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: 1/31/22

Item 1. Reports to Stockholders.

a.)

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

b.)

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”.

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

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Beginning

Account

Value

8/1/21

Ending

Account

Value

1/31/22

Expenses

Paid

During

Period

8/1/21–1/31/22

1,2

Ending

Account

Value

1/31/22

Expenses

Paid

During

Period

8/1/21–1/31/22

1,2

a

Annualized

Expense

Ratio

2

$1,000

$1,026.40

$2.69

$1,022.55

$2.68

0.53%

Franklin

Floating

Rate

Master

Trust

Financial

Highlights

Franklin

Floating

Rate

Master

Series

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

2

a

Six

Months

Ended

January

31,

2022

(unaudited)

Year

Ended

July

31,

2021

2020

2019

2018

2017

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$7.38

$6.99

$8.18

$8.54

$8.69

$8.47

Income

from

investment

operations

a

:

Net

investment

income

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

0.136

b

0.301

b

0.415

0.460

0.398

0.332

Net

realized

and

unrealized

gains

(losses)

0.053

0.417

(1.141)

(0.378)

(0.156)

0.221

Total

from

investment

operations

........

0.189

0.718

(0.726)

0.082

0.242

0.553

Less

distributions

from:

Net

investment

income

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

(0.153)

(0.328)

(0.464)

(0.442)

(0.392)

(0.333)

Net

asset

value,

end

of

period

..........

$7.42

$7.38

$6.99

$8.18

$8.54

$8.69

Total

return

c

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

2.64%

10.51%

(9.13)%

0.98%

2.73%

6.71%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.57%

0.61%

0.58%

0.55%

0.55%

0.55%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.54

%

0.53%

0.53%

0.53%

0.53%

0.53%

Net

investment

income

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

3.65%

4.19%

5.41%

5.29%

4.60%

3.78%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$570,270

$430,129

$394,720

$1,054,679

$1,760,544

$2,090,626

Portfolio

turnover

rate

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

18.50%

74.82%

16.80%

27.92%

f

49.97%

67.00%

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

securities

delivered

as

a

result

of

in-kind

transactions.

Franklin

Floating

Rate

Master

Trust

Statement

of

Investments

(unaudited),

January

31,

2022

Franklin

Floating

Rate

Master

Series

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

3

a

a

Country

Shares

a

Value

%

of

Net

Assets

a

Common

Stocks

Industrial

Machinery

a

UTEX

Industries,

Inc.

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

United

States

120,386

$

6,561,037

1.15

a

Leisure

Facilities

a

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

104,009

136,512

0.02

a

Oil

&

Gas

Exploration

&

Production

a

Quarternorth

Energy

Holding,

Inc.

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

United

States

111,779

11,662,238

2.05

a

Trucking

a,b

Onsite

Rental

Group

Operations

Pty.

Ltd.

...........

Australia

5,879,078

196,311

0.03

a

Total

Common

Stocks

(Cost

$25,422,296)

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

18,556,098

3.25

Management

Investment

Companies

Asset

Management

&

Custody

Banks

c

Franklin

Floating

Rate

Income

Fund

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

United

States

461,717

3,762,990

0.66

c

Franklin

Liberty

Senior

Loan

ETF

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

United

States

578,288

14,436,960

2.53

Invesco

Senior

Loan

ETF

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

United

States

117,471

2,582,012

0.46

20,781,962

3.65

Total

Management

Investment

Companies

(Cost

$21,674,774)

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

20,781,962

3.65

Preferred

Stocks

Leisure

Facilities

a

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

246,320

569,615

0.10

a

Total

Preferred

Stocks

(Cost

$332,425)

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

569,615

0.10

Warrants

a

a

a

a

a

Warrants

Industrial

Machinery

a,b

UTEX

Industries,

Inc.

,

2/20/49

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

United

States

321

914

0.00

†

Total

Warrants

(Cost

$–)

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

914

0.00

†

Principal

Amount

*

a

Corporate

Bonds

Airlines

d

American

Airlines

Inc

/

AAdvantage

Loyalty

IP

Ltd.,

Senior

Secured

Note,

144A,

5.5%,

4/20/26

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

United

States

1,700,000

1,743,205

0.30

d

Delta

Air

Lines,

Inc.

/

SkyMiles

IP

Ltd.,

Senior

Secured

Note,

144A,

4.5%,

10/20/25

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

United

States

1,250,000

1,297,913

0.23

d

United

Airlines,

Inc.,

Senior

Secured

Note,

144A,

4.375%,

4/15/26

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

United

States

165,000

164,071

0.03

3,205,189

0.56

Broadcasting

d

Diamond

Sports

Group

LLC

/

Diamond

Sports

Finance

Co.,

Senior

Secured

Note,

144A,

5.375%,

8/15/26

...

United

States

1,840,000

854,082

0.15

d

Univision

Communications,

Inc.,

Senior

Secured

Note,

144A,

5.125%,

2/15/25

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

United

States

400,000

403,552

0.07

1,257,634

0.22

Communications

Equipment

d

CommScope

,

Inc.,

Senior

Secured

Note,

144A,

4.75%,

9/01/29

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

United

States

692,300

664,196

0.12

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.

4

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

Corporate

Bonds

(continued)

Construction

Materials

d

Cemex

SAB

de

CV,

Senior

Bond,

144A,

5.2%,

9/17/30

.

Mexico

750,000

$

773,903

0.13

Diversified

Chemicals

d

SCIH

Salt

Holdings,

Inc.,

Senior

Secured

Note,

144A,

4.875%,

5/01/28

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

United

States

1,100,000

1,033,868

0.18

Independent

Power

Producers

&

Energy

Traders

d

Talen

Energy

Supply

LLC,

Senior

Secured

Note,

144A,

6.625%,

1/15/28

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

United

States

444,000

391,701

0.07

Integrated

Telecommunication

Services

d

Altice

France

SA

,

Senior

Secured

Note,

144A,

5.125%,

7/15/29

.......

France

800,000

743,916

0.13

Senior

Secured

Note,

144A,

5.5%,

10/15/29

........

France

1,270,000

1,205,433

0.21

1,949,349

0.34

Multi-line

Insurance

d

Acrisure

LLC

/

Acrisure

Finance,

Inc.,

Senior

Secured

Note,

144A,

4.25%,

2/15/29

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

United

States

529,400

500,580

0.09

Oil

&

Gas

Equipment

&

Services

d

Weatherford

International

Ltd.,

Senior

Secured

Note,

144A,

6.5%,

9/15/28

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

United

States

241,100

250,463

0.04

Oil

&

Gas

Storage

&

Transportation

Cheniere

Energy,

Inc.,

Senior

Secured

Note,

4.625%,

10/15/28

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

United

States

450,000

457,499

0.08

Paper

Packaging

d

Pactiv

Evergreen

Group

Issuer

LLC

/

Pactiv

Evergreen

Group

Issuer,

Inc.,

Senior

Secured

Note,

144A,

4.375%,

10/15/28

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

United

States

375,000

359,608

0.06

d

Pactiv

Evergreen

Group

Issuer,

Inc./Pactiv

Evergreen

Group

Issuer

LLC/Reynolds

Group

Holdings

Ltd.,

Senior

Secured

Note,

144A,

4%,

10/15/27

.........

United

States

800,000

757,600

0.13

1,117,208

0.19

Specialized

Consumer

Services

d

WW

International,

Inc.,

Senior

Secured

Note,

144A,

4.5%,

4/15/29

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

United

States

1,200,000

1,063,440

0.19

Specialized

Finance

d

MPH

Acquisition

Holdings

LLC,

Senior

Secured

Note,

144A,

5.5%,

9/01/28

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

United

States

453,000

435,614

0.08

Specialty

Chemicals

d

ASP

Unifrax

Holdings,

Inc.,

Senior

Secured

Note,

144A,

5.25%,

9/30/28

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

United

States

645,200

635,128

0.11

Specialty

Stores

d

99

Escrow

Issuer,

Inc.,

Senior

Secured

Note,

144A,

7.5%,

1/15/26

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

United

States

600,000

455,343

0.08

Trucking

d

First

Student

Bidco

,

Inc.

/

First

Transit

Parent,

Inc.,

Senior

Secured

Note,

144A,

4%,

7/31/29

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

United

States

500,000

474,590

0.09

b,e

Onsite

Rental

Group

Operations

Pty.

Ltd.,

PIK,

6.1%,

10/26/23

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

Australia

10,725,759

10,907,804

1.91

11,382,394

2.00

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

Corporate

Bonds

(continued)

Wireless

Telecommunication

Services

d

Vmed

O2

UK

Financing

I

plc,

Senior

Secured

Bond,

144A,

4.25%,

1/31/31

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

United

Kingdom

360,000

$

334,116

0.06

Total

Corporate

Bonds

(Cost

$28,724,808)

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

25,907,625

4.54

f,g

Senior

Floating

Rate

Interests

Advertising

Clear

Channel

Outdoor

Holdings,

Inc.

,

Term

Loan,

B

,

3.799

%

,

(

1-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%

),

8/21/26

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

United

States

2,862,705

2,827,465

0.50

Aerospace

&

Defense

AI

Convoy

(Luxembourg)

SARL

,

USD

Term

Loan,

B

,

4.5

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

1/18/27

......

Luxembourg

1,215,907

1,220,297

0.21

e

Alloy

FinCo

Ltd.

,

Term

Loan,

B

,

14

%

,

PIK,

(

3-month

USD

LIBOR

+

0.5

%

),

3/06/25

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

United

Kingdom

3,396,512

3,523,661

0.62

h,i

Cobham

Ultra

US

Co-Borrower

LLC

,

Term

Loan

,

TBD,

11/17/28

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

United

States

838,926

838,796

0.15

Dynasty

Acquisition

Co.,

Inc.

,

2020

Term

Loan,

B1,

3.724%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

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

United

States

1,935,349

1,899,061

0.33

2020

Term

Loan,

B2,

3.724%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

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

United

States

1,040,510

1,021,001

0.18

Vertex

Aerospace

Services

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/06/28

.

United

States

2,387,283

2,391,019

0.42

10,893,835

1.91

a

a

a

a

a

a

Air

Freight

&

Logistics

Kenan

Advantage

Group,

Inc.

(The)

,

U.S.

Term

Loan,

B1

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/24/26

......

United

States

2,050,605

2,058,295

0.36

Airlines

AAdvantage

Loyalty

IP

Ltd.

(American

Airlines,

Inc.)

,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

4/20/28

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

United

States

1,013,781

1,053,770

0.18

Air

Canada

,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

8/11/28

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

Canada

992,248

997,001

0.18

Allegiant

Travel

Co.

,

Replacement

Term

Loan

,

3.158

%

,

(

3-month

USD

LIBOR

+

3

%

),

2/05/24

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

United

States

986,979

986,362

0.17

American

Airlines,

Inc.

,

2017

Term

Loan,

B,

2.106%,

(1-month

USD

LIBOR

+

2%),

12/15/23

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

United

States

445,313

441,187

0.08

2018

Replacement

Term

Loan,

1.855%,

(1-month

USD

LIBOR

+

1.75%),

6/27/25

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

United

States

1,392,347

1,352,024

0.23

Kestrel

Bidco

,

Inc.

,

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

12/11/26

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

Canada

3,712,651

3,633,238

0.64

SkyMiles

IP

Ltd.

(Delta

Air

Lines,

Inc.)

,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/20/27

....

United

States

956,180

1,011,222

0.18

i

United

AirLines

,

Inc.

,

Term

Loan,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

4/21/28

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

United

States

3,394,418

3,403,838

0.60

12,878,642

2.26

a

a

a

a

a

a

Airport

Services

First

Student

Bidco

,

Inc.

,

Initial

Term

Loan,

B,

3.5%,

(3-month

USD

LIBOR

+

3%),

7/21/28

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

United

States

338,733

337,322

0.06

Initial

Term

Loan,

C,

3.5%,

(3-month

USD

LIBOR

+

3%),

7/21/28

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

United

States

125,036

124,515

0.02

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

f,g

Senior

Floating

Rate

Interests

(continued)

Airport

Services

(continued)

i

LaserShip

,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

5/07/28

...........

United

States

1,665,417

$

1,671,662

0.29

2,133,499

0.37

a

a

a

a

a

a

Alternative

Carriers

Zayo

Group

Holdings,

Inc.

,

Initial

Dollar

Term

Loan

,

3.105

%

,

(

1-month

USD

LIBOR

+

3

%

),

3/09/27

......

United

States

623,553

615,711

0.11

Apparel,

Accessories

&

Luxury

Goods

Champ

Acquisition

Corp.

,

First

Lien,

Initial

Term

Loan

,

5.691

%

,

(

3-month

USD

LIBOR

+

5.5%;

6-month

USD

LIBOR

+

5.5%

),

12/19/25

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

United

States

1,006,610

1,009,655

0.17

i

Tory

Burch

LLC

,

Initial

Term

Loan,

B

,

3.5

%

,

(

1-month

USD

LIBOR

+

3

%

),

4/16/28

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

United

States

1,924,242

1,923,039

0.34

2,932,694

0.51

a

a

a

a

a

a

Application

Software

Cloudera,

Inc.

,

i

First

Lien,

Initial

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.75%),

10/08/28

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

United

States

2,546,667

2,546,272

0.45

Second

Lien,

Initial

Term

Loan,

6.5%,

(1-month

USD

LIBOR

+

6%),

10/08/29

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

United

States

918,595

920,892

0.16

Cornerstone

OnDemand

,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/16/28

United

States

2,607,229

2,603,970

0.46

i

ECI

Macola

/MAX

Holding

LLC

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

11/09/27

United

States

2,862,658

2,867,582

0.50

i

Epicor

Software

Corp.

,

Term

Loan,

C

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

7/30/27

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

United

States

2,424,692

2,421,977

0.43

i

Genesys

Cloud

Services

Holdings

I

LLC

,

2020

Initial

Dollar

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/01/27

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

United

States

4,171,732

4,177,614

0.73

IGT

Holding

IV

AB

,

Term

Loan,

B2

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/31/28

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

Sweden

1,822,077

1,822,077

0.32

LogMeIn,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.856

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

8/31/27

..........

United

States

2,189,739

2,175,068

0.38

Mitchell

International,

Inc.

,

i

First

Lien,

Initial

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.75%),

10/15/28

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

United

States

3,502,603

3,480,449

0.61

Second

Lien,

Initial

Term

Loan,

7%,

(1-month

USD

LIBOR

+

6.5%),

10/15/29

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

United

States

142,857

144,316

0.03

i

Polaris

Newco

LLC

,

First

Lien,

Dollar

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

4

%

),

6/02/28

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

United

States

5,047,357

5,053,666

0.89

i

Project

Alpha

Intermediate

Holding,

Inc.

,

2021

Refinancing

Term

Loan

,

4.3

%

,

(

3-month

USD

LIBOR

+

4

%

),

4/26/24

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

United

States

2,830,652

2,833,837

0.50

i

RealPage

,

Inc.

,

First

Lien,

Initial

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/24/28

..........

United

States

2,646,639

2,637,812

0.46

i

Rocket

Software,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/28/25

...

United

States

1,793,878

1,790,290

0.31

UKG,

Inc.

,

First

Lien,

2021-2

Incremental

Term

Loan,

3.75%,

(3-month

USD

LIBOR

+

3.25%),

5/04/26

..........

United

States

1,941,887

1,939,673

0.34

i

First

Lien,

Initial

Term

Loan,

3.855%,

(1-month

USD

LIBOR

+

3.75%),

5/04/26

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

United

States

1,638,568

1,638,429

0.29

Second

Lien,

2021

Incremental

Term

Loan,

5.75%,

(3-month

USD

LIBOR

+

5.25%),

5/03/27

..........

United

States

482,315

487,539

0.08

39,541,463

6.94

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

7

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Asset

Management

&

Custody

Banks

Edelman

Financial

Engines

Center

LLC

(The)

,

First

Lien,

2021

Initial

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/07/28

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

United

States

2,585,579

$

2,582,489

0.45

Russell

Investments

US

Institutional

Holdco,

Inc.

,

2025

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

5/30/25

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

United

States

3,518,950

3,518,950

0.62

6,101,439

1.07

a

a

a

a

a

a

Auto

Parts

&

Equipment

Adient

US

LLC

,

Term

Loan,

B1

,

3.605

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/10/28

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

United

States

1,950,200

1,952,842

0.34

Clarios

Global

LP

,

First

Lien,

Amendment

No.

1

Dollar

Term

Loan

,

3.355

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/30/26

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

United

States

2,000,349

1,993,848

0.35

i

DexKo

Global,

Inc.

,

First

Lien,

Closing

Date

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.75%),

10/04/28

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

United

States

2,158,154

2,158,607

0.38

j

First

Lien,

Delayed

Draw

Dollar

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.75%),

10/04/28

.........

United

States

346,604

346,677

0.06

First

Brands

Group

LLC

,

First

Lien,

2021

Term

Loan,

6%,

(3-month

USD

LIBOR

+

5%),

3/30/27

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

United

States

1,567,498

1,574,356

0.28

Second

Lien,

2021

Term

Loan,

9.5%,

(3-month

USD

LIBOR

+

8.5%),

3/30/28

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

United

States

1,500,000

1,514,070

0.26

i

Highline

Aftermarket

Acquisition

LLC

,

First

Lien,

Initial

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/09/27

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

United

States

2,502,668

2,502,668

0.44

TI

Group

Automotive

Systems

LLC

,

Refinancing

US

Term

Loan

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/16/26

United

States

596,231

596,606

0.10

i

Truck

Hero,

Inc.

,

Initial

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/28

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

United

States

2,726,292

2,723,348

0.48

15,363,022

2.69

a

a

a

a

a

a

Automobile

Manufacturers

i

American

Trailer

World

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/03/28

.

United

States

2,964,456

2,954,273

0.52

Brewers

City

Brewing

Co.

LLC

,

First

Lien,

Closing

Date

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

4/05/28

.

United

States

1,342,893

1,287,499

0.23

Broadcasting

Gray

Television,

Inc.

,

Term

Loan,

B2

,

2.602

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

2/07/24

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

United

States

994,899

993,243

0.17

Nexstar

Media,

Inc.

,

Term

Loan,

B3

,

2.355

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

1/17/24

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

United

States

437,661

437,387

0.08

Sinclair

Television

Group,

Inc.

,

Term

Loan,

B

,

2.36

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

1/03/24

..........

United

States

611,160

601,229

0.10

Univision

Communications,

Inc.

,

First

Lien,

2021

Replacement

Converted

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.25%),

3/15/26

.......

United

States

1,047,235

1,047,632

0.18

h,i

First

Lien,

Initial

Term

Loan,

B,

TBD,

1/31/29

.......

United

States

2,106,522

2,107,354

0.37

5,186,845

0.90

a

a

a

a

a

a

Building

Products

Cornerstone

Building

Brands,

Inc.

,

Term

Loan,

B

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/12/28

..........

United

States

950,262

949,815

0.17

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

f,g

Senior

Floating

Rate

Interests

(continued)

Cable

&

Satellite

CSC

Holdings

LLC

,

March

2017

Refinancing

Term

Loan

,

2.356

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

7/17/25

....

United

States

3,358,838

$

3,316,852

0.58

Radiate

Holdco

LLC

,

Amendment

No.

6

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

9/25/26

..........

United

States

3,579,929

3,578,246

0.63

Virgin

Media

Bristol

LLC

,

Term

Loan,

Q

,

3.356

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/29

..........

United

States

788,848

788,726

0.14

7,683,824

1.35

a

a

a

a

a

a

Casinos

&

Gaming

i

Bally's

Corp.

,

Term

Loan,

B

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

10/02/28

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

United

States

2,500,000

2,501,212

0.44

Caesars

Resort

Collection

LLC

,

Term

Loan,

B,

2.855%,

(1-month

USD

LIBOR

+

2.75%),

12/23/24

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

United

States

3,006,774

2,994,236

0.52

Term

Loan,

B1,

3.605%,

(1-month

USD

LIBOR

+

3.5%),

7/21/25

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

United

States

341,122

341,335

0.06

i

Fertitta

Entertainment

LLC

,

Initial

Term

Loan,

B

,

4.059

%

,

(

1-month

USD

LIBOR

+

4

%

),

1/27/29

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

United

States

269,951

271,132

0.05

Raptor

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

11/01/26

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

United

States

1,881,356

1,886,530

0.33

7,994,445

1.40

a

a

a

a

a

a

Commodity

Chemicals

i

Cyanco

Intermediate

2

Corp.

,

First

Lien,

Initial

Term

Loan

,

3.605

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/16/25

.....

United

States

2,594,435

2,581,696

0.45

Communications

Equipment

CommScope

,

Inc.

,

Initial

Term

Loan

,

3.355

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/06/26

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

United

States

2,551,113

2,510,193

0.44

Construction

&

Engineering

i

USIC

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

5/12/28

...........

United

States

3,163,043

3,159,089

0.55

Construction

Machinery

&

Heavy

Trucks

ASP

Blade

Holdings,

Inc.

,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/13/28

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

United

States

1,676,271

1,681,510

0.30

Construction

Materials

White

Cap

Buyer

LLC

,

Initial

Closing

Date

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

3

%

),

10/19/27

......

United

States

1,434,851

1,436,480

0.25

Data

Processing

&

Outsourced

Services

Pitney

Bowes,

Inc.

,

Refinancing

Term

Loan,

B

,

4.11

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/17/28

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

United

States

3,076,750

3,083,488

0.54

Diversified

Banks

Finastra

Ltd.

,

First

Lien,

Dollar

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

6/13/24

...........

United

Kingdom

3,715,916

3,708,447

0.65

Diversified

Chemicals

LSF11

A5

Holdco

LLC

,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/15/28

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

United

States

976,923

978,755

0.17

Lummus

Technology

Holdings

V

LLC

,

2021

Refinancing

Term

Loan,

B

,

3.605

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

6/30/27

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

United

States

840,892

838,949

0.15

SCIH

Salt

Holdings,

Inc.

,

First

Lien,

Incremental

Term

Loan,

B1

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

3/16/27

United

States

2,664,002

2,647,831

0.47

4,465,535

0.79

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

9

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Diversified

Metals

&

Mining

U.S.

Silica

Co.

,

Term

Loan

,

5

%

,

(

1-month

USD

LIBOR

+

4

%

),

5/01/25

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

United

States

2,746,384

$

2,713,770

0.48

Diversified

Support

Services

CCI

Buyer,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/17/27

.........

United

States

1,430,859

1,434,944

0.25

Revint

Intermediate

II

LLC

,

Initial

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

10/15/27

.........

United

States

587,674

589,144

0.10

i

Spin

Holdco,

Inc.

,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

3/04/28

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

United

States

1,694,486

1,696,121

0.30

3,720,209

0.65

a

a

a

a

a

a

Drug

Retail

GNC

Holdings,

Inc.

,

Second

Lien,

Term

Loan

,

6.105

%

,

(

1-month

USD

LIBOR

+

6

%

),

10/07/26

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

United

States

5,158,999

4,866,226

0.86

Education

Services

KUEHG

Corp.

,

Term

Loan,

B3

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

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

United

States

1,903,703

1,881,496

0.33

i

Learning

Care

Group

(US)

No.

2,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

3/13/25

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

United

States

746,124

737,529

0.13

2,619,025

0.46

a

a

a

a

a

a

Electric

Utilities

Astoria

Energy

LLC

,

2020

Advance

Term

Loan,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

12/10/27

..........

United

States

393,962

393,580

0.07

Electronic

Equipment

&

Instruments

Verifone

Systems,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.178

%

,

(

3-month

USD

LIBOR

+

4

%

),

8/20/25

......

United

States

899,972

893,664

0.16

Environmental

&

Facilities

Services

Madison

IAQ

LLC

,

Term

Loan

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

6/21/28

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

United

States

1,898,067

1,893,920

0.33

Food

Retail

i

Shearer's

Foods

LLC

,

First

Lien,

Refinancing

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/23/27

......

United

States

2,415,435

2,411,244

0.42

General

Merchandise

Stores

Franchise

Group,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

3/10/26

..........

United

States

367,031

367,948

0.07

Health

Care

Equipment

h,i

Bausch

Health

Companies,

Inc.

,

Term

Loan,

B

,

TBD,

1/27/27

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

Canada

647,547

643,400

0.11

Medline

Borrower

LP

,

Initial

Dollar

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

10/23/28

.........

United

States

2,695,283

2,687,076

0.47

US

Radiology

Specialists,

Inc.

(US

Outpatient

Imaging

Services,

Inc.)

,

Closing

Date

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

12/15/27

.........

United

States

1,228,324

1,229,601

0.22

4,560,077

0.80

a

a

a

a

a

a

Health

Care

Facilities

ADMI

Corp.

,

Amendment

No.

4

Refinancing

Term

Loan,

3.875%,

(1-month

USD

LIBOR

+

3.375%),

12/23/27

........

United

States

2,259,730

2,247,550

0.39

Amendment

No.

5

Incremental

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.5%),

12/23/27

..........

United

States

1,696,572

1,694,630

0.30

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

f,g

Senior

Floating

Rate

Interests

(continued)

Health

Care

Facilities

(continued)

i

Aveanna

Healthcare

LLC

,

First

Lien,

2021

Extended

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/17/28

United

States

1,815,169

$

1,810,958

0.32

i

FINThrive

Software

Intermediate

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

4%),

12/18/28

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

United

States

2,141,900

2,142,575

0.37

Second

Lien,

Initial

Term

Loan,

7.25%,

(3-month

USD

LIBOR

+

6.75%),

12/17/29

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

United

States

1,457,038

1,459,471

0.26

Global

Medical

Response,

Inc.

,

2018

New

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

3/14/25

.....

United

States

1,412,777

1,412,777

0.25

i

Heartland

Dental

LLC

,

2021

Incremental

Term

Loan

,

4.104

%

,

(

1-month

USD

LIBOR

+

4

%

),

4/30/25

......

United

States

2,493,246

2,496,375

0.44

Medical

Solutions

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

11/01/28

..

United

States

1,552,923

1,552,682

0.27

Pathway

Vet

Alliance

LLC

,

First

Lien,

2021

Replacement

Term

Loan

,

3.855

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/31/27

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

United

States

3,295,839

3,294,966

0.58

i

Phoenix

Newco

,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/15/28

..........

United

States

2,016,129

2,018,810

0.35

i

Pluto

Acquisition

I,

Inc.

,

First

Lien,

2021

Term

Loan

,

4.175

%

,

(

3-month

USD

LIBOR

+

4

%

),

6/22/26

......

United

States

2,166,830

2,160,330

0.38

22,291,124

3.91

a

a

a

a

a

a

Health

Care

Services

i

CNT

Holdings

I

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

11/08/27

.....

United

States

2,551,955

2,555,349

0.45

h

eResearch

Technology,

Inc.

,

Term

Loan

,

TBD,

2/04/27

..

United

States

1,000,000

1,003,750

0.18

eResearchTechnology

,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/04/27

......

United

States

2,405,986

2,415,393

0.42

National

Mentor

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.5%,

(1-month

USD

LIBOR

+

3.75%;

3-month

USD

LIBOR

+

3.75%),

3/02/28

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

United

States

3,160,521

3,130,891

0.55

First

Lien,

Initial

Term

Loan,

C,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

3/02/28

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

United

States

100,015

99,077

0.02

Phoenix

Guarantor,

Inc.

,

First

Lien,

Term

Loan,

B3

,

3.604

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/05/26

.....

United

States

1,618,471

1,615,161

0.28

i

Radiology

Partners,

Inc.

,

First

Lien,

Term

Loan,

B

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/09/25

....

United

States

3,252,299

3,219,548

0.56

Team

Health

Holdings,

Inc.

,

Initial

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

2/06/24

..........

United

States

1,391,920

1,347,726

0.24

i

U.S.

Anesthesia

Partners,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

10/01/28

United

States

1,683,984

1,682,670

0.30

U.S.

Renal

Care,

Inc.

,

Initial

Term

Loan

,

5.104

%

,

(

1-month

USD

LIBOR

+

5

%

),

6/26/26

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

United

States

2,782,720

2,752,278

0.48

Waystar

Technologies,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.105

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/22/26

.....

United

States

5,259,732

5,259,758

0.92

25,081,601

4.40

a

a

a

a

a

a

Health

Care

Technology

h,i

athenahealth

Group,

Inc.

,

CME

Term

Loan,

B

,

TBD,

1/26/29

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

United

States

5,985,507

5,964,318

1.05

athenahealth

,

Inc.

,

First

Lien,

Term

Loan,

B1

,

4.4

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

2/11/26

..........

United

States

3,723,294

3,727,949

0.65

9,692,267

1.70

a

a

a

a

a

a

Home

Improvement

Retail

Park

River

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/28/27

......

United

States

2,428,172

2,418,872

0.42

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

f,g

Senior

Floating

Rate

Interests

(continued)

Home

Improvement

Retail

(continued)

i

SRS

Distribution,

Inc.

,

2021

Refinancing

Term

Loan,

4.269%,

(3-month

USD

LIBOR

+

3.75%),

6/02/28

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

United

States

2,178,965

$

2,179,869

0.38

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.5%),

6/02/28

United

States

143,182

143,361

0.03

4,742,102

0.83

a

a

a

a

a

a

Homefurnishing

Retail

Evergreen

AcqCo

1

LP

,

Initial

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

4/26/28

...........

United

States

2,580,375

2,581,459

0.45

Restoration

Hardware,

Inc.

,

Initial

Term

Loan

,

3

%

,

(

3-month

USD

LIBOR

+

2.5

%

),

10/20/28

..........

United

States

1,246,875

1,244,425

0.22

3,825,884

0.67

a

a

a

a

a

a

Hotels,

Resorts

&

Cruise

Lines

Hilton

Grand

Vacations

Borrower

LLC

,

Initial

Term

Loan

,

3.5

%

,

(

1-month

USD

LIBOR

+

3

%

),

8/02/28

........

United

States

633,333

632,808

0.11

Household

Appliances

i

Osmosis

Buyer

Ltd.

,

Initial

Term

Loan,

B

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

7/31/28

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

United

States

2,902,024

2,913,458

0.51

i

VC

GB

Holdings

I

Corp.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

7/21/28

...........

United

States

2,413,139

2,399,987

0.42

5,313,445

0.93

a

a

a

a

a

a

Household

Products

b,e,k

FGI

Operating

Co.

LLC

,

Term

Loan

,

11

%

,

PIK,

(

6-month

USD

LIBOR

+

10

%

),

5/16/22

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

United

States

8,953,792

1,206,766

0.21

Housewares

&

Specialties

i

Astro

One

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

9/15/28

......

United

States

2,600,000

2,596,750

0.46

Human

Resource

&

Employment

Services

CCRR

Parent,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/06/28

..........

United

States

2,000,246

2,004,006

0.35

CHG

Healthcare

Services,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

9/29/28

...

United

States

1,160,169

1,162,855

0.20

3,166,861

0.55

a

a

a

a

a

a

Industrial

Machinery

i

Tiger

Acquisition

LLC

,

First

Lien,

Initial

Term

Loan

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

6/01/28

..........

United

States

2,171,686

2,153,270

0.38

TK

Elevator

Midco

GmbH

,

USD

Term

Loan,

B1

,

4

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

7/30/27

...........

Germany

2,181,959

2,186,508

0.38

e

UTEX

Industries,

Inc.

,

Second

Out

Term

Loan

,

5.25

%

,

PIK,

(

1-month

USD

LIBOR

+

3.75

%

),

12/03/25

......

United

States

738,664

734,853

0.13

5,074,631

0.89

a

a

a

a

a

a

Insurance

Brokers

Alliant

Holdings

Intermediate

LLC

,

2018

Initial

Term

Loan,

3.355%,

(1-month

USD

LIBOR

+

3.25%),

5/09/25

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

United

States

2,125,939

2,110,484

0.37

New

Term

Loan,

B4,

4%,

(1-month

USD

LIBOR

+

3.5%),

11/05/27

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

United

States

1,707,236

1,707,372

0.30

h,i

AssuredPartners

Capital,

Inc.

,

Incremental

Term

Loan

,

TBD,

2/12/27

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

United

States

1,300,000

1,299,597

0.23

5,117,453

0.90

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.

12

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Integrated

Telecommunication

Services

Altice

France

SA

,

USD

Incremental

Term

Loan,

B13

,

4.106

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/14/26

......

France

1,161,801

$

1,159,623

0.20

Global

Tel*Link

Corp.

,

First

Lien,

Term

Loan,

4.355%,

(1-month

USD

LIBOR

+

4.25%),

11/29/25

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

United

States

4,729,606

4,658,142

0.82

Second

Lien,

Term

Loan,

8.355%,

(1-month

USD

LIBOR

+

8.25%),

11/29/26

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

United

States

2,479,737

2,329,924

0.41

Intrado

Corp.

,

Initial

Term

Loan,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/10/24

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

United

States

1,054,857

991,302

0.17

9,138,991

1.60

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

1,483,153

1,477,131

0.26

First

Lien,

Amendment

No.

2

Initial

Term

Loan,

3.605%,

(1-month

USD

LIBOR

+

3.5%),

9/13/24

...........

United

States

2,425,517

2,417,646

0.42

3,894,777

0.68

a

a

a

a

a

a

Internet

Services

&

Infrastructure

i

Arches

Buyer,

Inc.

,

Refinancing

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/06/27

.........

United

States

2,210,823

2,199,183

0.38

Barracuda

Networks,

Inc.

,

First

Lien,

2020

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/12/25

......

United

States

1,946,296

1,952,174

0.34

i

Hunter

Holdco

3

Ltd.

,

First

Lien,

Initial

Dollar

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

8/19/28

.....

United

Kingdom

2,202,454

2,207,278

0.39

Thrasio

LLC

,

Initial

Term

Loan

,

8

%

,

(

3-month

USD

LIBOR

+

7

%

),

12/18/26

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

United

States

895,477

891,559

0.16

TIBCO

Software,

Inc.

,

Term

Loan,

B3

,

3.86

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

6/30/26

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

United

States

1,796,647

1,796,575

0.31

9,046,769

1.58

a

a

a

a

a

a

Investment

Banking

&

Brokerage

Citadel

Securities

LP

,

2021

Term

Loan

,

2.605

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

2/02/28

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

United

States

1,290,250

1,279,999

0.22

Deerfield

Dakota

Holding

LLC

,

First

Lien,

Initial

Dollar

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

4/09/27

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

United

States

2,727,837

2,739,553

0.48

Jane

Street

Group

LLC

,

Dollar

Term

Loan

,

2.855

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/26/28

..........

United

States

434,209

429,595

0.08

4,449,147

0.78

a

a

a

a

a

a

IT

Consulting

&

Other

Services

Aptean

Acquiror

,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

4/23/26

....

United

States

3,123,660

3,118,085

0.55

Aventiv

Technologies

LLC

,

First

Lien,

Initial

Term

Loan,

5.5%,

(3-month

USD

LIBOR

+

4.5%),

11/01/24

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

United

States

4,409,828

4,310,893

0.76

Second

Lien,

Initial

Term

Loan,

9.25%,

(3-month

USD

LIBOR

+

8.25%),

11/01/25

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

United

States

125,000

120,478

0.02

Gainwell

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/27

......

United

States

2,991,362

2,998,840

0.53

Peraton

Corp.

,

First

Lien,

Term

Loan,

B

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

2/01/28

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

United

States

5,450,734

5,457,166

0.96

Sitel

Worldwide

Corp.

,

Initial

Dollar

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

8/28/28

..........

France

2,023,145

2,026,757

0.35

18,032,219

3.17

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

f,g

Senior

Floating

Rate

Interests

(continued)

Leisure

Facilities

e

24

Hour

Fitness

Worldwide,

Inc.

,

Term

Loan

,

5.22

%

,

PIK,

(

3-month

USD

LIBOR

+

5

%

),

12/29/25

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

United

States

4,860,205

$

3,573,601

0.63

Leisure

Products

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

2,942,480

2,897,430

0.51

i

Motion

Acquisition

Ltd.

,

Term

Loan,

B1,

3.474%,

(3-month

USD

LIBOR

+

3.25%),

11/12/26

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

United

Kingdom

2,596,866

2,565,795

0.45

Term

Loan,

B2,

3.474%,

(3-month

USD

LIBOR

+

3.25%),

11/12/26

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

United

Kingdom

370,214

365,785

0.06

5,829,010

1.02

a

a

a

a

a

a

Life

&

Health

Insurance

AssuredPartners

,

Inc.

,

2020

February

Refinancing

Term

Loan,

3.605%,

(1-month

USD

LIBOR

+

3.5%),

2/12/27

...........

United

States

3,015,338

2,999,568

0.52

2021

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.5%),

2/12/27

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

United

States

617,089

617,669

0.11

3,617,237

0.63

a

a

a

a

a

a

Life

Sciences

Tools

&

Services

ICON

plc

,

Term

Loan,

2.75%,

(3-month

USD

LIBOR

+

2.25%),

7/03/28

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

Ireland

946,909

946,081

0.17

U.S.

Term

Loan,

2.75%,

(3-month

USD

LIBOR

+

2.25%),

7/03/28

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

Ireland

235,923

235,716

0.04

1,181,797

0.21

a

a

a

a

a

a

Metal

&

Glass

Containers

Mauser

Packaging

Solutions

Holding

Co.

,

Initial

Term

Loan

,

3.354

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/03/24

United

States

3,422,585

3,395,581

0.60

Movies

&

Entertainment

AMC

Entertainment

Holdings,

Inc.

,

Term

Loan,

B1

,

3.104

%

,

(

1-month

USD

LIBOR

+

3

%

),

4/22/26

......

United

States

645,026

576,214

0.10

Banijay

Entertainment

SAS

,

USD

Term

Loan,

B

,

3.851

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/01/25

..........

France

2,316,715

2,310,194

0.41

Crown

Finance

US,

Inc.

,

Initial

Dollar

Term

Loan

,

3.5

%

,

(

3-month

USD

LIBOR

+

2.5

%

),

2/28/25

...........

United

States

839,524

640,888

0.11

Diamond

Sports

Group

LLC

,

Term

Loan

,

3.36

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/24/26

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

United

States

3,536,947

1,462,315

0.26

Lions

Gate

Capital

Holdings

LLC

,

2023

Term

Loan,

A

,

1.855

%

,

(

1-month

USD

LIBOR

+

1.75

%

),

3/22/23

....

United

States

3,275,316

3,267,128

0.57

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC)

,

First

Lien,

Term

Loan,

B1

,

2.86

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

5/18/25

.....

United

States

1,185,445

1,167,498

0.20

9,424,237

1.65

a

a

a

a

a

a

Multi-line

Insurance

Acrisure

LLC

,

First

Lien,

2020

Term

Loan,

3.724%,

(3-month

USD

LIBOR

+

3.5%),

2/15/27

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

United

States

1,835,985

1,816,478

0.32

First

Lien,

2021-1

Additional

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.75%),

2/15/27

..........

United

States

780,652

779,676

0.14

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

f,g

Senior

Floating

Rate

Interests

(continued)

Multi-line

Insurance

(continued)

Acrisure

LLC

(continued)

First

Lien,

2021-2

Additional

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

4.25%),

2/15/27

..........

United

States

769,231

$

770,673

0.13

3,366,827

0.59

a

a

a

a

a

a

Oil

&

Gas

Equipment

&

Services

i

Brand

Energy

&

Infrastructure

Services,

Inc.

,

Initial

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/21/24

United

States

1,647,389

1,617,530

0.28

Oil

&

Gas

Storage

&

Transportation

Lucid

Energy

Group

II

Borrower

LLC

,

Initial

Term

Loan

,

5

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

11/24/28

......

United

States

1,500,000

1,500,270

0.26

Other

Diversified

Financial

Services

Astra

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B2

,

5.75

%

,

(

1-month

USD

LIBOR

+

5.25

%

),

10/25/28

.........

United

States

1,673,228

1,657,542

0.29

Mercury

Borrower,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

8/02/28

...........

United

States

2,450,211

2,447,148

0.43

4,104,690

0.72

a

a

a

a

a

a

Packaged

Foods

&

Meats

h,i

Primary

Products

Finance

LLC

,

Term

Loan

,

TBD,

10/25/28

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

United

States

689,655

695,000

0.12

Paper

Packaging

Charter

Next

Generation,

Inc.

,

First

Lien,

2021

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

12/01/27

United

States

1,883,159

1,888,309

0.33

Kleopatra

Finco

SARL

,

USD

Term

Loan,

B

,

5.25

%

,

(

6-month

USD

LIBOR

+

4.75

%

),

2/12/26

..........

Luxembourg

2,256,094

2,247,634

0.39

4,135,943

0.72

a

a

a

a

a

a

Personal

Products

i

Conair

Holdings

LLC

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

5/17/28

..........

United

States

3,067,638

3,070,920

0.54

Coty,

Inc.

,

USD

Term

Loan,

B

,

2.354

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

4/07/25

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

United

States

842,790

831,353

0.14

i

Sunshine

Luxembourg

VII

SARL

,

Term

Loan,

B3

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/01/26

.........

Luxembourg

4,774,702

4,777,400

0.84

8,679,673

1.52

a

a

a

a

a

a

Pharmaceuticals

Bausch

Health

Cos.,

Inc.

,

Initial

Term

Loan

,

3.104

%

,

(

1-month

USD

LIBOR

+

3

%

),

6/02/25

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

United

States

972,002

965,524

0.17

Jazz

Pharmaceuticals

plc

,

Initial

Dollar

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

5/05/28

...........

United

States

1,580,030

1,582,605

0.28

Organon

&

Co.

,

Dollar

Term

Loan

,

3.5

%

,

(

3-month

USD

LIBOR

+

3

%

),

6/02/28

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

United

States

922,473

923,050

0.16

i

PetVet

Care

Centers

LLC

,

First

Lien,

2021

First

Lien

Replacement

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

2/14/25

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

United

States

2,437,763

2,440,055

0.43

5,911,234

1.04

a

a

a

a

a

a

Property

&

Casualty

Insurance

Asurion

LLC

,

New

Term

Loan,

B8,

3.355%,

(1-month

USD

LIBOR

+

3.25%),

12/23/26

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

United

States

2,610,665

2,595,001

0.45

New

Term

Loan,

B9,

3.355%,

(1-month

USD

LIBOR

+

3.25%),

7/31/27

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

United

States

993,633

988,292

0.17

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

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Property

&

Casualty

Insurance

(continued)

Asurion

LLC

(continued)

i

Second

Lien,

New

Term

Loan,

B3,

5.355%,

(1-month

USD

LIBOR

+

5.25%),

1/31/28

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

United

States

2,652,263

$

2,658,894

0.47

Second

Lien,

New

Term

Loan,

B4,

5.355%,

(1-month

USD

LIBOR

+

5.25%),

1/20/29

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

United

States

2,248,036

2,253,667

0.40

8,495,854

1.49

a

a

a

a

a

a

Publishing

Cengage

Learning,

Inc.

,

First

Lien,

Term

Loan,

B

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

7/14/26

..........

United

States

3,781,108

3,798,501

0.67

McGraw-Hill

Education,

Inc.

,

Initial

Term

Loan

,

5.25

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

7/28/28

..........

United

States

2,703,654

2,700,829

0.47

6,499,330

1.14

a

a

a

a

a

a

Real

Estate

Services

Cushman

&

Wakefield

U.S.

Borrower

LLC

,

Replacement

Term

Loan

,

2.855

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

8/21/25

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

United

States

1,042,045

1,040,462

0.18

Research

&

Consulting

Services

Dun

&

Bradstreet

Corp.

(The)

,

Initial

Term

Loan

,

3.358

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/06/26

..........

United

States

1,180,768

1,177,609

0.21

Restaurants

i

Flynn

Restaurant

Group

LP

,

First

Lien,

2021

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/22/28

....

United

States

2,425,202

2,431,872

0.43

Golden

Nugget,

Inc.

,

Initial

Term

Loan,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%

),

10/04/23

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

United

States

2,249,693

2,259,771

0.39

IRB

Holding

Corp.

,

Fourth

Amendment

Incremental

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/15/27

United

States

2,443,189

2,447,391

0.43

Whatabrands

LLC

,

Initial

Term

Loan,

B

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/03/28

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

United

States

1,605,839

1,604,169

0.28

8,743,203

1.53

a

a

a

a

a

a

Retail

REITs

Brookfield

Property

REIT,

Inc.

,

Initial

Term

Loan,

B

,

2.605

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

8/27/25

.....

United

States

1,144,201

1,131,225

0.20

Security

&

Alarm

Services

Allied

Universal

Holdco

LLC

,

Initial

U.S.

Dollar

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

5/12/28

.....

United

States

3,016,052

3,011,996

0.53

APX

Group,

Inc.

,

Initial

Term

Loan

,

4.001

%

,

(

1-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

2.5%

),

7/10/28

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

United

States

2,280,559

2,279,133

0.40

Prime

Security

Services

Borrower

LLC

,

First

Lien,

2021

Refinancing

Term

Loan,

B1

,

3.5

%

,

(

3-month

USD

LIBOR

+

2.75

%

),

9/23/26

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

United

States

2,142,497

2,138,480

0.38

7,429,609

1.31

a

a

a

a

a

a

Soft

Drinks

h,i

Naked

Juice

LLC

,

First

Lien,

Delayed

Draw

CME

Term

Loan,

TBD,

1/24/29

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

United

States

6,918

6,918

0.00

†

First

Lien,

Initial

CME

Term

Loan,

TBD,

1/24/29

.....

United

States

119,916

119,916

0.02

Triton

Water

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/31/28

........

United

States

2,450,210

2,435,178

0.43

2,562,012

0.45

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.

16

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Specialized

Consumer

Services

Knot

Worldwide,

Inc.

(The)

,

First

Lien,

Initial

Term

Loan

,

4.605

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

12/19/25

....

United

States

1,387,739

$

1,390,626

0.24

Pre-Paid

Legal

Services,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

6-month

USD

LIBOR

+

3.75

%

),

12/15/28

United

States

2,060,853

2,061,708

0.36

Sedgwick

Claims

Management

Services,

Inc.

(Lightning

Cayman

Merger

Sub

Ltd.)

,

2019

Term

Loan,

3.855%,

(1-month

USD

LIBOR

+

3.75%),

9/03/26

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

United

States

1,647,040

1,646,530

0.29

Initial

Term

Loan,

3.355%,

(1-month

USD

LIBOR

+

3.25%),

12/31/25

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

United

States

790,084

785,916

0.14

WW

International,

Inc.

,

Initial

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/13/28

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

United

States

760,362

737,360

0.13

6,622,140

1.16

a

a

a

a

a

a

Specialized

Finance

MPH

Acquisition

Holdings

LLC

,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

9/01/28

..........

United

States

1,147,125

1,116,445

0.20

Red

Planet

Borrower

LLC

,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/02/28

.........

United

States

2,126,948

2,127,214

0.37

i

Verscend

Holding

Corp.

,

Term

Loan,

B1

,

4.105

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/27/25

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

United

States

4,686,064

4,691,921

0.82

7,935,580

1.39

a

a

a

a

a

a

Specialty

Chemicals

i

ASP

Unifrax

Holdings,

Inc.

,

First

Lien,

USD

Term

Loan

,

3.974

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/12/25

...

United

States

3,091,291

3,067,782

0.54

CPC

Acquisition

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/29/27

.........

United

States

1,682,818

1,672,999

0.29

INEOS

Styrolution

Group

GmbH

,

2026

Dollar

Term

Loan,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/29/26

..

United

Kingdom

512,590

512,191

0.09

Sparta

U.S.

Holdco

LLC

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

8/02/28

......

United

States

809,375

810,217

0.14

6,063,189

1.06

a

a

a

a

a

a

Specialty

Stores

Great

Outdoors

Group

LLC

,

Term

Loan,

B2

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/06/28

..........

United

States

1,496,250

1,499,213

0.26

i

Michaels

Cos.,

Inc.

(The)

,

Term

Loan,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

4/15/28

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

United

States

3,209,058

3,168,944

0.56

PetSmart

LLC

,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/11/28

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

United

States

1,510,536

1,510,302

0.27

Staples,

Inc.

,

2019

Refinancing

New

Term

Loan,

B1,

5.132%,

(3-month

USD

LIBOR

+

5%),

4/16/26

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

United

States

1,230,367

1,177,314

0.21

2019

Refinancing

New

Term

Loan,

B2,

4.632%,

(3-month

USD

LIBOR

+

4.5%),

9/12/24

...........

United

States

1,756,489

1,729,983

0.30

i

Woof

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/21/27

.........

United

States

2,455,181

2,458,250

0.43

11,544,006

2.03

a

a

a

a

a

a

Systems

Software

Atlas

Purchaser,

Inc.

,

First

Lien,

Initial

Term

Loan

,

6

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

5/08/28

..........

United

States

1,645,000

1,626,494

0.29

ConnectWise

LLC

,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

9/29/28

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

United

States

1,000,000

999,555

0.18

DCert

Buyer,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.105%,

(1-month

USD

LIBOR

+

4%),

10/16/26

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

United

States

4,595,961

4,602,878

0.81

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

17

a

a

Country

Principal

Amount

*

a

Value

%

of

Net

Assets

a

a

a

a

a

a

f,g

Senior

Floating

Rate

Interests

(continued)

Systems

Software

(continued)

DCert

Buyer,

Inc.

(continued)

i

Second

Lien,

First

Amendment

Refinancing

Term

Loan,

7.105%,

(1-month

USD

LIBOR

+

7%),

2/19/29

......

United

States

1,650,664

$

1,663,869

0.29

Hyland

Software,

Inc.

,

First

Lien,

2018

Refinancing

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.5%),

7/01/24

...........

United

States

2,956,656

2,961,283

0.52

Second

Lien,

2021

Refinancing

Term

Loan,

7%,

(1-month

USD

LIBOR

+

6.25%),

7/07/25

..........

United

States

30,303

30,606

0.00

†

Idera

,

Inc.

,

First

Lien,

Term

Loan,

B1

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/02/28

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

United

States

3,420,204

3,427,677

0.60

Ivanti

Software,

Inc.

,

First

Lien,

2021

Specified

Refinancing

Term

Loan,

5%,

(3-month

USD

LIBOR

+

4.25%),

12/01/27

.........

United

States

1,990,000

1,983,781

0.35

First

Lien,

First

Amendment

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

4%),

12/01/27

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

United

States

93,572

93,104

0.01

Perforce

Software,

Inc.

,

First

Lien,

New

Term

Loan

,

3.855

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/01/26

....

United

States

1,788,500

1,779,781

0.31

Quest

Software

US

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan,

5.139%,

(3-month

USD

LIBOR

+

3.25%;

3-month

USD

LIBOR

+

4.25%),

5/16/25

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

United

States

2,506,414

2,494,396

0.44

h,i

Term

Loan,

B,

TBD,

1/19/29

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

United

States

3,200,000

3,172,672

0.55

Sovos

Compliance

LLC

,

First

Lien,

Initial

Term

Loan

,

4.803

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

8/11/28

.....

United

States

1,479,985

1,489,235

0.26

i

Vision

Solutions,

Inc.

(Precisely

Software,

Inc.)

,

First

Lien,

Third

Amendment

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

4/24/28

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

United

States

3,995,683

3,993,186

0.70

30,318,517

5.31

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

Amentum

Government

Services

Holdings

LLC

,

First

Lien,

Term

Loan,

1,

3.605%,

(1-month

USD

LIBOR

+

3.5%),

1/29/27

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

United

States

1,383,975

1,387,435

0.24

First

Lien,

Term

Loan,

2,

5.5%,

(3-month

USD

LIBOR

+

4.75%),

1/29/27

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

United

States

615,479

617,147

0.11

Electronics

for

Imaging,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.105

%

,

(

1-month

USD

LIBOR

+

5

%

),

7/23/26

......

United

States

1,962,563

1,946,950

0.34

Magenta

Buyer

LLC

,

First

Lien,

Initial

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

5

%

),

7/27/28

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

United

States

2,714,947

2,709,857

0.48

6,661,389

1.17

a

a

a

a

a

a

Trucking

Avis

Budget

Car

Rental

LLC

,

New

Term

Loan,

B

,

1.86

%

,

(

1-month

USD

LIBOR

+

1.75

%

),

8/06/27

..........

United

States

1,392,407

1,378,852

0.24

i

PECF

USS

Intermediate

Holding

III

Corp.

,

Initial

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

12/15/28

United

States

3,955,414

3,964,610

0.70

5,343,462

0.94

a

a

a

a

a

a

Wireless

Telecommunication

Services

h

Syniverse

Holdings,

Inc.

,

Term

Loan

,

TBD,

1/27/29

....

United

States

416,667

412,500

0.07

Total

Senior

Floating

Rate

Interests

(Cost

$478,916,324)

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

470,785,179

82.56

Shares/Units

Escrows

and

Litigation

Trusts

a,b

Millennium

Corporate

Claim

Trust,

Escrow

Account

....

United

States

6,589,709

—

0.00

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.

18

a

a

Country

Shares/Units

a

Value

%

of

Net

Assets

a

a

a

a

a

a

Escrows

and

Litigation

Trusts

(continued)

a,b

Millennium

Lender

Claim

Trust,

Escrow

Account

......

United

States

6,589,709

$

—

0.00

Total

Escrows

and

Litigation

Trusts

(Cost

$–)

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

—

0.00

Total

Long

Term

Investments

(Cost

$555,070,627)

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

536,601,393

94.10

a

Short

Term

Investments

a

a

Principal

Amount

*

a

Value

%

of

Net

Assets

aa

aa

aa

aa

aa

aa

Repurchase

Agreements

l

Joint

Repurchase

Agreement,

0.019%,

2/01/22

(Maturity

Value

$92,742,526)

BNP

Paribas

Securities

Corp.

(Maturity

Value

$65,349,166)

Deutsche

Bank

Securities,

Inc.

(Maturity

Value

$5,380,921)

HSBC

Securities

(USA),

Inc.

(Maturity

Value

$22,012,439)

Collateralized

by

U.S.

Government

Agency

Securities,

3.5%

-

4%,

2/20/49

-

6/20/49

and

U.S.

Treasury

Notes,

2.13%

-

2.5%,

11/30/23

-

1/31/24

(valued

at

$94,599,867)

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

92,742,476

92,742,476

16.26

Total

Repurchase

Agreements

(Cost

$92,742,476)

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

92,742,476

16.26

a

a

a

Total

Short

Term

Investments

(Cost

$92,742,476

)

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

92,742,476

16.26

a

Total

Investments

(Cost

$647,813,103)

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

$629,343,869

110.36

Other

Assets,

less

Liabilities

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

(59,074,216)

(10.36)

Net

Assets

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

$570,269,653

100.00

See

Abbreviations

on

page

31

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

Fair

valued

using

significant

unobservable

inputs.

See

Note

14

regarding

fair

value

measurements.

c

See

Note

3(d)

regarding

investments

in

affiliated

management

investment

companies.

d

Security

was

purchased

pursuant

to

Rule

144A

or

Regulation

S

under

the

Securities

Act

of

1933.

144A

securities

may

be

sold

in

transactions

exempt

from

registration

only

to

qualified

institutional

buyers

or

in

a

public

offering

registered

under

the

Securities

Act

of

1933.

Regulation

S

securities

cannot

be

sold

in

the

United

States

without

either

an

effective

registration

statement

filed

pursuant

to

the

Securities

Act

of

1933,

or

pursuant

to

an

exemption

from

registration.

At

January

31,

2022,

the

aggregate

value

of

these

securities

was

$14,542,322,

representing

2.6%

of

net

assets.

e

Income

may

be

received

in

additional

securities

and/or

cash.

f

See

Note

1(d)

regarding

senior

floating

rate

interests.

g

The

coupon

rate

shown

represents

the

rate

at

period

end.

h

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.

i

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(c).

j

See

Note

13

regarding

unfunded

loan

commitments.

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,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

19

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$536,007,823

Cost

-

Non-controlled

affiliates

(Note

3

d

and

10

)

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

19,062,804

Cost

-

Unaffiliated

repurchase

agreements

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

92,742,476

Value

-

Unaffiliated

issuers

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

$518,401,443

Value

-

Non-controlled

affiliates

(Note

3

d

and

10

)

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

18,199,950

Value

-

Unaffiliated

repurchase

agreements

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

92,742,476

Cash

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

509,528

Receivables:

Investment

securities

sold

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

1,035,430

Dividends

and

interest

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

1,696,575

Unrealized

appreciation

on

unfunded

loan

commitments

(Note

13

)

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

5,063

Total

assets

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

632,590,465

Liabilities:

Payables:

Investment

securities

purchased

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

60,189,220

Management

fees

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

283,446

Distributions

to

shareholders

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

1,785,662

Unrealized

depreciation

on

unfunded

loan

commitments

(Note

1

3

)

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

808

Accrued

expenses

and

other

liabilities

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

61,676

Total

liabilities

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

62,320,812

Net

assets,

at

value

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

$570,269,653

Net

assets

consist

of:

Paid-in

capital

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

$948,063,574

Total

distributable

earnings

(losses)

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

(377,793,921)

Net

assets,

at

value

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

$570,269,653

Shares

outstanding

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

76,896,694

Net

asset

value

and

maximum

offering

price

per

share

($570,269,653÷76,896,694

shares

outstanding)

..........

$7.42

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

January

31,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

20

Franklin

Floating

Rate

Master

Series

Investment

income:

Dividends:

(net

of

foreign

taxes

of

$17,163)

Unaffiliated

issuers

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

$30,946

Non-controlled

affiliates

(Note

3

d

and

10

)

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

345,445

Interest:

Unaffiliated

issuers:

Payment-in-kind

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

330,935

Paid

in

cash

a

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

9,403,010

Other

income

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

40,816

Total

investment

income

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

10,151,152

Expenses:

Management

fees

(Note

3

a

)

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

1,280,980

Custodian

fees

(Note

4

)

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

1,018

Reports

to

shareholders

fees

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

672

Registration

and

filing

fees

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

78

Professional

fees

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

85,693

Other

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

8,371

Total

expenses

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

1,376,812

Expense

reductions

(Note

4

)

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

(89)

Expenses

waived/paid

by

affiliates

(Note

3

d

and

3

e

)

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

(62,193)

Net

expenses

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

1,314,530

Net

investment

income

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

8,836,622

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

(11,801,957)

Non-controlled

affiliates

(Note

3

d

and

10

)

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

11,236,531

Net

realized

gain

(loss)

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

(565,426)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

11,201,068

Non-controlled

affiliates

(Note

3

d

and

10

)

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

(7,621,464)

Unfunded

loan

commitments

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

2,400

Net

change

in

unrealized

appreciation

(depreciation)

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

3,582,004

Net

realized

and

unrealized

gain

(loss)

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

3,016,578

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$11,853,200

a

Includes

amortization

of

premium

and

accretion

of

discount.

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

21

Franklin

Floating

Rate

Master

Series

Six

Months

Ended

January

31,

2022

(unaudited)

Year

Ended

July

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$8,836,622

$15,201,012

Net

realized

gain

(loss)

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

(565,426)

(69,506,025)

Net

change

in

unrealized

appreciation

(depreciation)

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

3,582,004

89,805,803

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

11,853,200

35,500,790

Distributions

to

shareholders

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

(9,920,706)

(16,446,141)

Capital

share

transactions

(Note

2

)

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

138,208,484

16,353,818

Net

increase

(decrease)

in

net

assets

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

140,140,978

35,408,467

Net

assets:

Beginning

of

period

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

430,128,675

394,720,208

End

of

period

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

$570,269,653

$430,128,675

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Floating

Rate

Master

Series

22

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

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.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Debt

securities

generally

trade

in

the

OTC

market

rather

than

on

a

securities

exchange.

The

Fund’s

pricing

services

use

multiple

valuation

techniques

to

determine

fair

value.

In

instances

where

sufficient

market

activity

exists,

the

pricing

services

may

utilize

a

market-based

approach

through

which

quotes

from

market

makers

are

used

to

determine

fair

value.

In

instances

where

sufficient

market

activity

may

not

exist

or

is

limited,

the

pricing

services

also

utilize

proprietary

valuation

models

which

may

consider

market

characteristics

such

as

benchmark

yield

curves,

credit

spreads,

estimated

default

rates,

anticipated

market

interest

rate

volatility,

coupon

rates,

anticipated

timing

of

principal

repayments,

underlying

collateral,

and

other

unique

security

features

in

order

to

estimate

the

relevant

cash

flows,

which

are

then

discounted

to

calculate

the

fair

value.

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

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

23

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

be

at

least

102%

of

the

dollar

amount

invested

by

the

funds,

with

the

value

of

the

underlying

securities

marked

to

market

daily

to

maintain

coverage

of

at

least

100%.

Repurchase

agreements

are

subject

to

the

terms

of

Master

Repurchase

Agreements

(MRAs)

with

approved

counterparties

(sellers).

The

MRAs

contain

various

provisions,

including

but

not

limited

to

events

of

default

and

maintenance

of

collateral

for

repurchase

agreements.

In

the

event

of

default

by

either

the

seller

or

the

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

31,

2022.

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.

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

except

for

certain

dividends

from

securities

where

the

dividend

rate

is

not

available.

In

such

cases,

the

dividend

is

recorded

as

soon

as

the

information

is

received

by

the

Fund.

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)

24

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,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers

and/or

directors

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,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.530%

of

the

Fund’s

average

daily

net

assets. 

Six

Months

Ended

January

31,

2022

Year

Ended

July

31,

2021

Shares

Amount

Shares

Amount

Shares

sold

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

21,081,340

$156,218,782

16,915,404

$123,712,921

Shares

redeemed

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

(2,432,856)

(18,010,298)

(15,104,029)

(107,359,103)

Net

increase

(decrease)

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

18,648,484

$138,208,484

1,811,375

$16,353,818

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)

25

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.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

January

31,

2022,

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

interest

expense,

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

period

end.

Advisers

may

discontinue

this

waiver

at

any

time

upon

notice

to

the

Board.

f.

Other

Affiliated

Transactions

At

January

31,

2022,

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,

2022

,

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

Non-Controlled

Affiliates

Dividends

Franklin

Floating

Rate

Income

Fund

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

$

3,652,178

$

—

$

—

$

—

$

110,812

$

3,762,990

461,717

$

77,497

Franklin

Liberty

Senior

Loan

ETF

21,343,063

—

(6,968,578)

(85,226)

147,701

14,436,960

578,288

267,948

Total

Affiliated

Securities

...

$24,995,241

$—

$(6,968,578)

$(85,226)

$258,513

$18,199,950

$345,445

3.

Transactions

with

Affiliates

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

26

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

5.

Income

Taxes

At

January

31,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

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,

2022,

aggregated

$208,624,373

and

$85,073,951

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

January

31,

2022,

the

Fund

had

78.5%

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,

2022,

the

aggregate

value

of

these

securities

was

$1,206,766,

representing

0.2%

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.

Geopolitical

Risk

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board

of

Trustees.

9.

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.

Cost

of

investments

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

$649,018,894

Unrealized

appreciation

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

$4,791,476

Unrealized

depreciation

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

(24,466,501)

Net

unrealized

appreciation

(depreciation)

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

$(19,675,025)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

27

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.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

period

ended

January

31,

2022,

investments

in

“affiliated

companies”

were

as

follows:

11.

Shareholder

Distributions

For

the

period

ended

January

31,

2022,

the

Fund

made

the

following

distributions:

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

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

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,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

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.

$

13,802,215

$

—

$

(17,243,995)

a

$

11,321,757

$

(7,879,977)

$

—

b

—

$

—

Total

Affiliated

Securities

(Value

is

—%

of

Net

Assets)

..........

$13,802,215

$—

$(17,243,995)

11,321,757

(7,879,977)

$—

$—

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

b

As

of

January

31,

2022,

no

longer

held

by

the

Fund.

Payment

Date

Amount

Per

Share

8/31/2021

$0.027019

9/30/2021

0.025269

10/29/2021

0.025218

11/30/2021

0.024634

12/31/2021

0.026303

1/31/2022

0.024612

Total

$0.153055

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

28

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

13.

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,

2022,

unfunded

commitments

were

as

follows:

14.

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,

2022,

in

valuing

the

Fund's assets

carried

at

fair

value,

is

as

follows:

Borrower

Unfunded

Commitment

Franklin

Floating

Rate

Master

Series

athenahealth

Group,

Inc.

$

1,010,901

Aveanna

Healthcare

LLC

422,208

DexKo

Global,

Inc.

64,487

Medical

Solutions

Holdings,

Inc.

295,749

National

Mentor

Holdings,

Inc.

146,040

Osmosis

Buyer

Ltd.

121,907

Sovos

Compliance

LLC

257,177

Thrasio

LLC

896,063

Total

$

3,214,532

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

Securities:

Common

Stocks

:

Industrial

Machinery

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

$

—

$

6,561,037

$

—

$

6,561,037

Leisure

Facilities

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

—

136,512

—

136,512

Oil

&

Gas

Exploration

&

Production

.........

—

11,662,238

—

11,662,238

Paper

Products

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

—

—

—

—

Trucking

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

—

—

196,311

196,311

Management

Investment

Companies

.........

20,781,962

—

—

20,781,962

Preferred

Stocks

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

—

569,615

—

569,615

Rights

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

—

—

—

—

Warrants

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

—

—

914

914

Corporate

Bonds

:

Airlines

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

—

3,205,189

—

3,205,189

Broadcasting

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

—

1,257,634

—

1,257,634

Communications

Equipment

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

—

664,196

—

664,196

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

29

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 period.

At

January

31,

2022,

the

reconciliation is

as follows:

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Master

Series

(continued)

Assets:

Corporate

Bonds:

Construction

Materials

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

$

—

$

773,903

$

—

$

773,903

Diversified

Chemicals

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

—

1,033,868

—

1,033,868

Independent

Power

Producers

&

Energy

Traders

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

—

391,701

—

391,701

Integrated

Telecommunication

Services

......

—

1,949,349

—

1,949,349

Multi-line

Insurance

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

—

500,580

—

500,580

Oil

&

Gas

Equipment

&

Services

...........

—

250,463

—

250,463

Oil

&

Gas

Storage

&

Transportation

.........

—

457,499

—

457,499

Paper

Packaging

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

—

1,117,208

—

1,117,208

Specialized

Consumer

Services

...........

—

1,063,440

—

1,063,440

Specialized

Finance

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

—

435,614

—

435,614

Specialty

Chemicals

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

—

635,128

—

635,128

Specialty

Stores

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

—

455,343

—

455,343

Trucking

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

—

474,590

10,907,804

11,382,394

Wireless

Telecommunication

Services

.......

—

334,116

—

334,116

Senior

Floating

Rate

Interests

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

—

469,578,413

1,206,766

470,785,179

Escrows

and

Litigation

Trusts

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

—

—

—

a

—

Short

Term

Investments

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

—

92,742,476

—

92,742,476

Total

Investments

in

Securities

...........

$20,781,962

$596,250,112

$12,311,795

$629,343,869

Other

Financial

Instruments:

Unfunded

Loan

Commitments

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

$

—

$

5,063

$

—

$

5,063

Total

Other

Financial

Instruments

.........

$—

$5,063

$—

$5,063

Liabilities:

Other

Financial

Instruments:

Unfunded

Loan

Commitments

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

$—

$808

$—

$808

Total

Other

Financial

Instruments

.........

$—

$808

$—

$808

a

Includes

securities

determined

to

have

no

value

at

January

31,

2022.

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a          

a

a

a

a

a

a

a

a

a

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

Securities:

Common

Stocks

Paper

Products

.....

$

13,802,215

$

—

$

(17,243,995)

$

—

$

—

$

—

$

11,321,757

$

(7,879,977)

$

—

$

—

Trucking

..........

—

c

—

—

—

—

—

—

196,311

196,311

196,311

Rights

Oil

&

Gas

Equipment

&

Services

........

499,215

—

(553,057)

—

—

—

—

53,842

—

—

Warrants

Industrial

Machinery

..

556

—

—

—

—

—

—

358

914

358

Corporate

Bonds

Trucking

..........

10,102,676

—

—

—

—

514,782

—

290,346

10,907,804

290,346

14.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

30

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,

2022,

are

as

follows:

15.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and financial

reporting

relief

from

the

effect

of

certain

types

of

contract

modifications

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(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

(continued)

Assets:

Investments

in

Securities:

Senior

Floating

Rate

Interests

Household

Products

..

$

1,497,972

$

—

$

(291,206)

$

—

$

—

$

—

$

1,750

$

(1,750)

$

1,206,766

$

(244,022)

Escrows

and

Litigation

Trusts

...........

—

c

—

(6,606)

—

—

—

6,606

—

—

c

—

Total

Investments

in

Securities

.

$25,902,634

$—

$(18,094,864)

$—

$—

514,782

11,330,113

(7,340,870)

$12,311,795

242,993

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Includes

securities

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Floating

Rate

Master

Series

Assets:

Investments

in

Securities:

Corporate

Bonds:

Trucking

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

10,907,804

Discounted

cash

flow

Discount

rate

15.2%

Decrease

Free

cash

flow

$10.9

mil

Increase

Senior

Floating

Rate

Interests:

Household

Products

.........

1,206,766

Recovery

value

Asset

value

estimate

$11.6

mil

Increase

c

All

Other

Investments

.........

197,225

d,e

Total.

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

$12,311,795

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments

b

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

c

d

Represents

a

significant

impact

to

fair

value

but

not

net

assets.

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

e

Includes

securities

determined

to

have

no

value

at

January

31,

2022.

14.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

31

Semiannual

Report

Franklin

Floating

Rate

Master

Series

(continued)

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

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

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

these

ASUs

will

not

have

a

material

impact

on

the

financial

statements. 

16.

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

Cu

r

rency

USD

United

States

Dollar

Selected

Portfolio

ETF

Exchange-Traded

Fund

LIBOR

London

Inter-Bank

Offered

Rate

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

TBD

To

Be

Determined

15.

New

Accounting

Pronouncements

(continued)

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

33

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FLOATING

RATE

MASTER

TRUST

Franklin

Floating

Rate

Master

Series

(Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Floating

Rate

Master

Trust

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-

home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

34

Semiannual

Report

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

loan

participation

funds.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

noted

the

steps

it

was

taking

to

address

the

Fund’s

performance.

The

Board

also

noted

that

the

Fund

does

not

offer

its

shares

to

the

public

and

the

Fund’s

investor

was

exclusively

an

offshore

Irish

feeder

fund.

The

Board

considered

management’s

explanation

and

concluded

that

the

Fund’s

performance

was

acceptable.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-management

fees.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

funds

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

14

other

loan

participation

funds.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

the

Fund

were

below

the

medians

and

in

the

first

quintile

(least

expensive)

of

its

Expense

Group.

The

Board

also

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

upfront

expenditures

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

35

Semiannual

Report

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Fund

had

experienced

a

decrease

in

assets

and

would

not

be

expected

to

demonstrate

additional

economies

of

scale

in

the

near

term.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

of

the

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

SEC

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis).

The

Funds’

Board

of

Trustees

approved

the

appointment

of

the

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

as

the

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee

and

Product

Management

groups.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

36

Semiannual

Report

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

The

Fund

primarily

holds

investments

where

the

settlement

days

may

exceed

7

calendar

days

and

are

classified

as

“Less

Liquid

Investments”.

Less

Liquid

Investments

are

defined

as

any

investment

reasonably

expected

to

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment,

but

where

the

sale

or

disposition

is

reasonably

expected

to

settle

in

more

than

seven

calendar

days.

The

Fund

established

and

maintained

a

HLIM.

During

the

reporting

period,

the

Fund

maintained

the

necessary

Highly

Liquid

Investments

and

did

not

experience

any

HLIM

shortfalls.

From

time

to

time

issuers

may

enter

varying

stages

of

corporate

reorganization

and

the

Adviser

will

participate

actively

in

the

reorganizations

in

order

to

protect

the

interests

of

the

Fund.

In

connection

with

such

participation,

the

Adviser

receives

material

non-public

information

about

the

issuer

and,

therefore,

may

become

restricted

in

its

ability

to

enter

into

purchase

and

sale

transactions

for

the

Funds

with

respect

to

these

securities.

Becoming

restricted

results

in

a

determination

that

the

positions

are

“illiquid,”

including

for

purposes

of

Rule

22e-4

(the

“Liquidity

Rule”).

At

the

end

of

November

2020,

the

Fund’s

Illiquid

investments

exceeded

15%

of

its

total

net

assets.

This

was

due

to

market

movement

on

certain

illiquid

assets

rather

than

any

actions

by

the

portfolio

management

team

while

certain

issues

were

under

restriction

due

to

material

non-public

information.

In

accordance

with

the

LRMP,

the

Fund

reported

the

information

to

the

SEC

and

the

Program

Administrator

notified

the

Fund’s

Board

of

Trustees

with

a

remediation

plan.

The

remediation

plan

was

approved

by

the

Board

and

the

exceedance

was

remediated

in

early

December

2020.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2021,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2020.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

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.

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”.

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

under

the

headings

“Actual”

and

“Expenses

Paid

During

Period”

(

if

Actual

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=$64.50

).

In

this

illustration,

the

actual

expenses

paid

this

period

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Funds

Under

the

heading

“Hypothetical”

in

the

table,

information

is

provided

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

This

information

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period,

but

it

can

help

you

compare

ongoing

costs

of

investing

in

the

Fund

with

those

of

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

and

do

not

reflect

any

transactional

costs.

Therefore,

information

under

the

heading

“Hypothetical”

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

compare

total

costs

of

owning

different

funds.

In

addition,

if

transactional

costs

were

included,

your

total

costs

would

have

been

higher.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

184/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Beginning

Account

Value

8/1/21

Ending

Account

Value

1/31/22

Expenses

Paid

During

Period

8/1/21–1/31/22

1,2

Ending

Account

Value

1/31/22

Expenses

Paid

During

Period

8/1/21–1/31/22

1,2

a

Annualized

Expense

Ratio

2

$1,000

$1,052.50

$3.10

$1,022.18

$3.06

0.60%

Franklin

Floating

Rate

Master

Trust

Financial

Highlights

Franklin

Floating

Rate

Income

Fund

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

2

a

Six

Months

Ended

January

31,

2022

(unaudited)

Year

Ended

July

31,

2021

2020

2019

2018

2017

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$7.92

$7.34

$8.61

$9.45

$10.04

$9.83

Income

from

investment

operations

a

:

Net

investment

income

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

0.157

b

0.334

b

0.412

0.695

0.698

0.686

Net

realized

and

unrealized

gains

(losses)

0.245

0.596

(1.227)

(0.827)

(0.588)

0.214

Total

from

investment

operations

........

0.402

0.930

(0.815)

(0.132)

0.110

0.900

Less

distributions

from:

Net

investment

income

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

(0.174)

(0.350)

(0.455)

(0.708)

(0.700)

(0.690)

Net

asset

value,

end

of

period

..........

$8.15

$7.92

$7.34

$8.61

$9.45

$10.04

Total

return

c

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

5.25%

12.84%

(9.74)%

(1.48)%

1.30%

9.25%

Ratios

to

average

net

assets

d

Expenses

before

waiver

and

payments

by

affiliates

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

0.65%

0.67%

0.73%

0.71%

0.68%

0.69%

Expenses

net

of

waiver

and

payments

by

affiliates

e

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

0.60%

0.60%

0.60%

0.60%

0.60%

0.60%

Net

investment

income

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

3.85%

4.32%

5.42%

7.66%

7.25%

6.82%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$669,449

$650,531

$202,101

$325,091

$363,071

$303,689

Portfolio

turnover

rate

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

27.58%

66.93

%

f

67.04%

30.93%

55.93%

62.11%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Total

return

is

not

annualized

for

periods

less

than

one

year.

d

Ratios

are

annualized

for

periods

less

than

one

year,

except

for

non-recurring

expenses,

if

any.

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,

2022

Franklin

Floating

Rate

Income

Fund

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

3

a

a

Country

Shares

a

Value

a

a

a

a

a

a

Common

Stocks

5.5%

Hotels,

Restaurants

&

Leisure

0.0%

†

a

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

88,077

$

115,601

Machinery

0.3%

a

UTEX

Industries,

Inc.

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

United

States

32,616

1,777,572

Oil,

Gas

&

Consumable

Fuels

5.2%

a,b

Quarternorth

Energy

Holding,

Inc.

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

United

States

331,161

34,551,020

Road

&

Rail

0.0%

†

a,c

Onsite

Rental

Group

Operations

Pty.

Ltd.

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

Australia

7,733,610

258,236

Total

Common

Stocks

(Cost

$42,865,277)

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

36,702,429

Preferred

Stocks

0.1%

Hotels,

Restaurants

&

Leisure

0.1%

a

24

Hour

Fitness

Worldwide,

Inc.

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

United

States

208,597

482,381

a

Total

Preferred

Stocks

(Cost

$281,502)

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

482,381

Warrants

Warrants

1.8%

Machinery

0.0%

†

a,c

UTEX

Industries,

Inc.,

2/20/49

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

United

States

2,796

7,958

Oil,

Gas

&

Consumable

Fuels

1.8%

a,b

Quarternorth

Energy

Holding,

Inc.,

2/01/49

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

United

States

119,957

12,515,474

Total

Warrants

(Cost

$14,454,819)

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

12,523,432

Principal

Amount

*

Corporate

Bonds

2.1%

Road

&

Rail

2.1%

c,d

Onsite

Rental

Group

Operations

Pty.

Ltd.

,

PIK,

6.1

%

,

10/26/23

...

Australia

14,108,720

14,348,183

Total

Corporate

Bonds

(Cost

$16,489,555)

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

14,348,183

e,f

Senior

Floating

Rate

Interests

86.9%

Aerospace

&

Defense

1.8%

AI

Convoy

(Luxembourg)

SARL

,

USD

Term

Loan,

B

,

4.5

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

1/18/27

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

Luxembourg

2,161,559

2,169,363

d

Alloy

FinCo

Ltd.

,

Term

Loan,

B

,

14

%

,

PIK,

(

3-month

USD

LIBOR

+

0.5

%

),

3/06/25

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

United

Kingdom

5,560,514

5,768,671

g,h

Cobham

Ultra

US

Co-Borrower

LLC

,

Term

Loan

,

TBD,

11/17/28

..

United

States

896,705

896,566

Dynasty

Acquisition

Co.,

Inc.

,

2020

Term

Loan,

B1,

3.724%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

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

United

States

1,356,834

1,331,393

2020

Term

Loan,

B2,

3.724%,

(3-month

USD

LIBOR

+

3.5%),

4/06/26

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

United

States

729,481

715,803

Vertex

Aerospace

Services

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/06/28

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

United

States

1,538,376

1,540,784

12,422,580

a

a

a

a

a

a

Air

Freight

&

Logistics

0.5%

Kenan

Advantage

Group,

Inc.

(The)

,

U.S.

Term

Loan,

B1

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/24/26

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

United

States

3,336,933

3,349,447

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.

4

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e,f

Senior

Floating

Rate

Interests

(continued)

Airlines

4.5%

AAdvantage

Loyalty

IP

Ltd.

(American

Airlines,

Inc.)

,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

4/20/28

.........

United

States

2,081,462

$

2,163,566

Air

Canada

,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

8/11/28

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

Canada

1,741,860

1,750,204

Allegiant

Travel

Co.

,

Replacement

Term

Loan

,

3.158

%

,

(

3-month

USD

LIBOR

+

3

%

),

2/05/24

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

United

States

2,063,884

2,062,594

American

Airlines,

Inc.

,

2018

Replacement

Term

Loan

,

1.855

%

,

(

1-month

USD

LIBOR

+

1.75

%

),

6/27/25

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

United

States

8,785,510

8,531,082

Kestrel

Bidco,

Inc.

,

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3

%

),

12/11/26

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

Canada

6,854,647

6,708,026

SkyMiles

IP

Ltd.

(Delta

Air

Lines,

Inc.)

,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/20/27

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

United

States

1,946,261

2,058,298

United

AirLines,

Inc.

,

Term

Loan,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

4/21/28

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

United

States

7,009,606

7,029,058

30,302,828

a

a

a

a

a

a

Auto

Components

2.5%

Adient

US

LLC

,

Term

Loan,

B1

,

3.605

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/10/28

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

United

States

5,432,700

5,440,062

DexKo

Global,

Inc.

,

First

Lien,

Closing

Date

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.75%),

10/04/28

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

United

States

674,830

674,971

h

First

Lien,

Delayed

Draw

Dollar

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.75%),

10/04/28

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

United

States

108,379

108,402

First

Brands

Group

LLC

,

First

Lien,

2021

Term

Loan,

6%,

(3-month

USD

LIBOR

+

5%),

3/30/27

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

United

States

4,952,874

4,974,543

Second

Lien,

2021

Term

Loan,

9.5%,

(3-month

USD

LIBOR

+

8.5%),

3/30/28

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

United

States

2,000,000

2,018,760

Highline

Aftermarket

Acquisition

LLC

,

First

Lien,

Initial

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

11/09/27

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

United

States

1,719,167

1,719,167

Truck

Hero,

Inc.

,

Initial

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/28

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

United

States

1,779,372

1,777,450

16,713,355

a

a

a

a

a

a

Automobiles

1.6%

American

Trailer

World

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/03/28

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

United

States

4,247,217

4,232,628

Thor

Industries,

Inc.

,

USD

Term

Loan,

B1

,

3.125

%

,

(

1-month

USD

LIBOR

+

3

%

),

2/01/26

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

United

States

6,236,941

6,257,212

10,489,840

a

a

a

a

a

a

Banks

0.8%

Finastra

Ltd.

,

First

Lien,

Dollar

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

6/13/24

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

United

Kingdom

5,260,058

5,249,485

Beverages

0.9%

City

Brewing

Co.

LLC

,

First

Lien,

Closing

Date

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

4/05/28

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

United

States

3,651,958

3,501,315

Triton

Water

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/31/28

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

United

States

2,269,547

2,255,624

5,756,939

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

e,f

Senior

Floating

Rate

Interests

(continued)

Capital

Markets

1.9%

Citadel

Securities

LP

,

2021

Term

Loan

,

2.605

%

,

(

1-month

USD

LIBOR

+

2.5

%

),

2/02/28

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

United

States

3,235,301

$

3,209,597

Edelman

Financial

Engines

Center

LLC

(The)

,

First

Lien,

2021

Initial

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/07/28

....

United

States

1,999,950

1,997,560

Jane

Street

Group

LLC

,

Dollar

Term

Loan

,

2.855

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/26/28

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

United

States

2,821,216

2,791,241

Russell

Investments

US

Institutional

Holdco,

Inc.

,

2025

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

5/30/25

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

United

States

4,931,956

4,931,956

12,930,354

a

a

a

a

a

a

Chemicals

2.4%

CPC

Acquisition

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/29/27

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

United

States

2,737,342

2,721,370

Cyanco

Intermediate

2

Corp.

,

First

Lien,

Initial

Term

Loan

,

3.605

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/16/25

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

United

States

3,923,300

3,904,036

INEOS

Styrolution

Group

GmbH

,

2026

Dollar

Term

Loan,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

1/29/26

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

United

Kingdom

866,581

865,905

LSF11

A5

Holdco

LLC

,

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/15/28

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

United

States

361,250

361,927

Lummus

Technology

Holdings

V

LLC

,

2021

Refinancing

Term

Loan,

B

,

3.605

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

6/30/27

..........

United

States

1,327,461

1,324,395

SCIH

Salt

Holdings,

Inc.

,

First

Lien,

Incremental

Term

Loan,

B1

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

3/16/27

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

United

States

5,048,014

5,017,373

Sparta

U.S.

Holdco

LLC

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

8/02/28

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

United

States

1,608,632

1,610,305

15,805,311

a

a

a

a

a

a

Commercial

Services

&

Supplies

2.1%

Allied

Universal

Holdco

LLC

,

Initial

U.S.

Dollar

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

5/12/28

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

United

States

2,756,691

2,752,983

APX

Group,

Inc.

,

Initial

Term

Loan

,

4.001

%

,

(

1-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

2.5%

),

7/10/28

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

United

States

2,066,878

2,065,586

CCI

Buyer,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/17/27

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

United

States

1,828,917

1,834,138

Madison

IAQ

LLC

,

Term

Loan

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

6/21/28

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

United

States

1,508,836

1,505,539

Prime

Security

Services

Borrower

LLC

,

First

Lien,

2021

Refinancing

Term

Loan,

B1

,

3.5

%

,

(

3-month

USD

LIBOR

+

2.75

%

),

9/23/26

.

United

States

4,234,983

4,227,042

Revint

Intermediate

II

LLC

,

Initial

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

10/15/27

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

United

States

783,353

785,312

Spin

Holdco,

Inc.

,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

3/04/28

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

United

States

1,068,846

1,069,878

14,240,478

a

a

a

a

a

a

Communications

Equipment

0.4%

CommScope,

Inc.

,

Initial

Term

Loan

,

3.355

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/06/26

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

United

States

2,706,456

2,663,044

Construction

&

Engineering

0.4%

USIC

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

5/12/28

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

United

States

2,396,965

2,393,969

Construction

Materials

0.3%

White

Cap

Buyer

LLC

,

Initial

Closing

Date

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

3

%

),

10/19/27

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

United

States

2,046,649

2,048,972

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

e,f

Senior

Floating

Rate

Interests

(continued)

Containers

&

Packaging

1.8%

Charter

Next

Generation,

Inc.

,

First

Lien,

2021

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

12/01/27

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

United

States

2,834,730

$

2,842,483

Kleopatra

Finco

SARL

,

USD

Term

Loan,

B

,

5.25

%

,

(

6-month

USD

LIBOR

+

4.75

%

),

2/12/26

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

Luxembourg

2,867,012

2,856,261

Mauser

Packaging

Solutions

Holding

Co.

,

Initial

Term

Loan

,

3.354

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

4/03/24

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

United

States

4,949,920

4,910,865

Pactiv

Evergreen,

Inc.

,

U.S.

Term

Loan,

B3

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

9/24/28

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

United

States

1,374,769

1,374,130

11,983,739

a

a

a

a

a

a

Diversified

Consumer

Services

1.0%

KUEHG

Corp.

,

Term

Loan,

B3

,

4.75

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/21/25

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

United

States

3,803,639

3,759,269

Pre-Paid

Legal

Services,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

6-month

USD

LIBOR

+

3.75

%

),

12/15/28

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

United

States

1,880,627

1,881,408

WW

International,

Inc.

,

Initial

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

4/13/28

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

United

States

945,000

916,414

6,557,091

a

a

a

a

a

a

Diversified

Financial

Services

2.1%

Astra

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B2

,

5.75

%

,

(

1-month

USD

LIBOR

+

5.25

%

),

10/25/28

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

United

States

2,957,276

2,929,552

Mercury

Borrower,

Inc.

,

First

Lien,

Initial

Term

Loan,

4%,

(3-month

USD

LIBOR

+

3.5%),

8/02/28

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

United

States

3,162,974

3,159,021

h

Second

Lien,

Initial

Term

Loan,

7%,

(3-month

USD

LIBOR

+

6.5%),

8/02/29

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

United

States

500,000

502,657

MPH

Acquisition

Holdings

LLC

,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

9/01/28

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

United

States

2,244,882

2,184,843

Red

Planet

Borrower

LLC

,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/02/28

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

United

States

1,657,780

1,657,987

Verscend

Holding

Corp.

,

Term

Loan,

B1

,

4.105

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/27/25

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

United

States

3,521,487

3,525,889

13,959,949

a

a

a

a

a

a

Diversified

Telecommunication

Services

1.3%

Altice

France

SA

,

USD

Incremental

Term

Loan,

B13

,

4.106

%

,

(

1-month

USD

LIBOR

+

4

%

),

8/14/26

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

France

2,311,256

2,306,923

Global

Tel*Link

Corp.

,

First

Lien,

Term

Loan

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/29/25

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

United

States

6,689,621

6,588,540

8,895,463

a

a

a

a

a

a

Electric

Utilities

0.1%

Astoria

Energy

LLC

,

2020

Advance

Term

Loan,

B

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

12/10/27

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

United

States

730,325

729,617

Electronic

Equipment,

Instruments

&

Components

0.3%

Verifone

Systems,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.178

%

,

(

3-month

USD

LIBOR

+

4

%

),

8/20/25

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

United

States

2,263,303

2,247,438

Energy

Equipment

&

Services

0.1%

Brand

Energy

&

Infrastructure

Services,

Inc.

,

Initial

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/21/24

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

United

States

994,792

976,761

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

e,f

Senior

Floating

Rate

Interests

(continued)

Entertainment

1.4%

Banijay

Entertainment

SAS

,

USD

Term

Loan,

B

,

3.851

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/01/25

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

France

5,106,110

$

5,091,737

Diamond

Sports

Group

LLC

,

Term

Loan

,

3.36

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/24/26

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

United

States

5,873,550

2,428,361

William

Morris

Endeavor

Entertainment

LLC

(IMG

Worldwide

Holdings

LLC)

,

First

Lien,

Term

Loan,

B1

,

2.86

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

5/18/25

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

United

States

1,982,660

1,952,642

9,472,740

a

a

a

a

a

a

Food

&

Staples

Retailing

0.8%

GNC

Holdings,

Inc.

,

Second

Lien,

Term

Loan

,

6.105

%

,

(

1-month

USD

LIBOR

+

6

%

),

10/07/26

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

United

States

5,971,867

5,632,964

Food

Products

0.2%

g,h

Primary

Products

Finance

LLC

,

Term

Loan

,

TBD,

10/25/28

......

United

States

1,149,092

1,157,997

Health

Care

Equipment

&

Supplies

0.6%

g,h

Bausch

Health

Companies,

Inc.

,

Term

Loan,

B

,

TBD,

1/27/27

....

Canada

372,189

369,805

Medline

Borrower

LP

,

Initial

Dollar

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

10/23/28

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

United

States

1,773,590

1,768,190

US

Radiology

Specialists,

Inc.

(US

Outpatient

Imaging

Services,

Inc.)

,

Closing

Date

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

12/15/27

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

United

States

1,817,760

1,819,651

3,957,646

a

a

a

a

a

a

Health

Care

Providers

&

Services

8.5%

ADMI

Corp.

,

Amendment

No.

4

Refinancing

Term

Loan,

3.875%,

(1-month

USD

LIBOR

+

3.375%),

12/23/27

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

United

States

4,230,194

4,207,393

Amendment

No.

5

Incremental

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.5%),

12/23/27

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

United

States

1,107,543

1,106,275

Aveanna

Healthcare

LLC

,

First

Lien,

2021

Extended

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

7/17/28

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

United

States

1,737,543

1,733,512

CNT

Holdings

I

Corp.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

11/08/27

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

United

States

3,476,216

3,480,839

eResearchTechnology,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

2/04/27

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

United

States

4,053,313

4,069,161

FINThrive

Software

Intermediate

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.5%,

(3-month

USD

LIBOR

+

4%),

12/18/28

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

United

States

764,772

765,013

Second

Lien,

Initial

Term

Loan,

7.25%,

(3-month

USD

LIBOR

+

6.75%),

12/17/29

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

United

States

763,254

764,529

Global

Medical

Response,

Inc.

,

2018

New

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

3/14/25

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

United

States

2,193,269

2,193,269

Heartland

Dental

LLC

,

2021

Incremental

Term

Loan

,

4.104

%

,

(

1-month

USD

LIBOR

+

4

%

),

4/30/25

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

United

States

1,878,437

1,880,794

Medical

Solutions

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

11/01/28

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

United

States

1,081,634

1,081,467

National

Mentor

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.5%,

(1-month

USD

LIBOR

+

3.75%;

3-month

USD

LIBOR

+

3.75%),

3/02/28

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

United

States

3,685,188

3,650,639

First

Lien,

Initial

Term

Loan,

C,

4.5%,

(3-month

USD

LIBOR

+

3.75%),

3/02/28

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

United

States

116,618

115,525

Second

Lien,

Initial

Term

Loan,

8%,

(3-month

USD

LIBOR

+

7.25%),

3/02/29

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

United

States

2,000,000

2,012,500

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

e,f

Senior

Floating

Rate

Interests

(continued)

Health

Care

Providers

&

Services

(continued)

Pathway

Vet

Alliance

LLC

,

First

Lien,

2021

Replacement

Term

Loan

,

3.855

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

3/31/27

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

United

States

7,308,681

$

7,306,744

Phoenix

Guarantor,

Inc.

,

First

Lien,

Term

Loan,

B3

,

3.604

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

3/05/26

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

United

States

2,446,905

2,441,901

Phoenix

Newco,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/15/28

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

United

States

838,855

839,970

Pluto

Acquisition

I,

Inc.

,

First

Lien,

2021

Term

Loan

,

4.175

%

,

(

3-month

USD

LIBOR

+

4

%

),

6/22/26

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

United

States

1,562,154

1,557,468

Radiology

Partners,

Inc.

,

First

Lien,

Term

Loan,

B

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

7/09/25

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

United

States

4,080,774

4,039,680

U.S.

Anesthesia

Partners,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

10/01/28

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

United

States

2,369,953

2,368,104

U.S.

Renal

Care,

Inc.

,

Initial

Term

Loan

,

5.104

%

,

(

1-month

USD

LIBOR

+

5

%

),

6/26/26

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

United

States

6,708,129

6,634,742

Waystar

Technologies,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.105

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/22/26

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

United

States

4,438,723

4,438,745

56,688,270

a

a

a

a

a

a

Health

Care

Technology

1.9%

g,h

athenahealth

Group,

Inc.

,

CME

Term

Loan,

B

,

TBD,

1/26/29

.....

United

States

5,634,053

5,614,109

athenahealth,

Inc.

,

First

Lien,

Term

Loan,

B1

,

4.4

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

2/11/26

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

United

States

6,928,163

6,936,823

12,550,932

a

a

a

a

a

a

Hotels,

Restaurants

&

Leisure

2.5%

d

24

Hour

Fitness

Worldwide,

Inc.

,

Term

Loan

,

5.22

%

,

PIK,

(

3-month

USD

LIBOR

+

5

%

),

12/29/25

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

United

States

4,115,690

3,026,175

Bally's

Corp.

,

Term

Loan,

B

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

10/02/28

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

United

States

3,792,159

3,793,998

Caesars

Resort

Collection

LLC

,

Term

Loan,

B

,

2.855

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

12/23/24

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

United

States

2,541,160

2,530,564

Flynn

Restaurant

Group

LP

,

First

Lien,

2021

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/22/28

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

United

States

1,694,638

1,699,298

Golden

Nugget,

Inc.

,

Initial

Term

Loan,

B

,

3.25

%

,

(

1-month

USD

LIBOR

+

2.5%;

3-month

USD

LIBOR

+

2.5%

),

10/04/23

.......

United

States

2,159,677

2,169,352

IRB

Holding

Corp.

,

Fourth

Amendment

Incremental

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/15/27

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

United

States

726,517

727,767

Raptor

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

11/01/26

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

United

States

1,304,991

1,308,580

Whatabrands

LLC

,

Initial

Term

Loan,

B

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

8/03/28

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

United

States

1,425,390

1,423,908

16,679,642

a

a

a

a

a

a

Household

Durables

1.0%

Astro

One

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

9/15/28

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

United

States

2,945,000

2,941,319

h

Osmosis

Buyer

Ltd.

,

Initial

Term

Loan,

B

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

7/31/28

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

United

States

2,800,901

2,811,936

VC

GB

Holdings

I

Corp.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

7/21/28

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

United

States

704,706

700,866

6,454,121

a

a

a

a

a

a

Household

Products

0.3%

c,d,i

FGI

Operating

Co.

LLC

,

Term

Loan

,

11

%

,

PIK,

(

6-month

USD

LIBOR

+

10

%

),

5/16/22

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

United

States

13,747,598

1,852,861

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

e,f

Senior

Floating

Rate

Interests

(continued)

Insurance

2.5%

Acrisure

LLC

,

First

Lien,

2020

Term

Loan,

3.724%,

(3-month

USD

LIBOR

+

3.5%),

2/15/27

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

United

States

1,821,461

$

1,802,108

First

Lien,

2021-1

Additional

Term

Loan,

4.25%,

(3-month

USD

LIBOR

+

3.75%),

2/15/27

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

United

States

910,761

909,622

First

Lien,

2021-2

Additional

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

4.25%),

2/15/27

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

United

States

1,075,987

1,078,005

Alliant

Holdings

Intermediate

LLC

,

New

Term

Loan,

B4

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

11/05/27

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

United

States

1,823,335

1,823,481

g,h

AssuredPartners

Capital,

Inc.

,

Incremental

Term

Loan

,

TBD,

2/12/27

United

States

1,218,750

1,218,372

AssuredPartners,

Inc.

,

2020

February

Refinancing

Term

Loan,

3.605%,

(1-month

USD

LIBOR

+

3.5%),

2/12/27

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

United

States

2,344,430

2,332,169

2021

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.5%),

2/12/27

...

United

States

1,005,417

1,006,362

Asurion

LLC

,

Second

Lien,

New

Term

Loan,

B3,

5.355%,

(1-month

USD

LIBOR

+

5.25%),

1/31/28

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

United

States

41,007

41,109

Second

Lien,

New

Term

Loan,

B4,

5.355%,

(1-month

USD

LIBOR

+

5.25%),

1/20/29

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

United

States

6,440,140

6,456,273

16,667,501

a

a

a

a

a

a

Internet

&

Direct

Marketing

Retail

0.5%

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

2,563,788

2,553,379

First

Lien,

Amendment

No.

2

Initial

Term

Loan,

3.605%,

(1-month

USD

LIBOR

+

3.5%),

9/13/24

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

United

States

791,731

789,162

3,342,541

a

a

a

a

a

a

IT

Services

8.7%

Aptean

Acquiror,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

4/23/26

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

United

States

5,186,694

5,177,436

Arches

Buyer,

Inc.

,

Refinancing

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

12/06/27

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

United

States

1,903,793

1,893,769

Aventiv

Technologies

LLC

,

First

Lien,

Initial

Term

Loan,

5.5%,

(3-month

USD

LIBOR

+

4.5%),

11/01/24

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

United

States

13,539,894

13,236,126

Second

Lien,

Initial

Term

Loan,

9.25%,

(3-month

USD

LIBOR

+

8.25%),

11/01/25

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

United

States

11,037,961

10,638,608

Barracuda

Networks,

Inc.

,

First

Lien,

2020

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

2/12/25

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

United

States

3,265,880

3,275,743

Gainwell

Acquisition

Corp.

,

First

Lien,

Term

Loan,

B

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

10/01/27

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

United

States

6,295,553

6,311,292

Hunter

Holdco

3

Ltd.

,

First

Lien,

Initial

Dollar

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

8/19/28

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

United

Kingdom

1,335,901

1,338,827

Peraton

Corp.

,

First

Lien,

Term

Loan,

B

,

4.5

%

,

(

1-month

USD

LIBOR

+

3.75

%

),

2/01/28

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

United

States

3,753,906

3,758,336

Pitney

Bowes,

Inc.

,

Refinancing

Term

Loan,

B

,

4.11

%

,

(

1-month

USD

LIBOR

+

4

%

),

3/17/28

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

United

States

10,069,868

10,091,921

Thrasio

LLC

,

Initial

Term

Loan

,

8

%

,

(

3-month

USD

LIBOR

+

7

%

),

12/18/26

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

United

States

2,238,693

2,228,899

57,950,957

a

a

a

a

a

a

Leisure

Products

0.5%

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

3,441,223

3,388,538

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

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e,f

Senior

Floating

Rate

Interests

(continued)

Life

Sciences

Tools

&

Services

0.2%

ICON

plc

,

Term

Loan,

2.75%,

(3-month

USD

LIBOR

+

2.25%),

7/03/28

....

Ireland

1,169,280

$

1,168,257

U.S.

Term

Loan,

2.75%,

(3-month

USD

LIBOR

+

2.25%),

7/03/28

Ireland

291,327

291,072

1,459,329

a

a

a

a

a

a

Machinery

0.7%

ASP

Blade

Holdings,

Inc.

,

Initial

Term

Loan

,

4.5

%

,

(

1-month

USD

LIBOR

+

4

%

),

10/13/28

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

United

States

794,297

796,779

Tiger

Acquisition

LLC

,

First

Lien,

Initial

Term

Loan

,

3.75

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

6/01/28

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

United

States

1,145,605

1,135,890

TK

Elevator

Midco

GmbH

,

USD

Term

Loan,

B1

,

4

%

,

(

6-month

USD

LIBOR

+

3.5

%

),

7/30/27

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

Germany

2,728,134

2,733,822

d

UTEX

Industries,

Inc.

,

Second

Out

Term

Loan

,

5.25

%

,

PIK,

(

1-month

USD

LIBOR

+

3.75

%

),

12/03/25

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

United

States

193,466

192,468

4,858,959

a

a

a

a

a

a

Media

4.1%

Cengage

Learning,

Inc.

,

First

Lien,

Term

Loan,

B

,

5.75

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

7/14/26

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

United

States

5,330,707

5,355,229

Clear

Channel

Outdoor

Holdings,

Inc.

,

Term

Loan,

B

,

3.799

%

,

(

1-month

USD

LIBOR

+

3.5%;

3-month

USD

LIBOR

+

3.5%

),

8/21/26

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

United

States

3,184,378

3,145,178

CSC

Holdings

LLC

,

March

2017

Refinancing

Term

Loan

,

2.356

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

7/17/25

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

United

States

974,425

962,244

McGraw-Hill

Education,

Inc.

,

Initial

Term

Loan

,

5.25

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

7/28/28

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

United

States

5,235,450

5,229,979

Radiate

Holdco

LLC

,

Amendment

No.

6

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

9/25/26

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

United

States

4,053,538

4,051,633

Univision

Communications,

Inc.

,

First

Lien,

2021

Replacement

Converted

Term

Loan,

4%,

(1-month

USD

LIBOR

+

3.25%),

3/15/26

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

United

States

2,896,842

2,897,942

g,h

First

Lien,

Initial

Term

Loan,

B,

TBD,

1/31/29

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

United

States

2,000,000

2,000,790

Virgin

Media

Bristol

LLC

,

Term

Loan,

Q

,

3.356

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

1/31/29

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

United

States

3,556,664

3,556,113

27,199,108

a

a

a

a

a

a

Metals

&

Mining

0.8%

U.S.

Silica

Co.

,

Term

Loan

,

5

%

,

(

1-month

USD

LIBOR

+

4

%

),

5/01/25

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

United

States

5,202,982

5,141,196

Multiline

Retail

0.2%

Franchise

Group,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

3/10/26

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

United

States

1,280,249

1,283,449

Oil,

Gas

&

Consumable

Fuels

2.5%

Lucid

Energy

Group

II

Borrower

LLC

,

Initial

Term

Loan

,

5

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

11/24/28

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

United

States

1,690,666

1,690,970

b

Quarternorth

Energy

Holding,

Inc.

,

Second

Lien,

Initial

New

Term

Loan

,

9

%

,

(

3-month

USD

LIBOR

+

8

%

),

8/27/26

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

United

States

14,898,885

14,978,072

16,669,042

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

11

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e,f

Senior

Floating

Rate

Interests

(continued)

Personal

Products

0.9%

Conair

Holdings

LLC

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

5/17/28

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

United

States

474,925

$

475,433

Coty,

Inc.

,

USD

Term

Loan,

B

,

2.354

%

,

(

1-month

USD

LIBOR

+

2.25

%

),

4/07/25

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

United

States

1,857,223

1,832,021

Sunshine

Luxembourg

VII

SARL

,

Term

Loan,

B3

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/01/26

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

Luxembourg

3,533,300

3,535,296

5,842,750

a

a

a

a

a

a

Pharmaceuticals

0.6%

Bausch

Health

Cos.,

Inc.

,

Initial

Term

Loan

,

3.104

%

,

(

1-month

USD

LIBOR

+

3

%

),

6/02/25

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

United

States

558,676

554,952

Jazz

Pharmaceuticals

plc

,

Initial

Dollar

Term

Loan

,

4

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

5/05/28

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

United

States

1,303,951

1,306,076

Organon

&

Co.

,

Dollar

Term

Loan

,

3.5

%

,

(

3-month

USD

LIBOR

+

3

%

),

6/02/28

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

United

States

1,349,833

1,350,677

PetVet

Care

Centers

LLC

,

First

Lien,

2021

First

Lien

Replacement

Term

Loan

,

4.25

%

,

(

1-month

USD

LIBOR

+

3.5

%

),

2/14/25

....

United

States

748,503

749,207

3,960,912

a

a

a

a

a

a

Professional

Services

0.3%

CCRR

Parent,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/06/28

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

United

States

1,417,832

1,420,498

CHG

Healthcare

Services,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

9/29/28

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

United

States

788,643

790,469

2,210,967

a

a

a

a

a

a

Real

Estate

Management

&

Development

0.0%

†

Cushman

&

Wakefield

U.S.

Borrower

LLC

,

Replacement

Term

Loan

,

2.855

%

,

(

1-month

USD

LIBOR

+

2.75

%

),

8/21/25

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

United

States

320,743

320,256

Road

&

Rail

0.5%

Avis

Budget

Car

Rental

LLC

,

New

Term

Loan,

B

,

1.86

%

,

(

1-month

USD

LIBOR

+

1.75

%

),

8/06/27

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

United

States

2,202,906

2,181,461

PECF

USS

Intermediate

Holding

III

Corp.

,

Initial

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

12/15/28

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

United

States

1,396,053

1,399,299

3,580,760

a

a

a

a

a

a

Software

12.8%

Atlas

Purchaser,

Inc.

,

First

Lien,

Initial

Term

Loan

,

6

%

,

(

3-month

USD

LIBOR

+

5.25

%

),

5/08/28

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

United

States

7,085,863

7,006,147

Cloudera,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.75%),

10/08/28

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

United

States

1,576,970

1,576,725

Second

Lien,

Initial

Term

Loan,

6.5%,

(1-month

USD

LIBOR

+

6%),

10/08/29

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

United

States

672,004

673,684

Cornerstone

OnDemand,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.25

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

10/16/28

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

United

States

3,021,190

3,017,413

DCert

Buyer,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.105%,

(1-month

USD

LIBOR

+

4%),

10/16/26

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

United

States

5,577,697

5,586,091

Second

Lien,

First

Amendment

Refinancing

Term

Loan,

7.105%,

(1-month

USD

LIBOR

+

7%),

2/19/29

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

United

States

1,180,457

1,189,901

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.

12

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e,f

Senior

Floating

Rate

Interests

(continued)

Software

(continued)

ECI

Macola/MAX

Holding

LLC

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

11/09/27

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

United

States

3,788,498

$

3,795,014

Genesys

Cloud

Services

Holdings

I

LLC

,

2020

Initial

Dollar

Term

Loan

,

4.75

%

,

(

1-month

USD

LIBOR

+

4

%

),

12/01/27

.........

United

States

2,200,529

2,203,631

Hyland

Software,

Inc.

,

First

Lien,

2018

Refinancing

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.5%),

7/01/24

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

United

States

404,484

405,116

Second

Lien,

2021

Refinancing

Term

Loan,

7%,

(1-month

USD

LIBOR

+

6.25%),

7/07/25

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

United

States

83,333

84,167

Idera,

Inc.

,

First

Lien,

Term

Loan,

B1

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/02/28

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

United

States

4,889,666

4,900,350

IGT

Holding

IV

AB

,

Term

Loan,

B2

,

4

%

,

(

3-month

USD

LIBOR

+

3.5

%

),

3/31/28

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

Sweden

1,477,189

1,477,189

Ivanti

Software,

Inc.

,

First

Lien,

2021

Specified

Refinancing

Term

Loan,

5%,

(3-month

USD

LIBOR

+

4.25%),

12/01/27

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

United

States

5,325,250

5,308,609

First

Lien,

First

Amendment

Term

Loan,

4.75%,

(3-month

USD

LIBOR

+

4%),

12/01/27

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

United

States

249,745

248,496

LogMeIn,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.856

%

,

(

1-month

USD

LIBOR

+

4.75

%

),

8/31/27

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

United

States

6,792,576

6,747,066

MA

Financeco

LLC

,

Term

Loan,

B4

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

6/05/25

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

United

States

240,625

240,926

Mitchell

International,

Inc.

,

First

Lien,

Initial

Term

Loan,

4.25%,

(1-month

USD

LIBOR

+

3.75%),

10/15/28

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

United

States

3,767,000

3,743,174

Second

Lien,

Initial

Term

Loan,

7%,

(1-month

USD

LIBOR

+

6.5%),

10/15/29

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

United

States

428,571

432,947

Polaris

Newco

LLC

,

First

Lien,

Dollar

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

4

%

),

6/02/28

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

United

States

5,650,738

5,657,802

Quest

Software

US

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan,

5.139%,

(3-month

USD

LIBOR

+

3.25%;

3-month

USD

LIBOR

+

4.25%),

5/16/25

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

United

States

7,474,185

7,438,347

g,h

Term

Loan,

B,

TBD,

1/19/29

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

United

States

6,088,775

6,036,777

h

Rocket

Software,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.355

%

,

(

1-month

USD

LIBOR

+

4.25

%

),

11/28/25

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

United

States

3,850,510

3,842,809

Sovos

Compliance

LLC

,

First

Lien,

Initial

Term

Loan

,

4.803

%

,

(

1-month

USD

LIBOR

+

4.5

%

),

8/11/28

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

United

States

699,104

703,473

UKG,

Inc.

,

First

Lien,

2021-2

Incremental

Term

Loan,

3.75%,

(3-month

USD

LIBOR

+

3.25%),

5/04/26

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

United

States

355,403

354,997

Second

Lien,

2021

Incremental

Term

Loan,

5.75%,

(3-month

USD

LIBOR

+

5.25%),

5/03/27

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

United

States

723,473

731,308

Veritas

US,

Inc.

,

2021

Dollar

Term

Loan,

B

,

6

%

,

(

3-month

USD

LIBOR

+

5

%

),

9/01/25

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

United

States

4,850,486

4,850,995

h

Vision

Solutions,

Inc.

(Precisely

Software,

Inc.)

,

First

Lien,

Third

Amendment

Term

Loan

,

4.75

%

,

(

3-month

USD

LIBOR

+

4

%

),

4/24/28

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

United

States

7,418,602

7,413,965

85,667,119

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

13

a

a

Country

Principal

Amount

*

a

Value

a

a

a

a

a

e,f

Senior

Floating

Rate

Interests

(continued)

Specialty

Retail

4.8%

Evergreen

AcqCo

1

LP

,

Initial

Term

Loan

,

6.25

%

,

(

3-month

USD

LIBOR

+

5.5

%

),

4/26/28

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

United

States

3,365,661

$

3,367,075

Great

Outdoors

Group

LLC

,

Term

Loan,

B2

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

3/06/28

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

United

States

8,035,709

8,051,619

Michaels

Cos.,

Inc.

(The)

,

Term

Loan,

B

,

5

%

,

(

3-month

USD

LIBOR

+

4.25

%

),

4/15/28

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

United

States

7,432,650

7,339,742

Park

River

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4

%

,

(

3-month

USD

LIBOR

+

3.25

%

),

12/28/27

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

United

States

2,384,487

2,375,354

Rent-A-Center,

Inc.

,

2021

Initial

Term

Loan

,

3.75

%

,

(

1-month

USD

LIBOR

+

3.25

%

),

2/17/28

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

United

States

2,683,274

2,683,274

SRS

Distribution,

Inc.

,

2021

Refinancing

Term

Loan

,

4.269

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

6/02/28

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

United

States

468,887

469,081

Staples,

Inc.

,

2019

Refinancing

New

Term

Loan,

B1

,

5.132

%

,

(

3-month

USD

LIBOR

+

5

%

),

4/16/26

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

United

States

7,582,381

7,255,429

Woof

Holdings,

Inc.

,

First

Lien,

Initial

Term

Loan

,

4.5

%

,

(

3-month

USD

LIBOR

+

3.75

%

),

12/21/27

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

United

States

635,972

636,768

32,178,342

a

a

a

a

a

a

Technology

Hardware,

Storage

&

Peripherals

1.1%

Amentum

Government

Services

Holdings

LLC

,

First

Lien,

Term

Loan,

2

,

5.5

%

,

(

3-month

USD

LIBOR

+

4.75

%

),

1/29/27

.......

United

States

1,478,825

1,482,832

Magenta

Buyer

LLC

,

First

Lien,

Initial

Term

Loan

,

5.75

%

,

(

3-month

USD

LIBOR

+

5

%

),

7/27/28

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

United

States

6,016,556

6,005,275

7,488,107

a

a

a

a

a

a

Textiles,

Apparel

&

Luxury

Goods

0.8%

Champ

Acquisition

Corp.

,

First

Lien,

Initial

Term

Loan

,

5.691

%

,

(

3-month

USD

LIBOR

+

5.5%;

6-month

USD

LIBOR

+

5.5%

),

12/19/25

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

United

States

1,978,569

1,984,554

Tory

Burch

LLC

,

Initial

Term

Loan,

B

,

3.5

%

,

(

1-month

USD

LIBOR

+

3

%

),

4/16/28

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

United

States

3,087,118

3,085,189

5,069,743

a

a

a

a

a

a

Transportation

Infrastructure

0.3%

First

Student

Bidco,

Inc.

,

Initial

Term

Loan,

B,

3.5%,

(3-month

USD

LIBOR

+

3%),

7/21/28

United

States

570,506

568,130

Initial

Term

Loan,

C,

3.5%,

(3-month

USD

LIBOR

+

3%),

7/21/28

United

States

210,589

209,712

LaserShip,

Inc.

,

First

Lien,

Initial

Term

Loan

,

5.25

%

,

(

3-month

USD

LIBOR

+

4.5

%

),

5/07/28

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

United

States

1,551,498

1,557,316

2,335,158

a

a

a

a

a

a

Wireless

Telecommunication

Services

0.1%

g

Syniverse

Holdings,

Inc.

,

Term

Loan

,

TBD,

1/27/29

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

United

States

647,720

641,243

Total

Senior

Floating

Rate

Interests

(Cost

$576,460,968)

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

581,419,810

Total

Long

Term

Investments

(Cost

$650,552,121)

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

645,476,235

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.

14

Short

Term

Investments

4.8%

a

a

Country

Shares

a

Value

a

Money

Market

Funds

4.8%

j,k

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.01%

.....

United

States

32,170,617

$

32,170,617

Total

Money

Market

Funds

(Cost

$32,170,617)

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

32,170,617

Total

Short

Term

Investments

(Cost

$32,170,617

)

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

32,170,617

a

Total

Investments

(Cost

$682,722,738)

101.2%

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

$677,646,852

Other

Assets,

less

Liabilities

(1.2)%

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

(8,197,611)

Net

Assets

100.0%

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

$669,449,241

See

Abbreviations

on

page

27

.

*

The

principal

amount

is

stated

in

U.S.

dollars

unless

otherwise

indicated.

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

11

regarding

holdings

of

5%

voting

securities.

c

Fair

valued

using

significant

unobservable

inputs.

See

Note

13

regarding

fair

value

measurements.

d

Income

may

be

received

in

additional

securities

and/or

cash.

e

See

Note

1(c)

regarding

senior

floating

rate

interests.

f

The

coupon

rate

shown

represents

the

rate

at

period

end.

g

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.

h

A

portion

or

all

of

the

security

purchased

on

a

delayed

delivery

basis.

See

Note

1(b).

i

See

Note

7

regarding

credit

risk

and

defaulted

securities.

j

See

Note

3(d)

regarding

investments

in

affiliated

management

investment

companies.

k

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,

2022

(unaudited)

franklintempleton.com

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

15

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$597,432,429

Cost

-

Non-controlled

affiliates

(Note

3

d

and

11

)

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

85,290,309

Value

-

Unaffiliated

issuers

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

$583,431,669

Value

-

Non-controlled

affiliates

(Note

3

d

and

11

)

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

94,215,183

Cash

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

951,530

Receivables:

Investment

securities

sold

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

11,601,612

Interest

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

1,936,507

Unrealized

appreciation

on

unfunded

loan

commitments

(Note

10

)

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

7,429

Total

assets

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

692,143,930

Liabilities:

Payables:

Investment

securities

purchased

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

20,216,552

Management

fees

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

322,782

Distributions

to

shareholders

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

2,097,888

Unrealized

depreciation

on

unfunded

loan

commitments

(Note

10

)

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

752

Accrued

expenses

and

other

liabilities

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

56,715

Total

liabilities

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

22,694,689

Net

assets,

at

value

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

$669,449,241

Net

assets

consist

of:

Paid-in

capital

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

$715,548,275

Total

distributable

earnings

(losses)

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

(46,099,034)

Net

assets,

at

value

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

$669,449,241

Shares

outstanding

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

82,169,995

Net

asset

value

per

share

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

$8.15

Franklin

Floating

Rate

Master

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

January

31,

2022

(unaudited)

franklintempleton.com

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

16

Franklin

Floating

Rate

Income

Fund

Investment

income:

Dividends:

Non-controlled

affiliates

(Note

3

d

and

11

)

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

$1,869

Interest:

Unaffiliated

i

ssuers:

Payment-in-kind

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

455,865

Paid

in

cash

a

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

13,917,013

Non-controlled

affiliates

(Note

3

d

and

11

)

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

569,882

Total

investment

income

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

14,944,629

Expenses:

Management

fees

(Note

3

a

)

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

2,099,544

Custodian

fees

(Note

4

)

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

424

Reports

to

shareholders

fees

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

2,191

Registration

and

filing

fees

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

164

Professional

fees

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

63,328

Trustees'

fees

and

expenses

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

5,254

Other

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

15,544

Total

expenses

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

2,186,449

Expense

reductions

(Note

4

)

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

(373)

Expenses

waived/paid

by

affiliates

(Note

3

d

and

3

e

)

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

(170,760)

Net

expenses

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

2,015,316

Net

investment

income

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

12,929,313

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

(31,167,081)

Non-controlled

affiliates

(Note

3

d

and

11

)

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

17,056,457

Net

realized

gain

(loss)

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

(14,110,624)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

33,332,368

Non-controlled

affiliates

(Note

3

d

and

11

)

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

1,687,832

Net

change

in

unrealized

appreciation

(depreciation)

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

35,020,200

Net

realized

and

unrealized

gain

(loss)

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

20,909,576

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$33,838,889

a

Includes

amortization

of

premium

and

accretion

of

discount.

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

17

Franklin

Floating

Rate

Income

Fund

Six

Months

Ended

January

31,

2022

(unaudited)

Year

Ended

July

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$12,929,313

$16,080,049

Net

realized

gain

(loss)

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

(14,110,624)

(54,691,669)

Net

change

in

unrealized

appreciation

(depreciation)

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

35,020,200

80,508,403

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

33,838,889

41,896,783

Distributions

to

shareholders

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

(14,293,203)

(14,641,778)

Capital

share

transactions

(Note

2

)

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

(627,240)

421,174,448

Net

increase

(decrease)

in

net

assets

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

18,918,446

448,429,453

Net

assets:

Beginning

of

period

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

650,530,795

202,101,342

End

of

period

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

$669,449,241

$650,530,795

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

Franklin

Floating

Rate

Income

Fund

18

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.

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

principal

from

excess

cash

flows

or

at

the

discretion

of

the

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

19

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

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.

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,

2022,

the

Fund

has

determined

that

no

tax

liability

is

required

in

its

financial

statements

related

to

uncertain

tax

positions

for

any

open

tax

years

(or

expected

to

be

taken

in

future

tax

years).

Open

tax

years

are

those

that

remain

subject

to

examination

and

are

based

on

the

statute

of

limitations

in

each

jurisdiction

in

which

the

Fund

invests. 

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Interest

income

and

estimated

expenses

are

accrued

daily.

Amortization

of

premium

and

accretion

of

discount

on

debt

securities

are

included

in

interest

income.

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)

20

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

January

31,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund’s

shares

were

as

follows:

3.

Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

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,

2022,

the

annualized

gross

effective

investment

management

fee

rate

was

0.625%

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,

2022

Year

Ended

July

31,

2021

Shares

Amount

Shares

Amount

Shares

sold

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

—

$—

10,208,758

$132,862,048

Shares

sold

in-kind

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

—

(627,240)

46,568,150

304,271,021

Shares

redeemed

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

—

—

(2,152,468)

(15,958,621)

Net

increase

(decrease)

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

—

$(627,240)

54,624,440

$421,174,448

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)

21

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.

As

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

fund.

The

Fund

does

not

invest

for

purposes

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

affiliated

management

investment

companies,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

each

affiliate.

During

the

period

ended

January

31,

2022,

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

interest

expense,

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,

2022.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

period

end.

f.

Other

Affiliated

Transactions

At

January

31,

2022,

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,

2022,

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,

0.01%

.

$

79,428,569

$

104,839,822

$

(152,097,774)

$

—

$

—

$

32,170,617

32,170,617

$

1,869

Total

Affiliated

Securities

...

$79,428,569

$104,839,822

$(152,097,774)

$—

$—

$32,170,617

$1,869

Shares

Percentage

of

Outstanding

Shares

a

Franklin

Strategic

Income

Fund

34,705,988

42.1%

Franklin

Total

Return

Fund

24,116,234

29.4%

Franklin

Low

Duration

Total

Return

Fund

14,835,570

18.1%

Franklin

Floating

Rate

Daily

Access

Fund

4,630,114

5.6%

Franklin

Strategic

Income

VIP

Fund

3,420,372

4.2%

Franklin

Floating

Rate

Master

Series

461,717

0.6%

Total

82,169,995

100.0%

3.

Transactions

with

Affiliates

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

22

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,

2021,

the

capital

loss

carryforwards

were

as

follows:

At

January

31,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatments

of

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,

2022,

aggregated

$182,799,056

and

$179,386,294,

respectively.

7.

Credit Risk

and

Defaulted

Securities

At

January

31,

2022,

the

Fund

had

87.2%

of

its

portfolio

invested

in

high

yield

securities,

senior

secured

floating

rate

loans,

or

other

securities

rated

below

investment

grade

and

unrated

securities.

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,

2022,

the

value

of

these

securities

were

$1,852,861

representing

0.3%

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.

Geopolitical

Risk

On

February

24,

2022,

Russia

engaged

in

military

actions

in

the

sovereign

territory

of

Ukraine.

The

current

political

and

financial

uncertainty

surrounding

Russia

and

Ukraine

may

increase

market

volatility

and

the

economic

risk

of

investing

in

securities

in

these

countries

and

may

also

cause

uncertainty

for

the

global

economy

and

broader

financial

markets.

The

ultimate

fallout

and

long-term

impact

from

these

events

are

not

known.

The

Fund

will

continue

to

assess

the

impact

on

valuations

and

liquidity

and

will

take

any

potential

actions

needed

in

accordance

with

procedures

approved

by

the

Board

of

Trustees.

Capital

loss

carryforwards

not

subject

to

expiration:

Short

term

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

$4,599,536

Long

term

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

74,491,837

Total

capital

loss

carryforwards

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

$79,091,373

Cost

of

investments

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

$684,294,309

Unrealized

appreciation

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

$25,898,692

Unrealized

depreciation

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

(32,546,149)

Net

unrealized

appreciation

(depreciation)

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

$(6,647,457)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

23

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

9.

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.

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,

2022,

unfunded

commitments

were

as

follows:

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.

Additionally,

as

defined

in

the

1940

Act,

an

investment

is

deemed

to

be

a

“Controlled

Affiliate”

of

a

fund

when

a

fund

owns,

either

directly

or

indirectly,

25%

or

more

of

the

affiliated

companies’

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

company.

During

the

period

ended

January

31,

2022,

investments

in

“affiliated

companies”

were

as

follows:

Borrower

Unfunded

Commitment

Franklin

Floating

Rate

Income

Fund

athenahealth

Group,

Inc.

$

951,544

Aveanna

Healthcare

LLC

404,153

DexKo

Global,

Inc.

20,164

Medical

Solutions

Holdings,

Inc.

205,994

National

Mentor

Holdings,

Inc.

170,283

Osmosis

Buyer

Ltd.

200,614

Sovos

Compliance,

LLC

121,483

Thrasio

LLC

2,240,156

Total

$

4,314,391

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

Appvion

Operations,

Inc

.

$

14,630,532

$

—

$

(18,278,855)

a

$

10,885,365

$

(7,237,042)

$

—

b

—

$

—

Quarternorth

Energy

Holding

,

Inc

.

......

—

38,664,873

a

—

—

(4,113,853)

34,551,020

331,161

—

Quarternorth

Energy

Holding,

Inc.,

2/01/49

—

19,032,373

(4,178,680)

(398,874)

(1,939,345)

12,515,474

119,957

—

Interest

QuarterNorth

Energy

Holding

Inc.-Initial

New

Loan

...........

—

—

(6,569,966)

a

6,569,966

14,978,072

14,978,072

14,898,885

569,882

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

24

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(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

$2.675

billion

(Global

Credit

Facility)

which

matured

on

February

4,

2022.

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

4,

2022,

the

Borrowers

renewed

the

Global

Credit

Facility

for

a

one-year

term,

maturing

February

3,

2023,

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,

2022,

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

(continued)

Non-Controlled

Affiliates

Total

Affiliated

Securities

(Value

is

9.3%

of

Net

Assets)

..........

$14,630,532

$57,697,246

$(29,027,501)

$

17,056,457

$

1,687,832

$62,044,566

$569,882

a

May

include

accretion,

amortization,

partnership

adjustments,

and/or

corporate

actions.

b

As

of

January

31,

2022,

no

longer

held

by

the

Fund.

11.

Holdings

of

5%

Voting

Securities

of

Portfolio

Companies

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

25

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,

2022,

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 period.

At

January

31,

2022,

the

reconciliation is

as follows:

Level

1

Level

2

Level

3

Total

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Hotels,

Restaurants

&

Leisure

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

$

—

$

115,601

$

—

$

115,601

Machinery

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

—

1,777,572

—

1,777,572

Oil,

Gas

&

Consumable

Fuels

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

—

34,551,020

—

34,551,020

Road

&

Rail

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

—

—

258,236

258,236

Preferred

Stocks

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

—

482,381

—

482,381

Warrants

:

Machinery

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

—

—

7,958

7,958

Oil,

Gas

&

Consumable

Fuels

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

—

12,515,474

—

12,515,474

Corporate

Bonds

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

—

—

14,348,183

14,348,183

Senior

Floating

Rate

Interests

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

—

579,566,949

1,852,861

581,419,810

Short

Term

Investments

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

32,170,617

—

—

32,170,617

Total

Investments

in

Securities

...........

$32,170,617

$629,008,997

$16,467,238

$677,646,852

Other

Financial

Instruments:

Unfunded

Loan

Commitments

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

$

—

$

7,429

$

—

$

7,429

Total

Other

Financial

Instruments

.........

$—

$7,429

$—

$7,429

Liabilities:

Other

Financial

Instruments:

Unfunded

Loan

Commitments

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

$

—

$

752

$

—

$

752

Total

Other

Financial

Instruments

.........

$—

$752

$—

$752

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(

Amortiza

-

tion

)

Net

Realized

Gain

(Loss)

Net

Unr

ealized

Appreciatio

n

(

Depreciation

)

Balance

at

End

of

Period

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Assets

Held

at

Period

End

a

a

a

a

a

a

a

a

a

a

a

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

Securities:

Common

Stocks

:

Aerospace

&

Defense

.

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

Paper

&

Forest

Products

14,630,532

—

(18,278,855)

—

—

—

10,885,365

(7,237,042)

—

—

Road

&

Rail

.......

—

c

—

—

—

—

—

—

258,236

258,236

258,236

Rights

:

Energy

Equipment

&

Services

........

1,299,513

—

(1,434,946)

—

—

—

—

135,433

—

—

Warrants

:

Machinery

.........

4,846

—

—

—

—

—

—

3,112

7,958

3,112

Corporate

Bonds

:

Road

&

Rail

.......

13,289,113

—

—

—

—

732,328

—

326,742

14,348,183

326,742

Senior

Floating

Rate

Interests

:

Household

Products

..

2,299,977

—

(447,116)

—

—

—

10,297

(10,297)

1,852,861

(374,669)

Road

&

Rail

.......

—

—

—

—

—

—

—

—

—

—

13.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

26

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(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,

2022,

are

as

follows:

14.

New

Accounting

Pronouncements

In

March

2020,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(ASU)

No.

2020-04,

Reference

Rate

Reform

(Topic

848)

–

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting.

In

January

2021,

the

FASB

issued

ASU

No.

2021-01,

with

further

amendments

to

Topic

848.

The

amendments

in

the

ASUs

provide

optional

temporary

accounting

recognition

and 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

for

certain

LIBOR

settings

and

2023

for

the

remainder. The

ASUs

are

effective

for

certain

reference

Balance

at

Beginning

of

Period

Purchases

a

Sales

b

Transfer

Into

Level

3

Transfer

Out

of

Level

3

Net

Accretion

(Amortiza-

tion)

Net

Realized

Gain

(Loss)

Net

Unrealized

Appreciation

(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

(continued)

Assets:

Investments

in

Securities:

Escrows

and

Litigation

Trusts

...........

$

—

c

$

—

$

(14,820)

$

—

$

—

$

—

$

14,820

$

—

$

—

$

—

Total

Investments

in

Securities

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

$31,523,981

$—

$(20,175,737)

$—

$—

$732,328

$10,910,482

$(6,523,816)

$16,467,238

$213,421

a

Purchases

include

all

purchases

of

securities

and

securities

received

in

corporate

actions.

b

Sales

include

all

sales

of

securities,

maturities,

paydowns

and

securities

tendered

in

corporate

actions.

c

Includes

securities

determined

to

have

no

value.

Description

Fair

Value

at

End

of

Period

Valuation

Technique

Unobservable

Inputs

Amount

/

Range

(Weighted

Average)

a

Impact

to

Fair

Value

if

Input

Increases

b

Franklin

Floating

Rate

Income

Fund

Assets:

Investments

in

Securities:

Corporate

Bonds:

Road

&

Rail

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

14,348,183

Discounted

cash

flow

Discount

rate

15.2%

Decrease

Free

cash

flow

$14.3

mil

Increase

Senior

Floating

Rate

Interests:

Household

Products

..........

1,852,861

Recovery

value

Asset

value

estimate

$11.6

mil

Increase

c

All

Other

Investments

..........

 266,194

d

Total

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

$16,467,238

a

Weighted

based

on

the

relative

fair

value

of

the

financial

instruments.

b

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.

c

Represents

a

significant

impact

to

fair

value

and

net

assets.

d

Includes

fair

value

of

immaterial

assets

and/or

liabilities

developed

using

various

valuation

techniques

and

unobservable

inputs.

May

also

include

values

derived

using

private

transaction

prices

or

non-public

third

party

pricing

information

which

is

unobservable.

13.

Fair

Value

Measurements

(continued)

Franklin

Floating

Rate

Master

Trust

Notes

to

Financial

Statements

(unaudited)

27

franklintempleton.com

Semiannual

Report

Franklin

Floating

Rate

Income

Fund

(continued)

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

these

ASUs

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.

Abbreviations

Cu

r

rency

USD

United

States

Dollar

Selected

Portfolio

LIBOR

London

Inter-Bank

Offered

Rate

PIK

Payment-In-Kind

TBD

To

Be

Determined

14.

New

Accounting

Pronouncements

(continued)

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

28

franklintempleton.com

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

FLOATING

RATE

MASTER

TRUST

Franklin

Floating

Rate

Income

Fund

(Fund)

At

a

meeting

held

on

February

23,

2021

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Floating

Rate

Master

Trust

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

investment

management

agreement

between

Franklin

Advisers,

Inc.

(Manager)

and

the

Trust,

on

behalf

of

the

Fund

(Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

the

Management

Agreement.

In

considering

the

continuation

of

the

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

the

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

the

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

telephonic

contract

renewal

meeting

at

which

the

Independent

Trustees

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters

and,

in

some

cases,

requested

additional

information

from

the

Manager

relating

to

the

contract.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

the

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

the

Manager;

(ii)

the

investment

performance

of

the

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

the

Manager

and

its

affiliates

from

the

relationship

with

the

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

the

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

the

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

the

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

the

Manager,

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-party

service

providers;

investment

performance

reports

and

related

financial

information

for

the

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

the

Manager

and

its

affiliates;

and

management

fees

charged

by

the

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

noted

management’s

continuing

efforts

and

expenditures

in

establishing

effective

business

continuity

plans

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

such

as

cybersecurity

in

the

current

work-from-

home

environment

and

liquidity

risk

management.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

Franklin

Templeton

(FT)

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Manager’s

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Fund

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

enhancing

services

and

controlling

costs,

as

reflected

in

its

outsourcing

of

certain

administrative

functions,

and

growth

opportunities,

as

evidenced

by

its

recent

acquisition

of

the

Legg

Mason

companies.

The

Board

also

noted

FT’s

attention

focused

on

expanding

the

distribution

opportunities

for

all

funds

in

the

FT

family

of

funds.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

the

Manager

and

its

affiliates

to

the

Fund

and

its

shareholders.

Franklin

Floating

Rate

Master

Trust

Shareholder

Information

29

franklintempleton.com

Semiannual

Report

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

the

Fund

over

various

time

periods

ended

November

30,

2020.

The

Board

considered

the

performance

returns

for

the

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

the

Fund’s

performance

results

is

below.

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

retail

and

institutional

loan

participation

funds.

The

Fund

commenced

operations

on

November

6,

2015,

and

thus

has

been

in

operation

for

less

than

10

years.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

noted

that

effective

June

1,

2019,

the

Fund

implemented

a

change

to

its

investment

strategy

that

broadened

the

Fund’s

investment

focus

to

include

floating

rate

securities

of

all

credit

qualities.

Management

also

noted

that

the

Fund

does

not

offer

its

shares

to

the

public

and

that

the

Fund’s

investors

are

exclusively

other

proprietary

funds.

The

Board

considered

management’s

explanation

and

concluded

that

the

Fund’s

performance

was

acceptable.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

the

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-management

fees.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

the

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges,

and

the

actual

total

expense

ratio,

for

comparative

consistency,

was

shown

for

Class

A

shares

for

funds

in

the

Expense

Group.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

The

Expense

Group

for

the

Fund

included

the

Fund

and

13

other

loan

participation

funds.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

equal

to

the

median

of

its

Expense

Group,

and

the

actual

total

expense

ratio

for

the

Fund

was

below

the

median

of

its

Expense

Group.

The

Board

also

noted

that

the

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

the

Manager

and

its

affiliates

in

connection

with

the

operation

of

the

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

provided

by

the

Manager

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2020,

being

the

most

recent

fiscal

year-

end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Fund’s

profitability

report

presentations

from

prior

years.

The

Board

further

noted

management’s

representation

that

the

profitability

analysis

excluded

the

impact

of

the

recent

acquisition

of

the

Legg

Mason

companies

and

that

management

expects

to

incorporate

the

legacy

Legg

Mason

companies

into

the

profitability

analysis

beginning

next

year.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

by

the

Manager

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Fund’s

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

the

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

the

Fund

in

determining

its

profitability,

as

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well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

upfront

expenditures

by

the

Manager

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Fund,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

the

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

the

Manager

and

its

affiliates

from

providing

services

to

the

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

the

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

the

Manager

may

realize

economies

of

scale,

if

any,

as

the

Fund

grows

larger

and

whether

the

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints,

which

operate

generally

to

share

any

economies

of

scale

with

the

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

the

Manager’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

the

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

noted

that

the

Fund

does

not

have

an

asset

size

that

would

likely

enable

the

Fund

to

achieve

economies

of

scale,

but

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

the

Manager

and

its

affiliates,

the

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

the

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

of

the

Funds

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

SEC

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis).

The

Funds’

Board

of

Trustees

approved

the

appointment

of

the

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

as

the

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

FT

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Investment

Compliance,

Investment

Operations,

Valuation

Committee

and

Product

Management

groups.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

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the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

The

Fund

primarily

holds

investments

where

the

time

required

to

settle

a

sale

of

the

investment

may

exceed

7

calendar

days

and

are

classified

as

“Less

Liquid

Investments”.

Less

Liquid

Investments

are

defined

as

any

investment

reasonably

expected

to

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment,

but

where

the

sale

or

disposition

is

reasonably

expected

to

settle

in

more

than

seven

calendar

days.

The

Fund

established

and

maintained

a

HLIM.

During

the

reporting

period,

the

Fund

maintained

the

necessary

level

of

Highly

Liquid

Investments

and

did

not

experience

any

HLIM

shortfalls.

From

time

to

time

issuers

may

enter

varying

stages

of

corporate

reorganization

and

the

Adviser

will

participate

actively

in

the

reorganizations

in

order

to

protect

the

interests

of

the

Fund.

In

connection

with

such

participation,

the

Adviser

receives

material

non-public

information

about

the

issuer

and,

therefore,

may

become

restricted

in

its

ability

to

enter

into

purchase

and

sale

transactions

for

the

Funds

with

respect

to

these

securities.

Becoming

restricted

results

in

a

determination

that

the

positions

are

“illiquid,”

including

for

purposes

of

Rule

22e-4

(the

“Liquidity

Rule”).

In

February

2021,

the

Fund’s

Illiquid

investments

exceeded

15%

of

its

total

net

assets.

This

was

due

to

market

movement

on

certain

illiquid

assets

rather

than

any

actions

by

the

portfolio

management

team

while

certain

issues

were

under

restriction

due

to

material

non-public

information.

In

accordance

with

the

LRMP,

the

Fund

reported

the

information

to

the

SEC

and

the

Program

Administrator

notified

the

Fund’s

Board

of

Trustees

with

a

remediation

plan.

The

remediation

plan

was

approved

by

the

Board

and

the

exceedance

was

remediated

in

three

days.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2021,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2020.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Fund’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Fund’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Fund’s

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

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.

Item 2. Code of Ethics.

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

(c) N/A

(d) N/A

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

Item 3. Audit Committee Financial Expert.

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

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

Item 4. Principal Accountant Fees and Services

.       

N/A

 

Item 5.  Audit Committee

of Listed Registrants.       N/A

Item 6.  Schedule of Investments.                     N/A

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

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

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

Affiliated Purchasers. N/A

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

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

Item 11. Controls and Procedures.

(a)

 Evaluation of Disclosure Controls and Procedures.

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

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

(b)

 Changes in Internal Controls.

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

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

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section302

(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer

section906

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

FRANKLIN FLOATING RATE MASTER TRUST

By S\Matthew T. Hinkle______________________

      Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date March 29, 2022

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

By S\Matthew T. Hinkle______________________

      Matthew T. Hinkle

      Chief Executive Officer – Finance and Administration

Date March 29, 2022

By S\Christopher Kings________________________

     Christopher Kings

     Chief Financial Officer, Chief Accounting Officer and Treasurer

Date March 29, 2022