UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-
01608Franklin High Income 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: 5/31
Date of reporting period: 11/30/21
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
SEMIANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
High
Income
Fund
A
Series
of
Franklin
High
Income
Trust
November
30,
2021
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Semiannual
Report
1
Shareholder
Letter
Dear
Shareholder:
During
the
six
months
ended
November
30,
2021,
the
U.S.
economy
continued
to
recover
from
the
COVID-19
pandemic,
benefiting
equities.
Growth
accelerated
in
2021’s
first
half
as
the
reopening
of
businesses,
widespread
COVID-19
vaccinations
and
federal
assistance
programs
continued
to
boost
consumer
spending.
Inflation
increased
during
the
reporting
period
due
to
increased
demand
for
goods
amid
supply-chain
bottlenecks.
During
the
period’s
second
half,
investors
became
concerned
that
new,
swiftly
spreading
COVID-19
variants
could
hinder
the
economic
recovery,
and
growth
slowed
in
2021’s
third
quarter.
During
the
reporting
period,
the
U.S.
Federal
Reserve
(Fed),
in
its
efforts
to
support
U.S.
economic
activity,
held
the
federal
funds
rate
unchanged
at
0.25%,
and
it
continued
broad
quantitative
easing
measures
to
bolster
credit
markets.
The
Fed
also
raised
its
economic
growth
and
inflation
projections
and
announced
plans
to
begin
decreasing
its
asset
purchases
in
November,
while
delaying
any
interest
rate
increases
until
reaching
its
goal
of
maximum
U.S.
employment.
The
10-year
Treasury
yield,
which
moves
inversely
to
price,
declined
during
the
six
months
under
review.
During
the
period,
Fed
intervention
and
the
U.S.
economy’s
incremental
reopening
allayed
many
investors’
concerns
about
risk
assets,
contributing
to
lower
demand
for
U.S.
government
securities
and
accelerated
prepayments
for
mortgage-
backed
securities,
while
demand
increased
for
corporate
bonds,
particularly
those
below
investment
grade.
Robust
economic
growth
in
2021’s
first
half
and
rising
commodities
prices
contributed
to
higher
inflation
and
related
expectations
than
have
been
seen
in
a
number
of
years.
In
this
environment,
investment-grade
bonds,
as
measured
by
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index,
posted
a
+1.02%
total
return,
while
below
investment-grade
corporate
bonds,
as
measured
by
the
Credit
Suisse
High
Yield
Index,
posted
a
+0.78%
total
return.
1
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
conduct
a
rigorous,
fundamental
analysis
of
securities
with
a
regular
emphasis
on
investment
risk
management.
We
believe
active,
professional
investment
management
serves
investors
well.
We
also
recognize
the
important
role
of
financial
professionals
in
today’s
markets
and
encourage
investors
to
continue
to
seek
their
advice.
Amid
changing
markets
and
economic
conditions,
we
are
confident
investors
with
a
well-diversified
portfolio
and
a
patient,
long-term
outlook
should
be
well-positioned
for
the
years
ahead.
In
addition,
Franklin
High
Income
Fund’s
semiannual
report
includes
more
detail
about
prevailing
conditions
and
a
discussion
about
investment
decisions
during
the
period.
Please
remember
all
securities
markets
fluctuate,
as
do
mutual
fund
share
prices.
We
thank
you
for
investing
with
Franklin
Templeton,
welcome
your
questions
and
comments,
and
look
forward
to
serving
your
future
investment
needs.
Sincerely,
Sonal
Desai,
Ph.D.
Executive
Vice
President,
Chief
Investment
Officer
of
Franklin
Templeton
Fixed
Income
This
letter
reflects
our
analysis
and
opinions
as
of
November
30,
2021,
unless
otherwise
indicated.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
fund.
Statements
of
fact
are
from
sources
considered
reliable.
1.
Source:
Morningstar.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
franklintempleton.com
Semiannual
Report
2
Contents
Semiannual
Report
Franklin
High
Income
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
8
Financial
Highlights
and
Statement
of
Investments
9
Financial
Statements
28
Notes
to
Financial
Statements
32
Shareholder
Information
44
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Semiannual
Report
SEMIANNUAL
REPORT
Franklin
High
Income
Fund
This
semiannual
report
for
Franklin
High
Income
Fund
covers
the
period
ended
November
30,
2021.
Your
Fund’s
Goals
and
Main
Investments
The
Fund
seeks
to
earn
a
high
level
of
current
income.
Its
secondary
goal
is
to
seek
capital
appreciation
to
the
extent
it
is
possible
and
consistent
with
the
Fund’s
principal
goal.
The
Fund
invests
predominantly
in
high
yield,
lower-rated
debt
securities
including
bonds,
notes,
debentures,
convertible
securities,
and
senior
and
subordinated
debt
securities.
The
Fund
may
also
invest
in
preferred
stocks.
Performance
Overview
The
Fund’s
Class
A
shares
posted
a
+0.76%
cumulative
total
return
for
the
six
months
under
review.
In
comparison,
the
Fund’s
primary
benchmark,
the
ICE
BofA
U.S.
High
Yield
Constrained
Index,
which
tracks
the
performance
of
high-
yield
securities
traded
in
the
U.S.
bond
market,
posted
a
+1.07%
cumulative
total
return.
1
The
Fund’s
peers
posted
a
+0.78%
cumulative
total
return,
as
measured
by
the
Lipper
High
Yield
Funds
Classification
Average,
which
consists
of
funds
chosen
by
Lipper
that
aim
at
high
relative
current
yield
from
fixed
income
securities.
2
You
can
find
more
of
the
Fund’s
performance
data
in
the
Performance
Summary
beginning
on
page
6
.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Economic
and
Market
Overview
The
U.S.
bond
market,
as
measured
by
the
Bloomberg
U.S.
Aggregate
Bond
Index,
posted
a
+1.02%
total
return
for
the
six
months
ended
November
30,
2021.
1
The
inflation
rate
was
elevated
during
the
six-month
period
amid
increased
demand
and
supply-chain
bottlenecks.
U.S.
consumer
spending
on
goods
remained
strong,
adding
to
pressure
on
the
prices
of
many
products.
Longer-term
bonds
generally
outperformed
shorter-
and
intermediate-term
bonds
as
the
yield
curve
flattened.
In
an
effort
to
support
the
economy,
the
U.S.
Federal
Reserve
(Fed)
kept
the
federal
funds
target
rate
at
a
record-low
range
of
0.00%–0.25%.
The
Fed
also
maintained
quantitative
easing
measures
aimed
at
ensuring
credit
flows
to
borrowers
and
supporting
credit
markets
with
open-ended
U.S.
Treasury
and
mortgage
bond
purchasing.
However,
in
its
November
2021
meeting
statement,
the
Fed
detailed
plans
to
reduce
its
purchases
of
U.S.
Treasury
and
mortgage-backed
securities
beginning
in
November.
The
Fed
also
noted
that
it
views
inflation
as
partially
transitory,
and
that
further
employment
progress
was
needed
before
the
Fed
would
consider
raising
the
range
for
the
federal
funds
target
rate.
U.S.
Treasury
bonds,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
+1.43%
total
return
for
the
six-
month
period.
1
The
10-year
U.S.
Treasury
yield
(which
moves
inversely
to
price)
declined
amid
uncertainty
about
the
pace
of
the
recovery
and
the
timing
of
future
Fed
monetary
policy
shifts.
Mortgage-backed
securities
(MBS),
as
measured
by
the
Bloomberg
MBS
Index,
posted
a
-0.23%
total
return
for
the
period,
despite
ongoing
Fed
support.
1
Corporate
bonds
generally
followed
a
similar
trajectory
as
U.S.
Treasuries,
but
they
benefited
from
a
continued
decline
in
spreads
between
the
10-year
U.S.
Treasury
and
corporate
bond
yields
amid
an
increase
in
investors’
appetite
for
risk.
High-yield
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
High
Yield
Bond
Index,
posted
Portfolio
Composition
11/30/21
%
of
Total
Net
Assets
Corporate
Bonds
94.6%
Common
Stocks
1.6%
Other
0.3%
Short-Term
Investments
&
Other
Net
Assets
3.5%
1.
Source:
Morningstar.
Treasuries,
if
held
to
maturity,
offer
a
fixed
rate
of
return
and
a
fixed
principal
value;
their
interest
payments
and
principal
are
guaranteed.
2.
Source:
Lipper,
a
Thomson
Reuters
Company.
For
the
six-month
period
ended
11/30/21,
this
category
consisted
of
521
funds.
Lipper
calculations
do
not
include
sales
charges
or
expense
subsidization
by
a
fund’s
manager.
Fund
performance
relative
to
the
average
may
have
differed
if
these
or
other
factors
had
been
considered.
The
indexes
are
unmanaged
and
include
reinvestment
of
any
income
or
distributions.
They
do
not
reflect
any
fees,
expenses
or
sales
charges.
One
cannot
invest
directly
in
an
index,
and
an
index
is
not
representative
of
the
Fund’s
portfolio.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
The
dollar
value,
number
of
shares
or
principal
amount,
and
names
of
all
portfolio
holdings
are
listed
in
the
Fund’s
Statement
of
Investments
(SOI).
The
SOI
begins
on
page
15
.
Franklin
High
Income
Fund
4
franklintempleton.com
Semiannual
Report
a
+1.07%
total
return,
while
investment-grade
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
+1.94%
total
return.
1
Investment
Strategy
We
are
research
driven,
fundamental
investors
who
rely
on
our
team
of
analysts
to
provide
in-depth
industry
expertise
and
use
qualitative
and
quantitative
analysis
to
evaluate
security
issuers.
As
bottom-up
investors,
we
focus
primarily
on
individual
securities
but
consider
sectors
when
choosing
investments
and,
from
time
to
time,
may
have
significant
investments
in
certain
sectors.
In
selecting
securities,
we
do
not
rely
principally
on
the
ratings
assigned
by
rating
agencies,
but
perform
our
own
independent
investment
analysis
to
evaluate
the
creditworthiness
of
the
issuer.
We
consider
a
variety
of
factors,
including
the
issuer’s
experience
and
managerial
strength,
its
sensitivity
to
economic
conditions,
and
its
current
and
prospective
financial
condition.
Manager’s
Discussion
While
“reflation,”
meaning
a
return
to
growth,
was
the
key
driver
for
markets
in
the
first
quarter
of
2021,
“inflation”
and
commensurate
risks
of
higher
commodity
prices
took
center
stage
over
the
summer
and
into
the
fall.
Amid
market
concerns
surrounding
the
COVID-19
Delta
variant
and
ever-changing
views
around
the
trajectory
of
U.S.
Federal
Reserve
(Fed)
tapering,
U.S.
Treasury
yields
experienced
periods
of
volatility.
As
supply
chain-induced
inflation
persisted,
U.S.
policymakers
signaled
a
move
away
from
the
“transitory
inflation”
stance,
leading
to
renewed
market
focus
on
the
timing
of
a
Fed
taper
and
interest
rate
hike—
during
November
2021,
the
Fed
ended
market
speculation
regarding
timing
by
beginning
the
process
of
winding
down
its
pandemic-era
asset
purchases.
More
recently,
news
of
the
highly
mutated
COVID-19
Omicron
variant
and
indications
that
the
Fed
could
end
its
asset
purchase
program
sooner
than
expected
weighed
on
market
sentiment
in
the
high-yield
(HY)
bond
sector.
During
the
performance
period
under
review,
the
U.S.
Treasury
yield
curve
generally
flattened.
HY
spreads
generally
widened
during
the
six-
month
period
under
review.
Most
segments
of
the
HY
market
posted
positive
absolute
returns
for
the
performance
period.
BB
rated
bonds
posted
higher
returns
than
B
and
CCC
rated
segments.
Several
factors
contributed
positively
to
the
Fund’s
performance
for
the
six-month
period
under
review.
Namely,
significant
contribution
from
selection
in
the
energy
sector,
along
with
positive
selection
in
the
media
cable
and
wired
sectors
more
than
offset
negative
selection
in
the
utility,
media
non-cable
and
gaming
sectors.
The
Fund’s
yield-
curve
positioning
hindered
results.
The
Fund
held
only
cash
bonds
during
the
period
(for
the
bond
portion
of
the
portfolio)
and
had
no
exposure
to
derivatives.
Thank
you
for
your
continued
participation
in
Franklin
High
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Glenn
I.
Voyles,
CFA
Portfolio
Manager
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
November
30,
2021,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
Top
10
Holdings
11/30/21
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Occidental
Petroleum
Corp.
1.8%
Oil,
Gas
&
Consumable
Fuels,
United
States
Goodrich
Petroleum
Corp.
1.8%
Oil,
Gas
&
Consumable
Fuels,
United
States
Cheniere
Energy
Partners
LP
1.5%
Oil,
Gas
&
Consumable
Fuels,
United
States
Mauser
Packaging
Solutions
Holding
Co.
1.5%
Containers
&
Packaging,
United
States
Tenet
Healthcare
Corp.
1.3%
Health
Care
Providers
&
Services,
United
States
Centene
Corp.
1.1%
Health
Care
Providers
&
Services,
United
States
Altice
France
Holding
SA
1.0%
Diversified
Telecommunication
Services,
Luxembourg
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
1.0%
Diversified
Telecommunication
Services,
United
States
Carnival
Corp.
1.0%
Hotels,
Restaurants
&
Leisure,
United
States
MPH
Acquisition
Holdings
LLC
0.9%
Diversified
Financial
Services,
United
States
CFA
®
is
a
trademark
owned
by
CFA
Institute.
Franklin
High
Income
Fund
5
franklintempleton.com
Semiannual
Report
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
Performance
Summary
as
of
November
30,
2021
Franklin
High
Income
Fund
6
franklintempleton.com
Semiannual
Report
The
performance
tables
do
not
reflect
any
taxes
that
a
shareholder
would
pay
on
Fund
dividends,
capital
gain
distributions,
if
any,
or
any
realized
gains
on
the
sale
of
Fund
shares.
Total
return
reflects
reinvestment
of
the
Fund’s
dividends
and
capital
gain
distributions,
if
any,
and
any
unrealized
gains
or
losses.
Your
dividend
income
will
vary
depending
on
dividends
or
interest
paid
by
securities
in
the
Fund’s
portfolio,
adjusted
for
operating
expenses
of
each
class.
Capital
gain
distributions
are
net
profits
realized
from
the
sale
of
portfolio
securities.
Performance
as
of
11/30/21
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
3.75%
and
the
minimum
is
0%.
Class
A
:
3.75%
maximum
initial
sales
charge;
Advisor
Class:
no
sales
charges.
For
other
share
classes,
visit
franklintempleton.com.
Performance
data
represent
past
performance,
which
does
not
guarantee
future
results.
Investment
return
and
principal
value
will
fluctuate,
and
you
may
have
a
gain
or
loss
when
you
sell
your
shares.
Current
performance
may
differ
from
figures
shown.
For
most
recent
month-end
performance,
go
to
franklintempleton.com
or
call
(800)
342-5236
.
Share
Class
Cumulative
Total
Return
1
Average
Annual
Total
Return
2
–
A
3,4
6-Month
+0.76%
-3.02%
1-Year
+5.01%
+1.07%
5-Year
+31.55%
+4.83%
10-Year
+74.41%
+5.32%
Advisor
6-Month
+1.40%
+1.40%
1-Year
+5.78%
+5.78%
5-Year
+34.11%
+6.05%
10-Year
+79.09%
+6.00%
30-Day
Standardized
Yield
6
Share
Class
Distribution
Rate
5
(with
fee
waiver)
(without
fee
waiver)
A
4.52%
3.76%
3.76%
Advisor
4.90%
4.15%
4.14%
See
page
7
for
Performance
Summary
footnotes.
Franklin
High
Income
Fund
Performance
Summary
7
franklintempleton.com
Semiannual
Report
Each
class
of
shares
is
available
to
certain
eligible
investors
and
has
different
annual
fees
and
expenses,
as
described
in
the
prospectus.
All
investments
involve
risks,
including
possible
loss
of
principal.
The
risks
associated
with
higher-yielding,
lower-rated
securities
include
higher
risk
of
default
and
loss
of
principal.
Changes
in
the
financial
strength
of
a
bond
issuer
or
in
a
bond’s
credit
rating
may
affect
its
value.
In
addition,
interest
rate
movements
will
affect
the
Fund’s
share
price
and
yield.
Bond
prices
generally
move
in
the
opposite
direction
of
interest
rates.
Thus,
as
prices
of
bonds
in
the
Fund
adjust
to
a
rise
in
interest
rates,
the
Fund’s
share
price
may
decline.
Investment
in
foreign
securities
also
involves
special
risks,
including
currency
fluctuations,
and
political
and
economic
uncertainty.
Events
such
as
the
spread
of
deadly
diseases,
disasters,
and
financial,
political
or
social
disruptions,
may
heighten
risks
and
adversely
affect
performance.
The
Fund’s
prospectus
also
includes
a
description
of
the
main
investment
risks.
1.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
2.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
3.
Effective
9/10/18,
Class
A
shares
closed
to
new
investors,
were
renamed
Class
A1
shares,
and
a
new
Class
A
share
with
a
different
expense
structure
became
available.
Class
A
performance
shown
has
been
calculated
as
follows:
(a)
for
periods
prior
to
9/10/18,
a
restated
figure
is
used
based
on
the
Fund’s
Class
A1
performance
that
includes
any
Rule
12b-1
rate
differential
that
exists
between
Class
A1
and
Class
A;
and
(b)
for
periods
after
9/10/18,
actual
Class
A
performance
is
used,
reflecting
all
charges
and
fees
applicable
to
that
class.
4.
Prior
to
3/1/19,
these
shares
were
offered
at
a
higher
initial
sales
charge
of
4.25%,
thus
actual
returns
(with
sales
charges)
would
have
differed.
Average
annual
total
returns
(with
sales
charges)
have
been
restated
to
reflect
the
current
maximum
initial
sales
charge
of
3.75%.
5.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
November
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
11/30/21.
6.
The
Fund’s
30-day
standardized
yield
is
calculated
over
a
trailing
30-day
period
using
the
yield
to
maturity
on
bonds
and/or
the
dividends
accrued
on
stocks.
It
may
not
equal
the
Fund’s
actual
income
distribution
rate,
which
reflects
the
Fund’s
past
dividends
paid
to
shareholders.
7.
Figures
are
as
stated
in
the
Fund’s
current
prospectus
and
may
differ
from
the
expense
ratios
disclosed
in
the
Your
Fund’s
Expenses
and
Financial
Highlights
sections
in
this
report.
In
periods
of
market
volatility,
assets
may
decline
significantly,
causing
total
annual
Fund
operating
expenses
to
become
higher
than
the
figures
shown.
See
www.franklintempletondatasources.com
for
additional
data
provider
information.
Distributions
(6/1/21–11/30/21)
Share
Class
Net
Investment
Income
A
$0.0444
A1
$0.0453
C
$0.0402
R
$0.0418
R6
$0.0477
Advisor
$0.0466
Total
Annual
Operating
Expenses
7
Share
Class
A
0.86%
Advisor
0.61%
Your
Fund’s
Expenses
Franklin
High
Income
Fund
8
franklintempleton.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”
for
each
class
of
shares.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
183/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
6/1/21
Ending
Account
Value
11/30/21
Expenses
Paid
During
Period
6/1/21–11/30/21
1,2
Ending
Account
Value
11/30/21
Expenses
Paid
During
Period
6/1/21–11/30/21
1,2
a
Net
Annualized
Expense
Ratio
2
A
$1,000
$1,007.60
$4.26
$1,020.83
$4.29
0.85%
A1
$1,000
$1,013.30
$3.76
$1,021.33
$3.78
0.75%
C
$1,000
$1,010.40
$6.27
$1,018.83
$6.30
1.24%
R
$1,000
$1,011.20
$5.52
$1,019.58
$5.55
1.10%
R6
$1,000
$1,009.30
$2.57
$1,022.51
$2.59
0.51%
Advisor
$1,000
$1,014.00
$3.01
$1,022.08
$3.02
0.60%
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
9
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
Year
Ended
May
31,
2019
a
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
..............................
$1.87
$1.72
$1.80
$1.84
Income
from
investment
operations
b
:
Net
investment
income
c
......................................
0.04
0.09
0.09
0.07
Net
realized
and
unrealized
gains
(losses)
........................
(0.03)
0.16
(0.07)
(0.03)
Total
from
investment
operations
.................................
0.01
0.25
0.02
0.04
Less
distributions
from:
Net
investment
income
.......................................
(0.04)
(0.10)
(0.10)
(0.08)
Net
asset
value,
end
of
period
...................................
$1.84
$1.87
$1.72
$1.80
Total
return
d
................................................
0.76%
14.52%
0.88%
2.17%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
...................
0.85%
0.86%
0.86%
0.87%
Expenses
net
of
waiver
and
payments
by
affiliates
f
...................
0.85%
g
0.85%
0.86%
g
0.86%
Net
investment
income
........................................
4.57%
5.10%
5.19%
5.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
.................................
$713,065
$553,316
$309,844
$182,551
Portfolio
turnover
rate
.........................................
19.47%
55.37%
38.87%
25.48%
a
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019.
b
The
amount
shown
for
a
share
outstanding
throughout
the
period
may
not
correlate
with
the
Statement
of
Operations
for
the
period
due
to
the
timing
of
sales
and
repurchas-
es
of
the
Fund’s
shares
in
relation
to
income
earned
and/or
fluctuating
fair
value
of
the
investments
of
the
Fund.
c
Based
on
average
daily
shares
outstanding.
d
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
e
Ratios
are
annualized
for
periods
less
than
one
year.
f
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
g
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.88
$1.73
$1.81
$1.82
$1.91
$1.73
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.10
0.10
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
(0.01)
0.15
(0.08)
(0.01)
(0.09)
0.18
Total
from
investment
operations
........
0.03
0.25
0.02
0.09
0.01
0.28
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.10)
(0.10)
(0.10)
(0.10)
Net
asset
value,
end
of
period
..........
$1.86
$1.88
$1.73
$1.81
$1.82
$1.91
Total
return
c
.......................
1.33%
14.52%
0.95%
5.35%
0.68%
16.82%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.75%
0.76%
0.76%
0.77%
0.78%
0.77%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.75%
f
0.76%
f
0.76%
f
0.76%
0.77%
0.76%
Net
investment
income
...............
4.66%
5.18%
5.29%
5.37%
5.26%
5.38%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,679,075
$1,758,443
$1,759,206
$2,054,455
$2,356,528
$2,788,669
Portfolio
turnover
rate
................
19.47%
55.37%
38.87%
25.48%
23.33%
35.06%
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
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
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
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
11
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.91
$1.76
$1.83
$1.85
$1.93
$1.75
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.09
0.09
0.09
0.09
0.09
Net
realized
and
unrealized
gains
(losses)
(0.02)
0.15
(0.07)
(0.01)
(0.08)
0.18
Total
from
investment
operations
........
0.02
0.24
0.02
0.08
0.01
0.27
Less
distributions
from:
Net
investment
income
..............
(0.04)
(0.09)
(0.09)
(0.10)
(0.09)
(0.09)
Net
asset
value,
end
of
period
..........
$1.89
$1.91
$1.76
$1.83
$1.85
$1.93
Total
return
c
.......................
1.04%
13.69%
0.99%
4.17%
0.70%
16.02%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.25%
1.26%
1.26%
1.27%
1.28%
1.27%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.24%
1.26%
f
1.26%
f
1.26%
1.27%
1.26%
Net
investment
income
...............
4.14%
4.68%
4.79%
4.87%
4.76%
4.88%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$148,519
$220,646
$251,930
$304,072
$460,201
$563,539
Portfolio
turnover
rate
................
19.47%
55.37%
38.87%
25.48%
23.33%
35.06%
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
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
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
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.92
$1.77
$1.84
$1.86
$1.94
$1.76
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.04
0.09
0.09
0.09
0.09
0.09
Net
realized
and
unrealized
gains
(losses)
(0.02)
0.15
(0.07)
(0.01)
(0.07)
0.19
Total
from
investment
operations
........
0.02
0.24
0.02
0.08
0.02
0.28
Less
distributions
from:
Net
investment
income
..............
(0.04)
(0.09)
(0.09)
(0.10)
(0.10)
(0.10)
Net
asset
value,
end
of
period
..........
$1.90
$1.92
$1.77
$1.84
$1.86
$1.94
Total
return
c
.......................
1.12%
13.78%
1.14%
4.31%
0.84%
16.07%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.10%
1.11%
1.11%
1.12%
1.13%
1.12%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.10%
f
1.11%
f
1.11%
f
1.11%
1.12%
1.11%
Net
investment
income
...............
4.31%
4.83%
4.94%
5.02%
4.91%
5.03%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$72,424
$74,532
$77,148
$101,783
$127,333
$187,180
Portfolio
turnover
rate
................
19.47%
55.37%
38.87%
25.48%
23.33%
35.06%
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
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
13
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.88
$1.73
$1.80
$1.82
$1.90
$1.73
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.10
0.10
0.11
0.10
Net
realized
and
unrealized
gains
(losses)
(0.03)
0.15
(0.07)
(0.01)
(0.08)
0.18
Total
from
investment
operations
........
0.02
0.25
0.03
0.09
0.03
0.28
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.10)
(0.11)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$1.85
$1.88
$1.73
$1.80
$1.82
$1.90
Total
return
c
.......................
0.93%
14.82%
1.80%
5.05%
1.48%
16.56%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.55%
0.54%
0.55%
0.55%
0.51%
0.49%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.51%
0.51%
0.50%
0.50%
0.48%
0.48%
Net
investment
income
...............
4.90%
5.39%
5.55%
5.63%
5.55%
5.66%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$97,651
$88,257
$66,681
$64,681
$68,312
$33,371
Portfolio
turnover
rate
................
19.47%
55.37%
38.87%
25.48%
23.33%
35.06%
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%.
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
2020
2019
2018
2017
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.88
$1.73
$1.81
$1.83
$1.91
$1.74
Income
from
investment
operations
a
:
Net
investment
income
b
.............
0.05
0.10
0.10
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
(0.02)
0.15
(0.08)
(0.01)
(0.07)
0.18
Total
from
investment
operations
........
0.03
0.25
0.02
0.09
0.03
0.28
Less
distributions
from:
Net
investment
income
..............
(0.05)
(0.10)
(0.10)
(0.11)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$1.86
$1.88
$1.73
$1.81
$1.83
$1.91
Total
return
c
.......................
1.40%
14.68%
1.12%
4.92%
1.36%
16.29%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.60%
0.61%
0.61%
0.62%
0.63%
0.62%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.60%
f
0.61%
f
0.61%
f
0.61%
0.62%
0.61%
Net
investment
income
...............
4.81%
5.34%
5.44%
5.52%
5.41%
5.53%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$359,176
$341,889
$299,110
$320,010
$356,721
$488,699
Portfolio
turnover
rate
................
19.47%
55.37%
38.87%
25.48%
23.33%
35.06%
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
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited),
November
30,
2021
Franklin
High
Income
Fund
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
15
l
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
1.6%
Machinery
0.3%
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
78,499
$
1,177,485
a
Birch
Permian
Holdings,
Inc.
.............................
United
States
611,911
9,102,176
10,279,661
Metals
&
Mining
0.1%
a
Alpha
Metallurgical
Resources,
Inc.
........................
United
States
30,901
1,439,678
Oil,
Gas
&
Consumable
Fuels
1.2%
a
Amplify
Energy
Corp.
..................................
United
States
8,816
27,859
California
Resources
Corp.
..............................
United
States
1,425
55,675
Chesapeake
Energy
Corp.
..............................
United
States
6,871
409,099
a,b
Goodrich
Petroleum
Corp.
...............................
United
States
1,564,885
35,992,356
a,c,d
Nine
Point
Energy
LLC
.................................
United
States
46,695,277
—
a,c
Riviera
Resources,
Inc.
.................................
United
States
149,317
—
36,484,989
Total
Common
Stocks
(Cost
$94,143,599)
......................................
48,204,328
Warrants
Warrants
0.0%
†
Metals
&
Mining
0.0%
†
a
Alpha
Metallurgical
Resources,
Inc.,
7/26/23
.................
United
States
5,033
66,033
Oil,
Gas
&
Consumable
Fuels
0.0%
†
a,c
Battalion
Oil
Corp.,
A,
10/08/22
...........................
United
States
21,046
55
a,c
Battalion
Oil
Corp.,
B,
10/08/22
...........................
United
States
26,308
15
a,c
Battalion
Oil
Corp.,
C,
10/08/22
...........................
United
States
33,825
2
a
California
Resources
Corp.,
10/27/24
......................
United
States
3,278
39,336
a,c
Chaparral
Energy,
Inc.,
10/01/24
..........................
United
States
13
—
a,c
Chaparral
Energy,
Inc.,
10/01/25
..........................
United
States
13
—
a
Chesapeake
Energy
Corp.,
2/09/26
........................
United
States
12,966
356,046
395,454
Paper
&
Forest
Products
0.0%
†
a
Verso
Corp.,
7/25/23
...................................
United
States
8,775
30,757
Total
Warrants
(Cost
$5,562,809)
..............................................
492,244
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
e,f,g
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
421,196
363,824
Total
Convertible
Bonds
(Cost
$102,567)
.......................................
363,824
Corporate
Bonds
94.5%
Airlines
1.3%
g
American
Airlines
Inc
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note,
144A,
5.5%,
4/20/26
................
United
States
11,000,000
11,257,510
Senior
Secured
Note,
144A,
5.75%,
4/20/29
...............
United
States
8,000,000
8,360,000
g
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.....................................
United
States
10,200,000
11,187,502
g
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
2,700,000
2,715,997
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Airlines
(continued)
g
United
Airlines,
Inc.,
(continued)
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
5,500,000
$
5,480,750
39,001,759
Auto
Components
2.1%
g
Allison
Transmission,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
1/30/31
...
United
States
16,500,000
15,798,750
g
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
16,500,000
16,273,125
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note,
9.5%,
5/31/25
............................
United
States
9,100,000
9,816,488
g
Senior
Note,
144A,
5%,
7/15/29
........................
United
States
15,000,000
15,685,125
g
Real
Hero
Merger
Sub
2,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
2/01/29
.
United
States
7,000,000
7,032,585
64,606,073
Automobiles
0.8%
g
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
...........................................
United
Kingdom
25,000,000
24,584,000
Banks
0.5%
CIT
Group,
Inc.
,
Senior
Bond
,
5
%
,
8/15/22
..................
United
States
50,000
51,383
f
JPMorgan
Chase
&
Co.
,
R
,
Junior
Sub.
Bond
,
6%
to
8/01/23,
FRN
thereafter
,
Perpetual
.................................
United
States
15,000,000
15,470,625
15,522,008
Beverages
0.4%
g
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
14,000,000
13,878,900
Biotechnology
0.4%
g
Horizon
Therapeutics
USA,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
8/01/27
United
States
13,000,000
13,606,580
Building
Products
1.3%
g
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
...........................................
United
States
2,000,000
2,087,340
g
JELD-WEN,
Inc.
,
Senior
Note,
144A,
4.625%,
12/15/25
....................
United
States
7,600,000
7,683,866
Senior
Note,
144A,
4.875%,
12/15/27
....................
United
States
7,800,000
7,991,880
g
Standard
Industries,
Inc.
,
Senior
Bond,
144A,
4.75%,
1/15/28
......................
United
States
10,200,000
10,290,678
Senior
Bond,
144A,
4.375%,
7/15/30
.....................
United
States
2,900,000
2,857,153
Senior
Bond,
144A,
3.375%,
1/15/31
.....................
United
States
2,900,000
2,675,540
Senior
Note,
144A,
5%,
2/15/27
........................
United
States
5,000,000
5,133,367
38,719,824
Capital
Markets
0.2%
g
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/15/29
......................................
United
States
5,700,000
5,699,801
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Chemicals
4.6%
g
Axalta
Coating
Systems
LLC
,
Senior
Note
,
144A,
3.375
%
,
2/15/29
United
States
7,100,000
$
6,754,940
g
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
Mexico
5,900,000
5,792,207
g
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........................................
Switzerland
12,700,000
12,122,023
g
CVR
Partners
LP
/
CVR
Nitrogen
Finance
Corp.
,
Senior
Secured
Note
,
144A,
6.125
%
,
6/15/28
...........................
United
States
6,300,000
6,545,448
g
Diamond
BC
BV
,
Senior
Note
,
144A,
4.625
%
,
10/01/29
.........
United
States
6,100,000
5,968,850
g
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
13,500,000
13,385,453
g
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
19,500,000
20,761,455
g
Ingevity
Corp.
,
Senior
Note
,
144A,
3.875
%
,
11/01/28
...........
United
States
9,000,000
8,636,130
e,g
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
..
United
States
4,800,000
4,789,536
g
LSF11
A5
HoldCo
LLC
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
....
United
States
10,900,000
10,627,990
Methanex
Corp.
,
Senior
Bond,
5.25%,
12/15/29
..........................
Canada
6,400,000
6,696,704
Senior
Note,
5.125%,
10/15/27
.........................
Canada
3,000,000
3,141,240
g
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
10,800,000
11,002,500
g
SCIH
Salt
Holdings,
Inc.
,
Senior
Note,
144A,
6.625%,
5/01/29
.....................
United
States
8,700,000
8,047,500
Senior
Secured
Note,
144A,
4.875%,
5/01/28
..............
United
States
6,600,000
6,259,044
g
Unifrax
Escrow
Issuer
Corp.
,
Senior
Note,
144A,
7.5%,
9/30/29
.......................
United
States
4,200,000
4,080,006
Senior
Secured
Note,
144A,
5.25%,
9/30/28
...............
United
States
5,500,000
5,415,781
140,026,807
Commercial
Services
&
Supplies
1.9%
g
Allied
Universal
Holdco
LLC
/
Allied
Universal
Finance
Corp.
,
Senior
Note
,
144A,
6
%
,
6/01/29
..............................
United
States
3,800,000
3,616,707
Allied
Universal
Holdco
LLC
/
Allied
Universal
Finance
Corp.
/
Atlas
LuxCo
4
SARL
,
g
Senior
Secured
Note,
144A,
4.625%,
6/01/28
..............
United
States
8,600,000
8,335,732
g
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
...........
United
States
15,300,000
14,943,510
g
Nielsen
Finance
LLC
/
Nielsen
Finance
Co.
,
Senior
Bond,
144A,
4.75%,
7/15/31
......................
United
States
5,300,000
5,149,321
Senior
Note,
144A,
4.5%,
7/15/29
.......................
United
States
17,600,000
17,045,424
g
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
11,100,000
10,519,414
59,610,108
Communications
Equipment
0.4%
g
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
..
United
States
1,635,000
1,581,740
g
CommScope
,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
7/01/28
.........
United
States
11,700,000
10,902,703
12,484,443
Construction
&
Engineering
0.5%
g
Arcosa
,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
5,400,000
5,456,025
g
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.......
United
States
8,800,000
8,818,612
14,274,637
Consumer
Finance
1.8%
g
FirstCash
,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
9/01/28
...........
United
States
7,100,000
7,076,073
OneMain
Finance
Corp.
,
Senior
Bond,
5.375%,
11/15/29
.........................
United
States
7,600,000
8,013,250
Senior
Note,
8.875%,
6/01/25
..........................
United
States
2,900,000
3,113,150
Senior
Note,
6.625%,
1/15/28
..........................
United
States
12,700,000
14,097,000
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
18
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Consumer
Finance
(continued)
g
PRA
Group,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
............
United
States
5,000,000
$
4,946,050
g
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.........
United
States
18,600,000
18,402,189
55,647,712
Containers
&
Packaging
5.0%
g
Ardagh
Metal
Packaging
Finance
USA
LLC
/
Ardagh
Metal
Packaging
Finance
plc
,
Senior
Note
,
144A,
4
%
,
9/01/29
.......
United
States
9,500,000
9,225,212
g
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
11,100,000
10,905,473
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
11,400,000
11,752,431
g
Mauser
Packaging
Solutions
Holding
Co.
,
Senior
Note,
144A,
7.25%,
4/15/25
......................
United
States
34,900,000
34,310,190
Senior
Secured
Note,
144A,
8.5%,
4/15/24
................
United
States
10,500,000
10,866,975
g
OI
European
Group
BV
,
Senior
Note
,
144A,
4.75
%
,
2/15/30
......
United
States
9,800,000
9,803,675
g
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
5.875%,
8/15/23
.....................
United
States
9,000,000
9,376,875
Senior
Note,
144A,
6.625%,
5/13/27
.....................
United
States
8,500,000
8,911,719
g
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
..........
United
States
2,800,000
2,726,178
g
Pactiv
Evergreen
Group
Issuer,
Inc./Pactiv
Evergreen
Group
Issuer
LLC/Reynolds
Group
Holdings
Ltd.
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.......................................
United
States
22,800,000
21,917,754
g
Sealed
Air
Corp.
,
Senior
Note
,
144A,
4
%
,
12/01/27
............
United
States
13,200,000
13,624,446
g
Trivium
Packaging
Finance
BV
,
Senior
Note,
144A,
8.5%,
8/15/27
.......................
Netherlands
5,100,000
5,341,102
Senior
Secured
Note,
144A,
5.5%,
8/15/26
................
Netherlands
5,600,000
5,792,500
154,554,530
Diversified
Financial
Services
1.5%
g
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6
%
,
8/15/26
..
United
States
17,600,000
17,547,992
g
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
32,400,000
28,998,000
46,545,992
Diversified
Telecommunication
Services
3.9%
g
Altice
France
Holding
SA
,
Senior
Note,
144A,
6%,
2/15/28
........................
Luxembourg
8,100,000
7,583,301
Senior
Secured
Note,
144A,
10.5%,
5/15/27
...............
Luxembourg
22,400,000
24,134,208
g
Altice
France
SA
,
Senior
Secured
Note
,
144A,
5.5
%
,
1/15/28
....
France
7,500,000
7,437,750
g
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.5%,
5/01/26
.......................
United
States
2,400,000
2,480,712
Senior
Bond,
144A,
5%,
2/01/28
........................
United
States
3,000,000
3,095,160
Senior
Bond,
144A,
5.375%,
6/01/29
.....................
United
States
10,900,000
11,548,932
Senior
Bond,
144A,
4.5%,
8/15/30
.......................
United
States
10,500,000
10,601,850
Senior
Bond,
144A,
4.25%,
2/01/31
......................
United
States
3,400,000
3,355,528
g
DKT
Finance
ApS
,
Senior
Secured
Note
,
144A,
9.375
%
,
6/17/23
..
Denmark
15,800,000
16,037,000
g
Iliad
Holding
SASU
,
Senior
Secured
Note,
144A,
6.5%,
10/15/26
...............
France
5,200,000
5,327,218
Senior
Secured
Note,
144A,
7%,
10/15/28
.................
France
10,400,000
10,647,000
g
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
......................................
United
Kingdom
18,500,000
18,118,437
120,367,096
Electric
Utilities
0.7%
g
Vistra
Operations
Co.
LLC
,
Senior
Note
,
144A,
5.625
%
,
2/15/27
..
United
States
21,300,000
21,904,920
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Electrical
Equipment
1.2%
g
Sensata
Technologies
BV
,
Senior
Note
,
144A,
4
%
,
4/15/29
......
United
States
19,500,000
$
19,807,028
g
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
16,400,000
16,383,354
36,190,382
Electronic
Equipment,
Instruments
&
Components
0.3%
g
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
........
United
States
9,300,000
9,038,949
Energy
Equipment
&
Services
2.2%
g
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.
,
e
Secured
Note,
144A,
PIK,
10%,
4/01/26
..................
United
States
17,833,800
17,325,170
Senior
Secured
Note,
144A,
7.5%,
4/01/25
................
United
States
7,501,000
7,613,440
g
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
9,900,000
8,536,522
g
Nabors
Industries,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
5/15/27
.....
United
States
10,300,000
10,113,879
g
Weatherford
International
Ltd.
,
Senior
Note,
144A,
11%,
12/01/24
.......................
United
States
846,000
877,349
Senior
Note,
144A,
8.625%,
4/30/30
.....................
United
States
14,100,000
13,844,085
Senior
Secured
Note,
144A,
6.5%,
9/15/28
................
United
States
8,600,000
8,847,336
67,157,781
Entertainment
1.6%
g
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
5.375
%
,
3/01/25
...........................................
France
21,900,000
22,382,786
g
Live
Nation
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
3.75
%
,
1/15/28
...........................................
United
States
3,700,000
3,563,100
Netflix,
Inc.
,
Senior
Bond,
4.375%,
11/15/26
.........................
United
States
10,200,000
11,257,383
g
Senior
Bond,
144A,
5.375%,
11/15/29
....................
United
States
3,600,000
4,264,416
g
Senior
Note,
144A,
3.625%,
6/15/25
.....................
United
States
7,300,000
7,708,873
49,176,558
Equity
Real
Estate
Investment
Trusts
(REITs)
3.1%
g
American
Finance
Trust,
Inc.
/
American
Finance
Operating
Partner
LP
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
.....................
United
States
10,200,000
10,084,281
g
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
15,900,000
15,493,991
g
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
,
Senior
Note
,
144A,
6
%
,
4/15/25
...........................................
United
States
7,400,000
7,673,282
g
MGM
Growth
Properties
Operating
Partnership
LP
/
MGP
Finance
Co-Issuer,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
2/15/29
..........
United
States
7,000,000
7,362,285
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond,
5.25%,
8/01/26
...........................
United
States
4,900,000
5,040,262
Senior
Bond,
3.5%,
3/15/31
............................
United
States
16,200,000
16,061,247
g
Park
Intermediate
Holdings
LLC
/
PK
Domestic
Property
LLC
/
PK
Finance
Co-Issuer
,
Senior
Secured
Note
,
144A,
5.875
%
,
10/01/28
United
States
800,000
825,760
g
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
Senior
Note
,
144A,
4.5
%
,
2/15/29
......................................
United
States
15,000,000
14,626,650
SBA
Communications
Corp.
,
Senior
Note
,
3.875
%
,
2/15/27
......
United
States
3,200,000
3,279,000
g
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
2/15/27
...........................................
United
States
8,000,000
8,216,120
g
XHR
LP
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/01/29
.........
United
States
7,300,000
7,365,700
96,028,578
Food
Products
1.3%
B&G
Foods,
Inc.
,
Senior
Note,
5.25%,
4/01/25
...........................
United
States
9,100,000
9,255,565
Senior
Note,
5.25%,
9/15/27
...........................
United
States
6,800,000
6,912,200
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
20
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Food
Products
(continued)
g
Pilgrim's
Pride
Corp.
,
Senior
Bond
,
144A,
3.5
%
,
3/01/32
........
United
States
4,700,000
$
4,731,349
g
Post
Holdings,
Inc.
,
Senior
Bond,
144A,
4.625%,
4/15/30
.....................
United
States
5,200,000
5,142,774
Senior
Bond,
144A,
4.5%,
9/15/31
.......................
United
States
14,100,000
13,632,937
39,674,825
Health
Care
Equipment
&
Supplies
0.7%
g
Mozart
Debt
Merger
Sub,
Inc.
,
Senior
Note,
144A,
5.25%,
10/01/29
.....................
United
States
10,300,000
10,304,635
Senior
Secured
Note,
144A,
3.875%,
4/01/29
..............
United
States
8,200,000
8,109,923
g
Ortho-Clinical
Diagnostics,
Inc.
/
Ortho-Clinical
Diagnostics
SA
,
Senior
Note
,
144A,
7.375
%
,
6/01/25
......................
United
States
2,360,000
2,479,215
20,893,773
Health
Care
Providers
&
Services
4.6%
Centene
Corp.
,
Senior
Bond,
2.5%,
3/01/31
............................
United
States
15,000,000
14,400,000
Senior
Note,
4.25%,
12/15/27
..........................
United
States
12,700,000
13,191,553
Senior
Note,
4.625%,
12/15/29
.........................
United
States
4,300,000
4,607,300
Senior
Note,
2.625%,
8/01/31
..........................
United
States
1,400,000
1,352,239
g
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
6,800,000
6,528,102
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
5,900,000
6,060,863
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
6,000,000
6,248,670
g
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
16,700,000
16,519,640
HCA,
Inc.
,
Senior
Bond,
3.5%,
9/01/30
............................
United
States
8,000,000
8,340,240
Senior
Note,
5.375%,
9/01/26
..........................
United
States
4,600,000
5,139,074
g
MEDNAX,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
1/15/27
............
United
States
9,600,000
10,031,616
g
ModivCare
Escrow
Issuer,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
.
United
States
8,500,000
8,446,195
Tenet
Healthcare
Corp.
,
g
Secured
Note,
144A,
6.25%,
2/01/27
.....................
United
States
14,500,000
15,042,300
Senior
Note,
6.75%,
6/15/23
...........................
United
States
10,700,000
11,388,866
g
Senior
Secured
Note,
144A,
4.875%,
1/01/26
..............
United
States
5,000,000
5,118,275
g
Senior
Secured
Note,
144A,
4.25%,
6/01/29
...............
United
States
8,500,000
8,429,323
140,844,256
Hotels,
Restaurants
&
Leisure
7.0%
g
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4
%
,
10/15/30
.......................................
Canada
17,300,000
16,558,608
g,h
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
.
United
States
23,000,000
6,900
g
Boyne
USA,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
5/15/29
...........
United
States
5,800,000
5,852,287
g
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
7/01/25
...........................................
United
States
15,600,000
16,237,884
g
Caesars
Resort
Collection
LLC
/
CRC
Finco
,
Inc.
,
Senior
Secured
Note
,
144A,
5.75
%
,
7/01/25
............................
United
States
7,000,000
7,279,545
g
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
.....................
United
States
7,300,000
7,500,750
Senior
Note,
144A,
5.75%,
3/01/27
......................
United
States
24,000,000
23,508,600
g
Downstream
Development
Authority
of
the
Quapaw
Tribe
of
Oklahoma
,
Senior
Secured
Note
,
144A,
10.5
%
,
2/15/23
.......
United
States
8,600,000
9,020,583
g
Golden
Nugget,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
10/15/24
.......
United
States
6,400,000
6,440,320
g
International
Game
Technology
plc
,
Senior
Secured
Note,
144A,
4.125%,
4/15/26
..............
United
States
3,800,000
3,873,587
Senior
Secured
Note,
144A,
5.25%,
1/15/29
...............
United
States
8,000,000
8,333,800
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
21
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Hotels,
Restaurants
&
Leisure
(continued)
g
Motion
Bondco
DAC
,
Senior
Note
,
144A,
6.625
%
,
11/15/27
......
United
Kingdom
4,400,000
$
4,399,296
g
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
...........
United
States
5,700,000
5,564,625
g
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/15/29
United
States
6,000,000
5,887,980
g
Penn
National
Gaming,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
7/01/29
.
United
States
12,600,000
11,907,000
g
Premier
Entertainment
Sub
LLC
/
Premier
Entertainment
Finance
Corp.
,
Senior
Bond,
144A,
5.875%,
9/01/31
.....................
United
States
9,000,000
9,047,160
Senior
Note,
144A,
5.625%,
9/01/29
.....................
United
States
10,000,000
10,014,750
g
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note
,
144A,
5.5
%
,
8/31/26
..
United
States
11,200,000
10,945,144
g
Six
Flags
Theme
Parks,
Inc.
,
Senior
Secured
Note
,
144A,
7
%
,
7/01/25
...........................................
United
States
7,300,000
7,691,426
g
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
21,500,000
19,514,153
g
Wynn
Macau
Ltd.
,
Senior
Note
,
144A,
5.625
%
,
8/26/28
.........
Macau
8,700,000
8,024,271
g
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.75
%
,
4/15/25
............................
United
States
15,200,000
15,859,072
213,467,741
Household
Durables
1.3%
g
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
Senior
Note,
144A,
4.625%,
8/01/29
.....................
United
States
13,000,000
12,896,325
Senior
Note,
144A,
4.625%,
4/01/30
.....................
United
States
8,000,000
7,841,087
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
................
United
States
12,600,000
12,492,459
g
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
7,000,000
7,130,480
40,360,351
Independent
Power
and
Renewable
Electricity
Producers
3.3%
g
Atlantica
Sustainable
Infrastructure
plc
,
Senior
Note
,
144A,
4.125
%
,
6/15/28
...........................................
Spain
7,200,000
7,249,590
g
Calpine
Corp.
,
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
12,900,000
12,802,476
Senior
Secured
Note,
144A,
4.5%,
2/15/28
................
United
States
12,200,000
12,150,590
g
Clearway
Energy
Operating
LLC
,
Senior
Bond,
144A,
3.75%,
1/15/32
......................
United
States
8,800,000
8,658,584
Senior
Note,
144A,
4.75%,
3/15/28
......................
United
States
10,000,000
10,531,700
Senior
Note,
144A,
3.75%,
2/15/31
......................
United
States
7,000,000
6,930,245
g
InterGen
NV
,
Senior
Secured
Bond
,
144A,
7
%
,
6/30/23
.........
Netherlands
24,800,000
24,424,900
Talen
Energy
Supply
LLC
,
Senior
Note
,
6.5
%
,
6/01/25
..........
United
States
33,450,000
18,805,423
101,553,508
Insurance
1.1%
g
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note
,
144A,
6.75
%
,
10/15/27
...........................
United
States
18,700,000
18,937,396
CNO
Financial
Group,
Inc.
,
Senior
Note
,
5.25
%
,
5/30/29
........
United
States
12,100,000
13,995,326
32,932,722
Internet
&
Direct
Marketing
Retail
0.4%
g
Match
Group
Holdings
II
LLC
,
Senior
Note,
144A,
4.625%,
6/01/28
.....................
United
States
10,400,000
10,569,052
Senior
Note,
144A,
3.625%,
10/01/31
....................
United
States
3,300,000
3,116,058
13,685,110
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
22
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
IT
Services
1.9%
g
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
8,500,000
$
8,273,050
g
Cogent
Communications
Group,
Inc.
,
Senior
Secured
Note
,
144A,
3.5
%
,
5/01/26
......................................
United
States
7,200,000
7,230,996
g
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
9,300,000
9,678,138
Senior
Note,
144A,
3.625%,
6/15/29
.....................
United
States
4,400,000
4,379,408
Senior
Note,
144A,
3.75%,
10/01/30
.....................
United
States
6,000,000
5,995,950
g
Northwest
Fiber
LLC
/
Northwest
Fiber
Finance
Sub,
Inc.
,
Senior
Note
,
144A,
6
%
,
2/15/28
..............................
United
States
4,500,000
4,286,745
g
Presidio
Holdings,
Inc.
,
Senior
Note,
144A,
8.25%,
2/01/28
......................
United
States
3,700,000
3,851,792
Senior
Secured
Note,
144A,
4.875%,
2/01/27
..............
United
States
7,500,000
7,597,200
g
Tempo
Acquisition
LLC
/
Tempo
Acquisition
Finance
Corp.
,
Senior
Secured
Note
,
144A,
5.75
%
,
6/01/25
.....................
United
States
6,000,000
6,260,100
57,553,379
Life
Sciences
Tools
&
Services
0.1%
g
Charles
River
Laboratories
International,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
3/15/29
.....................................
United
States
2,400,000
2,376,468
Machinery
1.4%
g
Manitowoc
Co.,
Inc.
(The)
,
Secured
Note
,
144A,
9
%
,
4/01/26
....
United
States
17,100,000
18,046,314
g
Terex
Corp.
,
Senior
Note
,
144A,
5
%
,
5/15/29
.................
United
States
7,500,000
7,650,375
g
TK
Elevator
Holdco
GmbH
,
Senior
Note
,
144A,
7.625
%
,
7/15/28
..
Germany
5,600,000
5,857,124
g
TK
Elevator
U.S.
Newco
,
Inc.
,
Senior
Secured
Note
,
144A,
5.25
%
,
7/15/27
...........................................
Germany
10,700,000
10,897,576
42,451,389
Media
6.3%
g
Clear
Channel
International
BV
,
Senior
Secured
Note
,
144A,
6.625
%
,
8/01/25
.....................................
United
Kingdom
3,000,000
3,100,440
g
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
5,700,000
5,954,719
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
7,800,000
8,027,721
g
Clear
Channel
Worldwide
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
5.125
%
,
8/15/27
................................
United
States
7,600,000
7,691,314
CSC
Holdings
LLC
,
Senior
Bond
,
5.25
%
,
6/01/24
.............
United
States
21,000,000
21,845,250
g
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
11,300,000
2,394,188
Senior
Secured
Note,
144A,
5.375%,
8/15/26
..............
United
States
8,300,000
3,692,960
g
DIRECTV
Holdings
LLC
/
DIRECTV
Financing
Co.,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
5,000,000
5,096,875
DISH
DBS
Corp.
,
Senior
Note,
5.875%,
11/15/24
.........................
United
States
12,600,000
12,766,698
g
Senior
Secured
Note,
144A,
5.75%,
12/01/28
..............
United
States
10,000,000
9,872,050
g
Gray
Television,
Inc.
,
Senior
Note,
144A,
7%,
5/15/27
........................
United
States
9,100,000
9,665,338
Senior
Note,
144A,
4.75%,
10/15/30
.....................
United
States
7,700,000
7,434,080
g
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
.....................................
United
States
11,100,000
11,532,844
g
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
.............
United
States
4,400,000
4,332,680
g
Nexstar
Media,
Inc.
,
Senior
Note,
144A,
5.625%,
7/15/27
.....................
United
States
9,800,000
10,179,162
Senior
Note,
144A,
4.75%,
11/01/28
.....................
United
States
4,000,000
3,999,718
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
23
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Media
(continued)
g
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Note
,
144A,
4.25
%
,
1/15/29
............................
United
States
8,200,000
$
7,983,725
g
Sinclair
Television
Group,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
3/01/30
.
United
States
13,500,000
12,249,968
g
Sirius
XM
Radio,
Inc.
,
Senior
Note,
144A,
3.125%,
9/01/26
.....................
United
States
7,700,000
7,597,821
Senior
Note,
144A,
4%,
7/15/28
........................
United
States
12,600,000
12,481,812
g
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
..............
United
States
13,500,000
13,708,575
Senior
Secured
Note,
144A,
9.5%,
5/01/25
................
United
States
5,000,000
5,370,525
Senior
Secured
Note,
144A,
4.5%,
5/01/29
................
United
States
7,900,000
7,907,149
194,885,612
Metals
&
Mining
1.9%
g
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
16,000,000
15,235,520
g
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...........................................
Australia
19,000,000
19,288,420
g
Novelis
Corp.
,
Senior
Bond,
144A,
4.75%,
1/30/30
......................
United
States
7,700,000
7,785,393
Senior
Bond,
144A,
3.875%,
8/15/31
.....................
United
States
2,200,000
2,126,465
Senior
Note,
144A,
3.25%,
11/15/26
.....................
United
States
1,600,000
1,601,040
g
SunCoke
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/30/29
United
States
12,600,000
12,263,202
58,300,040
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.6%
g
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
................................
United
States
20,700,000
19,691,392
Oil,
Gas
&
Consumable
Fuels
11.3%
g
Antero
Resources
Corp.
,
Senior
Note,
144A,
7.625%,
2/01/29
.....................
United
States
4,422,000
4,856,683
Senior
Note,
144A,
5.375%,
3/01/30
.....................
United
States
4,300,000
4,442,437
Apache
Corp.
,
Senior
Note
,
4.625
%
,
11/15/25
................
United
States
3,100,000
3,281,676
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
7.75
%
,
4/15/23
...........................
United
States
19,700,000
19,598,447
Cheniere
Energy
Partners
LP
,
g
Senior
Bond,
144A,
3.25%,
1/31/32
......................
United
States
4,200,000
4,086,432
Senior
Note,
4.5%,
10/01/29
...........................
United
States
12,000,000
12,633,750
g
Senior
Note,
144A,
4%,
3/01/31
........................
United
States
28,000,000
28,614,460
Cheniere
Energy,
Inc.
,
Senior
Secured
Note
,
4.625
%
,
10/15/28
...
United
States
11,300,000
11,653,068
g
Chesapeake
Energy
Corp.
,
Senior
Note
,
144A,
5.5
%
,
2/01/26
....
United
States
2,000,000
2,078,780
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note,
5.75%,
4/01/25
...........................
United
States
14,000,000
14,070,000
g
Senior
Note,
144A,
6%,
2/01/29
........................
United
States
13,700,000
13,885,567
g
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
5,100,000
5,138,811
g
DT
Midstream,
Inc.
,
Senior
Bond,
144A,
4.375%,
6/15/31
.....................
United
States
3,900,000
3,882,528
Senior
Note,
144A,
4.125%,
6/15/29
.....................
United
States
10,800,000
10,751,130
g
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond,
144A,
5.75%,
1/30/28
......................
United
States
7,600,000
7,914,830
Senior
Note,
144A,
6.625%,
7/15/25
.....................
United
States
4,000,000
4,209,460
EnLink
Midstream
LLC
,
Senior
Bond,
5.375%,
6/01/29
..........................
United
States
2,100,000
2,113,482
g
Senior
Note,
144A,
5.625%,
1/15/28
.....................
United
States
4,400,000
4,519,966
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
24
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Oil,
Gas
&
Consumable
Fuels
(continued)
e,g
EnQuest
plc
,
Senior
Note
,
144A,
Reg
S,
PIK,
7
%
,
10/15/23
......
United
Kingdom
11,333,615
$
10,068,456
g
EQT
Corp.
,
Senior
Note
,
144A,
3.125
%
,
5/15/26
..............
United
States
2,500,000
2,502,325
b,c,d,e
Goodrich
Petroleum
Corp.
,
144A,
PIK,
13.5
%
,
5/31/23
.........
United
States
16,880,800
18,202,457
g
Harbour
Energy
plc
,
Senior
Note
,
144A,
5.5
%
,
10/15/26
........
United
Kingdom
10,300,000
10,140,607
g
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
........................
United
States
5,000,000
4,989,500
Senior
Note,
144A,
5.75%,
2/01/29
......................
United
States
1,600,000
1,577,504
g
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note,
144A,
10%,
2/29/24
......................
United
States
3,522,014
3,618,570
Secured
Note,
144A,
11.5%,
2/28/25
.....................
United
States
18,905,087
19,756,856
e,g,h
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
...
United
States
18,564,500
94,679
g
Oasis
Midstream
Partners
LP
/
OMP
Finance
Corp.
,
Senior
Note
,
144A,
8
%
,
4/01/29
...................................
United
States
6,000,000
6,399,090
Occidental
Petroleum
Corp.
,
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
15,200,000
18,897,704
Senior
Note,
8.875%,
7/15/30
..........................
United
States
17,500,000
23,007,075
Senior
Note,
6.625%,
9/01/30
..........................
United
States
5,600,000
6,726,916
Senior
Note,
6.125%,
1/01/31
..........................
United
States
5,900,000
6,884,415
g
Renewable
Energy
Group,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
6/01/28
...........................................
United
States
7,000,000
7,134,820
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
6%,
4/15/27
.............................
United
States
12,600,000
13,080,501
Senior
Note,
4.5%,
5/15/29
............................
United
States
4,600,000
4,545,950
g
Senior
Note,
144A,
4.5%,
4/30/30
.......................
United
States
10,000,000
9,914,350
g
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
..............
United
States
5,900,000
6,043,960
Senior
Secured
Note,
144A,
3.875%,
8/15/29
..............
United
States
5,900,000
5,934,367
g
Viper
Energy
Partners
LP
,
Senior
Note
,
144A,
5.375
%
,
11/01/27
..
United
States
8,200,000
8,463,753
345,715,362
Paper
&
Forest
Products
0.3%
g
Glatfelter
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
...........
United
States
8,200,000
8,314,636
Personal
Products
0.4%
g
Prestige
Brands,
Inc.
,
Senior
Bond,
144A,
3.75%,
4/01/31
......................
United
States
5,800,000
5,565,912
Senior
Note,
144A,
5.125%,
1/15/28
.....................
United
States
5,300,000
5,508,608
11,074,520
Pharmaceuticals
3.7%
g
Bausch
Health
Americas,
Inc.
,
Senior
Note
,
144A,
9.25
%
,
4/01/26
.
United
States
22,700,000
23,809,803
g
Bausch
Health
Cos.,
Inc.
,
Senior
Bond,
144A,
6.125%,
4/15/25
.....................
United
States
4,406,000
4,455,920
Senior
Bond,
144A,
5.25%,
2/15/31
......................
United
States
7,100,000
6,106,000
Senior
Secured
Note,
144A,
4.875%,
6/01/28
..............
United
States
9,800,000
9,673,188
g
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco
,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
7,104,000
7,163,247
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
4,473,000
3,433,005
g
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
4,700,000
4,613,826
g
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Bond,
144A,
5.125%,
4/30/31
.....................
United
States
8,500,000
8,697,583
Senior
Secured
Note,
144A,
4.125%,
4/30/28
..............
United
States
19,000,000
18,990,690
g
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
4,273,000
4,314,448
Teva
Pharmaceutical
Finance
Netherlands
III
BV
,
Senior
Note,
7.125%,
1/31/25
..........................
Israel
9,300,000
9,948,396
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
25
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Pharmaceuticals
(continued)
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
(continued)
Senior
Note,
4.75%,
5/09/27
...........................
Israel
10,600,000
$
10,593,746
Senior
Note,
5.125%,
5/09/29
..........................
Israel
900,000
881,532
112,681,384
Real
Estate
Management
&
Development
1.5%
g
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
19,900,000
20,668,538
g
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
3.85
%
,
5/15/26
........
United
States
11,000,000
10,936,585
g
Howard
Hughes
Corp.
(The)
,
Senior
Note,
144A,
5.375%,
8/01/28
.....................
United
States
9,200,000
9,631,802
Senior
Note,
144A,
4.125%,
2/01/29
.....................
United
States
5,700,000
5,628,893
46,865,818
Road
&
Rail
0.5%
g
First
Student
Bidco
,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
..............................
United
States
17,600,000
16,754,230
Semiconductors
&
Semiconductor
Equipment
0.5%
g
Amkor
Technology,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
9/15/27
.....
United
States
9,900,000
10,491,575
g
ON
Semiconductor
Corp.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
...
United
States
5,400,000
5,500,953
15,992,528
Software
1.2%
e,g
Anagram
International,
Inc.
/
Anagram
Holdings
LLC
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
..............................
United
States
1,548,215
1,588,151
g
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
.
United
States
14,600,000
15,162,100
g
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
20,500,000
19,372,500
36,122,751
Specialty
Retail
2.4%
g
Bath
&
Body
Works,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/01/30
...
United
States
10,700,000
11,886,951
g
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
..........
United
States
14,300,000
13,704,977
g
Lithia
Motors,
Inc.
,
Senior
Bond,
144A,
4.375%,
1/15/31
.....................
United
States
11,400,000
11,919,669
Senior
Note,
144A,
4.625%,
12/15/27
....................
United
States
8,600,000
8,982,786
g
Michaels
Cos.,
Inc.
(The)
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
14,100,000
14,024,917
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
4,200,000
4,164,510
g,i
Party
City
Holdings,
Inc.
,
Senior
Secured
Note
,
144A,
FRN
,
5.75
%
,
(
6-month
USD
LIBOR
+
5
%
),
7/15/25
.....................
United
States
1,851,810
1,713,369
g
Victoria's
Secret
&
Co.
,
Senior
Note
,
144A,
4.625
%
,
7/15/29
.....
United
States
8,700,000
8,601,081
74,998,260
Textiles,
Apparel
&
Luxury
Goods
0.2%
g
Kontoor
Brands,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
11/15/29
......
United
States
6,300,000
6,293,952
Thrifts
&
Mortgage
Finance
1.9%
g
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
5,700,000
5,681,589
MGIC
Investment
Corp.
,
Senior
Note
,
5.25
%
,
8/15/28
..........
United
States
9,200,000
9,514,732
g
PennyMac
Financial
Services,
Inc.
,
Senior
Note
,
144A,
5.375
%
,
10/15/25
..........................................
United
States
10,700,000
10,773,883
Radian
Group,
Inc.
,
Senior
Note
,
6.625
%
,
3/15/25
.............
United
States
14,900,000
16,293,448
g
Rocket
Mortgage
LLC
/
Rocket
Mortgage
Co-Issuer,
Inc.
,
Senior
Bond,
144A,
3.875%,
3/01/31
.....................
United
States
3,200,000
3,164,960
Senior
Note,
144A,
3.625%,
3/01/29
.....................
United
States
6,600,000
6,464,535
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
26
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Thrifts
&
Mortgage
Finance
(continued)
g
United
Wholesale
Mortgage
LLC
,
Senior
Note
,
144A,
5.5
%
,
11/15/25
United
States
7,100,000
$
7,081,824
58,974,971
Trading
Companies
&
Distributors
1.4%
g
Ahern
Rentals,
Inc.
,
Secured
Note
,
144A,
7.375
%
,
5/15/23
......
United
States
13,500,000
12,757,500
g
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
10,900,000
10,607,880
g
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
7/15/27
..........
United
States
13,300,000
13,782,524
g
WESCO
Distribution,
Inc.
,
Senior
Note,
144A,
7.125%,
6/15/25
.....................
United
States
2,100,000
2,220,824
Senior
Note,
144A,
7.25%,
6/15/28
......................
United
States
4,600,000
5,009,515
44,378,243
Wireless
Telecommunication
Services
1.6%
e,g
Digicel
Group
Holdings
Ltd.
,
Senior
Note
,
144A,
PIK,
8
%
,
4/01/25
.
Bermuda
25,133
23,755
Hughes
Satellite
Systems
Corp.
,
Senior
Note
,
6.625
%
,
8/01/26
...
United
States
17,650,000
19,629,536
T-Mobile
USA,
Inc.
,
Senior
Bond,
2.875%,
2/15/31
..........................
United
States
9,200,000
8,918,296
Senior
Bond,
3.5%,
4/15/31
............................
United
States
5,000,000
5,090,900
Senior
Note,
2.625%,
2/15/29
..........................
United
States
9,200,000
8,889,868
g
Vmed
O2
UK
Financing
I
plc
,
Senior
Secured
Bond
,
144A,
4.25
%
,
1/31/31
...........................................
United
Kingdom
5,400,000
5,173,011
47,725,366
Total
Corporate
Bonds
(Cost
$2,936,405,768)
...................................
2,903,190,025
a
i,j
Senior
Floating
Rate
Interests
0.1%
Media
0.1%
Clear
Channel
Outdoor
Holdings,
Inc.
,
Term
Loan,
B
,
3.629
%
,
(
2-month
USD
LIBOR
+
3.5%;
3-month
USD
LIBOR
+
3.5%
),
8/21/26
...........................................
United
States
2,984,772
2,925,285
Total
Senior
Floating
Rate
Interests
(Cost
$2,908,526)
...........................
2,925,285
Shares
Escrows
and
Litigation
Trusts
0.2%
a,c
Alpha
Natural
Resources,
Inc.,
Escrow
Account
...............
United
States
25,000,000
—
Chesapeake
Energy
Corp.,
Escrow
Account
.................
United
States
13,700,000
222,625
g
Chesapeake
Energy
Corp.,
Escrow
Account,
144A
............
United
States
5,000,000
5,307,800
Total
Escrows
and
Litigation
Trusts
(Cost
$5,450,960)
...........................
5,530,425
Total
Long
Term
Investments
(Cost
$3,044,574,229)
.............................
2,960,706,131
a
Franklin
High
Income
Trust
Statement
of
Investments
(unaudited)
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
27
Short
Term
Investments
2.0%
a
a
Country
Shares
a
Value
a
Money
Market
Funds
2.0%
k,l
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.....
United
States
60,226,751
$
60,226,751
Total
Money
Market
Funds
(Cost
$60,226,751)
..................................
60,226,751
Total
Short
Term
Investments
(Cost
$60,226,751
)
................................
60,226,751
a
Total
Investments
(Cost
$3,104,800,980)
98.4%
..................................
$3,020,932,882
Other
Assets,
less
Liabilities
1.6%
.............................................
48,977,239
Net
Assets
100.0%
...........................................................
$3,069,910,121
See
Abbreviations
on
page
43
.
*
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
10
regarding
holdings
of
5%
voting
securities.
c
Fair
valued
using
significant
unobservable
inputs.
See
Note
12
regarding
fair
value
measurements.
d
See
Note
9
regarding
restricted
securities.
e
Income
may
be
received
in
additional
securities
and/or
cash.
f
Perpetual
security
with
no
stated
maturity
date.
g
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
November
30,
2021,
the
aggregate
value
of
these
securities
was
$2,413,875,829,
representing
78.6%
of
net
assets.
h
See
Note
7
regarding
credit
risk
and
defaulted
securities.
i
The
coupon
rate
shown
represents
the
rate
at
period
end.
j
See
Note
1(d)
regarding
senior
floating
rate
interests.
k
See
Note
3(f)
regarding
investments
in
affiliated
management
investment
companies.
l
The
rate
shown
is
the
annualized
seven-day
effective
yield
at
period
end.
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
November
30,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
Franklin
High
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$3,015,476,602
Cost
-
Non-controlled
affiliates
(Note
3
f
and
10
)
...................................................
89,324,378
Value
-
Unaffiliated
issuers
..................................................................
$2,906,511,318
Value
-
Non-controlled
affiliates
(Note
3
f
and
10
)
..................................................
114,421,564
Receivables:
Investment
securities
sold
...................................................................
13,901,271
Capital
shares
sold
........................................................................
6,470,439
Dividends
and
interest
.....................................................................
41,022,190
Total
assets
..........................................................................
3,082,326,782
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
665
Capital
shares
redeemed
...................................................................
9,022,239
Management
fees
.........................................................................
1,179,971
Distribution
fees
..........................................................................
467,974
Transfer
agent
fees
........................................................................
358,840
Trustees'
fees
and
expenses
.................................................................
47,905
Distributions
to
shareholders
.................................................................
1,135,277
Accrued
expenses
and
other
liabilities
...........................................................
203,790
Total
liabilities
.........................................................................
12,416,661
Net
assets,
at
value
.................................................................
$3,069,910,121
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,870,390,106
Total
distributable
earnings
(losses)
.............................................................
(800,479,985)
Net
assets,
at
value
.................................................................
$3,069,910,121
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
November
30,
2021
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
29
Franklin
High
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$713,065,147
Shares
outstanding
........................................................................
387,558,275
Net
asset
value
per
share
a
..................................................................
$1.84
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$1.91
Class
A1:
Net
assets,
at
value
.......................................................................
$1,679,075,256
Shares
outstanding
........................................................................
903,624,853
Net
asset
value
per
share
a
..................................................................
$1.86
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$1.93
Class
C:
Net
assets,
at
value
.......................................................................
$148,518,738
Shares
outstanding
........................................................................
78,782,466
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$1.89
Class
R:
Net
assets,
at
value
.......................................................................
$72,424,307
Shares
outstanding
........................................................................
38,123,954
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.90
Class
R6:
Net
assets,
at
value
.......................................................................
$97,650,543
Shares
outstanding
........................................................................
52,763,270
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.85
Advisor
Class:
Net
assets,
at
value
.......................................................................
$359,176,130
Shares
outstanding
........................................................................
193,484,706
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.86
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
November
30,
2021
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Franklin
High
Income
Fund
Investment
income:
Dividends:
Unaffiliated
issuers
........................................................................
$4,438
Non-controlled
affiliates
(Note
3
f
and
10
)
........................................................
4,822
Interest:
Unaffiliated
issuers
........................................................................
82,908,331
Non-controlled
affiliates
(Note
3
f
and
10
)
........................................................
878,268
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
.....................................................
360
Non-controlled
affiliates
(Note
3
f
)
.............................................................
10
Total
investment
income
...................................................................
83,796,229
Expenses:
Management
fees
(Note
3
a
)
...................................................................
7,081,394
Distribution
fees:
(Note
3c
)
Class
A
................................................................................
808,302
Class
A1
...............................................................................
1,310,506
Class
C
................................................................................
594,981
Class
R
................................................................................
186,065
Transfer
agent
fees:
(Note
3e
)
Class
A
................................................................................
373,053
Class
A1
...............................................................................
1,007,669
Class
C
................................................................................
105,518
Class
R
................................................................................
42,922
Class
R6
...............................................................................
31,904
Advisor
Class
............................................................................
204,578
Custodian
fees
(Note
4
)
......................................................................
9,149
Reports
to
shareholders
fees
..................................................................
130,059
Registration
and
filing
fees
....................................................................
115,314
Professional
fees
...........................................................................
46,097
Trustees'
fees
and
expenses
..................................................................
61,453
Other
....................................................................................
39,653
Total
expenses
.........................................................................
12,148,617
Expense
reductions
(Note
4
)
...............................................................
(157)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
..............................................
(55,925)
Net
expenses
.........................................................................
12,092,535
Net
investment
income
................................................................
71,703,694
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
18,838,107
Non-controlled
affiliates
(Note
3
f
and
10
)
......................................................
(9,107,816)
Net
realized
gain
(loss)
..................................................................
9,730,291
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
......................................................................
(79,683,729)
Non-controlled
affiliates
(Note
3
f
and
10
)
......................................................
29,424,073
Net
change
in
unrealized
appreciation
(depreciation)
............................................
(50,259,656)
Net
realized
and
unrealized
gain
(loss)
............................................................
(40,529,365)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$31,174,329
Franklin
High
Income
Trust
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
31
Franklin
High
Income
Fund
Six
Months
Ended
November
30,
2021
(unaudited)
Year
Ended
May
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$71,703,694
$151,834,255
Net
realized
gain
(loss)
.................................................
9,730,291
(4,550,442)
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(50,259,656)
242,905,418
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
31,174,329
390,189,231
Distributions
to
shareholders:
Class
A
.............................................................
(15,561,738)
(22,611,705)
Class
A1
............................................................
(41,473,579)
(93,298,370)
Class
C
.............................................................
(3,696,435)
(10,812,834)
Class
R
.............................................................
(1,598,664)
(3,617,545)
Class
R6
............................................................
(2,396,114)
(5,680,745)
Advisor
Class
........................................................
(8,741,297)
(17,304,918)
Total
distributions
to
shareholders
..........................................
(73,467,827)
(153,326,117)
Capital
share
transactions:
(Note
2
)
Class
A
.............................................................
170,626,039
213,346,572
Class
A1
............................................................
(56,945,153)
(148,405,240)
Class
C
.............................................................
(70,456,248)
(51,619,398)
Class
R
.............................................................
(1,178,797)
(8,997,749)
Class
R6
............................................................
10,794,555
14,361,843
Advisor
Class
........................................................
22,280,782
17,614,904
Total
capital
share
transactions
............................................
75,121,178
36,300,932
Net
increase
(decrease)
in
net
assets
...................................
32,827,680
273,164,046
Net
assets:
Beginning
of
period
.....................................................
3,037,082,441
2,763,918,395
End
of
period
..........................................................
$3,069,910,121
$3,037,082,441
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
Franklin
High
Income
Fund
32
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
Franklin
High
Income
Trust (Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
one
fund, Franklin
High
Income
Fund
(Fund)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
Fund
offers
six
classes
of
shares:
Class
A,
Class
A1,
Class
C,
Class
R,
Class
R6
and
Advisor
Class.
Effective
August
2,
2021,
Class
C
shares
automatically
convert
to
Class
A
shares
on
monthly
basis,
after
they
have
been
held
for
8
years.
Prior
to
August
2,
2021,
Class
C
shares
converted
to
Class
A
shares
after
a
10-year
holding
period.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
As
approved
by
the
Trust’s
Board
of
Trustees
(the
Board)
at
a
meeting
held
on
December
9,
2021,
the
Fund’s
fiscal
year-
end
will
be
changed
to
September
30
effective
September
30,
2022.
This
will
result
in
the
Fund
having
a
fiscal
year
that
is
shorter
than
a
full
calendar
year
for
the
period
ended
September
30,
2022.
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,
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.
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
33
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time
month
end.
At
November
30,
2021,
certain
securities
may
have
been
fair
valued
using
these
procedures,
in
which
case
the
securities
were
categorized
as
Level
2
inputs
within
the
fair
value
hierarchy
(referred
to
as
“market
level
fair
value”).
See
the
Fair
Value
Measurements
note
for
more
information.
When
the
last
day
of
the
reporting
period
is
a
non-business
day,
certain
foreign
markets
may
be
open
on
those
days
that
the
Fund's
NAV
is
not
calculated,
which
could
result
in
differences
between
the
value
of
the
Fund's
portfolio
securities
on
the
last
business
day
and
the
last
calendar
day
of
the
reporting
period.
Any
security
valuation
changes
due
to
an
open
foreign
market
are
adjusted
and
reflected
by
the
Fund
for
financial
reporting
purposes.
b.
Foreign
Currency
Translation
Portfolio
securities
and
other
assets
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
based
on
the
exchange
rate
of
such
currencies
against
U.S.
dollars
on
the
date
of
valuation.
The
Fund
may
enter
into
foreign
currency
exchange
contracts
to
facilitate
transactions
denominated
in
a
foreign
currency.
Purchases
and
sales
of
securities,
income
and
expense
items
denominated
in
foreign
currencies
are
translated
into
U.S.
dollars
at
the
exchange
rate
in
effect
on
the
transaction
date.
Portfolio
securities
and
assets
and
liabilities
denominated
in
foreign
currencies
contain
risks
that
those
currencies
will
decline
in
value
relative
to
the
U.S.
dollar.
Occasionally,
events
may
impact
the
availability
or
reliability
of
foreign
exchange
rates
used
to
convert
the
U.S.
dollar
equivalent
value.
If
such
an
event
occurs,
the
foreign
exchange
rate
will
be
valued
at
fair
value
using
procedures
established
and
approved
by
the
Board.
The
Fund
does
not
separately
report
the
effect
of
changes
in
foreign
exchange
rates
from
changes
in
market
prices
on
securities
held.
Such
changes
are
included
in
net
realized
and
unrealized
gain
or
loss
from
investments
in
the
Statement of
Operations.
Realized
foreign
exchange
gains
or
losses
arise
from
sales
of
foreign
currencies,
currency
gains
or
losses
realized
between
the
trade
and
settlement
dates
on
securities
transactions
and
the
difference
between
the
recorded
amounts
of
dividends,
interest,
and
foreign
withholding
taxes
and
the
U.S.
dollar
equivalent
of
the
amounts
actually
received
or
paid.
Net
unrealized
foreign
exchange
gains
and
losses
arise
from
changes
in
foreign
exchange
rates
on
foreign
denominated
assets
and
liabilities
other
than
investments
in
securities
held
at
the
end
of
the
reporting
period.
c.
Securities
Lending
The
Fund
participates
in
an
agency
based
securities
lending
program
to
earn
additional
income.
The
Fund
receives
collateral
in
the
form
of
cash
and/or
U.S.
Government
and
Agency
securities
against
the
loaned
securities
in
an
amount
equal
to
at
least
102%
of
the
fair
value
of
the
loaned
securities.
Collateral
is
maintained
over
the
life
of
the
loan
in
an
amount
not
less
than
100%
of
the
fair
value
of
loaned
securities,
as
determined
at
the
close
of
Fund
business
each
day;
any
additional
collateral
required
due
to
changes
in
security
values
is
delivered
to
the
Fund
on
the
next
business
day.
Any
cash
collateral
received
is
deposited
into
a
joint
cash
account
with
other
funds
and
is
used
to
invest
in
a
money
market
fund
managed
by
Franklin
Advisers,
Inc.,
an
affiliate
of
the Fund,
and/or
a
joint
repurchase
agreement
in
the
Statement
of
Assets
and
Liabilities.
The
Fund
may
receive
income
from
the
investment
of
cash
collateral,
in
addition
to
lending
fees
and
rebates
paid
by
the
borrower.
Income
from
securities
loaned,
net
of
fees
paid
to
the
securities
lending
agent
and/or
third-party
vendor,
is
reported
separately
in
the
Statement
of
Operations.
The
Fund
bears
the
market
risk
with
respect
to any
cash collateral
investment,
securities
loaned,
and
the
risk
that
the
agent
may
default
on
its
obligations
to
the
Fund.
If
the
borrower
defaults
on
its
obligation
to
return
the
securities
loaned,
the
Fund
has
the
right
to
repurchase
the
securities
in
the
open
market
using
the
collateral
received.
The
securities
lending
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
November
30,
2021,
the Fund
had
no
securities
on
loan.
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
34
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
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
and
Deferred
Taxes
It
is the
Fund's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The
Fund
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The Fund
may
be
subject
to
foreign
taxation
related
to
income
received,
capital
gains
on
the
sale
of
securities
and
certain
foreign
currency
transactions
in
the
foreign
jurisdictions
in
which
it
invests.
Foreign
taxes,
if
any,
are
recorded
based
on
the
tax
regulations
and
rates
that
exist
in
the
foreign
markets
in
which
the
Fund
invests.
When
a
capital
gain
tax
is
determined
to
apply,
the
Fund
records
an
estimated
deferred
tax
liability
in
an
amount
that
would
be
payable
if
the
securities
were
disposed
of
on
the
valuation
date.
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
November
30,
2021,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
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.
Dividend
income
is
recorded
on
the
ex-dividend
date
except
for
certain
dividends
from
securities
where
the
dividend
rate
is
not
available.
In
such
cases,
the
dividend
is
recorded
as
soon
as
the
information
is
received
by
the
Fund.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
Realized
and
unrealized
gains
and
losses
and
net
investment
income,
excluding
class
specific
expenses,
are
allocated
daily
to
each
class
of
shares
based
upon
the
relative
proportion
of
net
assets
of
each
class.
Differences
in
per
share
distributions
by
class
are
generally
due
to
differences
in
class
specific
expenses.
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.
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
35
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
2.
Shares
of
Beneficial
Interest
At
November
30,
2021,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Six
Months
Ended
November
30,
2021
Year
Ended
May
31,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
a
...................................
129,414,266
$242,678,219
201,122,114
$369,221,416
Shares
issued
in
reinvestment
of
distributions
..........
7,808,484
14,594,497
11,507,607
21,062,321
Shares
redeemed
...............................
(46,232,079)
(86,646,677)
(96,268,762)
(176,937,165)
Net
increase
(decrease)
..........................
90,990,671
$170,626,039
116,360,959
$213,346,572
Class
A1
Shares:
Shares
sold
...................................
21,788,486
$41,321,067
41,790,440
$77,074,890
Shares
issued
in
reinvestment
of
distributions
..........
19,227,771
36,341,699
44,371,191
81,646,761
Shares
redeemed
...............................
(71,022,918)
(134,607,919)
(166,785,921)
(307,126,891)
Net
increase
(decrease)
..........................
(30,006,661)
$(56,945,153)
(80,624,290)
$(148,405,240)
Class
C
Shares:
Shares
sold
...................................
7,523,016
$14,463,844
14,831,857
$27,811,972
Shares
issued
in
reinvestment
of
distributions
..........
1,801,630
3,458,930
5,404,840
10,082,816
Shares
redeemed
a
..............................
(46,004,400)
(88,379,022)
(48,050,021)
(89,514,186)
Net
increase
(decrease)
..........................
(36,679,754)
$(70,456,248)
(27,813,324)
$(51,619,398)
Class
R
Shares:
Shares
sold
...................................
2,435,291
$4,717,271
7,662,759
$14,420,125
Shares
issued
in
reinvestment
of
distributions
..........
826,312
1,594,801
1,919,393
3,606,273
Shares
redeemed
...............................
(3,865,774)
(7,490,869)
(14,439,068)
(27,024,147)
Net
increase
(decrease)
..........................
(604,171)
$(1,178,797)
(4,856,916)
$(8,997,749)
Class
R6
Shares:
Shares
sold
...................................
8,960,092
$16,914,714
51,020,473
$93,337,827
Shares
issued
in
reinvestment
of
distributions
..........
1,242,189
2,336,880
3,035,743
5,586,374
Shares
redeemed
...............................
(4,476,302)
(8,457,039)
(45,562,830)
(84,562,358)
Net
increase
(decrease)
..........................
5,725,979
$10,794,555
8,493,386
$14,361,843
Advisor
Class
Shares:
Shares
sold
...................................
45,537,944
$86,204,050
119,683,675
$220,733,309
Shares
issued
in
reinvestment
of
distributions
..........
4,286,700
8,093,706
8,737,167
16,093,976
Shares
redeemed
...............................
(38,026,759)
(72,016,974)
(119,351,678)
(219,212,381)
Net
increase
(decrease)
..........................
11,797,885
$22,280,782
9,069,164
$17,614,904
a
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
36
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Fund
are
also
officers
and/or
directors
of
the
following
subsidiaries:
a.
Management
Fees
The
Fund
pays
an
investment
management
fee
to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
period
ended
November
30,
2021,
the
annualized
gross
effective
investment
management
fee
rate
was
0.457%
of
the
Fund’s
average
daily
net
assets.
b.
Administrative
Fees
Under
an
agreement
with
Advisers,
FT
Services
provides
administrative
services
to
the
Fund.
The
fee
is
paid
by
Advisers
based
on
the
Fund's
average
daily
net
assets,
and
is
not
an
additional
expense
of
the
Fund.
c.
Distribution
Fees
The
Board
has
adopted
distribution
plans
for
each
share
class,
with
the
exception
of
Class
R6
and
Advisor
Class
shares,
pursuant
to
Rule
12b-1
under
the
1940
Act.
Under
the
Fund’s
Class A and
Class
A1 reimbursement
distribution
plans,
the
Fund
reimburses
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
Under
the
Class
A
and
Class
A1
reimbursement
distribution
plans,
costs
exceeding
the
maximum
for
the
current
plan
year
cannot
be
reimbursed
in
subsequent
periods.
In
addition,
under
the
Fund’s
Class C
and
R
compensation
distribution
plans,
the
Fund
pays
Distributors
for
costs
incurred
in
connection
with
the
servicing,
sale
and
distribution
of
the
Fund's
shares
up
to
the
maximum
annual
plan
rate
for
each
class.
The
plan
year,
for
purposes
of
monitoring
compliance
with
the
maximum
annual
plan
rates,
is
February
1
through
January
31.
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
(formerly
Franklin
Templeton
Distributors,
Inc.)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
Annualized
Fee
Rate
Net
Assets
0.625%
Up
to
and
including
$100
million
0.500%
Over
$100
million,
up
to
and
including
$250
million
0.450%
Over
$250
million,
up
to
and
including
$7.5
billion
0.440%
Over
$7.5
billion,
up
to
and
including
$10
billion
0.430%
Over
$10
billion,
up
to
and
including
$12.5
billion
0.420%
Over
$12.5
billion,
up
to
and
including
$15
billion
0.400%
Over
$15
billion,
up
to
and
including
$17.5
billion
0.380%
Over
$17.5
billion,
up
to
and
including
$20
billion
0.360%
Over
$20
billion,
up
to
and
including
$35
billion
0.355%
Over
$35
billion,
up
to
and
including
$50
billion
0.350%
In
excess
of
$50
billion
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
37
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
Fund.
These
charges
are
deducted
from
the
proceeds
of
sales
of
Fund
shares
prior
to
investment
or
from
redemption
proceeds
prior
to
remittance,
as
applicable.
Distributors
has
advised
the
Fund
of
the
following
commission
transactions
related
to
the
sales
and
redemptions
of
the
Fund's
shares
for
the
period:
e.
Transfer
Agent
Fees
Each
class
of
shares pays
transfer
agent
fees
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
The
fees
are
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
November
30,
2021,
the
Fund
paid
transfer
agent
fees
of
$1,765,644,
of
which
$968,439
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
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
November
30,
2021,
the
Fund
held
investments
in
affiliated
management
investment
companies
as
follows:
Class
A
....................................................................................
0.25%
Class
A1
...................................................................................
0.15%
Class
C
....................................................................................
0.65%
Class
R
....................................................................................
0.50%
Sales
charges
retained
net
of
commissions
paid
to
unaffiliated
brokers/dealers
..............................
$(3,639)
CDSC
retained
..............................................................................
$24,675
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
38
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
g.
Waiver
and
Expense
Reimbursements
Investor
Services
has
contractually
agreed
in
advance
to
waive
or
limit
its
fees
so
that
the
Class
R6
transfer
agent
fees
do
not
exceed
0.03%
based
on
the
average
net
assets
of
the
class
until
September
30,
2022.
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
November
30,
2021,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
May
31,
2021,
the
capital
loss
carryforwards
were
as
follows:
At
November
30,
2021,
the
cost
of
investments
and
net
unrealized
appreciation
(depreciation)
for
income
tax
purposes
were
as
follows:
aa
Value
at
Beginning
of
Period
Purchases
Sales
Realized
Gain
(Loss)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
End
of
Period
Number
of
Shares
Held
at
End
of
Period
Investment
Income
a
a
a
a
a
a
a
a
Franklin
High
Income
Fund
Non-Controlled
Affiliates
Dividends
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$63,820,569
$452,423,949
$(456,017,767)
$—
$—
$60,226,751
60,226,751
$4,822
Non-Controlled
Affiliates
Income
from
securities
loaned
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
0.01%
.
$—
$5,160,000
$(5,160,000)
$
—
$
—
$—
—
$10
Total
Affiliated
Securities
...
$63,820,569
$457,583,949
$(461,177,767)
$—
$—
$60,226,751
$4,832
Capital
loss
carryforwards
not
subject
to
expiration:
Long
term
................................................................................
715,599,696
Cost
of
investments
..........................................................................
$3,115,170,372
Unrealized
appreciation
........................................................................
$109,608,037
Unrealized
depreciation
........................................................................
(203,845,527)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(94,237,490)
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
39
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatment
of
bond
discounts
and
premiums
and
defaulted
securities.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities)
for
the
period
ended
November
30,
2021,
aggregated
$595,465,199
and
$579,687,037,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
November
30,
2021,
the
Fund
had
89.0%
of
its
portfolio
invested
in
high
yield
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
defaulted
securities
and/or
other
securities
for
which
the
income
has
been
deemed
uncollectible.
At
November
30,
2021,
the
aggregate
value
of
these
securities
represents
less
than
0.1%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Statement
of
Investments.
8. Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
9.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The Fund
may
have
registration
rights
for
restricted
securities.
issuer
generally
incurs
all
registration
costs.
At
November
30,
2021,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
Principal
Amount
/
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
High
Income
Fund
16,880,800
a
Goodrich
Petroleum
Corp.,
144A,
PIK,
13.5%,
5/31/23
5/31/19-10/15/21
$
16,880,799
$
18,202,457
46,695,277
Nine
Point
Energy
LLC
........................
7/15/14-3/24/17
26,331,865
—
Total
Restricted
Securities
(Value
is
0.6%
of
Net
Assets)
..............
$43,212,664
$18,202,457
a
The
Fund
also
invests
in
unrestricted
securities
of
the
issuer,
valued
at
$35,992,356
as
of
November
30,
2021.
5.
Income
Taxes
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
40
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(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
November
30,
2021
,
investments
in
“affiliated
companies”
were
as
follows:
11.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
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.
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
November
30,
2021,
the Fund
did
not
use
the
Global
Credit
Facility.
12.
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
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
High
Income
Fund
Non-Controlled
Affiliates
Dividends
Goodrich
Petroleum
Corp
$
17,323,277
$
—
$
—
$
—
$
18,669,079
$
35,992,356
1,564,885
$
—
Titan
Energy
LLC
.....
10,178
—
—
(9,107,816)
9,097,638
—
—
—
$17,333,455
$—
$—
$
(9,107,816)
$
27,766,717
$35,992,356
$
—
Interest
Goodrich
Petroleum
Corp.,
144A,
PIK,
13.5%,
5/31/23
..........
15,460,842
1,084,259
a
—
—
1,657,356
18,202,457
16,880,800
878,268
Total
Affiliated
Securities
(Value
is
1.8%
of
Net
Assets)
..........
$32,794,297
$1,084,259
$—
$
(9,107,816)
$
29,424,073
$54,194,813
$878,268
a
May
include
accretion,
amortization,
partnership
adjustments,
and/or
corporate
actions.
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
41
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
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
November
30,
2021,
in
valuing
the
Fund's assets
carried
at
fair
value,
is
as
follows:
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
Assets:
Investments
in
Securities:
Common
Stocks
:
Machinery
............................
$
—
$
10,279,661
$
—
$
10,279,661
Metals
&
Mining
.......................
1,439,678
—
—
1,439,678
Oil,
Gas
&
Consumable
Fuels
.............
36,484,989
—
—
a
36,484,989
Warrants
:
Metals
&
Mining
.......................
66,033
—
—
66,033
Oil,
Gas
&
Consumable
Fuels
.............
395,382
—
72
a
395,454
Paper
&
Forest
Products
.................
30,757
—
—
30,757
Convertible
Bonds
.......................
—
363,824
—
363,824
Corporate
Bonds
:
Airlines
..............................
—
39,001,759
—
39,001,759
Auto
Components
......................
—
64,606,073
—
64,606,073
Automobiles
..........................
—
24,584,000
—
24,584,000
Banks
...............................
—
15,522,008
—
15,522,008
Beverages
...........................
—
13,878,900
—
13,878,900
Biotechnology
.........................
—
13,606,580
—
13,606,580
Building
Products
......................
—
38,719,824
—
38,719,824
Capital
Markets
........................
—
5,699,801
—
5,699,801
Chemicals
...........................
—
140,026,807
—
140,026,807
Commercial
Services
&
Supplies
...........
—
59,610,108
—
59,610,108
Communications
Equipment
..............
—
12,484,443
—
12,484,443
Construction
&
Engineering
...............
—
14,274,637
—
14,274,637
Consumer
Finance
.....................
—
55,647,712
—
55,647,712
Containers
&
Packaging
.................
—
154,554,530
—
154,554,530
Diversified
Financial
Services
.............
—
46,545,992
—
46,545,992
Diversified
Telecommunication
Services
.....
—
120,367,096
—
120,367,096
Electric
Utilities
........................
—
21,904,920
—
21,904,920
Electrical
Equipment
....................
—
36,190,382
—
36,190,382
Electronic
Equipment,
Instruments
&
Components
........................
—
9,038,949
—
9,038,949
Energy
Equipment
&
Services
.............
—
67,157,781
—
67,157,781
Entertainment
.........................
—
49,176,558
—
49,176,558
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
96,028,578
—
96,028,578
Food
Products
........................
—
39,674,825
—
39,674,825
Health
Care
Equipment
&
Supplies
.........
—
20,893,773
—
20,893,773
Health
Care
Providers
&
Services
..........
—
140,844,256
—
140,844,256
Hotels,
Restaurants
&
Leisure
.............
—
213,467,741
—
213,467,741
Household
Durables
....................
—
40,360,351
—
40,360,351
Independent
Power
and
Renewable
Electricity
Producers
..........................
—
101,553,508
—
101,553,508
Insurance
............................
—
32,932,722
—
32,932,722
Internet
&
Direct
Marketing
Retail
..........
—
13,685,110
—
13,685,110
IT
Services
...........................
—
57,553,379
—
57,553,379
12.
Fair
Value
Measurements
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
42
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(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.
13.
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
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.
14.
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.
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Life
Sciences
Tools
&
Services
............
$
—
$
2,376,468
$
—
$
2,376,468
Machinery
............................
—
42,451,389
—
42,451,389
Media
...............................
—
194,885,612
—
194,885,612
Metals
&
Mining
.......................
—
58,300,040
—
58,300,040
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
19,691,392
—
19,691,392
Oil,
Gas
&
Consumable
Fuels
.............
—
327,512,905
18,202,457
345,715,362
Paper
&
Forest
Products
.................
—
8,314,636
—
8,314,636
Personal
Products
.....................
—
11,074,520
—
11,074,520
Pharmaceuticals
.......................
—
112,681,384
—
112,681,384
Real
Estate
Management
&
Development
....
—
46,865,818
—
46,865,818
Road
&
Rail
..........................
—
16,754,230
—
16,754,230
Semiconductors
&
Semiconductor
Equipment
.
—
15,992,528
—
15,992,528
Software
.............................
—
36,122,751
—
36,122,751
Specialty
Retail
........................
—
74,998,260
—
74,998,260
Textiles,
Apparel
&
Luxury
Goods
..........
—
6,293,952
—
6,293,952
Thrifts
&
Mortgage
Finance
...............
—
58,974,971
—
58,974,971
Trading
Companies
&
Distributors
..........
—
44,378,243
—
44,378,243
Wireless
Telecommunication
Services
.......
—
47,725,366
—
47,725,366
Senior
Floating
Rate
Interests
...............
—
2,925,285
—
2,925,285
Escrows
and
Litigation
Trusts
...............
—
5,530,425
—
a
5,530,425
Short
Term
Investments
...................
60,226,751
—
—
60,226,751
Total
Investments
in
Securities
...........
$98,643,590
$2,904,086,763
$18,202,529
$3,020,932,882
a
Includes
securities
determined
to
have
no
value
at
November
30,
2021.
12.
Fair
Value
Measurements
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
(unaudited)
43
franklintempleton.com
Semiannual
Report
Franklin
High
Income
Fund
(continued)
Abbreviations
Cu
r
rency
USD
United
States
Dollar
Selected
Portfolio
FRN
Floating
Rate
Note
LIBOR
London
Inter-Bank
Offered
Rate
PIK
Payment-In-Kind
Franklin
High
Income
Trust
Shareholder
Information
44
franklintempleton.com
Semiannual
Report
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Statement
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
statement
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
1105
S
01/22
©
2022
Franklin
Templeton
Investments.
All
rights
reserved.
Authorized
for
distribution
only
when
accompanied
or
preceded
by
a
summary
prospectus
and/or
prospectus.
Investors
should
carefully
consider
a
fund’s
investment
goals,
risks,
charges
and
expenses
before
investing.
A
prospectus
contains
this
and
other
information;
please
read
it
carefully
before
investing.
To
help
ensure
we
provide
you
with
quality
service,
all
calls
to
and
from
our
service
areas
are
monitored
and/or
recorded.
Semiannual
Report
and
Shareholder
Letter
Franklin
High
Income
Fund
Investment
Manager
Distributor
Shareholder
Services
Franklin
Advisers,
Inc.
Franklin
Distributors,
LLC
(800)
DIAL
BEN
®
/
342-5236
franklintempleton.com
(800)
632-2301
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4.
Principal Accountant Fees and Services. N/A
Item 5. Audit Committee
of Listed Registrants.
N/A
Item 6. Schedule of Investments.
N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls
. There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a) (1) Code of Ethics
(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
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN HIGH INCOME TRUST
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer – Finance and Administration
Date January 26, 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 January 26, 2022
By S\Christopher Kings________________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date January 26, 2022