Franklin Floating Rate Master Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number_811-09869

__Franklin Floating Rate Master Trust

(Exact name of registrant as specified in charter)

One Franklin Parkway, San Mateo, CA 94403-1906

(Address of principal executive offices) (Zip code)

Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906

(Name and address of agent for service)

Registrant's telephone number, including area code: _650 312-2000

Date of fiscal year end: 7/31

Date of reporting period: 1/31/21

Item 1. Reports to Stockholders.

a.)

The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)

b.)

A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.

Your

Fund’s

Expenses

Franklin

Floating

Rate

Master

Series

1

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Beginning

Account

Value

8/1/20

Ending

Account

Value

1/31/21

Expenses

Paid

During

Period

8/1/20–1/31/21

1,

2

Ending

Account

Value

1/31/21

Expenses

Paid

During

Period

8/1/20–1/31/21

1,

2

a

Net

Annualize

d

Expense

Ratio

2

$1,000

$1,051.17

$2.74

$1,022.53

$2.71

0.53%

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

2

Semiannual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

statement

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.

Franklin

Floating

Rate

Master

Trust

Financial

Highlights

Franklin

Floating

Rate

Master

Series

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

3

a

Six

Months

Ended

January

31,

2021

(unaudited)

Year

Ended

July

31,

2020

2019

2018

2017

2016

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$6.99

$8.18

$8.54

$8.69

$8.47

$8.65

Income

from

investment

operations

a

:

Net

investment

income

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

0.161

b

0.415

0.460

0.398

0.332

0.419

Net

realized

and

unrealized

gains

(losses)

0.195

(1.141)

(0.378)

(0.156)

0.221

(0.184)

Total

from

investment

operations

........

0.356

(0.726)

0.082

0.242

0.553

0.235

Less

distributions

from:

Net

investment

income

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

(0.183)

(0.464)

(0.442)

(0.392)

(0.333)

(0.415)

Net

asset

value,

end

of

period

..........

$7.16

$6.99

$8.18

$8.54

$8.69

$8.47

Total

return

c

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

5.12%

(9.13)%

0.98%

2.73%

6.71%

3.07%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.60%

0.58%

0.55%

0.55%

0.55%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.53%

0.53%

0.53%

0.53%

0.53%

0.53%

Net

investment

income

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

4.53%

5.41%

5.29%

4.60%

3.78%

5.03%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$332,071

$394,720

$1,054,679

$1,760,544

$2,090,626

$1,363,955

Portfolio

turnover

rate

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

27.12%

16.80%

27.92%

f

49.97%

67.00%

28.94%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year.

e

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

f

Excludes

the

value

of

portfolio

activity

as

a

result

of

in-kind

transactions.

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Floating

Rate

Master

Series

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

4

a

a

Country

Shares

a

Value

%

of

Net

Assets

a

Common

Stocks

Aerospace

&

Defense

a,b,c,d

Remington

Outdoor

Co.,

Inc.

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

United

States

1,048,435

$

—

0.00

b

Industrial

Machinery

b

UTEX

Industries,

Inc.

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

United

States

120,386

4,093,124

1.23

b

Leisure

Facilities

b

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

104,009

234,020

0.07

b

Oil

&

Gas

Exploration

&

Production

b

Samson

Resources

II

LLC

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

United

States

155,501

829,287

0.25

b

Paper

Products

a,b,c,d

Appvion

Operations,

Inc.

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

United

States

563,596

9,451,775

2.85

b

Trucking

a,b

Onsite

Rental

Group

Operations

Pty.

Ltd.

...........

Australia

5,879,078

117,091

0.04

b

Total

Common

Stocks

(Cost

$62,483,241)

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

14,725,297

4.44

Management

Investment

Companies

Asset

Management

&

Custody

Banks

e

Franklin

Floating

Rate

Income

Fund

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

United

States

461,717

3,518,280

1.06

e

Franklin

Liberty

Senior

Loan

ETF

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

United

States

957,785

23,810,535

7.17

Invesco

Senior

Loan

ETF

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

United

States

72,365

1,607,950

0.48

28,936,765

8.71

Total

Management

Investment

Companies

(Cost

$30,253,006)

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

28,936,765

8.71

Preferred

Stocks

Leisure

Facilities

b

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

246,320

635,506

0.19

b

Total

Preferred

Stocks

(Cost

$332,425)

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

635,506

0.19

Warrants

%

of

Net

Assets

a

a

a

a

a

Warrants

Industrial

Machinery

a,b

UTEX

Industries,

Inc.

,

2/20/49

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

United

States

321

573

0.00

†

Total

Warrants

(Cost

$–)

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

573

0.00

†

Principal

Amount

*

%

of

Net

Assets

Corporate

Bonds

Airlines

f

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Senior

Secured

Note,

144A,

4.5%,

10/20/25

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

United

States

1,250,000

1,336,219

0.40

Broadcasting

f

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.,

Senior

Secured

Note,

144A,

5.375%,

8/15/26

...

United

States

940,000

760,225

0.23

f

Univision

Communications,

Inc.,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

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

United

States

400,000

402,920

0.12

1,163,145

0.35

Construction

Materials

f

Cemex

SAB

de

CV,

Senior

Secured

Bond,

144A,

5.2%,

9/17/30

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

Mexico

750,000

816,563

0.25

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

5

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

Oil

&

Gas

Storage

&

Transportation

f

Cheniere

Energy,

Inc.,

Senior

Secured

Note,

144A,

4.625%,

10/15/28

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

United

States

450,000

$

471,375

0.14

Packaged

Foods

&

Meats

f

Chobani

LLC

/

Chobani

Finance

Corp.,

Inc.,

Senior

Secured

Note,

144A,

4.625%,

11/15/28

...........

United

States

100,000

102,250

0.03

Specialty

Stores

f

Staples,

Inc.,

Senior

Secured

Note,

144A,

7.5%,

4/15/26

United

States

268,000

273,786

0.08

Trucking

a,g

Onsite

Rental

Group

Operations

Pty.

Ltd.,

PIK,

6.1%,

10/26/23

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

Australia

10,725,759

9,847,797

2.97

Wireless

Telecommunication

Services

f

Vmed

O2

UK

Financing

I

plc,

Senior

Secured

Bond,

144A,

4.25%,

1/31/31

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

United

Kingdom

360,000

360,076

0.11

Total

Corporate

Bonds

(Cost

$15,938,594)

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

14,371,211

4.33

h,i

Senior

Floating

Rate

Interests

Advertising

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan,

B,

3.711%,

(2-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%),

8/21/26

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

United

States

1,303,401

1,274,478

0.38

Aerospace

&

Defense

AI

Convoy

(Luxembourg)

SARL,

Facility

USD

Term

Loan,

B,

4.5%,

(6-month

USD

LIBOR

+

3.5%),

1/18/27

....

Luxembourg

1,231,693

1,234,642

0.37

g

Alloy

FinCo

Ltd.,

Facility

Term

Loan,

B,

14%,

PIK,

(3-month

USD

LIBOR

+

0.5%),

3/06/25

...........

United

Kingdom

2,966,667

1,489,148

0.45

j

Dynasty

Acquisition

Co.,

Inc.,

2020

Term

Loan

,

B1,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..

United

States

1,060,278

1,021,578

0.31

B2,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..

United

States

570,042

549,235

0.16

a,g,k

FGI

Operating

Co.

LLC,

Term

Loan,

12%,

PIK,

(3-month

USD

LIBOR

+

11%),

5/16/22

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

United

States

11,574,019

6,088,019

1.84

10,382,622

3.13

a

a

a

a

a

a

Airlines

Allegiant

Travel

Co.,

Replacement

Term

Loan,

3.214%,

(3-month

USD

LIBOR

+

3%),

2/05/24

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

United

States

4,066,319

3,983,976

1.20

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Initial

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

3.75%),

10/20/27

....

United

States

956,180

1,004,170

0.30

JetBlue

Airways

Corp.,

Term

Loan,

6.25%,

(3-month

USD

LIBOR

+

5.25%),

6/17/24

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

United

States

428,660

444,825

0.14

Kestrel

Bidco

,

Inc.,

Term

Loan,

4%,

(3-month

USD

LIBOR

+

3%),

12/11/26

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

Canada

2,896,857

2,796,553

0.84

8,229,524

2.48

a

a

a

a

a

a

Alternative

Carriers

Zayo

Group

Holdings,

Inc.,

Initial

Dollar

Term

Loan,

3.121%,

(1-month

USD

LIBOR

+

3%),

3/09/27

......

United

States

623,553

620,824

0.19

Apparel,

Accessories

&

Luxury

Goods

Champ

Acquisition

Corp.,

First

Lien,

Initial

Term

Loan,

5.76%,

(3-month

USD

LIBOR

+

5.5%;

6-month

USD

LIBOR

+

5.5%),

12/19/25

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

United

States

1,058,015

1,056,317

0.32

Application

Software

Blackboard,

Inc.,

First

Lien,

Term

Loan,

B5,

7%,

(3-month

USD

LIBOR

+

6%),

6/30/24

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

United

States

2,211,580

2,209,269

0.67

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Application

Software

(continued)

Ceridian

HCM

Holding,

Inc.,

Initial

Term

Loan,

2.592%,

(1-week

USD

LIBOR

+

2.5%),

4/30/25

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

United

States

692,911

$

692,738

0.21

Epicor

Software

Corp.,

Term

Loan,

B,

5.25%,

(1-month

USD

LIBOR

+

4.25%),

7/30/27

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

United

States

571,510

575,190

0.17

Greeneden

U.S.

Holdings

I

LLC,

Term

Loan,

B,

4.75%,

(1-month

USD

LIBOR

+

4%),

12/01/27

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

United

States

1,251,541

1,257,799

0.38

LogMeIn,

Inc.,

First

Lien,

Initial

Term

Loan,

4.881%,

(1-month

USD

LIBOR

+

4.75%),

8/31/27

..........

United

States

497,402

496,054

0.15

Mitchell

International,

Inc.,

First

Lien,

Amendment

No.

2

New

Term

Loan

Facility,

4.75%,

(1-month

USD

LIBOR

+

4.25%),

11/29/24

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

United

States

997,500

1,000,408

0.30

j

Mitchell

International,

Inc.,

First

Lien,

Initial

Term

Loan,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

11/29/24

...

United

States

700,000

692,912

0.21

Project

Alpha

Intermediate

Holding,

Inc.,

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

3.5%),

4/26/24

......

United

States

1,096,258

1,100,024

0.33

Solera

LLC

(Solera

Finance,

Inc.),

Dollar

Term

Loan,

2.871%,

(1-month

USD

LIBOR

+

2.75%),

3/03/23

....

United

States

496,094

494,732

0.15

Sophia

LP,

Term

Loan,

B,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

10/07/27

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

United

States

373,050

375,008

0.11

Surf

Holdings

SARL,

First

Lien,

Dollar

Term

Loan,

3.726%,

(3-month

USD

LIBOR

+

3.5%),

3/05/27

.....

Luxembourg

1,693,898

1,694,957

0.51

Ultimate

Software

Group,

Inc.

(The),

First

Lien,

Initial

Term

Loan,

3.871%,

(1-month

USD

LIBOR

+

3.75%),

5/04/26

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

United

States

645,100

647,926

0.20

Veritas

US,

Inc.,

Term

Loan,

B,

6.5%,

(3-month

USD

LIBOR

+

5.5%),

9/01/25

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

United

States

440,713

444,018

0.13

11,681,035

3.52

a

a

a

a

a

a

Asset

Management

&

Custody

Banks

Russell

Investments

US

Institutional

Holdco,

Inc.,

2025

Term

Loan,

4%,

(3-month

USD

LIBOR

+

3%),

5/30/25

United

States

1,258,950

1,259,347

0.38

Auto

Parts

&

Equipment

Adient

US

LLC,

Initial

Term

Loan,

4.394%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

5/06/24

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

United

States

3,410,966

3,421,625

1.03

j

Highline

Aftermarket

Acquisition

LLC,

First

Lien,

Term

Loan,

5.25%,

(3-month

USD

LIBOR

+

4.5%),

11/09/27

United

States

610,007

610,769

0.18

Panther

BF

Aggregator

2

LP,

First

Lien,

Initial

Dollar

Term

Loan,

3.621%,

(1-month

USD

LIBOR

+

3.5%),

4/30/26

Canada

3,894,849

3,902,151

1.18

TI

Group

Automotive

Systems

LLC,

Initial

US

Term

Loan

(2020),

4.5%,

(3-month

USD

LIBOR

+

3.75%),

12/16/24

United

States

1,478,111

1,483,654

0.45

TRICO

Group

LLC,

First

Lien,

Term

Loan,

B3,

8.5%,

(3-month

USD

LIBOR

+

7.5%),

2/02/24

...........

United

States

1,378,886

1,407,326

0.42

j

Truck

Hero,

Inc.,

Initial

Term

Loan,

4.5%,

(1-month

USD

LIBOR

+

3.75%),

1/31/28

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

United

States

500,856

502,672

0.15

11,328,197

3.41

a

a

a

a

a

a

Automobile

Manufacturers

Thor

Industries,

Inc.,

Initial

USD

Term

Loan,

3.938%,

(1-month

USD

LIBOR

+

3.75%),

2/01/26

..........

United

States

2,747,883

2,754,753

0.83

Automotive

Retail

Wand

NewCo

3,

Inc.,

First

Lien,

Term

Loan,

B1,

3.121%,

(1-month

USD

LIBOR

+

3%),

2/05/26

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

United

States

1,477,575

1,466,493

0.44

Biotechnology

Grifols

Worldwide

Operations

Ltd.,

Dollar

Term

Loan,

B,

2.092%,

(1-week

USD

LIBOR

+

2%),

11/15/27

......

Ireland

658,779

658,413

0.20

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

7

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Biotechnology

(continued)

Horizon

Therapeutics

USA,

Inc.,

Seventh

Amendment

Refinancing

Term

Loan,

2.188%,

(1-month

USD

LIBOR

+

2%),

5/22/26

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

United

States

1,244,270

$

1,245,210

0.37

1,903,623

0.57

a

a

a

a

a

a

Broadcasting

Gray

Television,

Inc.,

Term

Loan,

B2,

2.394%,

(1-month

USD

LIBOR

+

2.25%),

2/07/24

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

United

States

5,344,899

5,327,662

1.61

Nexstar

Broadcasting,

Inc.,

Term

Loan,

B3,

2.371%,

(1-month

USD

LIBOR

+

2.25%),

1/17/24

..........

United

States

1,901,435

1,902,119

0.57

Sinclair

Television

Group,

Inc.,

Term

Loan,

B,

2.38%,

(1-month

USD

LIBOR

+

2.25%),

1/03/24

..........

United

States

4,557,929

4,535,139

1.37

Univision

Communications,

Inc.,

First

Lien,

2020

Replacement

Term

Loan,

4.75%,

(1-month

USD

LIBOR

+

3.75%),

3/15/26

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

United

States

558,596

560,535

0.17

12,325,455

3.72

a

a

a

a

a

a

Cable

&

Satellite

CSC

Holdings

LLC,

March

2017

Refinancing

Term

Loan,

2.377%,

(1-month

USD

LIBOR

+

2.25%),

7/17/25

....

United

States

6,923,268

6,895,713

2.08

Radiate

HoldCo

LLC,

Term

Loan,

B,

4.25%,

(1-month

USD

LIBOR

+

3.5%),

9/25/26

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

United

States

327,833

328,517

0.10

j

Virgin

Media

Bristol

LLC,

Term

Loan,

Q,

2.627%,

(1-month

USD

LIBOR

+

3.25%),

1/31/29

..........

United

States

788,848

791,313

0.24

WideOpenWest

Finance

LLC,

Eighth

Amendment

Term

Loan,

B,

4.25%,

(1-month

USD

LIBOR

+

3.25%),

8/18/23

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

United

States

1,036,994

1,037,969

0.31

9,053,512

2.73

a

a

a

a

a

a

Casinos

&

Gaming

Boyd

Gaming

Corp.,

Refinancing

Term

Loan,

B,

2.342%,

(1-week

USD

LIBOR

+

2.25%),

9/15/23

...........

United

States

2,806,318

2,802,950

0.84

Boyd

Gaming

Corp.,

Term

Loan,

A,

3.25%,

(1-week

USD

LIBOR

+

2.75%),

9/15/23

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

United

States

925,113

928,193

0.28

Caesars

Resort

Collection

LLC,

Term

Loan

,

B,

2.871%,

(1-month

USD

LIBOR

+

2.75%),

12/23/24

.

United

States

2,032,913

2,001,779

0.60

B1,

4.621%,

(3-month

USD

LIBOR

+

4.5%;

1-month

USD

LIBOR

+

4.5%),

7/21/25

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

United

States

344,577

344,989

0.11

Station

Casinos

LLC,

Facility

Term

Loan,

B1,

2.5%,

(1-month

USD

LIBOR

+

2.25%),

2/08/27

..........

United

States

2,315,441

2,285,050

0.69

8,362,961

2.52

a

a

a

a

a

a

Commodity

Chemicals

Cyanco

Intermediate

2

Corp.,

First

Lien,

Initial

Term

Loan,

3.621%,

(1-month

USD

LIBOR

+

3.5%),

3/16/25

.....

United

States

298,432

298,868

0.09

Univar

Solutions

USA,

Inc.,

Term

Loan,

B3,

2.371%,

(1-month

USD

LIBOR

+

2.25%),

7/01/24

..........

United

States

822,270

824,621

0.25

1,123,489

0.34

a

a

a

a

a

a

Communications

Equipment

CommScope

,

Inc.,

Initial

Term

Loan,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

4/06/26

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

United

States

4,003,480

4,005,042

1.21

Construction

&

Engineering

Ply

Gem

Midco

,

Inc.,

Initial

Term

Loan,

3.876%,

(1-month

USD

LIBOR

+

3.75%),

4/12/25

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

United

States

498,721

501,028

0.15

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Construction

Materials

j

Park

River

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan,

4%,

(3-month

USD

LIBOR

+

3.25%),

12/28/27

......

United

States

563,010

$

565,051

0.17

White

Cap

Buyer

LLC,

Initial

Closing

Date

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

4%),

10/19/27

.......

United

States

748,125

753,474

0.23

1,318,525

0.40

a

a

a

a

a

a

Consumer

Electronics

Playtika

Holding

Corp.,

Term

Loan,

B,

7%,

(3-month

USD

LIBOR

+

6%),

12/10/24

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

United

States

2,299,000

2,316,369

0.70

Data

Processing

&

Outsourced

Services

Neustar

,

Inc.,

First

Lien,

Term

Loan,

B5,

5.5%,

(3-month

USD

LIBOR

+

4.5%),

8/08/24

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

United

States

1,766,172

1,740,315

0.52

Pitney

Bowes,

Inc.,

Incremental

Term

Loan,

B,

5.63%,

(1-month

USD

LIBOR

+

5.5%),

1/07/25

...........

United

States

2,310,359

2,309,643

0.70

Tempo

Acquisition

LLC,

Extended

Term

Loan,

3.75%,

(1-month

USD

LIBOR

+

3.25%),

11/02/26

..........

United

States

648,371

648,877

0.19

WEX,

Inc.,

Term

Loan,

B3,

2.371%,

(1-month

USD

LIBOR

+

2.25%),

5/15/26

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

United

States

321,507

321,909

0.10

5,020,744

1.51

a

a

a

a

a

a

Department

Stores

Harbor

Freight

Tools

USA,

Inc.,

Initial

Term

Loan

(2020),

4%,

(1-month

USD

LIBOR

+

3.25%),

10/19/27

......

United

States

370,157

371,129

0.11

Michaels

Stores,

Inc.,

2020

Refinancing

Term

Loan,

B,

4.25%,

(1-month

USD

LIBOR

+

3.5%),

10/01/27

.....

United

States

900,022

901,147

0.27

1,272,276

0.38

a

a

a

a

a

a

Distributors

Resideo

Funding,

Inc.,

Term

Loan,

A,

2.51%,

(3-month

USD

LIBOR

+

2.25%),

10/25/23

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

United

States

7,740,000

7,623,900

2.29

Diversified

Banks

Finastra

Ltd.,

First

Lien,

Dollar

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

3.5%),

6/13/24

...........

United

Kingdom

3,358,496

3,306,020

0.99

Diversified

Capital

Markets

Vertical

Midco

GmbH,

USD

Term

Loan,

4.567%,

(6-month

USD

LIBOR

+

4.25%),

6/30/27

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

Germany

1,233,428

1,246,619

0.38

Diversified

Metals

&

Mining

j

U.S.

Silica

Co.,

Term

Loan,

5%,

(1-month

USD

LIBOR

+

4%),

5/01/25

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

United

States

366,197

338,848

0.10

Diversified

Support

Services

Allied

Universal

Holdco

LLC,

Initial

Term

Loan,

4.371%,

(1-month

USD

LIBOR

+

4.25%),

7/10/26

..........

United

States

1,016,178

1,018,002

0.31

CCI

Buyer,

Inc.,

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

4%),

12/17/27

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

United

States

241,672

243,666

0.07

Legalzoom.com,

Inc.,

First

Lien,

2018

Term

Loan,

4.621%,

(1-month

USD

LIBOR

+

4.5%),

11/21/24

....

United

States

4,010,844

4,018,384

1.21

5,280,052

1.59

a

a

a

a

a

a

Drug

Retail

GNC

Holdings,

Inc.,

Second

Lien,

Term

Loan,

6.234%,

(3-month

USD

LIBOR

+

6%),

10/30/26

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

United

States

5,318,279

3,988,710

1.20

Education

Services

KUEHG

Corp.,

Term

Loan,

B-3,

4.75%,

(3-month

USD

LIBOR

+

3.75%),

2/21/25

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

United

States

1,398,721

1,358,508

0.41

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Electric

Utilities

Astoria

Energy

LLC,

Advance

(2020)

Term

Loan,

B,

4.5%,

(6-month

USD

LIBOR

+

3.5%),

12/10/27

..........

United

States

400,685

$

401,624

0.12

EFS

Cogen

Holdings

I

LLC,

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

3.5%),

10/01/27

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

United

States

395,118

394,707

0.12

796,331

0.24

a

a

a

a

a

a

Electronic

Equipment

&

Instruments

j

Verifone

Systems,

Inc.,

First

Lien,

Initial

Term

Loan,

4.224%,

(3-month

USD

LIBOR

+

4%),

8/20/25

......

United

States

498,724

487,468

0.15

Food

Retail

Shearer's

Foods

LLC,

First

Lien,

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

4%),

9/23/27

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

United

States

191,848

192,807

0.06

Health

Care

Facilities

ADMI

Corp.,

Amendment

No.

3

Incremental

Term

Loan,

4.75%,

(1-month

USD

LIBOR

+

4%),

12/23/27

......

United

States

606,806

612,875

0.18

ADMI

Corp.,

Amendment

No.

4

Refinancing

Term

Loan,

3.75%,

(1-month

USD

LIBOR

+

3.25%),

12/23/27

....

United

States

700,000

700,000

0.21

Global

Medical

Response,

Inc.,

2018

New

Term

Loan,

5.25%,

(3-month

USD

LIBOR

+

4.25%),

3/14/25

.....

United

States

842,288

842,183

0.25

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Delayed

Draw

Term

Loan,

4.121%,

(1-month

USD

LIBOR

+

4%),

3/31/27

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

United

States

116,535

116,754

0.03

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Term

Loan,

4.121%,

(1-month

USD

LIBOR

+

4%),

3/31/27

......

United

States

1,543,250

1,546,151

0.47

Pathway

Vet

Alliance

LLC,

Replacement

Term

Loan,

3.865%,

(1-month

USD

LIBOR

+

3.75%),

12/31/27

...

United

States

555,556

556,600

0.17

Pluto

Acquisition

I,

Inc.,

Term

Loan,

B,

4.615%,

(1-month

USD

LIBOR

+

4.5%),

12/31/27

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

United

States

231,958

233,408

0.07

4,607,971

1.38

a

a

a

a

a

a

Health

Care

Services

BrightSpring

Health

Services,

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.75%),

3/05/26

..........

United

States

300,000

302,063

0.09

CNT

Holdings

I

Corp.,

First

Lien,

Term

Loan

Facility,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

11/08/27

.....

United

States

193,187

194,533

0.06

j

eResearchTechnology

,

Inc.,

First

Lien,

Initial

Term

Loan,

5.5%,

(1-month

USD

LIBOR

+

4.5%),

2/04/27

......

United

States

1,421,748

1,430,044

0.43

Gentiva

Health

Services,

Inc.,

First

Lien,

Term

Loan,

B,

3.375%,

(1-month

USD

LIBOR

+

3.25%),

7/02/25

....

United

States

947,440

949,515

0.29

National

Mentor

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.418%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

3/09/26

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

United

States

3,456,914

3,465,556

1.04

C,

4.51%,

(1-month

USD

LIBOR

+

4.25%),

3/09/26

..

United

States

158,198

158,594

0.05

Navicure

,

Inc.,

First

Lien,

Initial

Term

Loan,

4.121%,

(1-month

USD

LIBOR

+

4%),

10/22/26

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

United

States

3,234,872

3,238,915

0.98

Phoenix

Guarantor,

Inc.,

First

Lien,

Term

Loan,

B1,

3.38%,

(1-month

USD

LIBOR

+

3.25%),

3/05/26

.....

United

States

1,841,574

1,839,659

0.55

Pluto

Acquisition

I,

Inc.,

Incremental

Term

Loan,

5.5%,

(1-month

USD

LIBOR

+

5%),

6/22/26

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

United

States

400,685

402,688

0.12

Radiology

Partners,

Inc.,

First

Lien,

Term

Loan,

B,

4.804%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

7/09/25

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

United

States

400,000

398,550

0.12

U.S.

Anesthesia

Partners,

Inc.,

First

Lien,

Initial

Term

Loan,

4%,

(3-month

USD

LIBOR

+

3%),

6/23/24

.....

United

States

296,923

293,105

0.09

12,673,222

3.82

a

a

a

a

a

a

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Health

Care

Technology

Inovalon

Holdings,

Inc.,

Refinancing

Date

Term

Loan,

3.188%,

(1-month

USD

LIBOR

+

3%),

4/02/25

......

United

States

335,737

$

336,816

0.10

Household

Products

Knowlton

Development

Corp.,

Inc.,

2020

Initial

Term

Loan,

3.871%,

(1-month

USD

LIBOR

+

3.75%),

12/22/25

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

Canada

1,056,188

1,051,346

0.32

Human

Resource

&

Employment

Services

j

UKG,

Inc.,

First

Lien,

2021

Incremental

Term

Loan,

4%,

(2-month

USD

LIBOR

+

3.25%),

5/04/26

..........

United

States

703,428

707,449

0.21

Industrial

Machinery

Altra

Industrial

Motion

Corp.,

Term

Loan,

2.121%,

(1-month

USD

LIBOR

+

2%),

10/01/25

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

United

States

794,742

795,863

0.24

Navistar,

Inc.,

Term

Loan,

B,

3.63%,

(1-month

USD

LIBOR

+

3.5%),

11/06/24

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

United

States

6,070,098

6,078,444

1.83

6,874,307

2.07

a

a

a

a

a

a

Insurance

Brokers

Alliant

Holdings

Intermediate

LLC,

2018

Initial

Term

Loan,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

5/09/25

....

United

States

2,147,970

2,141,118

0.64

Alliant

Holdings

Intermediate

LLC,

Term

Loan,

B3,

4.25%,

(1-month

USD

LIBOR

+

3.75%),

11/05/27

..........

United

States

88,097

88,363

0.03

2,229,481

0.67

a

a

a

a

a

a

Integrated

Telecommunication

Services

Global

Tel

Link,

First

Lien,

Term

Loan,

4.371%,

(1-month

USD

LIBOR

+

4.25%),

11/29/25

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

United

States

4,788,520

4,417,410

1.33

Global

Tel

Link,

Second

Lien,

Term

Loan,

8.371%,

(1-month

USD

LIBOR

+

8.25%),

11/29/26

..........

United

States

2,479,737

1,926,755

0.58

West

Corp.,

Initial

Term

Loan,

LOAN

Note,

B,

5%,

(1-month

USD

LIBOR

+

4%;

3-month

USD

LIBOR

+

4%),

10/10/24

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

United

States

1,189,540

1,172,810

0.35

7,516,975

2.26

a

a

a

a

a

a

Internet

&

Direct

Marketing

Retail

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

2020

June

New

Term

Loan,

4.75%,

(1-month

USD

LIBOR

+

3.75%),

9/13/24

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

United

States

473,306

475,377

0.15

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

Amendment

No.

2

Initial

Term

Loan,

Internet

Brands

Inc

Note,

3.621%,

(1-month

USD

LIBOR

+

3.5%),

9/13/24

United

States

1,010,076

1,005,894

0.30

1,481,271

0.45

a

a

a

a

a

a

Internet

Services

&

Infrastructure

Barracuda

Networks,

Inc.,

First

Lien,

2020

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

2/12/25

......

United

States

737,877

739,566

0.22

Informatica

LLC,

Dollar

2020

Term

Loan,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

2/25/27

..........

United

States

1,449,050

1,448,405

0.44

TIBCO

Software,

Inc.,

Term

Loan,

B3,

3.88%,

(1-month

USD

LIBOR

+

3.75%),

6/30/26

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

United

States

5,546,033

5,546,033

1.67

7,734,004

2.33

a

a

a

a

a

a

Investment

Banking

&

Brokerage

j

Citadel

Securities

LP,

Term

Loan,

B,

2.615%,

(1-month

USD

LIBOR

+

2.5%),

2/29/28

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

United

States

1,300,000

1,295,665

0.39

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Investment

Banking

&

Brokerage

(continued)

Deerfield

Dakota

Holding

LLC,

First

Lien,

Initial

Dollar

Term

Loan,

4.75%,

(1-month

USD

LIBOR

+

3.75%),

4/09/27

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

United

States

1,417,866

$

1,427,486

0.43

j

Jane

Street

Group

LLC,

Term

Loan,

2.875%,

(1-month

USD

LIBOR

+

2.75%),

1/31/28

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

United

States

939,848

938,339

0.28

3,661,490

1.10

a

a

a

a

a

a

IT

Consulting

&

Other

Services

Aventiv

Technologies

LLC,

First

Lien,

Initial

Term

Loan,

5.5%,

(3-month

USD

LIBOR

+

4.5%),

11/01/24

......

United

States

979,798

898,612

0.27

Conduent

,

Inc.,

Term

Loan,

B,

2.621%,

(1-month

USD

LIBOR

+

2.5%),

12/07/23

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

United

States

233,470

231,720

0.07

Milano

Acquisition

Corp.,

Term

Loan,

B,

4.75%,

(3-month

USD

LIBOR

+

4%),

10/01/27

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

United

States

1,254,863

1,260,359

0.38

2,390,691

0.72

a

a

a

a

a

a

Leisure

Facilities

24

Hour

Fitness

Worldwide,

Inc.,

Exit

Term

Loan,

5.24%,

(1-month

USD

LIBOR

+

5%),

12/30/25

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

United

States

4,667,993

4,170,082

1.25

Leisure

Products

j

Hercules

Achievement,

Inc.

(Varsity

Brands

Holding

Co.,

Inc.),

First

Lien,

Initial

Term

Loan,

4.5%,

(1-month

USD

LIBOR

+

3.5%),

12/16/24

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

United

States

499,144

480,044

0.14

NASCAR

Holdings

LLC,

Initial

Term

Loan,

2.897%,

(1-month

USD

LIBOR

+

2.75%),

10/19/26

.........

United

States

1,458,332

1,460,381

0.44

1,940,425

0.58

a

a

a

a

a

a

Life

&

Health

Insurance

AssuredPartners

,

Inc.,

2020

February

Refinancing

Term

Loan,

3.647%,

(1-month

USD

LIBOR

+

3.5%),

2/12/27

United

States

1,445,094

1,439,531

0.43

Metal

&

Glass

Containers

BWay

Holding

Co.,

Initial

Term

Loan,

3.381%,

(1-month

USD

LIBOR

+

3.25%),

4/03/24

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

United

States

2,536,034

2,494,824

0.75

Movies

&

Entertainment

Banijay

Entertainment

SAS,

Facility

USD

Term

Loan,

B,

3.881%,

(1-month

USD

LIBOR

+

3.75%),

3/01/25

....

France

422,940

420,430

0.13

Diamond

Sports

Group

LLC,

Term

Loan,

3.38%,

(1-month

USD

LIBOR

+

3.25%),

8/24/26

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

United

States

3,573,131

3,069,927

0.93

Lions

Gate

Capital

Holdings

LLC,

Term

Loan,

A,

1.871%,

(1-month

USD

LIBOR

+

1.75%),

3/22/23

..........

United

States

3,611,298

3,593,241

1.08

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC),

First

Lien,

Term

Loan,

B-1,

2.88%,

(1-month

USD

LIBOR

+

2.75%),

5/18/25

.....

United

States

648,266

607,039

0.18

7,690,637

2.32

a

a

a

a

a

a

Office

Services

&

Supplies

Staples,

Inc.,

2019

Refinancing

New

Term

Loan,

B1,

5.214%,

(3-month

USD

LIBOR

+

5%),

4/16/26

......

United

States

1,242,986

1,220,457

0.37

Oil

&

Gas

Exploration

&

Production

k

Fieldwood

Energy

LLC,

First

Lien,

Closing

Date

Term

Loan,

6.25%,

(3-month

USD

LIBOR

+

5.25%),

4/11/22

United

States

25,460,344

6,609,123

1.99

UTEX

Industries,

Inc.,

First

Out

Term

Loan,

8.5%,

(1-month

USD

LIBOR

+

7%),

12/03/24

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

United

States

1,251,016

1,261,963

0.38

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Oil

&

Gas

Exploration

&

Production

(continued)

UTEX

Industries,

Inc.,

Second

Out

Term

Loan,

11%,

(1-month

USD

LIBOR

+

9.5%),

12/03/25

..........

United

States

764,899

$

759,801

0.23

8,630,887

2.60

a

a

a

a

a

a

Oil

&

Gas

Storage

&

Transportation

Centurion

Pipeline

Co.

LLC,

Initial

Term

Loan,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

9/29/25

..........

United

States

1,286,031

1,284,423

0.39

Packaged

Foods

&

Meats

B&G

Foods,

Inc.,

Term

Loan,

B4,

2.621%,

(1-month

USD

LIBOR

+

2.5%),

10/10/26

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

United

States

295,597

296,731

0.09

CSM

Bakery

Solutions

Ltd.,

First

Lien,

Term

Loan,

7.25%,

(3-month

USD

LIBOR

+

6.25%),

1/04/22

..........

United

States

6,207,732

6,175,141

1.86

g

CSM

Bakery

Solutions

Ltd.,

Second

Lien,

Term

Loan,

8.75%,

PIK,

(3-month

USD

LIBOR

+

7.75%),

7/05/21

.

United

States

2,131,331

2,093,135

0.63

JBS

USA

Lux

SA,

New

Term

Loan,

2.121%,

(1-month

USD

LIBOR

+

2%),

5/01/26

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

Luxembourg

894,571

895,085

0.27

9,460,092

2.85

a

a

a

a

a

a

Paper

Packaging

Berry

Global,

Inc.,

Term

Loan,

Y,

2.133%,

(1-month

USD

LIBOR

+

2%),

7/01/26

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

United

States

627,749

627,630

0.19

Paper

Products

d

Appvion

Operations,

Inc.,

Term

Loan,

7%,

(3-month

USD

LIBOR

+

6%),

6/12/26

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

United

States

4,145,882

4,107,885

1.24

Personal

Products

Coty,

Inc.,

USD

Term

Loan,

B,

2.382%,

(1-month

USD

LIBOR

+

2.25%),

4/07/25

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

United

States

248,598

235,011

0.07

Sunshine

Luxembourg

VII

SARL,

Facility

Term

Loan,

B1,

5%,

(3-month

USD

LIBOR

+

4%),

10/01/26

........

Luxembourg

2,108,700

2,118,073

0.64

2,353,084

0.71

a

a

a

a

a

a

Pharmaceuticals

Bausch

Health

Cos.,

Inc.,

Initial

Term

Loan,

3.121%,

(1-month

USD

LIBOR

+

3%),

6/02/25

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

United

States

2,956,012

2,962,249

0.89

Property

&

Casualty

Insurance

Asurion

LLC,

New

Term

Loan,

B-8,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

12/23/26

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

United

States

3,637,035

3,623,397

1.09

Asurion

LLC,

Replacement

Term

Loan,

B6,

3.147%,

(1-month

USD

LIBOR

+

3%),

11/03/23

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

United

States

95,252

95,222

0.03

Asurion

LLC,

Second

Lien,

Replacement

Term

Loan,

B2,

6.621%,

(1-month

USD

LIBOR

+

6.5%),

8/04/25

.....

United

States

80,342

80,643

0.02

Asurion

LLC,

Term

Loan

,

5.365%,

(1-month

USD

LIBOR

+

5.25%),

12/31/27

...

United

States

52,263

52,786

0.02

B9,

3.365%,

(1-month

USD

LIBOR

+

3.25%),

12/31/27

United

States

1,001,142

996,762

0.30

4,848,810

1.46

a

a

a

a

a

a

Publishing

j

Cengage

Learning,

Inc.,

2016

Refinancing

Term

Loan,

5.25%,

(3-month

USD

LIBOR

+

4.25%),

6/07/23

.....

United

States

1,598,433

1,541,497

0.46

Nielsen

Finance

LLC,

Dollar

Term

Loan,

B5,

4.75%,

(1-month

USD

LIBOR

+

3.75%),

6/04/25

..........

United

States

210,529

212,833

0.06

1,754,330

0.52

a

a

a

a

a

a

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Railroads

Ventia

Midco

Pty.

Ltd.,

2017

Refinancing

USD

Term

Loan,

B,

5%,

(3-month

USD

LIBOR

+

4%),

5/21/26

.......

Australia

5,681,715

$

5,681,715

1.71

Research

&

Consulting

Services

j

Dun

&

Bradstreet

Corp.

(The),

Initial

Term

Loan

Borrowing,

B,

3.378%,

(1-month

USD

LIBOR

+

3.25%),

2/06/26

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

United

States

510,614

512,621

0.16

Restaurants

IRB

Holding

Corp.,

Fourth

Amendment

Incremental

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.25%),

12/15/27

United

States

358,059

359,817

0.11

Security

&

Alarm

Services

Prime

Security

Services

Borrower

LLC,

First

Lien,

2019

Refinancing

Term

Loan,

B1,

4.25%,

(3-month

USD

LIBOR

+

3.25%;

1-month

USD

LIBOR

+

3.25%),

9/23/26

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

United

States

450,145

450,788

0.13

Specialized

Consumer

Services

Sedgwick

Claims

Management

Services,

Inc.

(Lightning

Cayman

Merger

Sub

Ltd.),

Initial

Term

Loan,

3.371%,

(1-month

USD

LIBOR

+

3.25%),

12/31/25

.........

United

States

497,462

495,251

0.15

j

WeddingWire

,

Inc.,

First

Lien,

Initial

Term

Loan,

4.711%,

(2-month

USD

LIBOR

+

4.5%;

3-month

USD

LIBOR

+

4.5%),

12/19/25

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

United

States

600,000

590,625

0.18

1,085,876

0.33

a

a

a

a

a

a

Specialized

Finance

j

Sabre

GLBL,

Inc.,

2020

Other

Term

Loan,

B,

4.75%,

(1-month

USD

LIBOR

+

4%),

12/17/27

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

United

States

86,896

87,928

0.02

Verscend

Holding

Corp.,

Term

Loan,

B,

4.621%,

(1-month

USD

LIBOR

+

4.5%),

8/27/25

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

United

States

1,817,279

1,821,822

0.55

1,909,750

0.57

a

a

a

a

a

a

Specialty

Chemicals

Illuminate

Buyer

LLC,

Term

Loan,

4.121%,

(1-month

USD

LIBOR

+

4%),

6/30/27

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

United

States

283,769

285,100

0.08

j

INEOS

226

Ltd.,

USD

Term

Loan,

B,

3.25%,

(1-month

USD

LIBOR

+

2.75%),

1/21/26

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

United

Kingdom

515,166

517,850

0.16

j

NIC

Acquisition

Corp.,

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

12/29/27

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

United

States

372,468

374,332

0.11

1,177,282

0.35

a

a

a

a

a

a

Specialty

Stores

j

Party

City

Holdings,

Inc.,

2018

Replacement

Term

Loan,

3.25%,

(2-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%),

8/19/22

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

United

States

1,395,675

1,349,443

0.41

Petco

Animal

Supplies,

Inc.,

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.25%),

1/26/23

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

United

States

521,411

521,560

0.16

PetSmart,

Inc.,

Term

Loan,

B,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

12/31/27

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

United

States

518,127

515,536

0.15

Woof

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan,

4.5%,

(1-year

USD

LIBOR

+

3.75%),

12/21/27

...........

United

States

320,887

322,760

0.10

2,709,299

0.82

a

a

a

a

a

a

Systems

Software

j

athenahealth

,

Inc.,

First

Lien,

Term

Loan,

B,

4.633%,

(1-month

USD

LIBOR

+

4.5%),

2/11/26

...........

United

States

3,101,430

3,116,457

0.94

DCert

Buyer,

Inc.,

First

Lien,

Initial

Term

Loan,

4.121%,

(1-month

USD

LIBOR

+

4%),

10/16/26

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

United

States

2,571,347

2,580,990

0.78

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

14

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

h,i

Senior

Floating

Rate

Interests

(continued)

Systems

Software

(continued)

Hyland

Software,

Inc.,

First

Lien,

2018

Refinancing

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.5%),

7/01/24

.

United

States

1,238,598

$

1,245,416

0.37

Idera

,

Inc.,

First

Lien,

Initial

Term

Loan,

5%,

(3-month

USD

LIBOR

+

4%),

6/28/24

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

United

States

880,841

883,413

0.27

Ivanti

Software,

Inc.,

First

Lien,

Initial

Term

Loan,

5.75%,

(3-month

USD

LIBOR

+

4.75%),

12/01/27

.........

United

States

500,000

505,000

0.15

Perforce

Software,

Inc.,

First

Lien,

New

Term

Loan,

3.871%,

(1-month

USD

LIBOR

+

3.75%),

7/01/26

....

United

States

1,806,750

1,805,621

0.54

Quest

Software

US

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan,

4.462%,

(3-month

USD

LIBOR

+

4.25%),

5/16/25

United

States

990,012

991,427

0.30

11,128,324

3.35

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

Amentum

Government

Services

Holdings

LLC,

First

Lien,

Initial

Term

Loan,

3.621%,

(1-month

USD

LIBOR

+

3.5%),

1/29/27

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

United

States

895,500

892,702

0.27

Amentum

Government

Services

Holdings

LLC,

Incremental

Term

Loan,

5.5%,

(3-month

USD

LIBOR

+

4.75%),

1/29/27

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

United

States

620,130

624,781

0.19

1,517,483

0.46

a

a

a

a

a

a

Trucking

Avis

Budget

Car

Rental

LLC,

New

Term

Loan,

B,

2.38%,

(1-month

USD

LIBOR

+

2.25%),

8/06/27

..........

United

States

2,789,660

2,734,369

0.82

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

Canadian

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3%),

7/29/22

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

United

States

197,715

196,005

0.06

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

U.S.

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3%),

7/29/22

United

States

831,433

824,241

0.25

a

Onsite

Rental

Group

Operations

Pty.

Ltd.,

Term

Loan,

B,

5.5%,

(1-month

USD

LIBOR

+

4.5%),

10/26/22

......

Australia

7,844,959

7,307,064

2.20

11,061,679

3.33

a

a

a

a

a

a

Wireless

Telecommunication

Services

Altice

France

SA,

USD

Incremental

Term

Loan,

B-13,

4.127%,

(1-month

USD

LIBOR

+

4%),

8/14/26

......

France

1,173,810

1,176,093

0.35

Total

Senior

Floating

Rate

Interests

(Cost

$292,932,140)

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

266,896,973

80.37

Shares/Units

Escrows

and

Litigation

Trusts

b,f

99

Escrow

Issuer,

Inc.,

Escrow

Account,

144A

........

United

States

600,000

583,353

0.18

a,b

Millennium

Corporate

Claim

Trust,

Escrow

Account

....

United

States

6,589,709

—

0.00

a,b

Millennium

Lender

Claim

Trust,

Escrow

Account

......

United

States

6,589,709

—

0.00

a,b,d

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.........

United

States

98,704

—

0.00

Total

Escrows

and

Litigation

Trusts

(Cost

$599,509)

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

583,353

0.18

Total

Long

Term

Investments

(Cost

$402,538,915)

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

326,149,678

98.22

a

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Master

Series

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

See

Abbreviations

on

page

28

.

Short

Term

Investments

a

a

Principal

Amount

*

a

Value

%

of

Net

Assets

aa

aa

aa

aa

aa

aa

Repurchase

Agreements

l

Joint

Repurchase

Agreement,

0.04%,

2/01/21

(Maturity

Value

$16,879,957)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$9,980,274)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$2,907,573)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$3,992,110)

Collateralized

by

U.S.

Government

Agency

Securities,

3.5%

-

5%,

11/20/41

-

2/20/50;

U.S.

Treasury

Bonds,

6.25%

-

7.63%,

11/15/22

-

8/15/23;

and

U.S.

Treasury

Note,

1.63%,

11/15/22

(valued

at

$17,222,208)

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

16,879,900

$

16,879,900

5.08

Total

Repurchase

Agreements

(Cost

$16,879,900)

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

16,879,900

5.08

a

a

a

Total

Short

Term

Investments

(Cost

$16,879,900

)

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

16,879,900

5.08

a

Total

Investments

(Cost

$419,418,815)

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

$343,029,578

103.30

Other

Assets,

less

Liabilities

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

(10,958,839)

(3.30)

Net

Assets

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

$332,070,739

100.00

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.01%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

9

regarding

restricted

securities.

d

See

Note

10

regarding

holdings

of

5%

voting

securities.

e

See

Note

3(d)

regarding

investments

in

affiliated

management

investment

companies.

f

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$5,106,767,

representing

1.5%

of

net

assets.

g

Income

may

be

received

in

additional

securities

and/or

cash.

h

See

Note

1(d)

regarding

senior

floating

rate

interests.

i

The

coupon

rate

shown

represents

the

rate

at

period

end.

j

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

k

See

Note

7

regarding

credit

risk

and

defaulted

securities.

l

See

Note

1(b)

regarding

joint

repurchase

agreement.

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

January

31,

2021

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$320,324,910

Cost

-

Controlled

affiliates

(Note

3

d

and

10

)

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

24,162,179

Cost

-

Non-controlled

affiliates

(Note

3

d

and

10

)

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

58,051,826

Cost

-

Unaffiliated

repurchase

agreements

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

16,879,900

Value

-

Unaffiliated

issuers

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

$285,261,203

Value

-

Controlled

affiliates

(Note

3

d

and

10

)

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

23,810,535

Value

-

Non-controlled

affiliates

(Note

3

d

and

10

)

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

17,077,940

Value

-

Unaffiliated

r

epurchase

agreements

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

16,879,900

Cash

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

804,606

Receivables:

Investment

securities

sold

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

2,908,801

Dividends

and

interest

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

1,240,336

Total

assets

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

347,983,321

Liabilities:

Payables:

Investment

securities

purchased

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

14,548,959

Management

fees

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

130,759

Distributions

to

shareholders

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

1,176,818

Accrued

expenses

and

other

liabilities

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

56,046

Total

liabilities

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

15,912,582

Net

assets,

at

value

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

$332,070,739

Net

assets

consist

of:

Paid-in

capital

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

$722,636,905

Total

distributable

earnings

(losses)

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

(390,566,166)

Net

assets,

at

value

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

$332,070,739

Shares

outstanding

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

46,356,375

Net

asset

value

and

maximum

offering

price

per

share

($332,070,739÷46,356,375

shares

outstanding)

..........

$7.16

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

January

31,

2021

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

17

Franklin

Floating

Rate

Master

Series

Investment

income:

Dividends:

Unaffiliated

issuers

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

$157,447

Controlled

affiliates

(Note

3

d

and

10

)

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

329,943

Non-controlled

affiliates

(Note

3

d

and

10

)

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

134,040

Interest:

Unaffiliated

issuers

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

7,594,794

Unaffiliated

issuers:

Payment-in-kind

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

638,399

Non-controlled

affiliates

(Note

3

d

and

10

)

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

193,710

Total

investment

income

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

9,048,333

Expenses:

Management

fees

(Note

3

a

)

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

948,607

Custodian

fees

(Note

4

)

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

1,355

Reports

to

shareholders

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

2,812

Registration

and

filing

fees

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

53

Professional

fees

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

96,822

Trustees'

fees

and

expenses

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

11,188

Other

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

13,057

Total

expenses

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

1,073,894

Expense

reductions

(Note

4

)

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

(1,789)

Expenses

waived/paid

by

affiliates

(Note

3

d

and

3

e

)

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

(123,862)

Net

expenses

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

948,243

Net

investment

income

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

8,100,090

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

(23,748,133)

Non-controlled

affiliates

(Note

3

d

and

10

)

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

(2,479,118)

Net

realized

gain

(loss)

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

(26,227,251)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

33,746,230

Controlled

affiliates

(Note

3

d

)

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

898,402

Non-controlled

affiliates

(Note

3

d

and

10

)

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

818,917

Net

change

in

unrealized

appreciation

(depreciation)

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

35,463,549

Net

realized

and

unrealized

gain

(loss)

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

9,236,298

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$17,336,388

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

18

Franklin

Floating

Rate

Master

Series

Six

Months

Ended

January

31,

2021

(unaudited)

Year

Ended

July

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$8,100,090

$34,395,151

Net

realized

gain

(los

s)

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

(26,227,251)

(65,558,706)

Net

change

in

unrealized

appreciation

(depreciation)

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

35,463,549

(29,805,223)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

17,336,388

(60,968,778)

Distributions

to

shareholders

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

(9,121,491)

(39,188,896)

Capital

share

transactions

(Note

2

)

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

(70,864,366)

(559,801,591)

Net

increase

(decrease)

in

net

assets

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

(62,649,469)

(659,959,265)

Net

assets:

Beginning

of

period

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

394,720,208

1,054,679,473

End

of

period

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

$332,070,739

$394,720,208

Franklin

Floating

Rate

Master

Trust

19

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

Floating

Rate

Master

Series

1.

Organization

and

Significant

Accounting

Policies

Franklin

Floating

Rate

Master

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

two separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Floating

Rate

Master

Series

(Fund)

is

included

in

this

report.

The

Fund’s

shares

are

exempt

from

registration

under

the

Securities

Act

of

1933. 

The

following

summarizes

the

Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund’s

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

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.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Fund’s

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

Investments

in

repurchase

agreements

are

valued

at

cost,

which

approximates

fair

value.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Joint

Repurchase

Agreement

The

Fund

enters

into

a

joint

repurchase

agreement

whereby

its

uninvested

cash

balance

is

deposited

into

a

joint

cash

account

with

other

funds

managed

by

the

investment

manager

or

an

affiliate

of

the

investment

manager

and

is

used

to

invest

in

one

or

more

repurchase

agreements.

The

value

and

face

amount

of

the

joint

repurchase

agreement

are

allocated

to

the

funds

based

on

their

pro-rata

interest.

A

repurchase

agreement

is

accounted

for

as

a

loan

by

the

Fund

to

the

seller,

collateralized

by

securities

which

are

delivered

to

the

Fund's

custodian.

The

fair

value,

including

accrued

interest,

of

the

initial

collateralization

is

required

to

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

20

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

Fund,

certain

MRAs

may

permit

the

non-

defaulting

party

to

net

and

close-out

all

transactions,

if

any,

traded

under

such

agreements.

The

Fund

may

sell

securities

it

holds

as

collateral

and

apply

the

proceeds

towards

the

repurchase

price

and

any

other

amounts

owed

by

the

seller

to

the

Fund

in

the

event

of

default

by

the

seller.

This

could

involve

costs

or

delays

in

addition

to

a

loss

on

the

securities

if

their

value

falls

below

the

repurchase

price

owed

by

the

seller.

The

joint

repurchase

agreement

held

by

the Fund

at

period

end,

as

indicated

in

the

Statement

of

Investments,

had

been

entered

into

on

January

29,

2021.

c.

Securities

Purchased

on

a

Delayed

Delivery

Basis

The

Fund

purchases

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

Sufficient

assets

have

been

segregated

for

these

securities.

d.

Senior

Floating

Rate

Interests

The

Fund

invests

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the Fund

invests

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

On

July

27,

2017,

the

United

Kingdom's

Financial

Conduct

Authority

announced

its

intention

to

cease

sustaining

LIBOR

after

2021.

There

remains

uncertainty

regarding

the

future

utilization

of

LIBOR

and

the

nature

of

any

replacement

rate.

As

such,

the

potential

effect

of

a

transition

away

from

LIBOR

on

the

Fund

or

the

Fund's

investments

that

use

or

may

use

a

floating

rate

based

on

LIBOR

cannot

yet

be

determined.

e.

Income

Taxes

The

Fund

is

a

disregarded

entity

for

U.S.

income

tax

purposes.

As

such,

no

provision

has

been

made

for

income

taxes

because

all

income,

expenses,

gains

and

losses

are

allocated

to

a

non-U.S.

beneficial

owner

for

inclusion

in

its

individual

income

tax

return,

as

applicable.

f.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-dividend

date.

The

Fund's gross

investment

income

is

distributed

to

the

owner

daily

and

paid

monthly.

Net

capital

gains

(or

losses)

realized

by

the

Fund

will

not

be

distributed.

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.

g.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

1.

Organization

and

Significant

Accounting

Policies

(continued)

b.

Joint

Repurchase

Agreement

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

21

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

h.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

2.

Shares

of

Beneficial

Interest

At

January

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

January

31,

2021,

the

annualized

gross

effective

investment

management

fee

rate

was

0.530%

of

the

Fund’s

average

daily

net

assets. 

Six

Months

Ended

January

31,

2021

Year

Ended

July

31,

2020

Shares

Amount

Shares

Amount

Shares

sold

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

786,560

$5,555,832

3,720,913

$29,708,156

Shares

redeemed

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

(10,867,020)

(76,420,198)

(76,295,798)

(589,509,747)

Net

increase

(decrease)

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

(10,080,460)

$(70,864,366)

(72,574,885)

$(559,801,591)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.530%

Up

to

and

including

$2.5

billion

0.450%

Over

$2.5

billion,

up

to

and

including

$6.5

billion

0.430%

Over

$6.5

billion,

up

to

and

including

$11.5

billion

0.400%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.390%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.380%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.370%

In

excess

of

$21.5

billion

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

22

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund's

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

d.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies

for

purposes

other

than

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

January

31,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

e.

Waiver

and

Expense

Reimbursements

Advisers

has

voluntarily

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

expenses

(excluding

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

of

the

Fund

do

not

exceed

0.53%,

based

on

the

average

net

assets

of

the

Fund.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

Advisers

may

discontinue

this

waiver

at

any

time

upon

notice

to

the

Board.

f.

Other

Affiliated

Transactions

At

January

31,

2021,

Franklin

Floating

Rate

Fund,

PLC

owned

100%

of

the

Fund's

outstanding

shares.

Investment

activities

of

this

shareholder

could

have

a

material

impact

on

the

Fund.

4.

Expense

Offset

Arrangement

The

Fund

 has

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

Fund's

custodian

expenses.

During

the

period

ended

January

31,

2021

,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Floating

Rate

Master

Series

Controlled

Affiliates

Dividends

Franklin

Liberty

Senior

Loan

ETF

$22,912,133

$—

$—

$

—

$

898,402

$

23,810,535

957,785

$

329,943

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

$10,750,395

$—

$(7,344,028)

$(2,480,862)

$2,592,775

$3,518,280

461,717

$134,040

Total

Affiliated

Securities

....

$33,662,528

$—

$(7,344,028)

$(2,480,862)

$3,491,177

$27,328,815

$463,983

3.

Transactions

with

Affiliates

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

23

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

5.

Income

Taxes

At

January

31,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

bond

discounts

and

premiums

and

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

January

31,

2021,

aggregated

$91,141,877

and

$150,662,529,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

January

31,

2021,

the

Fund

had

81.5%

of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities,

if

any.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Fund

held

defaulted

securities

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

January

31,

2021,

the

aggregate

value

of

these

securities

was

$12,697,142,

representing

3.8%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Statement

of

Investments.

8. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

9.

Restricted

Securities

The

Fund

invests

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 Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

January

31,

2021,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

Cost

of

investments

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

$420,194,677

Unrealized

appreciation

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

$6,793,941

Unrealized

depreciation

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

(83,959,040)

Net

unrealized

appreciation

(depreciation)

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

$(77,165,099)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

24

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

10.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

During

the

period

ended

January

31,

2021,

investments

in

“affiliated

companies”

were

as

follows:

11.

Shareholder

Distributions

For

the

period

ended

January

31,

2021,

the

Fund

made

the

following

distributions:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Floating

Rate

Master

Series

563,596

a

Appvion

Operations,

Inc.

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

6/14/18-4/12/19

$

5,922,237

$

9,451,775

1,048,435

Remington

Outdoor

Co.,

Inc.

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

4/13/12-4/12/19

43,510,469

—

Total

Restricted

Securities

(Value

is

2.85%

of

Net

Assets)

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

$49,432,706

$9,451,775

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$4,107,885

as

of

January

31,

2021.

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

Held

at

End

of

Period

Investment

Income

Franklin

Floating

Rate

Master

Series

Non-Controlled

Affiliates

Dividends

Appvion

Operations,

Inc.

....

$

11,034,433

$

—

$

—

$

—

$

(1,582,658)

$

9,451,775

563,596

$

—

Remington

Outdoor

Co.,

Inc.

.

262,109

—

—

—

(262,109)

—

1,048,435

—

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.........

—

—

—

—

—

—

98,704

—

Interest

Appvion

Operations,

Inc.,

Term

Loan,

7.337%,

(3-month

USD

LIBOR

+

6%)

..........

5,483,153

1,250

a

(1,449,171)

a

1,744

70,909

4,107,885

4,145,882

193,710

Total

Affiliated

Securities

(Value

is

4.1%

of

Net

Assets)

$16,779,695

$1,250

$(1,449,171)

1,744

(1,773,858)

$13,559,660

$193,710

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

Payment

Date

Amount

Per

Share

8/31/2020

$0.033759

9/30/2020

0.033033

10/30/2020

0.033140

11/30/2020

0.030121

12/31/2020

0.027713

1/29/2021

0.025190

Total

$0.182956

9.

Restricted

Securities

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

25

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

12.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matured

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

5,

2021,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one

year

term,

maturing

February

4,

2022,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

January

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

13.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

January

31,

2021,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

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

$

—

$

—

$

—

a

$

—

Industrial

Machinery

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

—

4,093,124

—

4,093,124

Leisure

Facilities

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

—

234,020

—

234,020

Oil

&

Gas

Exploration

&

Production

.........

—

829,287

—

829,287

Paper

Products

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

—

—

9,451,775

9,451,775

Trucking

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

—

—

117,091

117,091

Management

Investment

Companies

.........

28,936,765

—

—

28,936,765

Preferred

Stocks

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

—

635,506

—

635,506

Warrants

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

—

—

573

573

Corporate

Bonds

:

Airlines

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

—

1,336,219

—

1,336,219

Broadcasting

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

—

1,163,145

—

1,163,145

Construction

Materials

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

—

816,563

—

816,563

Oil

&

Gas

Storage

&

Transportation

.........

—

471,375

—

471,375

Packaged

Foods

&

Meats

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

—

102,250

—

102,250

Specialty

Stores

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

—

273,786

—

273,786

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

26

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

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.

At

January

31,

2021,

the

reconciliation is

as follows:

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Master

Series

(continued)

Assets:

Corporate

Bonds:

Trucking

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

$

—

$

—

$

9,847,797

$

9,847,797

Wireless

Telecommunication

Services

.......

—

360,076

—

360,076

Senior

Floating

Rate

Interests

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

—

253,501,890

13,395,083

266,896,973

Escrows

and

Litigation

Trusts

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

—

583,353

—

a

583,353

Short

Term

Investments

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

—

16,879,900

—

16,879,900

Total

Investments

in

Securities

...........

$28,936,765

$281,280,494

$32,812,319

$343,029,578

a

Includes

securities

determined

to

have

no

value

at

January

31,

2021.

Balance

at

Beginning

of

Period

Purchases

Sales

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Cost

Basis

Adjust-

ments

a

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

Securities:

Common

Stocks

Aerospace

&

Defense

.

$

262,109

$

—

$

—

$

—

$

—

$

—

$

—

$

(262,109)

$

—

b

$

(262,109)

Paper

Products

.....

11,034,433

—

—

—

—

—

—

(1,582,658)

9,451,775

(1,582,658)

Trucking

..........

171,018

—

—

—

—

—

—

(53,927)

117,091

(53,927)

Warrants

Industrial

Machinery

..

—

—

—

—

—

—

—

573

573

57

3

Corporate

Bonds

Trucking

..........

8,881,805

—

—

—

—

473,588

—

492,404

9,847,797

492,404

Senior

Floating

Rate

Interests

Aerospace

&

Defense

.

13,196,628

29,704

(6,848,631)

—

—

5,479

30,017

(325,178)

6,088,019

(280,766)

Trucking

..........

6,916,082

—

—

—

—

(90,015)

—

480,997

7,307,064

480,997

Escrows

and

Litigation

Trusts

...........

—

b

—

—

—

—

—

—

—

—

b

—

Total

Investments

in

Securities

.

$40,462,075

$29,704

$(6,848,631)

$—

$—

$

389,052

$

30,017

$

(1,249,898)

$32,812,319

$

(1,2

05

,4

8

6)

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

other

cost

basis

adjustments.

b

Includes

securities

determined

to

have

no

value.

13.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

27

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

Significant

unobservable

valuation

inputs

for

material

Level

3

assets

and/or

liabilities

and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

January

31,

2021,

are

as

follows:

14.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

15.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the

financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure

other

than

those

already

disclosed

in

the

financial

statements.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

Securities:

Common

Stocks:

Paper

Products

...........

$9,451,775

Discounted

cash

flow

Weighted

average

cost

of

capital

19.3%

Decrease

b

Free

cash

flow

$107.5

mil

Increase

b

Discount

for

lack

of

marketability

8.9%

Decrease

b

Long

term

growth

2.5%

Increase

Corporate

Bonds:

Trucking

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

9,847,797

Discounted

cash

flow

Discount

rate

15.6%

Decrease

b

Free

cash

flow

$11.4

mil

Increase

Senior

Floating

Rate

Interests:

Aerospace

&

Defense

......

6,088,019

Recovery

value

Asset

value

estimate

$58.5

mil

Increase

b

Trucking

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

7,307,064

Discounted

cash

flow

Discount

rate

10.2%

Decrease

b

Free

cash

flow

$8.6

mil

Increase

All

Other

Investments

.........

117,664

c,d

Total.

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

$32,812,319

a

Represents

the

directional

change

in

the

fair

value

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

b

Represents

a

significant

impact

to

fair

value

and

net

assets.

c

Includes

financial

instruments

with

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

May

also

include

fair

value

of

immaterial

financial

instruments

and

developed

using

various

valuation

techniques

and

unobservable

inputs.

d

Includes

securities

determined

to

have

no

value

at

January

31,

2021.

13.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

28

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

Abbreviations

Currency

USD

United

States

Dollar

Selected

Portfolio

ETF

Exchange-Traded

Fund

LIBOR

London

Inter-Bank

Offered

Rate

PIK

Payment-In-Kind

Your

Fund’s

Expenses

Franklin

Floating

Rate

Income

Fund

1

franklintempleton.com

Semiannual

Report

As

a

Fund

shareholder,

you

can

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

(loads)

on

Fund

purchases

and

redemptions;

and

(2)

ongoing

Fund

costs,

including

management

fees,

distribution

and

service

(12b-1)

fees,

and

other

Fund

expenses.

All

mutual

funds

have

ongoing

costs,

sometimes

referred

to

as

operating

expenses.

The

table

below

shows

ongoing

costs

of

investing

in

the

Fund

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Actual

Fund

Expenses

The

table

below

provides

information

about

actual

account

values

and

actual

expenses

in

the

columns

under

the

heading

“Actual.”

In

these

columns

the

Fund’s

actual

return,

which

includes

the

effect

of

Fund

expenses,

is

used

to

calculate

the

“Ending

Account

Value”

for

each

class

of

shares.

You

can

estimate

the

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

in

the

row

for

your

class

of

shares

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

for

the

class

of

shares

you

hold

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Beginning

Account

Value

8/1/20

Ending

Account

Value

1/31/21

Expenses

Paid

During

Period

8/1/20–1/31/21

1,

2

Ending

Account

Value

1/31/21

Expenses

Paid

During

Period

8/1/20–1/31/21

1,

2

a

Net

Annualized

Expense

Ratio

2

$1,000

$1,069.68

$3.13

$1,022.18

$3.06

0.60%

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

2

franklintempleton.com

Annual

Report

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Statement

of

Investments

The

Trust,

on

behalf

of

the

Fund,

files

a

complete

statement

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.

Franklin

Floating

Rate

Master

Trust

Financial

Highlights

Franklin

Floating

Rate

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

3

a

Six

Months

Ended

January

31,

2021

(unaudited)

Year

Ended

July

31,

Year

Ended

July

31,

2016

a

2020

2019

2018

2017

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$7.34

$8.61

$9.45

$10.04

$9.83

$10.00

Income

from

investment

operations

b

:

Net

investment

income

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

0.164

c

0.412

0.695

0.698

0.686

0.403

Net

realized

and

unrealized

gains

(losses)

0.335

(1.227)

(0.827)

(0.588)

0.214

(0.174)

Total

from

investment

operations

........

0.499

(0.815)

(0.132)

0.110

0.900

0.229

Less

distributions

from:

Net

investment

income

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

(0.214)

(0.455)

(0.708)

(0.700)

(0.690)

(0.399)

Net

asset

value,

end

of

period

..........

$7.63

$7.34

$8.61

$9.45

$10.04

$9.83

Total

return

d

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

6.97%

(9.74)%

(1.48)%

1.30%

9.25%

2.46%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

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

0.74%

0.73%

0.71%

0.68%

0.69%

0.71%

Expenses

net

of

waiver

and

payments

by

affiliates

f

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

0.60%

0.60%

0.60%

0.60%

0.60%

0.60%

Net

investment

income

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

4.36%

5.42%

7.66%

7.25%

6.82%

5.76%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$193,618

$202,101

$325,091

$363,071

$303,689

$348,682

Portfolio

turnover

rate

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

30.99%

67.04%

30.93%

55.93%

62.11%

42.49%

g

a

For

the

period

November

6,

2015

(commencement

of

operations)

to

July

31,

2016.

b

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchas-

es

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Based

on

average

daily

shares

outstanding.

d

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%.

g

Excludes

the

value

of

portfolio

securities

received

from

purchases

in-kind.

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited),

January

31,

2021

Franklin

Floating

Rate

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

4

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

1.9%

Aerospace

&

Defense

0.0%

a,b,c,d

Remington

Outdoor

Co.,

Inc.

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

United

States

732,184

$

—

Hotels,

Restaurants

&

Leisure

0.1%

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

50,709

114,095

Paper

&

Forest

Products

1.8%

a,b,c

Appvion

Operations,

Inc.

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

United

States

209,637

3,515,715

Road

&

Rail

0.0%

†

a,b

Onsite

Rental

Group

Operations

Pty.

Ltd.

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

Australia

4,747,033

94,545

Total

Common

Stocks

(Cost

$35,590,696)

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

3,724,355

Preferred

Stocks

0.2%

Hotels,

Restaurants

&

Leisure

0.2%

b

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

120,097

309,850

b

Total

Preferred

Stocks

(Cost

$162,071)

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

309,850

Principal

Amount

*

Corporate

Bonds

4.1%

Road

&

Rail

4.1%

a,e

Onsite

Rental

Group

Operations

Pty.

Ltd.

,

PIK,

6.1

%

,

10/26/23

...

Australia

8,660,319

7,951,425

Total

Corporate

Bonds

(Cost

$9,300,535)

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

7,951,425

f,g

Senior

Floating

Rate

Interests

89.9%

Aerospace

&

Defense

2.2%

e

Alloy

FinCo

Ltd.,

Facility

Term

Loan

,

B

,

14

%

,

PIK,

(

3-month

USD

LIBOR

+

0.5

%

),

3/06/25

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

United

Kingdom

3,930,545

1,972,977

Dynasty

Acquisition

Co.,

Inc.,

2020

Term

Loan

,

B1,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

1,566,315

1,509,144

B2,

3.754%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

..........

United

States

842,105

811,368

4,293,489

a

a

a

a

a

a

Airlines

4.1%

Allegiant

Travel

Co.,

Replacement

Term

Loan

,

3.214

%

,

(

3-month

USD

LIBOR

+

3

%

),

2/05/24

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

United

States

2,448,420

2,398,840

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/20/27

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

United

States

692,540

727,298

Delta

Air

Lines,

Inc.,

Term

Loan

,

5.75

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

12/30/38

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

United

States

497,500

507,512

JetBlue

Airways

Corp.,

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

6/17/24

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

United

States

138,639

143,867

Kestrel

Bidco

,

Inc.,

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

12/11/26

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

Canada

4,247,100

4,100,044

7,877,561

a

a

a

a

a

a

Auto

Components

3.5%

Adient

US

LLC,

Initial

Term

Loan

,

4.394

%

,

(

1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%

),

5/06/24

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

United

States

4,115,964

4,128,826

Highline

Aftermarket

Acquisition

LLC,

First

Lien,

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/09/27

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

United

States

519,163

519,812

TRICO

Group

LLC,

First

Lien,

Term

Loan

,

B3

,

8.5

%

,

(

3-month

USD

LIBOR

+

7.5

%

),

2/02/24

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

United

States

1,811,766

1,849,133

h

Truck

Hero,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

1/31/28

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

United

States

185,393

186,065

6,683,836

a

a

a

a

a

a

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

5

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Automobiles

2.0%

Thor

Industries,

Inc.,

Initial

USD

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

2/01/26

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

United

States

3,776,338

$

3,785,779

Banks

1.5%

Finastra

Ltd.,

First

Lien,

Dollar

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

6/13/24

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

United

Kingdom

2,967,691

2,921,321

Capital

Markets

0.5%

Russell

Investments

US

Institutional

Holdco,

Inc.,

2025

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

5/30/25

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

United

States

80,060

80,085

Vertical

Midco

GmbH,

USD

Term

Loan

,

4.567

%

,

(

6-month

USD

LIBOR

+

4.25

%

),

6/30/27

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

Germany

944,886

954,992

1,035,077

a

a

a

a

a

a

Chemicals

0.0%

†

Illuminate

Buyer

LLC,

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/30/27

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

United

States

99,750

100,218

Commercial

Services

&

Supplies

3.6%

CCI

Buyer,

Inc.,

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

12/17/27

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

United

States

177,505

178,970

Legalzoom.com,

Inc.,

First

Lien,

2018

Term

Loan

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

11/21/24

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

United

States

3,856,196

3,863,445

Staples,

Inc.,

2019

Refinancing

New

Term

Loan

,

B1

,

5.214

%

,

(

3-month

USD

LIBOR

+

5

%

),

4/16/26

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

United

States

2,904,432

2,851,789

6,894,204

a

a

a

a

a

a

Construction

Materials

0.5%

White

Cap

Buyer

LLC,

Initial

Closing

Date

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/19/27

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

United

States

1,047,375

1,054,864

Containers

&

Packaging

1.5%

BWay

Holding

Co.,

Initial

Term

Loan

,

3.381

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/03/24

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

United

States

2,902,525

2,855,359

Diversified

Consumer

Services

0.5%

h

KUEHG

Corp.,

Term

Loan

,

B-3

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

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

United

States

1,000,000

971,250

Diversified

Financial

Services

1.2%

Jefferies

Finance

LLC,

2020

Term

Loan

,

3.938

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/30/27

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

United

States

997,500

1,001,241

h

Sabre

GLBL,

Inc.,

2020

Other

Term

Loan

,

B

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/17/27

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

United

States

251,632

254,621

Verscend

Holding

Corp.,

Term

Loan

,

B

,

4.621

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

8/27/25

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

United

States

1,072,697

1,075,378

2,331,240

a

a

a

a

a

a

Diversified

Telecommunication

Services

2.3%

Global

Tel

Link,

First

Lien,

Term

Loan

,

4.371

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/25

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

United

States

4,905,691

4,525,500

Electric

Utilities

1.1%

EFS

Cogen

Holdings

I

LLC,

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

10/01/27

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

United

States

2,074,369

2,072,212

Entertainment

5.6%

Banijay

Entertainment

SAS,

Facility

USD

Term

Loan

,

B

,

3.881

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/01/25

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

France

2,423,925

2,409,539

Diamond

Sports

Group

LLC,

Term

Loan

,

3.38

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/24/26

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

United

States

7,441,271

6,393,317

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

6

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Entertainment

(continued)

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC),

First

Lien,

Term

Loan

,

B-1

,

2.88

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

5/18/25

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

United

States

2,104,371

$

1,970,544

10,773,400

a

a

a

a

a

a

Food

&

Staples

Retailing

2.2%

GNC

Holdings,

Inc.,

Second

Lien,

Term

Loan

,

6.234

%

,

(

3-month

USD

LIBOR

+

6

%

),

10/30/26

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

United

States

5,062,377

3,796,782

Shearer's

Foods

LLC,

First

Lien,

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

9/23/27

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

United

States

502,006

504,516

4,301,298

a

a

a

a

a

a

Food

Products

0.7%

e

CSM

Bakery

Solutions

Ltd.,

Second

Lien,

Term

Loan

,

8.75

%

,

PIK,

(

3-month

USD

LIBOR

+

7.75

%

),

7/05/21

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

United

States

1,367,014

1,342,516

Health

Care

Providers

&

Services

6.6%

ADMI

Corp.,

Amendment

No.

3

Incremental

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/23/27

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

United

States

614,381

620,525

ADMI

Corp.,

Amendment

No.

4

Refinancing

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/23/27

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

United

States

1,500,000

1,500,000

CNT

Holdings

I

Corp.,

First

Lien,

Term

Loan

Facility

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

11/08/27

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

United

States

141,992

142,981

h

eResearchTechnology

,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/04/27

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

United

States

1,429,909

1,438,252

Global

Medical

Response,

Inc.,

2018

New

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

3/14/25

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

United

States

1,197,784

1,197,635

National

Mentor

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.418%,

(1-month

USD

LIBOR

+

4.25%;

3-month

USD

LIBOR

+

4.25%),

3/09/26

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

United

States

244,854

245,466

C,

4.51%,

(1-month

USD

LIBOR

+

4.25%),

3/09/26

..........

United

States

11,205

11,233

h,i

National

Mentor

Holdings,

Inc.,

Incremental

Term

Loan

,

B,

TBD,

3/09/26

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

United

States

568,293

569,714

C,

TBD,

3/09/26

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

United

States

21,935

21,990

Navicure

,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/22/26

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

United

States

3,003,135

3,006,889

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Delayed

Draw

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/31/27

.........

United

States

172,521

172,846

Pathway

Vet

Alliance

LLC,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/31/27

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

United

States

2,284,661

2,288,957

Pluto

Acquisition

I,

Inc.,

Incremental

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

5

%

),

6/22/26

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

United

States

306,676

308,210

Pluto

Acquisition

I,

Inc.,

Term

Loan

,

B

,

4.615

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

12/31/27

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

United

States

517,941

521,178

U.S.

Anesthesia

Partners,

Inc.,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

6/23/24

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

United

States

804,991

794,639

12,840,515

a

a

a

a

a

a

Hotels,

Restaurants

&

Leisure

1.2%

24

Hour

Fitness

Worldwide,

Inc.,

Exit

Term

Loan

,

5.24

%

,

(

1-month

USD

LIBOR

+

5

%

),

12/30/25

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

United

States

2,275,842

2,033,089

Caesars

Resort

Collection

LLC,

Term

Loan

,

B

,

2.871

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

12/23/24

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

United

States

79,808

78,585

IRB

Holding

Corp.,

Fourth

Amendment

Incremental

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/15/27

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

United

States

258,254

259,522

2,371,196

a

a

a

a

a

a

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

7

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Household

Durables

1.9%

Playtika

Holding

Corp.,

Term

Loan

,

B

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

12/10/24

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

United

States

3,637,721

$

3,665,203

Household

Products

0.5%

Knowlton

Development

Corp.,

Inc.,

2020

Initial

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

12/22/25

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

Canada

880,767

876,729

Insurance

0.2%

Alliant

Holdings

Intermediate

LLC,

Term

Loan

,

B3

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

11/05/27

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

United

States

127,801

128,187

AssuredPartners

,

Inc.,

2020

June

Incremental

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/12/27

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

United

States

248,125

250,451

Asurion

LLC,

Term

Loan

,

5.365

%

,

(

1-month

USD

LIBOR

+

5.25

%

),

12/31/27

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

United

States

17,721

17,898

396,536

a

a

a

a

a

a

Internet

&

Direct

Marketing

Retail

0.3%

MH

Sub

I

LLC

(Micro

Holding

Corp.),

First

Lien,

2020

June

New

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

9/13/24

....

United

States

634,108

636,883

IT

Services

9.5%

Arches

Buyer,

Inc.,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/06/27

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

United

States

441,084

443,762

Aventiv

Technologies

LLC,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/01/24

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

United

States

10,937,166

10,030,912

Aventiv

Technologies

LLC,

Second

Lien,

Initial

Term

Loan

,

9.25

%

,

(

6-month

USD

LIBOR

+

8.25

%

),

11/01/25

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

United

States

1,645,000

1,348,168

Barracuda

Networks,

Inc.,

First

Lien,

2020

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/12/25

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

United

States

851,298

853,247

Informatica

LLC,

Dollar

2020

Term

Loan

,

3.371

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/25/27

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

United

States

307,675

307,538

Milano

Acquisition

Corp.,

Term

Loan

,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/27

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

United

States

1,461,106

1,467,506

Pitney

Bowes,

Inc.,

Incremental

Term

Loan

,

B

,

5.63

%

,

(

1-month

USD

LIBOR

+

5.5

%

),

1/07/25

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

United

States

3,991,995

3,990,758

18,441,891

a

a

a

a

a

a

Leisure

Products

2.8%

Bass

Pro

Group

LLC,

Initial

Term

Loan

,

5.75

%

,

(

1-month

USD

LIBOR

+

5

%

),

9/25/24

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

United

States

4,937,847

4,954,586

h

Hercules

Achievement,

Inc.

(Varsity

Brands

Holding

Co.,

Inc.),

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

12/16/24

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

United

States

569,268

547,485

5,502,071

a

a

a

a

a

a

Machinery

2.8%

Navistar,

Inc.,

Term

Loan

,

B

,

3.63

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/06/24

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

United

States

5,486,430

5,493,974

Media

3.2%

h

Cengage

Learning,

Inc.,

2016

Refinancing

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/07/23

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

United

States

1,208,094

1,165,062

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

,

B

,

3.711

%

,

(

2-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%

),

8/21/26

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

United

States

2,538,385

2,482,058

Nielsen

Finance

LLC,

Dollar

Term

Loan

,

B5

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

6/04/25

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

United

States

763,384

771,736

Radiate

HoldCo

LLC,

Term

Loan

,

B

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/25/26

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

United

States

229,677

230,156

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

8

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Media

(continued)

Univision

Communications,

Inc.,

First

Lien,

2020

Replacement

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/15/26

........

United

States

995,000

$

998,453

h

Virgin

Media

Bristol

LLC,

Term

Loan

,

Q

,

2.627

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/29

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

United

States

502,109

503,678

6,151,143

a

a

a

a

a

a

Multiline

Retail

0.4%

Harbor

Freight

Tools

USA,

Inc.,

Initial

Term

Loan

(2020)

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

10/19/27

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

United

States

809,023

811,147

Oil,

Gas

&

Consumable

Fuels

3.2%

EG

Group

Ltd.,

Additional

Facility

USD

Term

Loan

,

4.254

%

,

(

3-month

USD

LIBOR

+

4

%

),

2/07/25

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

United

Kingdom

575,356

575,407

h,j

Fieldwood

Energy

LLC,

Debtor-in-possession

Facility

Term

Loan

,

9.75

%

,

(

1-month

USD

LIBOR

+

8.75

%

),

8/04/21

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

United

States

245,778

251,308

k

Fieldwood

Energy

LLC,

First

Lien,

Closing

Date

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

4/11/22

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

United

States

20,615,151

5,351,384

6,178,099

a

a

a

a

a

a

Paper

&

Forest

Products

2.9%

Appvion

Operations,

Inc.,

Term

Loan

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/12/26

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

United

States

5,611,231

5,559,804

Personal

Products

0.5%

Coty,

Inc.,

USD

Term

Loan

,

B

,

2.382

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

4/07/25

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

United

States

1,011,796

956,496

Professional

Services

0.2%

h

Dun

&

Bradstreet

Corp.

(The),

Initial

Term

Loan

Borrowing

,

B

,

3.378

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/06/26

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

United

States

115,170

115,622

UKG,

Inc.,

First

Lien,

2021

Incremental

Term

Loan

,

4

%

,

(

2-month

USD

LIBOR

+

3.25

%

),

5/04/26

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

United

States

200,879

202,027

317,649

a

a

a

a

a

a

Real

Estate

Management

&

Development

0.8%

h

Cushman

&

Wakefield

U.S.

Borrower

LLC,

Replacement

Term

Loan

,

2.873

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

8/21/25

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

United

States

1,540,250

1,537,200

Road

&

Rail

5.0%

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

Canadian

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

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

United

States

362,502

359,366

Kenan

Advantage

Group

Holdings

Corp.

(The),

Initial

U.S.

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3

%

),

7/29/22

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

United

States

1,524,400

1,511,214

a

Onsite

Rental

Group

Operations

Pty.

Ltd.,

Term

Loan

,

B

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

10/26/22

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

Australia

6,334,266

5,899,953

Ventia

Midco

Pty.

Ltd.,

2017

Refinancing

USD

Term

Loan

,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

5/21/26

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

Australia

1,838,844

1,838,844

9,609,377

a

a

a

a

a

a

Software

13.3%

h

athenahealth

,

Inc.,

First

Lien,

Term

Loan

,

B

,

4.633

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/11/26

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

United

States

2,158,667

2,169,125

Blackboard,

Inc.,

First

Lien,

Term

Loan

,

B5

,

7

%

,

(

3-month

USD

LIBOR

+

6

%

),

6/30/24

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

United

States

3,017,725

3,014,572

DCert

Buyer,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.121

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/16/26

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

United

States

2,156,196

2,164,282

Epicor

Software

Corp.,

Term

Loan

,

B

,

5.25

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/30/27

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

United

States

590,244

594,045

Greeneden

U.S.

Holdings

I

LLC,

Term

Loan

,

B

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/01/27

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

United

States

1,645,286

1,653,512

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Income

Fund

(continued)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

9

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Software

(continued)

Hyland

Software,

Inc.,

First

Lien,

2018

Refinancing

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

7/01/24

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

United

States

264,832

$

266,290

Idera

,

Inc.,

First

Lien,

Initial

Term

Loan

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

6/28/24

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

United

States

531,989

533,543

Ivanti

Software,

Inc.,

First

Lien,

Initial

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

12/01/27

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

United

States

1,010,000

1,020,100

LogMeIn,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.881

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

8/31/27

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

United

States

2,298,407

2,292,178

MA

Financeco

LLC,

Term

Loan

,

B4

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/05/25

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

United

States

248,438

252,475

Mitchell

International,

Inc.,

First

Lien,

Amendment

No.

2

New

Term

Loan

Facility

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/24

.

United

States

2,453,850

2,461,003

Perforce

Software,

Inc.,

First

Lien,

New

Term

Loan

,

3.871

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/01/26

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

United

States

1,983,960

1,982,720

Quest

Software

US

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.462

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

5/16/25

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

United

States

2,872,463

2,876,571

Sophia

LP,

Term

Loan

,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/07/27

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

United

States

629,080

632,382

Surf

Holdings

SARL,

First

Lien,

Dollar

Term

Loan

,

3.726

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/05/27

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

Luxembourg

1,443,836

1,444,739

Veritas

US,

Inc.,

Term

Loan

,

B

,

6.5

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

9/01/25

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

United

States

2,413,307

2,431,407

25,788,944

a

a

a

a

a

a

Specialty

Retail

0.8%

h

Party

City

Holdings,

Inc.,

2018

Replacement

Term

Loan

,

3.25

%

,

(

2-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%

),

8/19/22

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

United

States

202,817

196,099

h

Petco

Animal

Supplies,

Inc.,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

1/26/23

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

United

States

987,003

987,284

PetSmart,

Inc.,

Term

Loan

,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/31/27

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

United

States

177,206

176,320

Woof

Holdings,

Inc.,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-year

USD

LIBOR

+

3.75

%

),

12/21/27

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

United

States

232,015

233,369

1,593,072

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

0.6%

Amentum

Government

Services

Holdings

LLC,

Incremental

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

1/29/27

.........

United

States

770,000

775,775

Cardtronics

USA,

Inc.,

Initial

Term

Loan

,

5

%

,

(

1-month

USD

LIBOR

+

4

%

),

6/29/27

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

United

States

429,711

431,995

1,207,770

a

a

a

a

a

a

Wireless

Telecommunication

Services

0.2%

Altice

France

SA,

USD

Incremental

Term

Loan

,

B-13

,

4.127

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/14/26

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

France

335,528

336,181

Total

Senior

Floating

Rate

Interests

(Cost

$191,119,073)

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

174,091,004

Shares/Units

Escrows

and

Litigation

Trusts

0.0%

a,b,d

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

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

United

States

68,931

—

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

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

—

Total

Long

Term

Investments

(Cost

$236,172,375)

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

186,076,634

a

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited)

Franklin

Floating

Rate

Income

Fund

(continued)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

10

See

Abbreviations

on

page

23

.

Short

Term

Investments

3.8%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

3.8%

l,m

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

........

United

States

7,294,069

$

7,294,069

Total

Money

Market

Funds

(Cost

$7,294,069)

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

7,294,069

Total

Short

Term

Investments

(Cost

$7,294,069

)

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

7,294,069

a

Total

Investments

(Cost

$243,466,444)

99.9%

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

$193,370,703

Other

Assets,

less

Liabilities

0.1%

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

247,765

Net

Assets

100.0%

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

$193,618,468

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

b

Non-income

producing.

c

See

Note

9

regarding

restricted

securities.

d

See

Note

11

regarding

holdings

of

5%

voting

securities.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

See

Note

1(c)

regarding

senior

floating

rate

interests.

g

The

coupon

rate

shown

represents

the

rate

at

period

end.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(b).

i

A

portion

or

all

of

the

security

represents

an

unsettled

loan

commitment.

The

coupon

rate

is

to-be

determined

(TBD)

at

the

time

of

the

settlement

and

will

be

based

upon

a

reference

index/floor

plus

a

spread.

j

See

Note

10

regarding

unfunded

loan

commitments.

k

See

Note

7

regarding

credit

risk

and

defaulted

securities.

l

See

Note

3(d)

regarding

investments

in

affiliated

management

investment

companies.

m

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

January

31,

2021

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

11

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$202,867,265

Cost

-

Non-controlled

affiliates

(Note

3d

and

11)

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

40,599,179

Value

-

Unaffiliated

issuers

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

$186,076,634

Value

-

Non-controlled

affiliates

(Note

3d

and

11)

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

7,294,069

Cash

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

319,323

Receivables:

Investment

securities

sold

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

6,128,476

Interest

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

655,069

Unrealized

appreciation

on

unfunded

loan

commitments

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

116,130

Total

assets

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

200,589,701

Liabilities:

Payables:

Investment

securities

purchased

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

5,965,231

Management

fees

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

86,106

Distributions

to

shareholders

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

841,337

Accrued

expenses

and

other

liabilities

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

78,559

Total

liabilities

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

6,971,233

Net

assets,

at

value

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

$193,618,468

Net

assets

consist

of:

Paid-in

capital

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

$275,943,004

Total

distributable

earnings

(losses)

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

(82,324,536)

Net

assets,

at

value

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

$193,618,468

Shares

outstanding

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

25,393,087

Net

asset

value

per

share

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

$7.63

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

January

31,

2021

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

12

Franklin

Floating

Rate

Income

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

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

$74,471

Non-controlled

affiliates

(Note

3d

and

11)

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

2

Interest:

Unaffiliated

issuers

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

4,842,910

Total

investment

income

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

4,917,383

Expenses:

Management

fees

(Note

3a)

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

645,302

Custodian

fees

(Note

4)

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

539

Reports

to

shareholders

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

2,121

Registration

and

filing

fees

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

51

Professional

fees

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

68,303

Trustees'

fees

and

expenses

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

7,557

Other

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

6,290

Total

expenses

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

730,163

Expense

reductions

(Note

4)

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

(855)

Expenses

waived/paid

by

affiliates

(Note

3d

and

3e)

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

(133,859)

Net

expenses

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

595,449

Net

investment

income

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

4,321,934

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

(7,931,420)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

16,963,199

Non-controlled

affiliates

(Note

3d

and

11)

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

(183,046)

Net

change

in

unrealized

appreciation

(depreciation)

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

16,780,153

Net

realized

and

unrealized

gain

(loss)

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

8,848,733

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$13,170,667

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

13

Franklin

Floating

Rate

Income

Fund

Six

Months

Ended

January

31,

2021

(unaudited)

Year

Ended

July

31,

2020

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$4,321,934

$13,430,605

Net

realized

gain

(loss)

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

(7,931,420)

(17,360,675)

Net

change

in

unrealized

appreciation

(depreciation)

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

16,780,153

(21,278,694)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

13,170,667

(25,208,764)

Distributions

to

shareholders

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

(5,694,920)

(14,505,083)

Capital

share

transactions

(Note

2)

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

(15,958,621)

(83,275,623)

Net

increase

(decrease)

in

net

assets

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

(8,482,874)

(122,989,470)

Net

assets:

Beginning

of

period

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

202,101,342

325,090,812

End

of

period

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

$193,618,468

$202,101,342

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Floating

Rate

Income

Fund

14

franklintempleton.com

Semiannual

Report

1.

Organization

and

Significant

Accounting

Policies

Franklin

Floating

Rate

Master

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

two separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

Floating

Rate

Income

Fund

(Fund)

is

included

in

this

report.

The

Fund’s

shares

are

exempt

from

registration

under

the

Securities

Act

of

1933.

The

following

summarizes

the

Fund’s

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the

Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Equity

securities

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.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Fund's

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

Investments

in

open-end

mutual

funds

are

valued

at

the

closing

NAV.

The

Fund

has

procedures

to

determine

the

fair

value

of

financial

instruments

for

which

market

prices

are

not

reliable

or

readily

available.

Under

these

procedures,

the Fund

primarily

employs

a

market-based

approach

which

may

use

related

or

comparable

assets

or

liabilities,

recent

transactions,

market

multiples,

book

values,

and

other

relevant

information

for

the

investment

to

determine

the

fair

value

of

the

investment.

An

income-based

valuation

approach

may

also

be

used

in

which

the

anticipated

future

cash

flows

of

the

investment

are

discounted

to

calculate

fair

value.

Discounts

may

also

be

applied

due

to

the

nature

or

duration

of

any

restrictions

on

the

disposition

of

the

investments.

Due

to

the

inherent

uncertainty

of

valuations

of

such

investments,

the

fair

values

may

differ

significantly

from

the

values

that

would

have

been

used

had

an

active

market

existed.

b.

Securities

Purchased

on

a

Delayed

Delivery

Basis

The

Fund

purchases

securities

on

a

delayed

delivery

basis,

with

payment

and

delivery

scheduled

for

a

future

date.

These

transactions

are

subject

to

market

fluctuations

and

are

subject

to

the

risk

that

the

value

at

delivery

may

be

more

or

less

than

the

trade

date

purchase

price.

Although

the

Fund

will

generally

purchase

these

securities

with

the

intention

of

holding

the

securities,

it

may

sell

the

securities

before

the

settlement

date.

Sufficient

assets

have

been

segregated

for

these

securities.

c.

Senior

Floating

Rate

Interests

The

Fund

invests

in

senior

secured

corporate

loans

that

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

London

InterBank

Offered

Rate

(LIBOR).

Senior

secured

corporate

loans

often

require

prepayment

of

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

15

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

principal

from

excess

cash

flows

or

at

the

discretion

of

the

borrower.

As

a

result,

actual

maturity

may

be

substantially

less

than

the

stated

maturity.

Senior

secured

corporate

loans

in

which

the Fund

invests

are

generally

readily

marketable,

but

may

be

subject

to

certain

restrictions

on

resale.

On

July

27,

2017,

the

United

Kingdom's

Financial

Conduct

Authority

announced

its

intention

to

cease

sustaining

LIBOR

after

2021.

There

remains

uncertainty

regarding

the

future

utilization

of

LIBOR

and

the

nature

of

any

replacement

rate.

As

such,

the

potential

effect

of

a

transition

away

from

LIBOR

on

the

Fund

or

the

Fund's

investments

that

use

or

may

use

a

floating

rate

based

on

LIBOR

cannot

yet

be

determined.

d.

Income

Taxes

It

is the

Fund's

policy

to

qualify

as

a

regulated

investment

company

under

the

Internal

Revenue

Code. The

Fund

intends

to

distribute

to

shareholders

substantially

all

of

its

taxable

income

and

net

realized

gains

to

relieve

it

from

federal

income

and excise

taxes.

As

a

result,

no

provision

for

U.S.

federal

income

taxes

is

required.

The

Fund

may

recognize

an

income

tax

liability

related

to

its

uncertain

tax

positions

under

U.S.

GAAP

when

the

uncertain

tax

position

has

a

less

than

50%

probability

that

it

will

be

sustained

upon

examination

by

the

tax

authorities

based

on

its

technical

merits.

As

of

January

31,

2021,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

Facility

fees

are

recognized

as

income

over

the

expected

term

of

the

loan.

Dividend

income

is

recorded

on

the

ex-dividend

date.

Dividends

from

net

investment

income

are

normally

declared

daily;

these

dividends

may

be

reinvested

or

paid

monthly

to

shareholders.

Distributions

from

realized

capital

gains

and

other

distributions,

if

any,

are

recorded

on

the

ex-dividend

date.

Distributable

earnings

are

determined

according

to

income

tax

regulations

(tax

basis)

and

may

differ

from

earnings

recorded

in

accordance

with

U.S.

GAAP.

These

differences

may

be

permanent

or

temporary.

Permanent

differences

are

reclassified

among

capital

accounts

to

reflect

their

tax

character.

These

reclassifications

have

no

impact

on

net

assets

or

the

results

of

operations.

Temporary

differences

are

not

reclassified,

as

they

may

reverse

in

subsequent

periods.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust’s

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust,

on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Senior

Floating

Rate

Interests

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

16

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

January

31,

2021,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Trust

are

also

officers

and/or

directors

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee

to

Advisers

based

on

the

average

daily

net

assets

of

the

Fund

as

follows:

For

the

period

ended

January

31,

2021,

the

annualized

gross

effective

investment

management

fee

rate

was

0.650%

of

the

Fund’s

average

daily

net

assets. 

b.

Administrative

Fees

Under

an

agreement

with

Advisers,

FT

Services

provides

administrative

services

to

the

Fund.

The

fee

is

paid

by

Advisers

based

on

the

Fund’s

average

daily

net

assets,

and

is

not

an

additional

expense

of

the

Fund.

c.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

Six

Months

Ended

January

31,

2021

Year

Ended

July

31,

2020

Shares

Amount

Shares

Amount

Shares

redeemed

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

(2,152,468)

(15,958,621)

(10,220,758)

(83,275,623)

Net

increase

(decrease)

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

(2,152,468)

$(15,958,621)

(10,220,758)

$(83,275,623)

Subsidiary

Affiliation

Franklin

Advisers,

Inc.

(Advisers)

Investment

manager

Franklin

Templeton

Services,

LLC

(FT

Services)

Administrative

manager

Franklin

Templeton

Investor

Services,

LLC

(Investor

Services)

Transfer

agent

Annualized

Fee

Rate

Net

Assets

0.650%

Up

to

and

including

$500

million

0.550%

Over

$500

million,

up

to

and

including

$1

billion

0.500%

Over

$1

billion,

up

to

and

including

$1.5

billion

0.450%

Over

$1.5

billion,

up

to

and

including

$6.5

billion

0.425%

Over

$6.5

million,

up

to

and

including

$11.5

billion

0.400%

Over

$11.5

billion,

up

to

and

including

$16.5

billion

0.390%

Over

$16.5

billion,

up

to

and

including

$19

billion

0.380%

Over

$19

billion,

up

to

and

including

$21.5

billion

0.370%

In

excess

of

$21.5

billion

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

17

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

d.

Investments

in

Affiliated

Management

Investment

Companies

The

Fund

invests

in

one

or

more

affiliated

management

investment

companies

for

purposes

other

than

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

January

31,

2021,

the

Fund

held

investments

in

affiliated

management

investment

companies

as

follows:

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

Fund

so

that

the

operating

expenses

(excluding

acquired

fund

fees

and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations)

of

the

Fund

do

not

exceed

0.60%,

based

on

the

average

net

assets

until

November

30,

2021.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

f.

Other

Affiliated

Transactions

At

January

31,

2021,

the

shares

of

the

Fund

were

owned

by

the

following

investment

companies:

a

Investment

activities

of

significant

investment

companies

could

have

a

material

impact

on

the

Fund.

4.

Expense

Offset

Arrangement

The Fund has

entered

into

an

arrangement

with

its

custodian

whereby

credits

realized

as

a

result

of

uninvested

cash

balances

are

used

to

reduce

a

portion

of

the

Fund's

custodian

expenses.

During

the

period

ended

January

31,

2021,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

    aa

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares

Held

at

End

of

Period

Investment

Income

a      

a  

a  

a  

a  

a  

a  

a  

Franklin

Floating

Rate

Income

Fund

Non-Controlled

Affiliates

Dividends

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0%

.........

$12,251,544

$46,233,695

$(51,191,170)

$—

$—

$7,294,069

7,294,069

$2

Total

Affiliated

Securities

....

$12,251,544

$46,233,695

$(51,191,170)

$—

$—

$7,294,069

$2

Shares

Percentage

of

Outstanding

Shares

a

Franklin

Strategic

Income

Fund

15,243,687

60.0%

Franklin

Floating

Rate

Daily

Access

Fund

4,630,114

18.2%

Franklin

Low

Duration

Total

Return

Fund

2,389,308

9.4%

Franklin

Total

Return

Fund

1,549,310

6.1%

Franklin

Strategic

Income

VIP

Fund

1,118,951

4.5%

Franklin

Floating

Rate

Master

Series

461,717

1.8%

Total

25,393,087

100.0%

3.

Transactions

with

Affiliates

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

18

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

5.

Income

Taxes

For

tax

purposes,

capital

losses

may

be

carried

over

to

offset

future

capital

gains. 

At

July

31,

2020,

the

capital

loss

carryforwards

were

as

follows:

At

January

31,

2021,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

defaulted

securities,

wash

sales

and

bond

discounts

and

premiums.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

January

31,

2021,

aggregated

$57,283,200

and

$67,840,463,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

January

31,

2021,

the

Fund

had

94.2%

of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities,

if

any.

These

securities

may

be

more

sensitive

to

economic

conditions

causing

greater

price

volatility

and

are

potentially

subject

to

a

greater

risk

of

loss

due

to

default

than

higher

rated

securities.

The

Fund

held

a

defaulted

security

and/or

other

securities

for

which

the

income

has

been

deemed

uncollectible.

At

January

31,

2021,

the

value

of

this

security

was

$5,351,384

representing

2.8%

of

the

Fund's

net

assets.

The

Fund

discontinues

accruing

income

on

securities

for

which

income

has

been

deemed

uncollectible

and

provides

an

estimate

for

losses

on

interest

receivable.

The

securities

have

been

identified

in

the

accompanying

Statement

of

Investments.

8. Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

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

$4,543,494

Long

term

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

16,688,383

Total

capital

loss

carryforwards

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

$21,231,877

Cost

of

investments

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

$245,175,772

Unrealized

appreciation

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

$4,20

8,493

Unrealized

depreciation

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

(56,013,562)

Net

unrealized

appreciation

(depreciation)

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

$(51,805,069)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

19

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

9.

Restricted

Securities

The

Fund

invests

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 Fund

may

have

registration

rights

for

restricted

securities.

The

issuer

generally

incurs

all

registration

costs.

At

January

31,

2021,

investments

in

restricted

securities,

excluding

securities

exempt

from

registration

under

the

1933

Act,

were

as

follows:

10.

Unfunded

Loan

Commitments

The

Fund

enters

into

certain

credit

agreements,

all

or

a

portion

of

which

may

be

unfunded.

The Fund

is

obligated

to

fund

these

loan

commitments

at

the

borrowers’

discretion.

Unfunded

loan

commitments

and

funded

portions

of

credit

agreements

are

marked

to

market

daily

and

any

unrealized

appreciation

or

depreciation

is

included

in

the Statement

of

Assets

and

Liabilities

and

the Statement

of

Operations.

Funded

portions

of

credit

agreements

are

presented

in

the

Statement

of

Investments.

At

January

31,

2021,

unfunded

commitments

were

as

follows:

Shares

Issuer

Acquisition

Date

Cost

Value

Franklin

Floating

Rate

Income

Fund

209,637

a

Appvion

Operations,

Inc

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

6/14/18

$

2,148,646

$

3,515,715

732,184

Remington

Outdoor

Co.,

Inc.

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

11/06/15-1/26/18

33,305,110

—

Total

Restricted

Securities

(Value

is

1.82%

of

Net

Assets)

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

$35,453,756

$3,515,715

a

The

Fund

also

invests

in

unrestricted

securities

of

the

issuer,

valued

at

$5,559,804

as

of

January

31,

2021.

Borrower

Unfunded

Commitment

Fieldwood

Energy

LLC

$2,261,776

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

20

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

The

1940

Act

defines

"affiliated

companies"

to

include

investments

in

portfolio

companies

in

which

a

fund

owns

5%

or

more

of

the

outstanding

voting

securities.

During

the

period

ended

January

31,

2021,

investments

in

“affiliated

companies”

were

as

follows:

12.

Credit

Facility

The

Fund,

together

with

other

U.S.

registered

and

foreign

investment

funds

(collectively,

Borrowers),

managed

by

Franklin

Templeton,

are

borrowers

in

a

joint

syndicated

senior

unsecured

credit

facility

totaling

$2

billion

(Global

Credit

Facility)

which

matured

on

February

5,

2021.

This

Global

Credit

Facility

provides

a

source

of

funds

to

the

Borrowers

for

temporary

and

emergency

purposes,

including

the

ability

to

meet

future

unanticipated

or

unusually

large

redemption

requests.

Effective

February

5,

2021,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one

year

term,

maturing

February

4,

2022,

for

a

total

of

$2.675

billion.

Under

the

terms

of

the

Global

Credit

Facility,

the

Fund

shall,

in

addition

to

interest

charged

on

any

borrowings

made

by

the

Fund

and

other

costs

incurred

by

the

Fund,

pay

its

share

of

fees

and

expenses

incurred

in

connection

with

the

implementation

and

maintenance

of

the

Global

Credit

Facility,

based

upon

its

relative

share

of

the

aggregate

net

assets

of

all

of

the

Borrowers,

including

an

annual

commitment

fee

of

0.15%

based

upon

the

unused

portion

of

the

Global

Credit

Facility.

These

fees

are

reflected

in

other

expenses

in

the

Statement

of

Operations.

During

the

period

ended

January

31,

2021,

the Fund

did

not

use

the

Global

Credit

Facility.

13.

Fair

Value

Measurements

The

Fund

follows

a

fair

value

hierarchy

that

distinguishes

between

market

data

obtained

from

independent

sources

(observable

inputs)

and

the Fund's

own

market

assumptions

(unobservable

inputs).

These

inputs

are

used

in

determining

the

value

of

the

Fund's financial

instruments

and

are

summarized

in

the

following

fair

value

hierarchy:

Level

1

–

quoted

prices

in

active

markets

for

identical

financial

instruments

Level

2

–

other

significant

observable

inputs

(including

quoted

prices

for

similar

financial

instruments,

interest

rates,

prepayment

speed,

credit

risk,

etc.)

Level

3

–

significant

unobservable

inputs

(including

the

Fund's

own

assumptions

in

determining

the

fair

value

of

financial

instruments)

Value

at

Beginning

of

Period

Purchases

Sales

Realized

Gain

(Loss)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

End

of

Period

Number

of

Shares/Principal

Amount

Held

at

End

of

Period

Investment

Income

Franklin

Floating

Rate

Income

Fund

Non-Controlled

Affiliates

Dividends

Remington

Outdoor

Co.,

Inc.

.

$

183,046

$

—

$

—

$

—

$

(183,046)

$

—

732,184

$

—

Remington

Outdoor

Co.,

Inc.,

Litigation

Units

.........

—

—

—

—

—

—

68,931

—

Total

Affiliated

Securities

(Value

is

—%

of

Net

Assets)

$183,046

$—

$—

$

—

$

(183,046)

$—

$—

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

21

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

The

input

levels

are

not

necessarily

an

indication

of

the

risk

or

liquidity

associated

with

financial

instruments

at

that

level.

A

summary

of

inputs

used

as

of

January

31,

2021,

in

valuing

the

Fund's

assets

carried

at

fair

value,

is

as

follows:

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.

At

January

31,

2021,

the

reconciliation is

as follows:

Significant

unobservable

valuation

inputs

for

material

Level

3 assets

and/or

liabilities and

impact

to

fair

value

as

a

result

of

changes

in

unobservable

valuation

inputs

as

of

January

31,

2021,

are

as

follows:

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

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

$

—

$

—

$

—

a

$

—

Hotels,

Restaurants

&

Leisure

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

—

114,095

—

114,095

Paper

&

Forest

Products

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

—

—

3,515,715

3,515,715

Road

&

Rail

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

—

—

94,545

94,545

Preferred

Stocks

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

—

309,850

—

309,850

Corporate

Bonds

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

—

—

7,951,425

7,951,425

Senior

Floating

Rate

Interests

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

—

168,191,051

5,899,953

174,091,004

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

7,294,069

—

—

7,294,069

Total

Investments

in

Securities

...........

$7,294,069

$168,614,996

$17,461,638

$193,370,703

Other

Financial

Instruments:

Unfunded

Loan

Commitments

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

$

—

$

116,130

$

—

$

116,130

Total

Other

Financial

Instruments

.........

$—

$116,130

$—

$116,130

a

Includes

securities

determined

to

have

no

value

at

January

31,

2021.

Balance

at

Beginning

of

Period

Purchases

Sales

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Cost

Basis

Adjust-

ments

a

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

$

183,046

$

—

$

—

$

—

$

—

$

—

$

—

$

(183,046)

$

—

b

$

(183,046)

Paper

&

Forest

Products

4,104,406

—

—

—

—

—

—

(588,691)

3,515,715

(588,691)

Road

&

Rail

.......

138,088

—

—

—

—

—

—

(43,543)

94,545

(43,543)

Corporate

Bonds

:

Road

&

Rail

.......

7,171,452

—

—

—

—

404,068

—

375,905

7,951,425

375,905

Senior

Floating

Rate

Interests

:

Road

&

Rail

.......

5,584,261

—

—

—

—

(45,003)

—

360,695

5,899,953

360,695

Escrows

and

Litigation

Trusts

...........

—

b

—

—

—

—

—

—

—

—

b

—

Total

Investments

in

Securities

.

$17,181,253

$—

$—

$—

$—

$359,065

$—

$(78,680)

$17,461,638

$(78,680)

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

other

cost

basis

adjustments.

b

Includes

securities

determined

to

have

no

value.

13.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

22

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

14.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

The

amendments

in

the

ASU

provides

optional

temporary

financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

due

to

the

planned

discontinuation

of

the

London

Interbank

Offered

Rate

(LIBOR)

and

other

interbank-offered

based

reference

rates

as

of

the

end

of

2021.

The

ASU

is

effective

for

certain

reference

rate-related

contract

modifications

that

occur

during

the

period

March

12,

2020

through

December

31,

2022. Management

has

reviewed

the

requirements

and

believes

the

adoption

of

this

ASU

will

not

have

a

material

impact

on

the

financial

statements.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

Impact

to

Fair

Value

if

Input

Increases

a

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks:

Paper

&

Forest

Products

.......

$3,515,715

Discounted

cash

flow

Weighted

average

cost

of

capital

19.3%

Decrease

b

Free

cash

flow

$107.5

mil

Increase

b

Discount

for

lack

of

marketability

8.9%

Decrease

b

Long

term

growth

2.5%

Increase

Corporate

Bonds:

Road

&

Rail

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

7,951,425

Discounted

cash

flow

Discount

rate

15.6%

Decrease

b

Free

cash

flow

$9.2

mil

Increase

Senior

Floating

Rate

Interests:

Road

&

Rail

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

5,899,953

Discounted

cash

flow

Discount

rate

10.2%

Decrease

b

Free

cash

flow

$7.0

mil

Increase

All

Other

Investments

..........

 94,545

c,d

Total

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

$17,461,638

a

Represents

the

directional

change

in

the

fair

value

that

would

result

from

a

significant

and

reasonable

increase

in

the

corresponding

input.

A

significant

and

reasonable

decrease

in

the

input

would

have

the

opposite

effect.

Significant

impacts,

if

any,

to

fair

value

and/or

net

assets

have

been

indicated.

b

Represents

a

significant

impact

to

fair

value

and

net

assets.

c

Includes

financial

instruments

with

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

May

also

include

fair

value

of

immaterial

financial

instruments

and

developed

using

various

valuation

techniques

and

unobservable

inputs.

d

Includes

securities

determined

to

have

no

value

at

January

31,

2021.

13.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

23

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

15.

Subsequent

Events

The

Fund

has

evaluated

subsequent

events

through

the

issuance

of

the financial

statements

and

determined

that

no

events

have

occurred

that

require

disclosure,

other

than

those

already

disclosed

in

the

financial

statements.

Abbreviations

Currency

USD

United

States

Dollar

Selected

Portfolio

LIBOR

London

Inter-Bank

Offered

Rate

PIK

Payment-In-Kind

Item 2. Code of Ethics.

(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer. 

(c) N/A

(d) N/A

(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.

Item 3. Audit Committee Financial Expert.

(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.

(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.

Item 4. Principal Accountant Fees and Services

.      

N/A

 

Item 5.  Audit Committee

of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

Item 7.  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.            N/A

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.                               N/A

Item 9.  Purchases of Equity Securities by Closed-End Management Investment Company and

Affiliated Purchasers. N/A

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.

Item 11. Controls and Procedures.

(a)

 Evaluation of Disclosure Controls and Procedures.

The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.

(b)

 Changes in Internal Controls.

There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.

Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company.                            N/A

Item 13. Exhibits.

(a) (1) Code of Ethics

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 Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

Section 302

(b)   Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of

Matthew T. Hinkle

, Chief Executive Officer - Finance and Administration, and Robert G. Kubilis, Chief Financial Officer and Chief Accounting Officer

Section 906

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 FLOATING RATE MASTER TRUST

By __ S\MATTHEW T. HINKLE______________________

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date March 26, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By _ S\MATTHEW T. HINKLE_______________________

      Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date March 26, 2021

By _ S\ROBERT G. KUBILIS________________________

Robert G. Kubilis

      Chief Financial Officer and Chief Accounting Officer

Date March 26, 2021