distributions
paid
from:
Ordinary
income
........................
$30,279,451
$79,116,191
Long
term
capital
gain
....................
60,991,521
38,910,190
$91,270,972
$118,026,381
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
a
a
a
a
Cost
of
investments
.......................
$119,381,243
$824,935,031
$1,446,280,418
Unrealized
appreciation
.....................
$19,361,715
$145,751,750
$384,329,138
Unrealized
depreciation
.....................
(12,116,652)
(30,952,443)
(29,485,638)
Net
unrealized
appreciation
(depreciation)
.......
$7,245,063
$114,799,307
$354,843,500
Distributable
earnings:
Undistributed
ordinary
income
................
$1,589,549
$9,499,683
$—
5.
Income
Taxes
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
55
franklintempleton.com
Annual
Report
The
Funds
utilized
a
tax
accounting
practice
to
treat
a
portion
of
the
proceeds
from
capital
shares
redeemed
as
a
distribution
from
net
investment
income.
6.
Investment
Transactions
Purchases
and
sales
of
investments
for
the
year
ended
July
31,
2023,
were
as
follows:
7.
Concentration
of
Risk
Investing
in
foreign
securities
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities,
such
as
fluctuating
currency
values
and
changing
local,
regional
and
global
economic,
political
and
social
conditions,
which
may
result
in
greater
market
volatility.
Political
and
financial
uncertainty
in
many
foreign
regions
may
increase
market
volatility
and
the
economic
risk
of
investing
in
foreign
securities.
In
addition,
certain
foreign
securities
may
not
be
as
liquid
as
U.S.
securities.
Investing
in
China
A
shares
may
include
certain
risks
and
considerations
not
typically
associated
with
investing
in
U.S.
securities.
In
general,
A
shares
are
issued
by
companies
incorporated
in
the
People’s
Republic
of
China
(PRC)
and
listed
on
the
Shanghai
and
Shenzhen
Stock
Exchanges
and
available
for
investment
by
domestic
(Chinese)
investors
and
holders
of
a
QFII
license
and,
in
the
case
of
certain
eligible
A
shares,
through
the
Shanghai
and
Shenzhen
Stock
Connect
programs.
The
Shanghai
and
Shenzhen
Stock
Exchanges
are,
however,
substantially
smaller,
less
liquid
and
more
volatile
than
the
major
securities
markets
in
the
United
States.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
imposed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
To
the
extent
that
the
Funds
have
exposure
to
Russian
investments
or
investments
in
countries
affected
by
the
invasion,
the
Funds’
ability
to
price,
buy,
sell,
receive
or
deliver
such
investments was
impaired.
The
Funds
could
determine
at
any
time
that
certain
of
the
most
affected
securities
have
little
or
no
value.
In
addition,
any
exposure
that
the
Funds
may
have
to
counterparties
in
Russia
or
in
countries
affected
by
the
invasion
could
negatively
impact
the
Funds’
portfolio.
The
extent
and
duration
of
Russia’s
military
actions
and
the
repercussions
of
such
actions
(including
any
retaliatory
actions
or
countermeasures
that
may
be
taken
by
those
subject
to
sanctions)
are
impossible
to
predict,
but
could
result
in
significant
market
disruptions,
including
in
the
oil
and
natural
gas
markets,
and
may
negatively
affect
global
supply
chains,
inflation
and
global
growth.
These
and
any
related
events
could
significantly
impact
the
Funds’
performance
and
the
value
of
an
investment
in
the
Funds,
even
beyond
any
direct
exposure
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Purchases
..............................
$131,900,297
$885,226,488
$1,748,008,992
Sales
..................................
$118,696,905
$834,482,351
$2,117,474,707
5.
Income
Taxes
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
56
franklintempleton.com
Annual
Report
the
Funds
may
have
to
Russian
issuers
or
issuers
in
other
countries
affected
by
the
invasion.
The
Valuation
Committee
determined
that
based
on
their
analysis
of
the
market
and
access
to
market
participants,
the
Russian
financial
instruments
held
by
the
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
had
little
or
no
value
at
July
31,
2023.
Certain
investments
in
China
companies
may
be
made
through
a
special
structure
known
as
a
variable
interest
entity
(VIE).
In
a
VIE
structure,
foreign
investors,
such
as
Franklin
Emerging
Market
Core
Equity
(IU)
Fund,
will
only
own
stock
in
a
shell
company
rather
than
directly
in
the
VIE,
which
must
be
owned
by
Chinese
nationals
(and/or
China
companies)
to
obtain
the
licenses
and/or
assets
required
to
operate
in
a
restricted
or
prohibited
sector
in
China.
The
value
of
the
shell
company
is
derived
from
its
ability
to
consolidate
the
VIE
into
its
financials
pursuant
to
contractual
arrangements
that
allow
the
shell
company
to
exert
a
degree
of
control
over,
and
obtain
economic
benefits
arising
from,
the
VIE
without
formal
legal
ownership.
While
VIEs
are
a
longstanding
industry
practice
and
are
well
known
by
Chinese
officials
and
regulators,
the
structure
historically
has
not
been
formally
recognized
under
Chinese
law
and
it
is
uncertain
whether
Chinese
officials
or
regulators
will
withdraw
their
implicit
acceptance
of
the
structure.
It
is
also
uncertain
whether
the
contractual
arrangements,
which
may
be
subject
to
conflicts
of
interest
between
the
legal
owners
of
the
VIE
and
foreign
investors,
would
be
enforced
by
Chinese
courts
or
arbitration
bodies.
Prohibitions
of
these
structures
by
the
Chinese
government,
or
the
inability
to
enforce
such
contracts,
from
which
the
shell
company
derives
its
value,
would
likely
cause
the
VIE-structured
holdings
to
suffer
significant,
detrimental,
and
possibly
permanent
losses,
and
in
turn,
adversely
affect
the
Fund's
returns
and
net
asset
value.
8.
Restricted
Securities
Certain
or
all
Funds
invest
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The
Funds
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
July
31,
2023,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
9.
Fair
Value
Measurements
The Funds
follow
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Funds'
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the Funds' financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the Funds'
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
34,540
Jio
Financial
Services
Ltd
......................
10/07/21
-
4/05/23
$
99,680
$
109,974
Total
Restricted
Securities
(Value
is
0.1%
of
Net
Assets)
..............
$99,680
$109,974
7.
Concentration
of
Risk
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
57
franklintempleton.com
Annual
Report
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
July
31,
2023,
in
valuing
the
Funds’
assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
$
—
$
367,226
$
—
$
367,226
Air
Freight
&
Logistics
...................
494,840
—
—
494,840
Automobile
Components
.................
—
889,486
—
889,486
Automobiles
..........................
—
3,380,849
—
3,380,849
Banks
...............................
2,389,421
14,742,471
—
17,131,892
Beverages
...........................
1,610,779
598,434
—
2,209,213
Biotechnology
.........................
—
988,555
—
988,555
Broadline
Retail
.......................
2,884,854
3,605,175
—
6,490,029
Capital
Markets
........................
135,093
1,338,222
109,974
1,583,289
Chemicals
...........................
219,614
4,195,065
—
a
4,414,679
Communications
Equipment
..............
—
236,027
—
236,027
Construction
&
Engineering
...............
—
827,561
—
827,561
Construction
Materials
..................
—
989,721
—
989,721
Consumer
Finance
.....................
—
655,316
—
655,316
Consumer
Staples
Distribution
&
Retail
......
998,380
1,188,165
—
2,186,545
Containers
&
Packaging
.................
129,868
—
—
129,868
Diversified
Consumer
Services
............
—
278,727
—
278,727
Diversified
REITs
......................
126,214
—
—
126,214
Diversified
Telecommunication
Services
.....
—
2,001,689
—
2,001,689
Electric
Utilities
........................
697,540
—
—
a
697,540
Electrical
Equipment
....................
—
1,722,610
—
1,722,610
Electronic
Equipment,
Instruments
&
Components
........................
—
2,899,694
—
2,899,694
Entertainment
.........................
281,697
1,386,764
—
1,668,461
Financial
Services
......................
—
807,082
—
807,082
Food
Products
........................
353,384
2,147,191
—
2,500,575
Gas
Utilities
..........................
—
426,013
—
426,013
Ground
Transportation
..................
—
159,709
—
159,709
Health
Care
Equipment
&
Supplies
.........
—
288,306
—
288,306
Health
Care
Providers
&
Services
..........
—
1,327,070
—
1,327,070
Hotels,
Restaurants
&
Leisure
.............
975,283
2,063,511
—
3,038,794
Household
Durables
....................
—
547,730
—
547,730
Household
Products
....................
145,352
—
—
145,352
Independent
Power
and
Renewable
Electricity
Producers
..........................
325,970
562,420
—
888,390
Industrial
Conglomerates
................
517,677
1,026,585
—
1,544,262
Insurance
............................
309,884
3,731,359
—
4,041,243
Interactive
Media
&
Services
..............
428,398
6,138,547
—
6,566,945
IT
Services
...........................
—
2,727,102
—
2,727,102
Life
Sciences
Tools
&
Services
............
—
922,093
—
922,093
Machinery
............................
—
641,352
—
641,352
Marine
Transportation
...................
—
371,314
—
371,314
Media
...............................
120,706
—
—
120,706
Metals
&
Mining
.......................
840,030
2,460,439
—
a
3,300,469
Oil,
Gas
&
Consumable
Fuels
.............
1,790,746
3,405,666
—
5,196,412
Paper
&
Forest
Products
.................
—
187,636
—
187,636
Passenger
Airlines
.....................
—
327,602
—
327,602
Personal
Care
Products
.................
—
1,070,225
—
1,070,225
Pharmaceuticals
.......................
—
1,703,914
—
1,703,914
9.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
58
franklintempleton.com
Annual
Report
Level
1
Level
2
Level
3
Total
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Real
Estate
Management
&
Development
....
$
487,778
$
1,487,642
$
—
$
1,975,420
Semiconductors
&
Semiconductor
Equipment
.
355,537
11,547,500
—
11,903,037
Software
.............................
—
378,180
—
378,180
Specialty
Retail
........................
343,525
520,741
—
864,266
Technology
Hardware,
Storage
&
Peripherals
.
—
8,578,802
—
8,578,802
Textiles,
Apparel
&
Luxury
Goods
..........
—
1,458,104
—
1,458,104
Tobacco
.............................
—
551,524
—
551,524
Trading
Companies
&
Distributors
..........
—
136,627
—
136,627
Transportation
Infrastructure
..............
667,788
182,916
—
850,704
Water
Utilities
.........................
—
119,467
—
119,467
Wireless
Telecommunication
Services
.......
—
2,581,529
—
2,581,529
Preferred
Stocks
.........................
4,596,446
—
—
4,596,446
Short
Term
Investments
...................
1,411,873
—
—
1,411,873
Total
Investments
in
Securities
...........
$23,638,677
$102,877,655
b
$109,974
$126,626,306
Franklin
International
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Aerospace
&
Defense
...................
—
13,497,256
—
13,497,256
Air
Freight
&
Logistics
...................
—
5,683,191
—
5,683,191
Automobile
Components
.................
—
4,956,563
—
4,956,563
Automobiles
..........................
—
31,623,935
—
31,623,935
Banks
...............................
3,647,197
69,512,407
—
73,159,604
Beverages
...........................
—
18,061,635
—
18,061,635
Biotechnology
.........................
—
7,550,017
—
7,550,017
Broadline
Retail
.......................
—
7,848,026
—
7,848,026
Building
Products
......................
—
12,016,341
—
12,016,341
Capital
Markets
........................
—
28,967,995
—
28,967,995
Chemicals
...........................
—
29,143,793
—
29,143,793
Commercial
Services
&
Supplies
...........
—
1,811,896
—
1,811,896
Communications
Equipment
..............
—
1,694,106
—
1,694,106
Construction
&
Engineering
...............
—
5,853,720
—
5,853,720
Construction
Materials
..................
5,399,224
—
—
5,399,224
Consumer
Staples
Distribution
&
Retail
......
—
15,048,961
—
15,048,961
Containers
&
Packaging
.................
964,354
—
—
964,354
Diversified
Consumer
Services
............
—
1,039,861
—
1,039,861
Diversified
REITs
......................
—
2,553,669
—
2,553,669
Diversified
Telecommunication
Services
.....
—
17,832,982
—
17,832,982
Electric
Utilities
........................
—
15,121,225
—
15,121,225
Electrical
Equipment
....................
—
15,457,626
—
15,457,626
Electronic
Equipment,
Instruments
&
Components
........................
—
10,991,453
—
10,991,453
Entertainment
.........................
—
5,995,146
—
5,995,146
Financial
Services
......................
—
13,259,395
—
13,259,395
Food
Products
........................
—
32,619,777
—
32,619,777
Gas
Utilities
..........................
—
5,190,554
—
5,190,554
Ground
Transportation
..................
—
4,512,208
—
4,512,208
Health
Care
Equipment
&
Supplies
.........
—
15,908,706
—
15,908,706
Health
Care
Providers
&
Services
..........
—
3,016,822
—
3,016,822
Health
Care
Technology
.................
—
899,517
—
899,517
Hotels,
Restaurants
&
Leisure
.............
—
13,569,312
—
13,569,312
Household
Durables
....................
—
15,502,005
—
15,502,005
Household
Products
....................
—
4,723,195
—
4,723,195
9.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
59
franklintempleton.com
Annual
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 year.
Level
1
Level
2
Level
3
Total
Franklin
International
Core
Equity
(IU)
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Common
Stocks:
Independent
Power
and
Renewable
Electricity
Producers
..........................
$
—
$
1,256,283
$
—
$
1,256,283
Industrial
Conglomerates
................
—
17,127,488
—
17,127,488
Industrial
REITs
.......................
—
2,958,044
—
2,958,044
Insurance
............................
—
39,826,902
—
39,826,902
Interactive
Media
&
Services
..............
—
2,334,683
—
2,334,683
IT
Services
...........................
—
8,302,220
—
8,302,220
Leisure
Products
.......................
—
2,013,586
—
2,013,586
Life
Sciences
Tools
&
Services
............
—
5,958,169
—
5,958,169
Machinery
............................
—
23,995,561
—
23,995,561
Marine
Transportation
...................
—
6,066,743
—
6,066,743
Media
...............................
—
2,907,486
—
2,907,486
Metals
&
Mining
.......................
—
24,941,541
—
24,941,541
Multi-Utilities
..........................
—
10,143,669
—
10,143,669
Office
REITs
..........................
—
949,215
—
949,215
Oil,
Gas
&
Consumable
Fuels
.............
—
48,406,742
—
48,406,742
Paper
&
Forest
Products
.................
—
2,158,683
—
2,158,683
Passenger
Airlines
.....................
—
2,043,137
—
2,043,137
Personal
Care
Products
.................
—
23,211,195
—
23,211,195
Pharmaceuticals
.......................
—
94,268,988
—
94,268,988
Professional
Services
...................
—
15,625,260
—
15,625,260
Real
Estate
Management
&
Development
....
—
12,172,423
—
12,172,423
Retail
REITs
..........................
—
2,331,229
—
2,331,229
Semiconductors
&
Semiconductor
Equipment
.
—
37,776,298
—
37,776,298
Software
.............................
2,607,578
13,661,344
—
16,268,922
Specialty
Retail
........................
—
10,816,049
—
10,816,049
Technology
Hardware,
Storage
&
Peripherals
.
—
5,238,070
—
5,238,070
Textiles,
Apparel
&
Luxury
Goods
..........
—
36,168,847
—
36,168,847
Tobacco
.............................
—
8,403,006
—
8,403,006
Trading
Companies
&
Distributors
..........
—
16,643,043
—
16,643,043
Transportation
Infrastructure
..............
—
1,587,325
—
1,587,325
Wireless
Telecommunication
Services
.......
—
9,323,963
—
9,323,963
Rights
.................................
—
—
—
a
—
Short
Term
Investments
...................
7,035,498
—
—
7,035,498
Total
Investments
in
Securities
...........
$19,653,851
$920,080,487
c
$—
$939,734,338
Franklin
U.S.
Core
Equity
(IU)
Fund
Assets:
Investments
in
Securities:
d
Common
Stocks
.........................
1,785,145,927
—
—
1,785,145,927
Short
Term
Investments
...................
15,977,991
—
—
15,977,991
Total
Investments
in
Securities
...........
$1,801,123,918
$—
$—
$1,801,123,918
a
Includes
financial
instruments
determined
to
have
no
value.
b
Includes
foreign
securities
valued
at
$102,877,655,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
c
Includes
foreign
securities
valued
at
$920,080,487,
which
were
categorized
as
Level
2
as
a
result
of
the
application
of
market
level
fair
value
procedures.
See
the
Financial
Instrument
Valuation
note
for
more
information.
d
For
detailed
categories,
see
the
accompanying
Schedule
of
Investments.
9.
Fair
Value
Measurements
(continued)
Franklin
Fund
Allocator
Series
Notes
to
Financial
Statements
60
franklintempleton.com
Annual
Report
10.
Subsequent
Events
The
Funds
have
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
ADR
American
Depositary
Receipt
GDR
Global
Depositary
Receipt
REIT
Real
Estate
Investment
Trust
Franklin
Fund
Allocator
Series
Report
of
Independent
Registered
Public
Accounting
Firm
61
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
Fund
Allocator
Series
and
Shareholders
of
Franklin
Emerging
Market
Core
Equity
(IU)
Fund,
Franklin
International
Core
Equity
(IU)
Fund,
and
Franklin
U.S.
Core
Equity
(IU)
Fund
Opinions
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
Franklin
Emerging
Market
Core
Equity
(IU)
Fund,
Franklin
International
Core
Equity
(IU)
Fund,
and
Franklin
U.S.
Core
Equity
(IU)
Fund
(three
of
the
funds
constituting
Franklin
Fund
Allocator
Series,
hereafter
collectively
referred
to
as
the
"Funds")
as
of
July
31,
2023,
the
related
statements
of
operations
for
the
year
ended
July
31,
2023,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2023,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
three
years
in
the
period
ended
July
31,
2023
and
the
period
August
19,
2019
through
July
31,
2020
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
July
31,
2023,
the
results
of
each
of
their
operations
for
the
year
then
ended,
the
changes
in
each
of
their
net
assets
for
each
of
the
two
years
in
the
period
ended
July
31,
2023,
and
each
of
the
financial
highlights
for
each
of
the
three
years
in
the
period
ended
July
31,
2023
and
the
period
August
19,
2019
through
July
31,
2020
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinions
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
July
31,
2023
by
correspondence
with
the
custodian,
transfer
agent,
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinions.
PricewaterhouseCoopers
LLP
San
Francisco,
California
September
20,
2023
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
Fund
Allocator
Series
Tax
Information
(unaudited)
62
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Funds
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
their
fiscal
year.
The
Funds
hereby
report
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
fiscal
year
ended
July
31,
2023:
Under
Section
853
of
the
Internal
Revenue
Code,
the
Funds
below
intend
to
elect
to
pass
through
to
their
shareholders
the
following
amounts,
or
amounts
as
finally
determined,
of
foreign
taxes
paid
and
foreign
source
income
earned
by
the
Funds
during
the
fiscal
year
ended
July
31,
202
3
:
Pursuant
to:
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Long-Term
Capital
Gain
Dividends
Distributed
§852(b)(3)(C)
—
—
$60,991,521
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$9,206
—
$28,673,511
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$3,305,660
$28,877,199
$29,479,554
Section
163(j)
Interest
Dividends
Earned
§163(j)
$18,639
—
$599,150
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
Fund
Foreign
Taxes
Paid
$645,027
$2,519,164
—
Foreign
Source
Income
Earned
$5,309,758
$34,462,059
—
Franklin
Fund
Allocator
Series
Board
Members
and
Officers
63
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
1995
119
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
119
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
119
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
Fund
Allocator
Series
64
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
1998
and
Lead
Independent
Trustee
since
2019
119
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
119
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
The
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
119
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
Fund
Allocator
Series
65
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
110
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016)
and
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Gregory
E.
Johnson
2
(1961)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
January
2023
and
Trustee
since
2007
129
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
Rupert
H.
Johnson,
Jr.
3
(1940)
Trustee
Since
2013
119
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Ted
P.
Becker
(1951)
Chief
Compliance
Officer
Since
June
2023
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Vice
President,
Global
Compliance
of
Franklin
Templeton
(since
2020);
Chief
Compliance
Officer
of
Legg
Mason
Partners
Fund
Advisor,
LLC
(since
2006);
Chief
Compliance
Officer
of
certain
funds
associated
with
Legg
Mason
&
Co.
or
its
affiliates
(since
2006);
formerly
,
Director
of
Global
Compliance
at
Legg
Mason
(2006
to
2020);
Managing
Director
of
Compliance
of
Legg
Mason
&
Co.
(2005
to
2020).
Independent
Board
Members
(continued)
Franklin
Fund
Allocator
Series
66
franklintempleton.com
Annual
Report
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
1.
We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
2.
Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
3.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
a
major
shareholder
of
Resources,
which
is
the
parent
company
of
the
Fund's
investment
manager
and
distributor.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007
to
2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member
1
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Compliance
Since
2021
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Edward
D.
Perks
(1970)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
President
and
Director,
Franklin
Advisers,
Inc.;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
and
Secretary
Vice
President
since
2015
and
Secretary
since
June
2023
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
Fund
Allocator
Series
67
franklintempleton.com
Annual
Report
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Interested
Board
Members
and
Officers
(continued)
Franklin
Fund
Allocator
Series
Shareholder
Information
68
franklintempleton.com
Annual
Report
Board
Approval
of
Investment
Management
Agreements
FRANKLIN
FUND
ALLOCATOR
SERIES
Franklin
Emerging
Market
Core
Equity
(IU)
Fund
Franklin
International
Core
Equity
(IU)
Fund
Franklin
U.S.
Core
Equity
(IU)
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
agreement
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
each
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
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
Shareholder
Information
69
franklintempleton.com
Annual
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
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
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
Emerging
Market
Core
Equity
(IU)
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
emerging
markets
funds.
The
Fund
commenced
operations
on
September
30,
2019,
and
thus
has
been
in
operation
for
less
than
five
years.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-year
period
was
above
the
median
and
in
the
first
quintile
(best)
of
its
Performance
Universe,
but
was
below
the
median
of
its
Performance
Universe
for
the
three-year
period.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
International
Core
Equity
(IU)
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
international
large-cap
core
funds.
The
Fund
commenced
operations
on
September
30,
2019,
and
thus
has
been
in
operation
for
less
than
five
years.
The
Board
noted
that
the
Fund’s
annualized
total
return
for
the
one-year
period
was
below
the
median
of
its
Performance
Universe,
but
for
the
three-year
period
was
above
the
median
and
in
the
second
quintile
of
its
Performance
Universe.
The
Board
also
noted
the
short
operating
history
of
the
Fund.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Franklin
U.S.
Core
Equity
(IU)
Fund
–
The
Performance
Universe
for
the
Fund
included
the
Fund
and
all
retail
and
institutional
large-cap
core
funds.
The
Fund
commenced
operations
on
September
30,
2019,
and
thus
has
been
in
operation
for
less
than
five
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.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Comparative
Fees
and
Expenses
The
Board
noted
that,
pursuant
to
each
Management
Agreement,
the
Manager
provides
general
investment
management
and
administrative
services
to
each
Fund
for
a
zero
management
fee.
The
Board
also
noted
that
the
Manager
assumes
all
expenses
incurred
by
each
Fund
(including
acquired
fund
fees
and
expenses),
excluding
certain
non-routine
expenses,
such
as
those
relating
to
litigation,
indemnification,
reorganizations
and
liquidations,
incurred
by
each
Fund.
The
Board
further
noted
that
comparative
fee
data
for
the
Funds
customarily
prepared
by
Broadridge
was
not
provided
because
the
Funds
have
a
zero
management
fee.
After
consideration
of
the
above,
the
Board
concluded
that
the
management
fee
for
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
Franklin
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Allocator
Series
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70
franklintempleton.com
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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.
In
connection
with
this
review,
the
Board
noted
that
because
each
Fund
pays
a
zero
management
fee,
the
consideration
of
possible
economies
of
scale
in
the
future
was
not
relevant.
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.
March
27,
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-
and
three-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
Franklin
Fund
Allocator
Series
Shareholder
Information
71
franklintempleton.com
Annual
Report
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
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.
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
.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $113,572 for the fiscal year ended July 31, 2023 and $113,598 for the fiscal year ended July 31, 2022.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c) Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning were $70,000 for the fiscal year ended July 31, 2023, and $0 for the fiscal year ended July 31, 2022. The services for which these fees were paid included global access to tax platform International Tax View.
(d) All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $0 for the fiscal year ended July 31, 2023 and $857 for the fiscal year ended July 31, 2022. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $94,715 for the fiscal year ended July 31, 2023 and $244,938 for the fiscal year ended July 31, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional fees in connection with SOC 1 Reports, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with license for employee development tool ProEdge,professional fees relating to security counts and fees in connection with license for accounting and business knowledge platform Viewpoint.
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $164,715 for the fiscal year ended July 31, 2023 and $245,795 for the fiscal year ended July 31, 2022.
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) N/A
(j) N/A
Item 5. Audit Committee of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-
End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment
Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management
Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures
.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b)
Changes in Internal Controls
.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN FUND ALLOCATOR SERIES
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date September 26, 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 September 26, 2023
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date September 26, 2023