UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-
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)
Alison Baur, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code: 650 312-2000
Date of fiscal year end: 9/30
Date of reporting period: 9/30/22
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
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
.
ANNUAL
REPORT
AND
SHAREHOLDER
LETTER
Franklin
High
Income
Fund
A
Series
of
Franklin
High
Income
Trust
September
30,
2022
Sign
up
for
electronic
delivery
at
franklintempleton.com/edelivery
Not
FDIC
Insured
May
Lose
Value
No
Bank
Guarantee
franklintempleton.com
Annual
Report
1
Shareholder
Letter
Dear
Shareholder:
As
approved
by
the
Board
of
Trustees
at
a
meeting
held
on
December
9,
2021,
Franklin
High
Income
Fund’s
fiscal
year-
end
was
changed
to
September
30.
Management
believes
changing
the
Fund’s
fiscal
year-end
to
align
with
other
funds
overseen
by
the
same
board
will
streamline
the
report
review
process.
The
following
annual
report
covers
the
shortened
fiscal
year
for
the
transitional
four-month
period
between
the
Fund’s
prior
fiscal
year-end,
May
31,
2022,
and
September
30,
2022.
During
this
period,
the
U.S.
economy
contracted
in
2022’s
second
quarter
given
a
record
trade
deficit
and
a
decline
in
inventory
investment.
However,
household
spending
and
business
fixed
investment
remained
strong,
and
unemployment
continued
to
decline.
Inflation
increased
during
the
four-month
period,
influenced
by
pandemic-related
supply
and
demand
imbalances,
higher
energy
prices,
the
war
in
Ukraine
and
broader
price
pressures.
To
combat
high
inflation,
the
U.S.
Federal
Reserve
(Fed)
raised
the
federal
funds
target
rate
at
its
June,
July,
and
September
meetings,
up
to
a
range
of
3.00%–3.25%.
Additionally,
the
Fed
stated
its
intention
to
continue
reducing
its
U.S.
Treasury,
government
agency
debt
and
agency
mortgage-backed
securities
holdings,
and
anticipated
future
federal
funds
rate
increases
would
be
appropriate.
The
10-year
Treasury
yield,
which
moves
inversely
to
price,
rose
during
the
four
months,
given
tighter
monetary
policy
prompted
by
rising
inflation
amid
ongoing
supply
chain
disruptions.
Most
bond
valuations
declined,
and
the
difference
in
yields
between
corporate
bonds
and
U.S.
Treasuries
rose,
reflecting
investors’
lower-risk
preferences.
In
this
environment,
investment-grade
bonds,
as
measured
by
the
Bloomberg
U.S.
Aggregate
Bond
Index,
posted
a
-6.25%
total
return,
while
below
investment-grade
corporate
bonds,
as
measured
by
the
Credit
Suisse
High
Yield
Index,
posted
a
-7.01%
total
return.
1
We
are
committed
to
our
long-term
perspective
and
disciplined
investment
approach
as
we
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
annual
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
September
30,
2022,
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
Annual
Report
2
Contents
Annual
Report
Franklin
High
Income
Fund
3
Performance
Summary
6
Your
Fund’s
Expenses
9
Financial
Highlights
and
Schedule
of
Investments
10
Financial
Statements
28
Notes
to
Financial
Statements
32
Report
of
Independent
Registered
Public
Accounting
Firm
45
Tax
Information
46
Board
Members
and
Officers
47
Shareholder
Information
52
Visit
franklintempleton.com
for
fund
updates,
to
access
your
account,
or
to
find
helpful
financial
planning
tools.
3
franklintempleton.com
Annual
Report
ANNUAL
REPORT
Franklin
High
Income
Fund
As
approved
by
the
Board
of
Trustees
at
a
meeting
held
on
December
9,
2021,
Franklin
High
Income
Fund’s
fiscal
year-end
was
changed
to
September
30,
2022.
This
annual
report
for
Franklin
High
Income
Fund
covers
the
shortened
fiscal
year
for
the
transitional
4-month
period
between
the
Fund’s
prior
fiscal
year-end,
May
31,
2022,
and
September
30,
2022.
Your
Fund’s
Goal
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
normally
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
-7.03%
cumulative
total
return
for
the
four
months
under
review.
In
comparison,
the
Fund’s
primary
benchmark,
the
ICE
BofA
U.S.
High
Yield
Constrained
Index,
which
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-grade
corporate
debt
publicly
issued
in
the
U.S.
domestic
market,
posted
a
-7.44%
cumulative
total
return.
1
The
Fund’s
peers
posted
a
-7.16%
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
-6.25%
total
return
for
the
four
months
ended
September
30,
2022.
1
High
inflation
amid
a
strong
labor
market
led
to
significantly
tighter
monetary
policy,
reducing
the
value
of
most
bonds.
Geopolitical
instability
disrupted
financial
markets
amid
the
ongoing
war
in
Ukraine,
adding
to
the
uncertainty
surrounding
the
course
of
the
global
economy.
The
yield
curve
continued
to
narrow,
inverting
during
the
period
as
investors
became
increasingly
concerned
about
the
economic
outlook.
In
an
effort
to
control
inflation,
the
U.S.
Federal
Reserve
(Fed)
continued
to
raise
the
federal
funds
target
rate.
The
Fed
raised
the
federal
funds
rate
at
each
of
its
three
meetings
during
the
period
to
end
at
a
range
of
3.00%–
3.25%.
The
Fed
noted
in
its
September
2022
meeting
that
inflation
remained
elevated
amid
robust
job
growth
and
low
unemployment.
In
order
to
achieve
its
goal
of
2%
long-run
inflation,
the
Fed
stated
it
anticipates
making
additional
increases
to
the
federal
funds
target
rate.
Furthermore,
the
Fed
indicated
it
would
continue
to
reduce
its
U.S.
Treasury
(UST)
and
agency
mortgage-backed
security
holdings.
UST
bonds,
as
measured
by
the
Bloomberg
U.S.
Treasury
Index,
posted
a
-5.19%
total
return
for
the
four-month
period.
1
The
10-year
UST
yield
(which
moves
inversely
to
price)
grew
amid
high
inflation
and
the
Fed’s
tightening
monetary
stance.
Mortgage-backed
securities
(MBS),
as
measured
by
the
Bloomberg
U.S.
MBS
Index,
posted
a
-6.87%
total
return
for
the
period
as
mortgage
rates
rose
to
the
highest
level
in
over
a
decade.
1
Portfolio
Composition
9/30/22
%
of
Total
Net
Assets
Corporate
Bonds
91.8%
Senior
Floating
Rate
Interests
2.6%
Other
0.7%
Short-Term
Investments
&
Other
Net
Assets
4.9%
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
four-month
period
ended
9/30/22,
this
category
consisted
of
544
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
Schedule
of
Investments
(SOI).
The
SOI
begins
on
page
16
.
Franklin
High
Income
Fund
4
franklintempleton.com
Annual
Report
Corporate
bond
prices
also
declined,
constrained
by
inflation,
rising
interest
rates
and
concerns
about
the
impact
of
elevated
interest
rates
on
corporate
borrowing
costs
and
the
wider
economy.
Corporate
yield
spreads,
a
measure
of
the
difference
in
yields
between
corporate
bonds
and
similarly-dated
USTs,
rose,
reflecting
investors’
increased
risk-aversion
preferences.
In
this
environment,
high-
yield
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
High
Yield
Bond
Index,
posted
a
-7.34%
total
return,
while
investment-grade
corporate
bonds,
as
represented
by
the
Bloomberg
U.S.
Corporate
Bond
Index,
posted
a
-7.72%
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
Since
the
beginning
of
2022,
escalating
geopolitical
risks
around
the
Russia-Ukraine
war
and
fears
that
the
Fed’s
aggressive
interest-rate
stance
could
push
the
economy
into
a
recession
have
resulted
in
persistent
volatility.
As
spreads
widened
and
U.S.
Treasury
yields
increased,
the
HY
asset
class
experienced
negative
returns.
Despite
the
fundamental
challenges,
it
is
worth
noting
that
we
believe
HY
credit
fundamentals
are
entering
this
turbulent
period
from
a
position
of
strength,
with
healthy
net
leverage
and
robust
interest
coverage
as
readily
accessible
capital
markets
in
the
past
several
years
enabled
most
issuers
to
build
up
liquidity
reserves.
With
the
Fed
actively
seeking
to
slow
the
economy
to
combat
inflation,
we
continue
to
be
cautious
of
issuers
or
industries
that
are
facing
secular
declines
or
heightened
competitive
pressures,
as
well
as
companies
with
minimal
cash
flow
generation
relative
to
their
debt
obligations.
Based
on
benchmark
index
data,
HY
spreads
generally
widened
and
most
segments
of
the
HY
market
posted
negative
absolute
returns
for
the
performance
period
under
review.
BB
rated
bonds
performed
better
than
B
and
CCC
rated
bonds,
while
all
posted
negative
returns.
From
an
industry
standpoint,
energy
stood
out
as
a
key
performer,
followed
by
metals/minerals.
In
this
challenging
environment,
the
Fund
performed
better
than
its
benchmark.
Performance
benefited
from
industry
positioning,
in
particular
an
overweighted
exposure
to
energy
and
utility
and
underweighted
exposure
to
media
cable.
Partially
offsetting
these
positives
were
overweighted
exposure
to
the
health
care
and
chemicals
industries,
which
detracted
from
performance.
The
Fund
held
only
cash
bonds
during
the
period
(for
the
bond
portion
of
the
portfolio)
and
had
no
exposure
to
derivatives.
Top
10
Holdings
9/30/22
Company
Industry
,
Country
%
of
Total
Net
Assets
a
a
Tenet
Healthcare
Corp.
1.6%
Health
Care
Providers
&
Services,
United
States
Mauser
Packaging
Solutions
Holding
Co.
1.5%
Containers
&
Packaging,
United
States
Occidental
Petroleum
Corp.
1.4%
Oil,
Gas
&
Consumable
Fuels,
United
States
Cheniere
Energy
Partners
LP
1.4%
Oil,
Gas
&
Consumable
Fuels,
United
States
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
1.3%
Diversified
Telecommunication
Services,
United
States
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
1.3%
Oil,
Gas
&
Consumable
Fuels,
United
States
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
1.3%
Oil,
Gas
&
Consumable
Fuels,
United
States
Centene
Corp.
1.1%
Health
Care
Providers
&
Services,
United
States
Royal
Caribbean
Cruises
Ltd.
1.0%
Hotels,
Restaurants
&
Leisure,
United
States
Vistra
Operations
Co.
LLC
1.0%
Electric
Utilities,
United
States
Franklin
High
Income
Fund
5
franklintempleton.com
Annual
Report
Thank
you
for
your
continued
participation
in
Franklin
High
Income
Fund.
We
look
forward
to
serving
your
future
investment
needs.
Glenn
I.
Voyles,
CFA
Bryant
Dieffenbacher,
CFA
S.
James
McGiveran
III,
CFA,
CPA,
FRM
Patricia
O’Connor,
CFA
Portfolio
Management
Team
The
foregoing
information
reflects
our
analysis,
opinions
and
portfolio
holdings
as
of
September
30,
2022,
the
end
of
the
reporting
period.
The
way
we
implement
our
main
investment
strategies
and
the
resulting
portfolio
holdings
may
change
depending
on
factors
such
as
market
and
economic
conditions.
These
opinions
may
not
be
relied
upon
as
investment
advice
or
an
offer
for
a
particular
security.
The
information
is
not
a
complete
analysis
of
every
aspect
of
any
market,
country,
industry,
security
or
the
Fund.
Statements
of
fact
are
from
sources
considered
reliable,
but
the
investment
manager
makes
no
representation
or
warranty
as
to
their
completeness
or
accuracy.
Although
historical
performance
is
no
guarantee
of
future
results,
these
insights
may
help
you
understand
our
investment
management
philosophy.
CFA
®
is
a
trademark
owned
by
CFA
Institute.
FRM
®
is
a
trademark
owned
by
Global
Association
of
Risk
Professionals
(GARP).
Performance
Summary
as
of
September
30,
2022
Franklin
High
Income
Fund
6
franklintempleton.com
Annual
Report
The
performance
tables
and
graphs
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
9
/3
0
/22
1
Cumulative
total
return
excludes
sales
charges.
Average
annual
total
return
includes
maximum
sales
charges.
Sales
charges
will
vary
depending
on
the
size
of
the
investment
and
the
class
of
share
purchased.
The
maximum
is
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
2
Average
Annual
Total
Return
3
–
A
4,5
4-Month
-7.03%
-10.51%
1-Year
-13.66%
-16.90%
5-Year
+5.58%
+0.32%
10-Year
+32.91%
+2.49%
Advisor
4-Month
-6.86%
-6.86%
1-Year
-13.29%
-13.29%
5-Year
+7.91%
+1.53%
10-Year
+36.84%
+3.19%
30-Day
Standardized
Yield
7
Share
Class
Distribution
Rate
6
(with
fee
waiver)
(without
fee
waiver)
A
5.55%
7.60%
7.59%
Advisor
6.00%
8.14%
8.12%
See
page
8
for
Performance
Summary
footnotes.
Franklin
High
Income
Fund
Performance
Summary
7
franklintempleton.com
Annual
Report
See
page
8
for
Performance
Summary
footnotes.
Total
Return
Index
Comparison
for
a
Hypothetical
$10,000
Investment
1
Total
return
represents
the
change
in
value
of
an
investment
over
the
periods
shown.
It
includes
any
applicable
maximum
sales
charge,
Fund
expenses,
account
fees
and
reinvested
distributions.
The
unmanaged
indexes
include
reinvestment
of
any
income
or
distributions.
They
differ
from
the
Fund
in
composition
and
do
not
pay
management
fees
or
expenses.
One
cannot
invest
directly
in
an
index.
Class
A
(9/30/12–9/30/22)
Advisor
Class
(9/30/12–9/30/22)
Franklin
High
Income
Fund
Performance
Summary
8
franklintempleton.com
Annual
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
the
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
politi-
cal
and
economic
uncertainty.
The
manager’s
portfolio
selection
strategy
is
not
solely
based
on
ESG
considerations,
and
therefore
the
issuers
in
which
the
Fund
invests
may
not
be
considered
ESG-focused
companies.
Integrating
ESG
considerations
into
the
investment
process
is
not
a
guarantee
that
better
performance
will
be
achieved.
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.
Russia’s
military
invasion
of
Ukraine
in
February
2022,
the
resulting
responses
by
the
United
States
and
other
countries,
and
the
potential
for
wider
conflict
could
increase
volatility
and
uncertainty
in
the
financial
markets
and
adversely
affect
regional
and
global
economies.
The
United
States
and
other
countries
have
im-
posed
broad-ranging
economic
sanctions
on
Russia
and
certain
Russian
individuals,
banking
entities
and
corporations
as
a
response
to
its
invasion
of
Ukraine.
The
United
States
and
other
countries
have
also
imposed
economic
sanctions
on
Belarus
and
may
impose
sanctions
on
other
countries
that
support
Russia’s
military
invasion.
These
sanctions,
as
well
as
any
other
economic
consequences
related
to
the
invasion,
such
as
additional
sanctions,
boycotts
or
changes
in
consumer
or
purchaser
preferences
or
cyberattacks
on
governments,
companies
or
individuals,
may
further
decrease
the
value
and
liquidity
of
certain
Russian
securities
and
securities
of
issuers
in
other
countries
that
are
subject
to
economic
sanctions
related
to
the
invasion.
1.
The
total
annual
operating
expenses
are
sourced
from
the
Fund's
prospectus
available
at
the
time
of
publication.
Actual
expenses
may
be
higher
and
may
impact
portfolio
returns.
2.
Cumulative
total
return
represents
the
change
in
value
of
an
investment
over
the
periods
indicated.
3.
Average
annual
total
return
represents
the
average
annual
change
in
value
of
an
investment
over
the
periods
indicated.
Return
for
less
than
one
year,
if
any,
has
not
been
annualized.
4.
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.
5.
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%.
6.
Distribution
rate
is
based
on
an
annualization
of
the
respective
class’s
September
dividend
and
the
maximum
offering
price
(NAV
for
Advisor
class)
per
share
on
9/30/22.
7.
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.
8.
Source:
Morningstar.
The
ICE
BofA
U.S.
High
Yield
Constrained
Index
tracks
the
performance
of
U.S.
dollar-denominated
below
investment-grade
corporate
debt
publicly
issued
in
the
U.S.
domestic
market.
9.
Source:
Lipper,
a
Thomson
Reuters
Company.
The
Lipper
High
Yield
Funds
Classification
Average
is
calculated
by
averaging
the
total
returns
of
funds
within
the
Lipper
High
Yield
Funds
classification
in
the
Lipper
Open-End
underlying
funds
universe
for
the
period
indicated.
Lipper
High
Yield
Funds
are
defined
as
funds
that
aim
at
high
(relative)
current
yield
from
fixed
income
securities,
have
no
quality
or
maturity
restrictions,
and
tend
to
invest
in
lower
grade
debt
issues.
For
the
four-month
period
ended
9/30/22,
there
were
544
funds
in
this
category.
Lipper
calculations
do
not
include
sales
charges.
10.
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
(6/1/22–9/30/22)
Share
Class
Net
Investment
Income
A
$0.0322
A1
$0.0329
C
$0.0299
R
$0.0308
R6
$0.0342
Advisor
$0.0337
Total
Annual
Operating
Expenses
10
Share
Class
A
0.87%
Advisor
0.62%
Your
Fund’s
Expenses
Franklin
High
Income
Fund
9
franklintempleton.com
Annual
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.
6/1/22
for
Actual;
4/1/22
for
Hypothetical.
2.
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
for
Hypothetical
expenses.
For
Actual
expenses,
the
multiplier
is
122/365
to
reflect
the
number
of
days
during
the
period.
3.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Does
not
include
acquired
fund
fees
and
expenses.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Share
Class
Beginning
Account
Value
1
Ending
Account
Value
9/30/22
Expenses
Paid
During
Period
6/1/22–9/30/22
2,3
Ending
Account
Value
9/30/22
Expenses
Paid
During
Period
4/1/22–9/30/22
2,3
a
Net
Annualized
Expense
Ratio
3
A
$1,000
$929.70
$2.81
$1,022.16
$4.41
0.87%
A1
$1,000
$931.00
$2.48
$1,023.00
$3.90
0.77%
C
$1,000
$924.70
$4.08
$1,020.82
$6.43
1.27%
R
$1,000
$925.60
$3.60
$1,021.32
$5.68
1.12%
R6
$1,000
$925.80
$1.61
$1,023.40
$2.54
0.50%
Advisor
$1,000
$931.40
$2.00
$1,023.00
$3.14
0.62%
Franklin
High
Income
Trust
Financial
Highlights
Franklin
High
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
10
a
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
Year
Ended
May
31,
2019
b
2022
2021
2020
Class
A
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.................
$1.69
$1.87
$1.72
$1.80
$1.84
Income
from
investment
operations
c
:
Net
investment
income
d
.........................
0.03
0.08
0.09
0.09
0.07
Net
realized
and
unrealized
gains
(losses)
...........
(0.15)
(0.17)
0.16
(0.07)
(0.03)
Total
from
investment
operations
....................
(0.12)
(0.09)
0.25
0.02
0.04
Less
distributions
from:
Net
investment
income
..........................
(0.03)
(0.09)
(0.10)
(0.10)
(0.08)
Net
asset
value,
end
of
period
......................
$1.54
$1.69
$1.87
$1.72
$1.80
Total
return
e
...................................
(7.03)%
(5.15)%
14.52%
0.88%
2.17%
Ratios
to
average
net
assets
f
Expenses
before
waiver
and
payments
by
affiliates
......
0.88%
0.87%
0.86%
0.86%
0.87%
Expenses
net
of
waiver
and
payments
by
affiliates
g
......
0.87%
0.87%
h
0.85%
0.86%
h
0.86%
Net
investment
income
...........................
6.02%
4.66%
5.10%
5.19%
5.27%
Supplemental
data
Net
assets,
end
of
period
(000’s)
....................
$642,620
$689,210
$553,316
$309,844
$182,551
Portfolio
turnover
rate
............................
4.96%
31.57%
55.37%
38.87%
25.48%
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
For
the
period
September
10,
2018
(effective
date)
to
May
31,
2019.
c
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.
d
Based
on
average
daily
shares
outstanding.
e
Total
return
does
not
reflect
sales
commissions
or
contingent
deferred
sales
charges,
if
applicable,
and
is
not
annualized
for
periods
less
than
one
year.
f
Ratios
are
annualized
for
periods
less
than
one
year.
g
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
h
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.
Annual
Report
11
a
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
2018
Class
A1
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.71
$1.88
$1.73
$1.81
$1.82
$1.91
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.03
0.09
0.10
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
(0.15)
(0.17)
0.15
(0.08)
(0.01)
(0.09)
Total
from
investment
operations
........
(0.12)
(0.08)
0.25
0.02
0.09
0.01
Less
distributions
from:
Net
investment
income
..............
(0.03)
(0.09)
(0.10)
(0.10)
(0.10)
(0.10)
Net
asset
value,
end
of
period
..........
$1.56
$1.71
$1.88
$1.73
$1.81
$1.82
Total
return
d
.......................
(6.90)%
(4.51)%
14.52%
0.95%
5.35%
0.68%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.78%
0.77%
0.76%
0.76%
0.77%
0.78%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
0.77%
0.76%
0.76%
g
0.76%
g
0.76%
0.77%
Net
investment
income
...............
6.12%
4.74%
5.18%
5.29%
5.37%
5.26%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$1,311,893
$1,483,888
$1,758,443
$1,759,206
$2,054,455
$2,356,528
Portfolio
turnover
rate
................
4.96%
31.57%
55.37%
38.87%
25.48%
23.33%
a
For
the
period
June
1,
2022
to
September
30,
2022.
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
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
12
a
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
2018
Class
C
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.74
$1.91
$1.76
$1.83
$1.85
$1.93
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.03
0.08
0.09
0.09
0.09
0.09
Net
realized
and
unrealized
gains
(losses)
(0.16)
(0.17)
0.15
(0.07)
(0.01)
(0.08)
Total
from
investment
operations
........
(0.13)
(0.09)
0.24
0.02
0.08
0.01
Less
distributions
from:
Net
investment
income
..............
(0.03)
(0.08)
(0.09)
(0.09)
(0.10)
(0.09)
Net
asset
value,
end
of
period
..........
$1.58
$1.74
$1.91
$1.76
$1.83
$1.85
Total
return
d
.......................
(7.53)%
(4.93)%
13.69%
0.99%
4.17%
0.70%
Ratios
to
average
net
assets
e
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.28%
1.26%
1.26%
1.26%
1.27%
1.28%
Expenses
net
of
waiver
and
payments
by
affiliates
f
..........................
1.27%
1.26%
g
1.26%
g
1.26%
g
1.26%
1.27%
Net
investment
income
...............
5.63%
4.22%
4.68%
4.79%
4.87%
4.76%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$98,923
$119,630
$220,646
$251,930
$304,072
$460,201
Portfolio
turnover
rate
................
4.96%
31.57%
55.37%
38.87%
25.48%
23.33%
a
For
the
period
June
1,
2022
to
September
30,
2022.
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
13
a
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
2018
Class
R
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.75
$1.92
$1.77
$1.84
$1.86
$1.94
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.03
0.08
0.09
0.09
0.09
0.09
Net
realized
and
unrealized
gains
(losses)
(0.16)
(0.17)
0.15
(0.07)
(0.01)
(0.07)
Total
from
investment
operations
........
(0.13)
(0.09)
0.24
0.02
0.08
0.02
Less
distributions
from:
Net
investment
income
..............
(0.03)
(0.08)
(0.09)
(0.09)
(0.10)
(0.10)
Net
asset
value,
end
of
period
..........
$1.59
$1.75
$1.92
$1.77
$1.84
$1.86
Total
return
........................
(7.44)%
(4.75)%
13.78%
1.14%
4.31%
0.84%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
1.13%
1.12%
1.11%
1.11%
1.12%
1.13%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
1.12%
1.11%
1.11%
f
1.11%
f
1.11%
1.12%
Net
investment
income
...............
5.77%
4.39%
4.83%
4.94%
5.02%
4.91%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$57,909
$64,250
$74,532
$77,148
$101,783
$127,333
Portfolio
turnover
rate
................
4.96%
31.57%
55.37%
38.87%
25.48%
23.33%
a
For
the
period
June
1,
2022
to
September
30,
2022.
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
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
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
14
a
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
2018
Class
R6
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.71
$1.88
$1.73
$1.80
$1.82
$1.90
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.03
0.09
0.10
0.10
0.10
0.11
Net
realized
and
unrealized
gains
(losses)
(0.16)
(0.17)
0.15
(0.07)
(0.01)
(0.08)
Total
from
investment
operations
........
(0.13)
(0.08)
0.25
0.03
0.09
0.03
Less
distributions
from:
Net
investment
income
..............
(0.03)
(0.09)
(0.10)
(0.10)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$1.55
$1.71
$1.88
$1.73
$1.80
$1.82
Total
return
........................
(7.42)%
(4.24)%
14.82%
1.80%
5.05%
1.48%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.55%
0.55%
0.54%
0.55%
0.55%
0.51%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.50%
0.51%
0.51%
0.50%
0.50%
0.48%
Net
investment
income
...............
6.39%
5.01%
5.39%
5.55%
5.63%
5.55%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$90,344
$98,282
$88,257
$66,681
$64,681
$68,312
Portfolio
turnover
rate
................
4.96%
31.57%
55.37%
38.87%
25.48%
23.33%
a
For
the
period
June
1,
2022
to
September
30,
2022.
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
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
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
15
a
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
2021
2020
2019
2018
Advisor
Class
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.71
$1.88
$1.73
$1.81
$1.83
$1.91
Income
from
investment
operations
b
:
Net
investment
income
c
.............
0.03
0.09
0.10
0.10
0.10
0.10
Net
realized
and
unrealized
gains
(losses)
(0.15)
(0.17)
0.15
(0.08)
(0.01)
(0.07)
Total
from
investment
operations
........
(0.12)
(0.08)
0.25
0.02
0.09
0.03
Less
distributions
from:
Net
investment
income
..............
(0.03)
(0.09)
(0.10)
(0.10)
(0.11)
(0.11)
Net
asset
value,
end
of
period
..........
$1.56
$1.71
$1.88
$1.73
$1.81
$1.83
Total
return
........................
(6.86)%
(4.37)%
14.68%
1.12%
4.92%
1.36%
Ratios
to
average
net
assets
d
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.63%
0.62%
0.61%
0.61%
0.62%
0.63%
Expenses
net
of
waiver
and
payments
by
affiliates
e
..........................
0.62%
0.61%
0.61%
f
0.61%
f
0.61%
0.62%
Net
investment
income
...............
6.32%
4.89%
5.34%
5.44%
5.52%
5.41%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$257,358
$353,786
$341,889
$299,110
$320,010
$356,721
Portfolio
turnover
rate
................
4.96%
31.57%
55.37%
38.87%
25.48%
23.33%
a
For
the
period
June
1,
2022
to
September
30,
2022.
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.
b
Based
on
average
daily
shares
outstanding.
c
Ratios
are
annualized
for
periods
less
than
one
year.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Benefit
of
waiver
and
payments
by
affiliates
rounds
to
less
than
0.01%.
Franklin
High
Income
Trust
Schedule
of
Investments,
September
30,
2022
Franklin
High
Income
Fund
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
16
a
a
Country
Shares
a
Value
a
a
a
a
a
a
Common
Stocks
0.4%
Oil,
Gas
&
Consumable
Fuels
0.4%
a
Amplify
Energy
Corp.
..................................
United
States
8,816
$
57,921
Birch
Permian
Holdings,
Inc.
.............................
United
States
690,410
10,321,629
California
Resources
Corp.
..............................
United
States
1,425
54,763
Chesapeake
Energy
Corp.
..............................
United
States
6,871
647,317
a,b,c
Nine
Point
Energy
Holdings,
Inc.
..........................
United
States
46,695,277
—
a,b,c
Riviera
Resources,
Inc.
.................................
United
States
149,317
—
11,081,630
Total
Common
Stocks
(Cost
$61,105,049)
......................................
11,081,630
Warrants
Warrants
0.1%
Metals
&
Mining
0.0%
†
a
Alpha
Metallurgical
Resources,
Inc.,
7/26/23
.................
United
States
5,033
546,307
Oil,
Gas
&
Consumable
Fuels
0.1%
a,b
Battalion
Oil
Corp.,
A,
10/08/22
...........................
United
States
21,046
—
a,b
Battalion
Oil
Corp.,
B,
10/08/22
...........................
United
States
26,308
—
a,b
Battalion
Oil
Corp.,
C,
10/08/22
...........................
United
States
33,825
—
a
California
Resources
Corp.,
10/27/24
......................
United
States
3,278
34,091
a,b
Chaparral
Energy,
Inc.,
10/01/24
..........................
United
States
13
—
a,b
Chaparral
Energy,
Inc.,
10/01/25
..........................
United
States
13
—
a
Chesapeake
Energy
Corp.,
2/09/26
........................
United
States
12,966
953,196
987,287
Total
Warrants
(Cost
$5,562,809)
..............................................
1,533,594
Principal
Amount
*
Convertible
Bonds
0.0%
†
Wireless
Telecommunication
Services
0.0%
†
d,e,f
Digicel
Group
Holdings
Ltd.
,
Sub.
Bond
,
144A,
PIK,
7
%
,
Perpetual
Bermuda
435,937
60,777
Total
Convertible
Bonds
(Cost
$121,067)
.......................................
60,777
Corporate
Bonds
91.8%
Airlines
1.4%
f
American
Airlines
Inc
/
AAdvantage
Loyalty
IP
Ltd.
,
Senior
Secured
Note,
144A,
5.5%,
4/20/26
................
United
States
17,000,000
15,994,195
Senior
Secured
Note,
144A,
5.75%,
4/20/29
...............
United
States
2,000,000
1,748,550
f
Delta
Air
Lines,
Inc.
/
SkyMiles
IP
Ltd.
,
Senior
Secured
Note
,
144A,
4.75
%
,
10/20/28
.....................................
United
States
10,200,000
9,513,779
f
United
Airlines,
Inc.
,
Senior
Secured
Note,
144A,
4.375%,
4/15/26
..............
United
States
2,700,000
2,414,448
Senior
Secured
Note,
144A,
4.625%,
4/15/29
..............
United
States
5,500,000
4,564,835
34,235,807
Auto
Components
1.7%
f
Allison
Transmission,
Inc.
,
Senior
Bond
,
144A,
3.75
%
,
1/30/31
...
United
States
5,400,000
4,150,116
f
Dornoch
Debt
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/15/29
..........................................
United
States
16,500,000
11,918,001
Goodyear
Tire
&
Rubber
Co.
(The)
,
Senior
Note,
9.5%,
5/31/25
............................
United
States
9,100,000
9,456,219
Senior
Note,
5%,
7/15/29
.............................
United
States
15,000,000
12,271,875
f
Real
Hero
Merger
Sub
2,
Inc.
,
Senior
Note
,
144A,
6.25
%
,
2/01/29
.
United
States
7,000,000
5,064,150
42,860,361
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
17
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Automobiles
0.7%
f
Jaguar
Land
Rover
Automotive
plc
,
Senior
Note
,
144A,
5.5
%
,
7/15/29
...........................................
United
Kingdom
25,000,000
$
17,450,250
Banks
0.6%
e
JPMorgan
Chase
&
Co.
,
R
,
Junior
Sub.
Bond
,
6%
to
7/31/23,
FRN
thereafter
,
Perpetual
.................................
United
States
15,000,000
14,662,500
Beverages
0.4%
f
Primo
Water
Holdings,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/30/29
..
Canada
11,500,000
9,371,245
Biotechnology
0.5%
f
Horizon
Therapeutics
USA,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
8/01/27
United
States
13,000,000
12,179,830
Building
Products
2.6%
f
Advanced
Drainage
Systems,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
6/15/30
...........................................
United
States
9,100,000
8,838,193
f
Camelot
Return
Merger
Sub,
Inc.
,
Senior
Secured
Note
,
144A,
8.75
%
,
8/01/28
.....................................
United
States
15,400,000
12,713,653
f
Cornerstone
Building
Brands,
Inc.
,
Senior
Note
,
144A,
6.125
%
,
1/15/29
...........................................
United
States
2,000,000
1,119,888
f
Eco
Material
Technologies,
Inc.
,
Senior
Secured
Note
,
144A,
7.875
%
,
1/31/27
.....................................
United
States
10,500,000
9,318,160
f
JELD-WEN,
Inc.
,
Senior
Note,
144A,
4.625%,
12/15/25
....................
United
States
7,600,000
6,170,250
Senior
Note,
144A,
4.875%,
12/15/27
....................
United
States
7,800,000
5,587,335
f
Oscar
AcquisitionCo
LLC
/
Oscar
Finance,
Inc.
,
Senior
Note
,
144A,
9.5
%
,
4/15/30
......................................
United
States
2,800,000
2,348,528
f
Standard
Industries,
Inc.
,
Senior
Bond,
144A,
5%,
2/15/27
........................
United
States
5,000,000
4,436,350
Senior
Bond,
144A,
4.75%,
1/15/28
......................
United
States
9,200,000
7,794,746
Senior
Bond,
144A,
4.375%,
7/15/30
.....................
United
States
6,800,000
5,218,388
63,545,491
Capital
Markets
0.2%
f
Jane
Street
Group
/
JSG
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/15/29
......................................
United
States
5,700,000
4,910,008
Chemicals
3.7%
d,f
Anagram
International,
Inc.
/
Anagram
Holdings
LLC
,
Secured
Note
,
144A,
PIK,
10
%
,
8/15/26
..............................
United
States
1,706,906
1,664,924
f
ASP
Unifrax
Holdings,
Inc.
,
Senior
Note,
144A,
7.5%,
9/30/29
.......................
United
States
4,200,000
2,780,253
Senior
Secured
Note,
144A,
5.25%,
9/30/28
...............
United
States
5,500,000
4,236,347
f
Axalta
Coating
Systems
LLC
,
Senior
Note
,
144A,
3.375
%
,
2/15/29
United
States
3,600,000
2,827,728
f
Braskem
Idesa
SAPI
,
Senior
Secured
Bond
,
144A,
6.99
%
,
2/20/32
Mexico
4,100,000
2,747,000
f
Consolidated
Energy
Finance
SA
,
Senior
Note
,
144A,
5.625
%
,
10/15/28
..........................................
Switzerland
12,700,000
10,216,251
f
CVR
Partners
LP
/
CVR
Nitrogen
Finance
Corp.
,
Senior
Secured
Note
,
144A,
6.125
%
,
6/15/28
...........................
United
States
6,300,000
5,494,553
f
Diamond
BC
BV
,
Senior
Note
,
144A,
4.625
%
,
10/01/29
.........
United
States
4,100,000
2,860,980
f
Element
Solutions,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/01/28
.....
United
States
13,500,000
10,898,348
f
GPD
Cos.,
Inc.
,
Senior
Secured
Note
,
144A,
10.125
%
,
4/01/26
...
United
States
19,500,000
17,795,439
f
Ingevity
Corp.
,
Senior
Note
,
144A,
3.875
%
,
11/01/28
...........
United
States
9,000,000
7,453,260
d,f
Kobe
US
Midco
2,
Inc.
,
Senior
Note
,
144A,
PIK,
9.25
%
,
11/01/26
..
United
States
4,800,000
3,816,000
f
Rain
CII
Carbon
LLC
/
CII
Carbon
Corp.
,
Secured
Note
,
144A,
7.25
%
,
4/01/25
.....................................
United
States
10,800,000
9,511,112
f
Vibrantz
Technologies,
Inc.
,
Senior
Note
,
144A,
9
%
,
2/15/30
.....
United
States
11,800,000
7,703,949
90,006,144
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
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)
Commercial
Services
&
Supplies
1.8%
f
Allied
Universal
Holdco
LLC
/
Allied
Universal
Finance
Corp.
/
Atlas
LuxCo
4
SARL
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/01/28
..
United
States
2,600,000
$
1,966,783
f
APX
Group,
Inc.
,
Senior
Note
,
144A,
5.75
%
,
7/15/29
...........
United
States
15,300,000
12,128,922
f
Nielsen
Finance
LLC
/
Nielsen
Finance
Co.
,
Senior
Bond,
144A,
4.75%,
7/15/31
......................
United
States
4,100,000
4,025,462
Senior
Note,
144A,
4.5%,
7/15/29
.......................
United
States
17,600,000
17,566,561
f
Prime
Security
Services
Borrower
LLC
/
Prime
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
3.375
%
,
8/31/27
....................
United
States
11,100,000
9,349,419
45,037,147
Communications
Equipment
0.4%
f
CommScope
Technologies
LLC
,
Senior
Note
,
144A,
6
%
,
6/15/25
..
United
States
1,635,000
1,455,035
f
CommScope
,
Inc.
,
Senior
Note
,
144A,
7.125
%
,
7/01/28
.........
United
States
11,700,000
9,056,973
10,512,008
Construction
&
Engineering
0.5%
f
Arcosa
,
Inc.
,
Senior
Note
,
144A,
4.375
%
,
4/15/29
.............
United
States
5,400,000
4,598,397
f
VM
Consolidated,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
4/15/29
.......
United
States
8,800,000
7,582,863
12,181,260
Consumer
Finance
1.4%
OneMain
Finance
Corp.
,
Senior
Bond,
5.375%,
11/15/29
.........................
United
States
7,600,000
5,902,350
Senior
Note,
6.625%,
1/15/28
..........................
United
States
10,400,000
8,947,276
f
PRA
Group,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
............
United
States
5,000,000
4,061,085
f
PROG
Holdings,
Inc.
,
Senior
Note
,
144A,
6
%
,
11/15/29
.........
United
States
18,600,000
14,904,180
33,814,891
Containers
&
Packaging
4.4%
f
Ardagh
Packaging
Finance
plc
/
Ardagh
Holdings
USA,
Inc.
,
Senior
Note,
144A,
5.25%,
8/15/27
......................
United
States
8,100,000
5,085,707
Senior
Secured
Note,
144A,
5.25%,
4/30/25
...............
United
States
11,400,000
10,679,748
f
Mauser
Packaging
Solutions
Holding
Co.
,
Senior
Note,
144A,
7.25%,
4/15/25
......................
United
States
30,000,000
26,432,550
Senior
Secured
Note,
144A,
8.5%,
4/15/24
................
United
States
10,500,000
10,027,500
f
OI
European
Group
BV
,
Senior
Note
,
144A,
4.75
%
,
2/15/30
......
United
States
9,800,000
7,814,177
f
Owens-Brockway
Glass
Container,
Inc.
,
Senior
Note,
144A,
5.875%,
8/15/23
.....................
United
States
2,680,000
2,649,180
Senior
Note,
144A,
6.625%,
5/13/27
.....................
United
States
4,961,000
4,505,134
f
Pactiv
Evergreen
Group
Issuer
LLC
/
Pactiv
Evergreen
Group
Issuer,
Inc.
,
Senior
Secured
Note
,
144A,
4.375
%
,
10/15/28
..........
United
States
2,800,000
2,320,696
f
Pactiv
Evergreen
Group
Issuer,
Inc./Pactiv
Evergreen
Group
Issuer
LLC
,
Senior
Secured
Note
,
144A,
4
%
,
10/15/27
.............
United
States
22,800,000
19,161,063
f
Sealed
Air
Corp.
,
Senior
Note
,
144A,
4
%
,
12/01/27
............
United
States
13,200,000
11,451,000
f
Trivium
Packaging
Finance
BV
,
Senior
Note,
144A,
8.5%,
8/15/27
.......................
Netherlands
2,100,000
1,858,263
Senior
Secured
Note,
144A,
5.5%,
8/15/26
................
Netherlands
5,600,000
5,015,860
107,000,878
Diversified
Consumer
Services
0.5%
Grand
Canyon
University
,
5.125
%
,
10/01/28
.................
United
States
14,300,000
12,973,389
Diversified
Financial
Services
1.7%
f
Jefferson
Capital
Holdings
LLC
,
Senior
Note
,
144A,
6
%
,
8/15/26
..
United
States
17,600,000
14,755,048
f
MPH
Acquisition
Holdings
LLC
,
Senior
Note
,
144A,
5.75
%
,
11/01/28
United
States
31,400,000
23,644,514
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
19
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Diversified
Financial
Services
(continued)
f
Oxford
Finance
LLC
/
Oxford
Finance
Co-Issuer
II,
Inc.
,
Senior
Note
,
144A,
6.375
%
,
2/01/27
................................
United
States
3,400,000
$
3,188,163
41,587,725
Diversified
Telecommunication
Services
4.0%
f
Altice
France
Holding
SA
,
Senior
Note,
144A,
6%,
2/15/28
........................
Luxembourg
8,100,000
5,155,062
Senior
Secured
Note,
144A,
10.5%,
5/15/27
...............
Luxembourg
22,400,000
17,596,219
f
Altice
France
SA
,
Senior
Secured
Note
,
144A,
5.5
%
,
1/15/28
....
France
7,500,000
5,950,838
f
CCO
Holdings
LLC
/
CCO
Holdings
Capital
Corp.
,
Senior
Bond,
144A,
5.5%,
5/01/26
.......................
United
States
2,400,000
2,277,492
Senior
Bond,
144A,
5%,
2/01/28
........................
United
States
3,000,000
2,591,895
Senior
Bond,
144A,
5.375%,
6/01/29
.....................
United
States
10,900,000
9,564,750
Senior
Bond,
144A,
4.5%,
8/15/30
.......................
United
States
10,500,000
8,329,702
Senior
Bond,
144A,
4.25%,
2/01/31
......................
United
States
3,400,000
2,613,716
Senior
Note,
144A,
6.375%,
9/01/29
.....................
United
States
8,000,000
7,359,520
f
DKT
Finance
ApS
,
Senior
Secured
Note
,
144A,
9.375
%
,
6/17/23
..
Denmark
10,400,000
10,072,400
f
Iliad
Holding
SASU
,
Senior
Secured
Note,
144A,
6.5%,
10/15/26
...............
France
5,200,000
4,555,486
Senior
Secured
Note,
144A,
7%,
10/15/28
.................
France
10,400,000
8,926,944
f
Virgin
Media
Secured
Finance
plc
,
Senior
Secured
Bond
,
144A,
4.5
%
,
8/15/30
......................................
United
Kingdom
18,500,000
14,471,077
99,465,101
Electric
Utilities
1.0%
f
Vistra
Operations
Co.
LLC
,
Senior
Note,
144A,
5.625%,
2/15/27
.....................
United
States
21,300,000
19,985,470
Senior
Secured
Note,
144A,
3.7%,
1/30/27
................
United
States
5,700,000
5,055,807
25,041,277
Electrical
Equipment
1.1%
f
Sensata
Technologies
BV
,
Senior
Note
,
144A,
4
%
,
4/15/29
......
United
States
16,500,000
13,689,961
f
Vertiv
Group
Corp.
,
Senior
Secured
Note
,
144A,
4.125
%
,
11/15/28
United
States
16,400,000
13,226,846
26,916,807
Electronic
Equipment,
Instruments
&
Components
0.3%
f
TTM
Technologies,
Inc.
,
Senior
Note
,
144A,
4
%
,
3/01/29
........
United
States
9,300,000
7,508,820
Energy
Equipment
&
Services
2.5%
f
CSI
Compressco
LP
/
CSI
Compressco
Finance,
Inc.
,
d
Secured
Note,
144A,
PIK,
10%,
4/01/26
..................
United
States
17,833,800
15,598,174
Senior
Secured
Note,
144A,
7.5%,
4/01/25
................
United
States
7,501,000
6,552,536
f
Nabors
Industries
Ltd.
,
Senior
Note
,
144A,
7.25
%
,
1/15/26
......
United
States
9,900,000
8,633,335
f
Nabors
Industries,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
5/15/27
.....
United
States
10,300,000
9,527,500
f
Weatherford
International
Ltd.
,
Senior
Note,
144A,
11%,
12/01/24
.......................
United
States
706,000
719,393
Senior
Note,
144A,
8.625%,
4/30/30
.....................
United
States
14,100,000
12,311,398
Senior
Secured
Note,
144A,
6.5%,
9/15/28
................
United
States
8,600,000
7,752,040
61,094,376
Entertainment
1.6%
f
Banijay
Entertainment
SASU
,
Senior
Secured
Note
,
144A,
5.375
%
,
3/01/25
...........................................
France
21,900,000
20,631,990
Netflix,
Inc.
,
Senior
Bond,
4.375%,
11/15/26
.........................
United
States
10,200,000
9,645,579
f
Senior
Bond,
144A,
5.375%,
11/15/29
....................
United
States
3,600,000
3,391,686
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
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)
Entertainment
(continued)
Netflix,
Inc.,
(continued)
f
Senior
Note,
144A,
3.625%,
6/15/25
.....................
United
States
7,300,000
$
6,906,123
40,575,378
Equity
Real
Estate
Investment
Trusts
(REITs)
3.2%
f
Global
Net
Lease,
Inc.
/
Global
Net
Lease
Operating
Partnership
LP
,
Senior
Note
,
144A,
3.75
%
,
12/15/27
......................
United
States
15,900,000
12,424,019
f
HAT
Holdings
I
LLC
/
HAT
Holdings
II
LLC
,
Senior
Note
,
144A,
6
%
,
4/15/25
...........................................
United
States
4,900,000
4,620,185
MPT
Operating
Partnership
LP
/
MPT
Finance
Corp.
,
Senior
Bond,
5.25%,
8/01/26
...........................
United
States
14,400,000
13,202,815
Senior
Bond,
3.5%,
3/15/31
............................
United
States
16,200,000
11,313,351
f
Necessity
Retail
REIT,
Inc.
(The)
/
American
Finance
Operating
Partner
LP
,
Senior
Note
,
144A,
4.5
%
,
9/30/28
...............
United
States
10,200,000
7,623,990
f
RHP
Hotel
Properties
LP
/
RHP
Finance
Corp.
,
Senior
Note
,
144A,
4.5
%
,
2/15/29
......................................
United
States
10,000,000
8,309,361
SBA
Communications
Corp.
,
Senior
Note
,
3.875
%
,
2/15/27
......
United
States
3,200,000
2,843,056
f
VICI
Properties
LP
/
VICI
Note
Co.,
Inc.
,
Senior
Note,
144A,
3.75%,
2/15/27
......................
United
States
8,000,000
7,023,440
Senior
Note,
144A,
3.875%,
2/15/29
.....................
United
States
7,000,000
5,887,034
f
XHR
LP
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/01/29
.........
United
States
7,300,000
6,033,596
79,280,847
Food
Products
1.1%
B&G
Foods,
Inc.
,
Senior
Note,
5.25%,
4/01/25
...........................
United
States
9,100,000
7,928,238
Senior
Note,
5.25%,
9/15/27
...........................
United
States
6,800,000
5,522,994
f
Darling
Ingredients,
Inc.
,
Senior
Note
,
144A,
6
%
,
6/15/30
.......
United
States
3,200,000
3,052,704
f
Pilgrim's
Pride
Corp.
,
Senior
Bond
,
144A,
3.5
%
,
3/01/32
........
United
States
3,600,000
2,718,720
f
Post
Holdings,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
12/15/29
........
United
States
8,600,000
7,447,791
26,670,447
Health
Care
Equipment
&
Supplies
1.0%
f
Garden
Spinco
Corp.
,
Senior
Note
,
144A,
8.625
%
,
7/20/30
......
United
States
9,000,000
9,317,835
f
Medline
Borrower
LP
,
Senior
Note,
144A,
5.25%,
10/01/29
.....................
United
States
10,300,000
7,796,379
Senior
Secured
Note,
144A,
3.875%,
4/01/29
..............
United
States
8,200,000
6,587,429
23,701,643
Health
Care
Providers
&
Services
4.6%
Centene
Corp.
,
Senior
Bond,
2.5%,
3/01/31
............................
United
States
15,000,000
11,338,675
Senior
Note,
4.25%,
12/15/27
..........................
United
States
12,700,000
11,643,677
Senior
Note,
4.625%,
12/15/29
.........................
United
States
4,300,000
3,874,063
Senior
Note,
2.625%,
8/01/31
..........................
United
States
1,400,000
1,058,020
f
CHS/Community
Health
Systems,
Inc.
,
Secured
Note,
144A,
6.125%,
4/01/30
....................
United
States
6,800,000
3,221,500
Senior
Secured
Note,
144A,
8%,
3/15/26
..................
United
States
5,000,000
4,337,287
Senior
Secured
Note,
144A,
5.625%,
3/15/27
..............
United
States
5,900,000
4,550,198
Senior
Secured
Note,
144A,
8%,
12/15/27
.................
United
States
1,200,000
952,158
Senior
Secured
Note,
144A,
6%,
1/15/29
..................
United
States
6,000,000
4,423,480
Senior
Secured
Note,
144A,
5.25%,
5/15/30
...............
United
States
6,500,000
4,540,412
f
DaVita,
Inc.
,
Senior
Note
,
144A,
4.625
%
,
6/01/30
.............
United
States
16,700,000
12,962,624
HCA,
Inc.
,
Senior
Note
,
5.375
%
,
9/01/26
....................
United
States
4,600,000
4,462,602
f
ModivCare
Escrow
Issuer,
Inc.
,
Senior
Note
,
144A,
5
%
,
10/01/29
.
United
States
8,500,000
6,923,037
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
21
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Health
Care
Providers
&
Services
(continued)
f
Tenet
Healthcare
Corp.
,
Secured
Note,
144A,
6.25%,
2/01/27
.....................
United
States
14,500,000
$
13,564,533
Senior
Secured
Note,
144A,
4.875%,
1/01/26
..............
United
States
5,000,000
4,652,975
Senior
Secured
Note,
144A,
4.25%,
6/01/29
...............
United
States
8,500,000
7,050,282
Senior
Secured
Note,
144A,
6.125%,
6/15/30
..............
United
States
14,600,000
13,411,925
112,967,448
Hotels,
Restaurants
&
Leisure
6.8%
f
1011778
BC
ULC
/
New
Red
Finance,
Inc.
,
Secured
Bond
,
144A,
4
%
,
10/15/30
.......................................
Canada
12,700,000
10,031,476
b,f,g
24
Hour
Fitness
Worldwide,
Inc.
,
Senior
Note
,
144A,
8
%
,
6/01/22
.
United
States
23,000,000
6,900
f
Boyne
USA,
Inc.
,
Senior
Note
,
144A,
4.75
%
,
5/15/29
...........
United
States
8,600,000
7,216,771
f
Caesars
Entertainment,
Inc.
,
Senior
Secured
Note
,
144A,
6.25
%
,
7/01/25
...........................................
United
States
15,600,000
15,060,552
f
Caesars
Resort
Collection
LLC
/
CRC
Finco
,
Inc.
,
Senior
Secured
Note
,
144A,
5.75
%
,
7/01/25
............................
United
States
7,000,000
6,763,400
f
Carnival
Corp.
,
Senior
Note,
144A,
7.625%,
3/01/26
.....................
United
States
7,300,000
5,559,059
Senior
Note,
144A,
5.75%,
3/01/27
......................
United
States
24,000,000
16,866,600
f
Fertitta
Entertainment
LLC
/
Fertitta
Entertainment
Finance
Co.,
Inc.
,
Senior
Note
,
144A,
6.75
%
,
1/15/30
.......................
United
States
10,600,000
8,075,928
f
International
Game
Technology
plc
,
Senior
Secured
Note
,
144A,
4.125
%
,
4/15/26
.....................................
United
States
3,800,000
3,478,007
f
Motion
Bondco
DAC
,
Senior
Note
,
144A,
6.625
%
,
11/15/27
......
United
Kingdom
4,400,000
3,732,058
f
NCL
Corp.
Ltd.
,
Senior
Note
,
144A,
5.875
%
,
3/15/26
...........
United
States
5,700,000
4,345,110
f
Papa
John's
International,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
9/15/29
United
States
6,000,000
4,802,452
f
Premier
Entertainment
Sub
LLC
/
Premier
Entertainment
Finance
Corp.
,
Senior
Bond,
144A,
5.875%,
9/01/31
.....................
United
States
9,000,000
6,086,835
Senior
Note,
144A,
5.625%,
9/01/29
.....................
United
States
10,000,000
6,936,200
f
Royal
Caribbean
Cruises
Ltd.
,
Senior
Note,
144A,
5.5%,
8/31/26
.......................
United
States
11,200,000
8,582,336
Senior
Note,
144A,
5.375%,
7/15/27
.....................
United
States
5,800,000
4,274,426
Senior
Note,
144A,
11.625%,
8/15/27
....................
United
States
13,900,000
12,675,062
f
Six
Flags
Theme
Parks,
Inc.
,
Senior
Secured
Note
,
144A,
7
%
,
7/01/25
...........................................
United
States
3,678,000
3,681,968
f
Station
Casinos
LLC
,
Senior
Note
,
144A,
4.5
%
,
2/15/28
........
United
States
9,800,000
8,058,362
f
Studio
City
Finance
Ltd.
,
Senior
Note
,
144A,
5
%
,
1/15/29
.......
Macau
21,500,000
9,584,554
f
Wynn
Macau
Ltd.
,
Senior
Note
,
144A,
5.625
%
,
8/26/28
.........
Macau
8,700,000
5,812,122
f
Wynn
Resorts
Finance
LLC
/
Wynn
Resorts
Capital
Corp.
,
Senior
Note
,
144A,
7.75
%
,
4/15/25
............................
United
States
15,200,000
14,864,191
166,494,369
Household
Durables
1.3%
f
Ashton
Woods
USA
LLC
/
Ashton
Woods
Finance
Co.
,
Senior
Note,
144A,
4.625%,
8/01/29
.....................
United
States
13,000,000
9,464,616
Senior
Note,
144A,
4.625%,
4/01/30
.....................
United
States
8,000,000
5,745,160
KB
Home
,
Senior
Note
,
7.25
%
,
7/15/30
.....................
United
States
9,000,000
8,178,750
M/I
Homes,
Inc.
,
Senior
Note
,
3.95
%
,
2/15/30
................
United
States
12,600,000
9,231,075
32,619,601
Independent
Power
and
Renewable
Electricity
Producers
3.6%
f
Calpine
Corp.
,
Senior
Note,
144A,
5.125%,
3/15/28
.....................
United
States
12,900,000
11,106,146
Senior
Secured
Note,
144A,
4.5%,
2/15/28
................
United
States
12,200,000
10,774,796
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
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)
Independent
Power
and
Renewable
Electricity
Producers
(continued)
f
Clearway
Energy
Operating
LLC
,
Senior
Bond,
144A,
3.75%,
1/15/32
......................
United
States
8,800,000
$
6,837,424
Senior
Note,
144A,
4.75%,
3/15/28
......................
United
States
10,000,000
8,919,157
Senior
Note,
144A,
3.75%,
2/15/31
......................
United
States
7,000,000
5,568,343
f
InterGen
NV
,
Senior
Secured
Bond
,
144A,
7
%
,
6/30/23
.........
Netherlands
24,800,000
24,142,800
g
Talen
Energy
Supply
LLC
,
Senior
Note
,
6.5
%
,
6/01/25
..........
United
States
24,950,000
20,065,940
87,414,606
Insurance
0.3%
f
Alliant
Holdings
Intermediate
LLC
/
Alliant
Holdings
Co-Issuer
,
Senior
Note
,
144A,
6.75
%
,
10/15/27
...........................
United
States
6,900,000
5,961,248
CNO
Financial
Group,
Inc.
,
Senior
Note
,
5.25
%
,
5/30/29
........
United
States
2,100,000
1,959,737
7,920,985
Interactive
Media
&
Services
0.2%
f
ZipRecruiter,
Inc.
,
Senior
Note
,
144A,
5
%
,
1/15/30
.............
United
States
7,400,000
5,989,930
Internet
&
Direct
Marketing
Retail
0.5%
f
Match
Group
Holdings
II
LLC
,
Senior
Note,
144A,
4.625%,
6/01/28
.....................
United
States
10,400,000
9,109,100
Senior
Note,
144A,
3.625%,
10/01/31
....................
United
States
3,300,000
2,496,202
11,605,302
IT
Services
2.2%
f
Cablevision
Lightpath
LLC
,
Senior
Secured
Note
,
144A,
3.875
%
,
9/15/27
...........................................
United
States
8,500,000
7,119,785
f
Cogent
Communications
Group,
Inc.
,
Senior
Note,
144A,
7%,
6/15/27
........................
United
States
10,000,000
9,417,012
Senior
Secured
Note,
144A,
3.5%,
5/01/26
................
United
States
7,200,000
6,351,897
f
Gartner,
Inc.
,
Senior
Note,
144A,
4.5%,
7/01/28
.......................
United
States
9,300,000
8,329,126
Senior
Note,
144A,
3.625%,
6/15/29
.....................
United
States
4,400,000
3,672,482
Senior
Note,
144A,
3.75%,
10/01/30
.....................
United
States
6,000,000
4,924,499
f
Northwest
Fiber
LLC
/
Northwest
Fiber
Finance
Sub,
Inc.
,
Senior
Note
,
144A,
6
%
,
2/15/28
..............................
United
States
4,500,000
3,496,963
f
Presidio
Holdings,
Inc.
,
Senior
Note,
144A,
8.25%,
2/01/28
......................
United
States
3,700,000
3,195,822
Senior
Secured
Note,
144A,
4.875%,
2/01/27
..............
United
States
7,500,000
6,641,475
53,149,061
Life
Sciences
Tools
&
Services
0.1%
f
Charles
River
Laboratories
International,
Inc.
,
Senior
Note
,
144A,
3.75
%
,
3/15/29
.....................................
United
States
2,400,000
1,999,536
Machinery
0.6%
f
Manitowoc
Co.,
Inc.
(The)
,
Secured
Note
,
144A,
9
%
,
4/01/26
....
United
States
17,100,000
15,584,684
Media
5.3%
f
Clear
Channel
International
BV
,
Senior
Secured
Note
,
144A,
6.625
%
,
8/01/25
.....................................
United
Kingdom
3,000,000
2,791,166
f
Clear
Channel
Outdoor
Holdings,
Inc.
,
Senior
Note,
144A,
7.75%,
4/15/28
......................
United
States
5,700,000
4,313,219
Senior
Note,
144A,
7.5%,
6/01/29
.......................
United
States
7,800,000
5,667,363
Senior
Secured
Note,
144A,
5.125%,
8/15/27
..............
United
States
7,600,000
6,432,466
CSC
Holdings
LLC
,
Senior
Bond
,
5.25
%
,
6/01/24
.............
United
States
21,000,000
19,453,980
f
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.
,
Secured
Note,
144A,
5.375%,
8/15/26
....................
United
States
13,300,000
2,663,990
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
23
a
a
Country
Principal
Amount
*
a
Value
a
a
a
a
a
Corporate
Bonds
(continued)
Media
(continued)
f
Diamond
Sports
Group
LLC
/
Diamond
Sports
Finance
Co.,
(continued)
Senior
Note,
144A,
6.625%,
8/15/27
.....................
United
States
11,300,000
$
833,375
f
Directv
Financing
LLC
/
Directv
Financing
Co-Obligor,
Inc.
,
Senior
Secured
Note
,
144A,
5.875
%
,
8/15/27
....................
United
States
10,400,000
8,989,500
DISH
DBS
Corp.
,
Senior
Note,
5.875%,
11/15/24
.........................
United
States
9,700,000
8,670,976
f
Senior
Secured
Note,
144A,
5.75%,
12/01/28
..............
United
States
10,000,000
7,576,150
f
LCPR
Senior
Secured
Financing
DAC
,
Senior
Secured
Note
,
144A,
6.75
%
,
10/15/27
.....................................
United
States
8,990,000
7,474,061
f
News
Corp.
,
Senior
Note
,
144A,
3.875
%
,
5/15/29
.............
United
States
4,400,000
3,744,158
f
Outfront
Media
Capital
LLC
/
Outfront
Media
Capital
Corp.
,
Senior
Note
,
144A,
4.25
%
,
1/15/29
............................
United
States
8,000,000
6,294,720
f
Sinclair
Television
Group,
Inc.
,
Senior
Bond
,
144A,
5.5
%
,
3/01/30
.
United
States
13,500,000
9,732,079
f
Sirius
XM
Radio,
Inc.
,
Senior
Note
,
144A,
4
%
,
7/15/28
.........
United
States
12,600,000
10,743,894
f
Univision
Communications,
Inc.
,
Senior
Secured
Note,
144A,
5.125%,
2/15/25
..............
United
States
13,500,000
12,837,083
Senior
Secured
Note,
144A,
4.5%,
5/01/29
................
United
States
7,900,000
6,460,106
Senior
Secured
Note,
144A,
7.375%,
6/30/30
..............
United
States
5,000,000
4,782,750
129,461,036
Metals
&
Mining
1.5%
f
Constellium
SE
,
Senior
Note
,
144A,
3.75
%
,
4/15/29
...........
United
States
16,000,000
11,702,096
f
FMG
Resources
August
2006
Pty.
Ltd.
,
Senior
Bond
,
144A,
4.375
%
,
4/01/31
...........................................
Australia
9,500,000
7,315,076
f
Novelis
Corp.
,
Senior
Bond,
144A,
4.75%,
1/30/30
......................
United
States
7,700,000
6,333,481
Senior
Bond,
144A,
3.875%,
8/15/31
.....................
United
States
2,200,000
1,645,710
Senior
Note,
144A,
3.25%,
11/15/26
.....................
United
States
1,600,000
1,337,592
f
SunCoke
Energy,
Inc.
,
Senior
Secured
Note
,
144A,
4.875
%
,
6/30/29
United
States
12,600,000
9,743,643
38,077,598
Mortgage
Real
Estate
Investment
Trusts
(REITs)
0.6%
f
Apollo
Commercial
Real
Estate
Finance,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
6/15/29
................................
United
States
20,700,000
15,634,710
Oil,
Gas
&
Consumable
Fuels
13.3%
f
Antero
Resources
Corp.
,
Senior
Note,
144A,
7.625%,
2/01/29
.....................
United
States
4,422,000
4,423,437
Senior
Note,
144A,
5.375%,
3/01/30
.....................
United
States
4,300,000
3,875,569
f
Calumet
Specialty
Products
Partners
LP
/
Calumet
Finance
Corp.
,
Senior
Note
,
144A,
8.125
%
,
1/15/27
......................
United
States
17,000,000
15,698,480
Cheniere
Energy
Partners
LP
,
Senior
Note,
4.5%,
10/01/29
...........................
United
States
12,000,000
10,592,340
Senior
Note,
4%,
3/01/31
.............................
United
States
28,000,000
23,533,720
Cheniere
Energy,
Inc.
,
Senior
Note
,
4.625
%
,
10/15/28
..........
United
States
9,300,000
8,553,071
f
Chesapeake
Energy
Corp.
,
Senior
Note,
144A,
5.5%,
2/01/26
.......................
United
States
2,000,000
1,917,530
Senior
Note,
144A,
6.75%,
4/15/29
......................
United
States
13,300,000
12,777,642
Crestwood
Midstream
Partners
LP
/
Crestwood
Midstream
Finance
Corp.
,
Senior
Note,
5.75%,
4/01/25
...........................
United
States
14,000,000
13,302,520
f
Senior
Note,
144A,
6%,
2/01/29
........................
United
States
13,700,000
12,280,132
f
Senior
Note,
144A,
8%,
4/01/29
........................
United
States
6,000,000
5,787,480
f
CrownRock
LP
/
CrownRock
Finance,
Inc.
,
Senior
Note
,
144A,
5
%
,
5/01/29
...........................................
United
States
5,100,000
4,512,727
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
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)
f
DT
Midstream,
Inc.
,
Senior
Bond,
144A,
4.375%,
6/15/31
.....................
United
States
3,900,000
$
3,222,433
Senior
Note,
144A,
4.125%,
6/15/29
.....................
United
States
10,800,000
9,149,382
f
Earthstone
Energy
Holdings
LLC
,
Senior
Note
,
144A,
8
%
,
4/15/27
.
United
States
6,500,000
6,139,250
f
Endeavor
Energy
Resources
LP
/
EER
Finance,
Inc.
,
Senior
Bond
,
144A,
5.75
%
,
1/30/28
.................................
United
States
19,100,000
18,209,081
EnLink
Midstream
LLC
,
Senior
Bond,
5.375%,
6/01/29
..........................
United
States
2,100,000
1,926,015
f
Senior
Note,
144A,
5.625%,
1/15/28
.....................
United
States
4,400,000
4,120,864
f
Senior
Note,
144A,
6.5%,
9/01/30
.......................
United
States
12,200,000
11,941,848
f
EQM
Midstream
Partners
LP
,
Senior
Note
,
144A,
7.5
%
,
6/01/27
..
United
States
1,900,000
1,814,063
f
EQT
Corp.
,
Senior
Note
,
144A,
3.125
%
,
5/15/26
..............
United
States
2,500,000
2,279,665
f
Harbour
Energy
plc
,
Senior
Note
,
144A,
5.5
%
,
10/15/26
........
United
Kingdom
14,800,000
13,278,856
f
Hilcorp
Energy
I
LP
/
Hilcorp
Finance
Co.
,
Senior
Bond,
144A,
6%,
2/01/31
........................
United
States
5,000,000
4,350,682
Senior
Bond,
144A,
6.25%,
4/15/32
......................
United
States
4,300,000
3,815,261
Senior
Note,
144A,
5.75%,
2/01/29
......................
United
States
7,600,000
6,659,919
Senior
Note,
144A,
6%,
4/15/30
........................
United
States
4,000,000
3,495,046
f
Kinetik
Holdings
LP
,
Senior
Note
,
144A,
5.875
%
,
6/15/30
........
United
States
12,200,000
11,196,721
f
Martin
Midstream
Partners
LP
/
Martin
Midstream
Finance
Corp.
,
Secured
Note,
144A,
10%,
2/29/24
......................
United
States
3,522,014
3,541,191
Secured
Note,
144A,
11.5%,
2/28/25
.....................
United
States
28,805,087
28,159,997
d,f,g
Murray
Energy
Corp.
,
Secured
Note
,
144A,
PIK,
12
%
,
4/15/24
...
United
States
18,564,500
94,679
Occidental
Petroleum
Corp.
,
Senior
Bond,
6.45%,
9/15/36
...........................
United
States
15,200,000
15,237,392
Senior
Note,
8.875%,
7/15/30
..........................
United
States
17,500,000
19,522,475
Sunoco
LP
/
Sunoco
Finance
Corp.
,
Senior
Note,
6%,
4/15/27
.............................
United
States
12,600,000
12,033,189
Senior
Note,
4.5%,
5/15/29
............................
United
States
4,600,000
3,824,164
Senior
Note,
4.5%,
4/30/30
............................
United
States
10,000,000
8,189,600
f
Venture
Global
Calcasieu
Pass
LLC
,
Senior
Secured
Bond,
144A,
4.125%,
8/15/31
..............
United
States
5,900,000
4,906,558
Senior
Secured
Note,
144A,
3.875%,
8/15/29
..............
United
States
5,900,000
5,072,938
f
Viper
Energy
Partners
LP
,
Senior
Note
,
144A,
5.375
%
,
11/01/27
..
United
States
8,200,000
7,571,646
327,007,563
Paper
&
Forest
Products
0.2%
f
Glatfelter
Corp.
,
Senior
Note
,
144A,
4.75
%
,
11/15/29
...........
United
States
8,200,000
4,731,236
Personal
Products
0.2%
f
Prestige
Brands,
Inc.
,
Senior
Note
,
144A,
5.125
%
,
1/15/28
......
United
States
5,300,000
4,779,113
Pharmaceuticals
2.8%
f
1375209
BC
Ltd.
,
Senior
Secured
Note
,
144A,
9
%
,
1/30/28
......
Canada
6,021,000
6,005,948
f
Bausch
Health
Cos.,
Inc.
,
Secured
Note,
144A,
14%,
10/15/30
.....................
United
States
2,114,000
1,162,700
Senior
Secured
Note,
144A,
6.125%,
2/01/27
..............
United
States
3,100,000
2,153,880
Senior
Secured
Note,
144A,
4.875%,
6/01/28
..............
United
States
9,800,000
6,334,524
Senior
Secured
Note,
144A,
11%,
9/30/28
.................
United
States
10,692,000
8,660,520
f,g
Endo
Dac
/
Endo
Finance
LLC
/
Endo
Finco
,
Inc.
,
Secured
Note,
144A,
9.5%,
7/31/27
......................
United
States
7,104,000
1,065,600
Senior
Note,
144A,
6%,
6/30/28
........................
United
States
4,473,000
257,197
f,g
Endo
Luxembourg
Finance
Co.
I
SARL
/
Endo
US,
Inc.
,
Senior
Secured
Note
,
144A,
6.125
%
,
4/01/29
....................
United
States
4,700,000
3,717,447
f
Organon
&
Co.
/
Organon
Foreign
Debt
Co-Issuer
BV
,
Senior
Secured
Note
,
144A,
4.125
%
,
4/30/28
....................
United
States
19,000,000
16,287,465
f,g
Par
Pharmaceutical,
Inc.
,
Senior
Secured
Note
,
144A,
7.5
%
,
4/01/27
United
States
4,273,000
3,385,835
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
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
,
Senior
Note,
7.125%,
1/31/25
..........................
Israel
9,300,000
$
9,067,919
Senior
Note,
4.75%,
5/09/27
...........................
Israel
10,600,000
9,015,936
Senior
Note,
5.125%,
5/09/29
..........................
Israel
900,000
744,628
67,859,599
Real
Estate
Management
&
Development
1.5%
f
Five
Point
Operating
Co.
LP
/
Five
Point
Capital
Corp.
,
Senior
Note
,
144A,
7.875
%
,
11/15/25
...............................
United
States
19,900,000
15,851,811
f
Forestar
Group,
Inc.
,
Senior
Note
,
144A,
3.85
%
,
5/15/26
........
United
States
11,000,000
9,071,876
f
Howard
Hughes
Corp.
(The)
,
Senior
Note,
144A,
5.375%,
8/01/28
.....................
United
States
9,200,000
7,648,466
Senior
Note,
144A,
4.125%,
2/01/29
.....................
United
States
5,700,000
4,415,932
36,988,085
Road
&
Rail
0.8%
f
First
Student
Bidco
,
Inc.
/
First
Transit
Parent,
Inc.
,
Senior
Secured
Note
,
144A,
4
%
,
7/31/29
..............................
United
States
17,600,000
14,296,150
f
Williams
Scotsman
International,
Inc.
,
Senior
Secured
Note
,
144A,
4.625
%
,
8/15/28
.....................................
United
States
5,000,000
4,384,100
18,680,250
Software
1.4%
f
Camelot
Finance
SA
,
Senior
Secured
Note
,
144A,
4.5
%
,
11/01/26
.
United
States
14,600,000
13,229,060
f
Condor
Merger
Sub,
Inc.
,
Senior
Note
,
144A,
7.375
%
,
2/15/30
...
United
States
9,400,000
7,703,018
f
Rocket
Software,
Inc.
,
Senior
Note
,
144A,
6.5
%
,
2/15/29
........
United
States
18,500,000
13,727,740
34,659,818
Specialty
Retail
2.0%
f
Bath
&
Body
Works,
Inc.
,
Senior
Note
,
144A,
6.625
%
,
10/01/30
...
United
States
8,700,000
7,584,181
f
Gap,
Inc.
(The)
,
Senior
Note
,
144A,
3.625
%
,
10/01/29
..........
United
States
12,800,000
8,340,288
f
Lithia
Motors,
Inc.
,
Senior
Bond,
144A,
4.375%,
1/15/31
.....................
United
States
8,600,000
7,053,505
Senior
Note,
144A,
4.625%,
12/15/27
....................
United
States
8,600,000
7,482,878
Senior
Note,
144A,
3.875%,
6/01/29
.....................
United
States
1,500,000
1,206,248
f
Michaels
Cos.,
Inc.
(The)
,
Senior
Note,
144A,
7.875%,
5/01/29
.....................
United
States
15,600,000
9,030,138
Senior
Secured
Note,
144A,
5.25%,
5/01/28
...............
United
States
4,200,000
2,957,283
h
Party
City
Holdings,
Inc.
,
Senior
Secured
Note
,
FRN
,
5.75
%
,
(
6-month
USD
LIBOR
+
5
%
),
7/15/25
.....................
United
States
1,851,810
1,082,179
f
Victoria's
Secret
&
Co.
,
Senior
Note
,
144A,
4.625
%
,
7/15/29
.....
United
States
5,300,000
4,012,800
48,749,500
Textiles,
Apparel
&
Luxury
Goods
0.2%
f
Kontoor
Brands,
Inc.
,
Senior
Note
,
144A,
4.125
%
,
11/15/29
......
United
States
6,300,000
5,029,160
Thrifts
&
Mortgage
Finance
1.3%
f
Ladder
Capital
Finance
Holdings
LLLP
/
Ladder
Capital
Finance
Corp.
,
Senior
Note
,
144A,
4.75
%
,
6/15/29
.................
United
States
5,700,000
4,276,710
MGIC
Investment
Corp.
,
Senior
Note
,
5.25
%
,
8/15/28
..........
United
States
8,400,000
7,521,654
Radian
Group,
Inc.
,
Senior
Note
,
6.625
%
,
3/15/25
.............
United
States
14,900,000
14,541,506
f
United
Wholesale
Mortgage
LLC
,
Senior
Note
,
144A,
5.5
%
,
11/15/25
United
States
7,100,000
6,203,270
32,543,140
Trading
Companies
&
Distributors
1.3%
f
Ahern
Rentals,
Inc.
,
Secured
Note
,
144A,
7.375
%
,
5/15/23
......
United
States
13,500,000
9,161,750
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
Annual
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)
Trading
Companies
&
Distributors
(continued)
f
H&E
Equipment
Services,
Inc.
,
Senior
Note
,
144A,
3.875
%
,
12/15/28
United
States
10,900,000
$
8,579,445
f
Herc
Holdings,
Inc.
,
Senior
Note
,
144A,
5.5
%
,
7/15/27
..........
United
States
11,800,000
10,643,777
f
WESCO
Distribution,
Inc.
,
Senior
Note
,
144A,
7.25
%
,
6/15/28
....
United
States
4,600,000
4,515,297
32,900,269
Wireless
Telecommunication
Services
0.9%
Hughes
Satellite
Systems
Corp.
,
Senior
Note
,
6.625
%
,
8/01/26
...
United
States
2,950,000
2,681,673
T-Mobile
USA,
Inc.
,
Senior
Bond,
2.875%,
2/15/31
..........................
United
States
9,200,000
7,426,286
Senior
Bond,
3.5%,
4/15/31
............................
United
States
5,000,000
4,209,600
Senior
Note,
2.625%,
2/15/29
..........................
United
States
9,200,000
7,614,702
21,932,261
Total
Corporate
Bonds
(Cost
$2,741,083,101)
...................................
2,257,362,490
i
Senior
Floating
Rate
Interests
2.6%
j
Chemicals
1.1%
Hexion
Holdings
Corp.
,
First
Lien,
Initial
CME
Term
Loan,
7.413%,
(3-month
SOFR
+
4.5%),
3/15/29
......................................
United
States
8,678,250
7,445,938
Second
Lien,
Initial
CME
Term
Loan,
10.556%,
(1-month
SOFR
+
7.438%),
3/15/30
....................................
United
States
9,279,070
7,655,233
PMHC
II,
Inc.
,
Initial
CME
Term
Loan,
B
,
6.977
%
,
(
3-month
SOFR
+
4.25
%
),
4/23/29
.....................................
United
States
13,100,000
10,631,502
25,732,673
a
a
a
a
a
a
Health
Care
Technology
0.4%
j
athenahealth
Group,
Inc.
,
Initial
CME
Term
Loan
,
6.576
%
,
(
1-month
SOFR
+
3.5
%
),
2/15/29
...............................
United
States
11,173,446
10,039,341
Hotels,
Restaurants
&
Leisure
0.5%
j
Fertitta
Entertainment
LLC
,
Initial
CME
Term
Loan,
B
,
7.034
%
,
(
1-month
SOFR
+
4
%
),
1/27/29
.........................
United
States
13,034,500
12,128,863
j
Media
0.2%
Clear
Channel
Outdoor
Holdings,
Inc.
,
Term
Loan,
B
,
6.306
%
,
(
3-month
USD
LIBOR
+
3.5
%
),
8/21/26
...................
United
States
2,954,315
2,647,804
Diamond
Sports
Group
LLC
,
First
Lien,
CME
Term
Loan
,
10.695
%
,
(
1-month
SOFR
+
8
%
),
5/25/26
.........................
United
States
2,650,918
2,558,136
5,205,940
a
a
a
a
a
a
Software
0.4%
j
McAfee
Corp.
,
CME
Term
Loan,
B1
,
6.362
%
,
(
1-month
SOFR
+
3.75
%
),
3/01/29
.....................................
United
States
10,400,000
9,514,128
Total
Senior
Floating
Rate
Interests
(Cost
$70,361,859)
..........................
62,620,945
Shares
a
Escrows
and
Litigation
Trusts
0.2%
a,b
Alpha
Natural
Resources,
Inc.,
Escrow
Account
...............
United
States
25,000,000
—
a
Chesapeake
Energy
Corp.,
Escrow
Account
.................
United
States
13,700,000
325,375
a,f
Chesapeake
Energy
Corp.,
Escrow
Account,
144A
............
United
States
5,000,000
4,643,717
Total
Escrows
and
Litigation
Trusts
(Cost
$5,450,960)
...........................
4,969,092
Total
Long
Term
Investments
(Cost
$2,883,684,845)
.............................
2,337,628,528
a
Franklin
High
Income
Trust
Schedule
of
Investments
Franklin
High
Income
Fund
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
27
Short
Term
Investments
3.3%
a
a
Country
Shares
a
Value
a
a
a
Money
Market
Funds
3.3%
k,l
Institutional
Fiduciary
Trust
-
Money
Market
Portfolio,
2.42%
.....
United
States
81,816,490
$
81,816,490
Total
Money
Market
Funds
(Cost
$81,816,490)
..................................
81,816,490
Total
Short
Term
Investments
(Cost
$81,816,490
)
................................
81,816,490
a
Total
Investments
(Cost
$2,965,501,335)
98.4%
..................................
$2,419,445,018
Other
Assets,
less
Liabilities
1.6%
.............................................
39,601,973
Net
Assets
100.0%
...........................................................
$2,459,046,991
See
Abbreviations
on
page
44
.
*
The
principal
amount
is
stated
in
U.S.
dollars
unless
otherwise
indicated.
†
Rounds
to
less
than
0.1%
of
net
assets.
a
Non-income
producing.
b
Fair
valued
using
significant
unobservable
inputs.
See
Note
13
regarding
fair
value
measurements.
c
See
Note
10
regarding
restricted
securities.
d
Income
may
be
received
in
additional
securities
and/or
cash.
e
Perpetual
security
with
no
stated
maturity
date.
f
Security
was
purchased
pursuant
to
Rule
144A
or
Regulation
S
under
the
Securities
Act
of
1933.
144A
securities
may
be
sold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers
or
in
a
public
offering
registered
under
the
Securities
Act
of
1933.
Regulation
S
securities
cannot
be
sold
in
the
United
States
without
either
an
effective
registration
statement
filed
pursuant
to
the
Securities
Act
of
1933,
or
pursuant
to
an
exemption
from
registration.
At
September
30,
2022,
the
aggregate
value
of
these
securities
was
$1,866,839,278,
representing
75.9%
of
net
assets.
g
See
Note
7
regarding
credit
risk
and
defaulted
securities.
h
The
coupon
rate
shown
represents
the
rate
at
period
end.
i
See
Note
1(d)
regarding
senior
floating
rate
interests.
j
The
coupon
rate
shown
represents
the
rate
inclusive
of
any
caps
or
floors,
if
applicable,
in
effect
at
period
end.
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
September
30,
2022
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
28
Franklin
High
Income
Fund
Assets:
Investments
in
securities:
Cost
-
Unaffiliated
issuers
...................................................................
$2,883,684,845
Cost
-
Non-controlled
affiliates
(Note
3f)
........................................................
81,816,490
Value
-
Unaffiliated
issuers
..................................................................
$2,337,628,528
Value
-
Non-controlled
affiliates
(Note
3f)
........................................................
81,816,490
Cash
....................................................................................
1,240,068
Receivables:
Investment
securities
sold
...................................................................
9,300,000
Capital
shares
sold
........................................................................
413,217
Dividends
and
interest
.....................................................................
42,749,951
Total
assets
..........................................................................
2,473,148,254
Liabilities:
Payables:
Investment
securities
purchased
..............................................................
7,719,988
Capital
shares
redeemed
...................................................................
3,490,859
Management
fees
.........................................................................
972,362
Distribution
fees
..........................................................................
385,963
Transfer
agent
fees
........................................................................
635,018
Trustees'
fees
and
expenses
.................................................................
411
Unrealized
depreciation
on
unfunded
loan
commitments
(Note
11
)
......................................
192,703
Accrued
expenses
and
other
liabilities
...........................................................
703,959
Total
liabilities
.........................................................................
14,101,263
Net
assets,
at
value
.................................................................
$2,459,046,991
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$3,747,158,011
Total
distributable
earnings
(losses)
.............................................................
(1,288,111,020)
Net
assets,
at
value
.................................................................
$2,459,046,991
Franklin
High
Income
Trust
Financial
Statements
Statement
of
Assets
and
Liabilities
(continued)
September
30,
2022
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Annual
Report
29
Franklin
High
Income
Fund
Class
A:
Net
assets,
at
value
.......................................................................
$642,619,584
Shares
outstanding
........................................................................
417,246,876
Net
asset
value
per
share
a
..................................................................
$1.54
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$1.60
Class
A1:
Net
assets,
at
value
.......................................................................
$1,311,892,773
Shares
outstanding
........................................................................
842,966,707
Net
asset
value
per
share
a
..................................................................
$1.56
Maximum
offering
price
per
share
(net
asset
value
per
share
÷
96.25%)
................................
$1.62
Class
C:
Net
assets,
at
value
.......................................................................
$98,923,329
Shares
outstanding
........................................................................
62,592,801
Net
asset
value
and
maximum
offering
price
per
share
a
.............................................
$1.58
Class
R:
Net
assets,
at
value
.......................................................................
$57,909,468
Shares
outstanding
........................................................................
36,352,628
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.59
Class
R6:
Net
assets,
at
value
.......................................................................
$90,343,598
Shares
outstanding
........................................................................
58,297,708
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.55
Advisor
Class:
Net
assets,
at
value
.......................................................................
$257,358,239
Shares
outstanding
........................................................................
165,473,974
Net
asset
value
and
maximum
offering
price
per
share
.............................................
$1.56
a
Redemption
price
is
equal
to
net
asset
value
less
contingent
deferred
sales
charges,
if
applicable.
Franklin
High
Income
Trust
Financial
Statements
Statements
of
Operations
franklintempleton.com
Annual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
30
Franklin
High
Income
Fund
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
Investment
income:
Dividends:
Unaffiliated
issuers
.......................................................
$5,746,586
$33,145
Non-controlled
affiliates
(Note
3f)
............................................
484,925
46,738
Interest:
Unaffiliated
issuers
.......................................................
54,219,950
165,183,000
Non-controlled
affiliates
(Note
3f)
............................................
—
580,744
Income
from
securities
loaned:
Unaffiliated
entities
(net
of
fees
and
rebates)
....................................
113
362
Non-controlled
affiliates
(Note
3
f
)
............................................
—
11
Total
investment
income
..................................................
60,451,574
165,844,000
Expenses:
Management
fees
(Note
3
a
)
..................................................
3,989,820
13,755,476
Distribution
fees:
(Note
3c
)
Class
A
...............................................................
559,903
1,695,481
Class
A1
..............................................................
703,449
2,500,035
Class
C
...............................................................
236,838
1,036,687
Class
R
...............................................................
102,481
356,593
Transfer
agent
fees:
(Note
3e
)
Class
A
...............................................................
331,462
907,999
Class
A1
..............................................................
694,070
2,199,696
Class
C
...............................................................
53,926
207,301
Class
R
...............................................................
30,334
94,158
Class
R6
..............................................................
21,876
64,995
Advisor
Class
...........................................................
140,658
445,288
Custodian
fees
(Note
4
)
.....................................................
7,200
24,736
Reports
to
shareholders
fees
.................................................
107,221
372,663
Registration
and
filing
fees
...................................................
64,039
211,054
Professional
fees
..........................................................
32,891
119,033
Trustees'
fees
and
expenses
.................................................
9,150
26,535
Other
...................................................................
31,347
110,762
Total
expenses
........................................................
7,116,665
24,128,492
Expense
reductions
(Note
4
)
..............................................
(419)
(957)
Expenses
waived/paid
by
affiliates
(Note
3
f
and
3
g
)
.............................
(118,883)
(170,818)
Net
expenses
........................................................
6,997,363
23,956,717
Net
investment
income
...............................................
53,454,211
141,887,283
Realized
and
unrealized
gains
(losses):
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
.....................................................
(20,986,843)
(11,003,499)
Non-controlled
affiliates
(Note
3f)
...........................................
—
16,357,963
Net
realized
gain
(loss)
.................................................
(20,986,843)
5,354,464
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments:
Unaffiliated
issuers
.....................................................
(230,659,084)
(286,197,154)
Non-controlled
affiliates
(Note
3f)
...........................................
—
4,326,887
Unfunded
loan
commitments
................................................
(111,227)
—
Net
change
in
unrealized
appreciation
(depreciation)
...........................
(230,770,311)
(281,870,267)
Net
realized
and
unrealized
gain
(loss)
...........................................
(251,757,154)
(276,515,803)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
.........................
$(198,302,943)
$(134,628,520)
a
For
the
period
June
1,
2022
to
September
30,
2022.
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.
Annual
Report
31
Franklin
High
Income
Fund
Period
Ended
September
30,
2022
a
Year
Ended
May
31,
2022
Year
Ended
May
31,
2021
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
..............................
$53,454,211
$141,887,283
$151,834,255
Net
realized
gain
(loss)
..............................
(20,986,843)
5,354,464
(4,550,442)
Net
change
in
unrealized
appreciation
(depreciation)
........
(230,770,311)
(281,870,267)
242,905,418
Net
increase
(decrease)
in
net
assets
resulting
from
operations
...................................
(198,302,943)
(134,628,520)
390,189,231
Distributions
to
shareholders:
Class
A
..........................................
(13,261,109)
(33,006,563)
(22,611,705)
Class
A1
.........................................
(27,993,501)
(80,385,925)
(93,298,370)
Class
C
..........................................
(1,931,850)
(6,601,409)
(10,812,834)
Class
R
..........................................
(1,119,263)
(3,110,688)
(3,617,545)
Class
R6
.........................................
(1,976,651)
(5,072,921)
(5,680,745)
Advisor
Class
.....................................
(5,677,999)
(16,855,191)
(17,304,918)
Total
distributions
to
shareholders
.......................
(51,960,373)
(145,032,697)
(153,326,117)
Capital
share
transactions:
(Note
2
)
Class
A
..........................................
17,572,211
205,233,436
213,346,572
Class
A1
.........................................
(38,912,059)
(123,808,795)
(148,405,240)
Class
C
..........................................
(10,462,896)
(88,405,043)
(51,619,398)
Class
R
..........................................
(529,081)
(3,898,286)
(8,997,749)
Class
R6
.........................................
1,097,161
19,909,942
14,361,843
Advisor
Class
.....................................
(68,500,066)
42,592,559
17,614,904
Total
capital
share
transactions
.........................
(99,734,730)
51,623,813
36,300,932
Net
increase
(decrease)
in
net
assets
................
(349,998,046)
(228,037,404)
273,164,046
Net
assets:
Beginning
of
period
..................................
2,809,045,037
3,037,082,441
2,763,918,395
End
of
period
.......................................
$2,459,046,991
$2,809,045,037
$3,037,082,441
a
For
the
period
June
1,
2022
to
September
30,
2022.
Franklin
High
Income
Trust
Notes
to
Financial
Statements
Franklin
High
Income
Fund
32
franklintempleton.com
Annual
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.
Class
C
shares
automatically
convert
to
Class
A
shares
on
a
monthly
basis
after
they
have
been
held
for
8
years.
Each
class
of
shares
may
differ
by
its
initial
sales
load,
contingent
deferred
sales
charges,
voting
rights
on
matters
affecting
a
single
class,
its
exchange
privilege
and
fees
due
to
differing
arrangements
for
distribution
and
transfer
agent
fees.
As
approved
by
the
Trust’s
Board
of
Trustees
(the
Board)
at
a
meeting
held
on
December
9,
2021,
the
Fund’s
fiscal
year
was
changed
to
September
30.
As
a
result,
the
Fund
had
a
shortened
fiscal
year
covering
the
transitional
period
between
the
Fund’s
prior
fiscal
year
end
May
31,
2022
and
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
Board,
the
Board
has
designated
the
Fund’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
including
leading
the
cross-functional
Valuation
Committee
(VC).
The
Fund
may
utilize
independent
pricing
services,
quotations
from
securities
and
financial
instrument
dealers,
and
other
market
sources
to
determine
fair
value.
Equity
securities
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.
Franklin
High
Income
Trust
Notes
to
Financial
Statements
33
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
Trading
in
securities
on
foreign
securities
stock
exchanges
and
OTC
markets
may
be
completed
before
4
p.m.
Eastern
time.
In
addition,
trading
in
certain
foreign
markets
may
not
take
place
on
every
Fund's
business
day. Events
can occur
between
the
time
at
which
trading
in
a
foreign
security
is
completed
and
4
p.m.
Eastern
time
that
might
call
into
question
the
reliability
of
the
value
of
a
portfolio
security
held
by
the
Fund.
As
a
result,
differences
may
arise
between
the
value
of
the
Fund's
portfolio
securities
as
determined
at
the
foreign
market
close
and
the
latest
indications
of
value
at
4
p.m.
Eastern
time. In
order
to
minimize
the
potential
for
these
differences,
an
independent
pricing
service
may
be
used
to
adjust
the
value
of
the
Fund's
portfolio
securities
to
the
latest
indications
of
fair
value
at
4
p.m.
Eastern
time
month
end.
At
September
30,
2022,
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
1.
Organization
and
Significant
Accounting
Policies
(continued)
a.
Financial
Instrument
Valuation
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
34
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
agent
has
agreed
to
indemnify
the
Fund
in
the
event
of
default
by
a
third
party
borrower.
At
September
30,
2022,
the Fund
had
no
securities
on
loan.
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
September
30,
2022,
the
Fund
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Fund
invests.
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.
Paydown
gains
and
losses
are
recorded
as
an
adjustment
to
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.
1.
Organization
and
Significant
Accounting
Policies
(continued)
c.
Securities
Lending
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
35
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
Additionally,
in
the
normal
course
of
business,
the
Trust, on
behalf
of
the
Fund,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
September
30,
2022,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Fund's
shares
were
as
follows:
Period
Ended
September
30,
2022
a
Shares
Amount
Class
A
Shares:
Shares
sold
b
...................................
46,670,596
$76,460,014
Shares
issued
in
reinvestment
of
distributions
..........
7,775,977
12,438,206
Shares
redeemed
...............................
(43,869,515)
(71,326,009)
Net
increase
(decrease)
..........................
10,577,058
$17,572,211
Class
A1
Shares:
Shares
sold
...................................
7,608,875
$12,533,587
Shares
issued
in
reinvestment
of
distributions
..........
15,218,988
24,649,562
Shares
redeemed
...............................
(46,472,390)
(76,095,208)
Net
increase
(decrease)
..........................
(23,644,527)
$(38,912,059)
Class
C
Shares:
Shares
sold
...................................
1,948,654
$3,240,404
Shares
issued
in
reinvestment
of
distributions
..........
1,110,296
1,821,048
Shares
redeemed
b
..............................
(9,293,865)
(15,524,348)
Net
increase
(decrease)
..........................
(6,234,915)
$(10,462,896)
Class
R
Shares:
Shares
sold
...................................
1,702,263
$2,874,342
Shares
issued
in
reinvestment
of
distributions
..........
673,624
1,116,413
Shares
redeemed
...............................
(2,701,596)
(4,519,836)
Net
increase
(decrease)
..........................
(325,709)
$(529,081)
Class
R6
Shares:
Shares
sold
...................................
4,488,274
$7,352,933
Shares
issued
in
reinvestment
of
distributions
..........
1,207,499
1,943,563
Shares
redeemed
...............................
(5,040,205)
(8,199,335)
Net
increase
(decrease)
..........................
655,568
$1,097,161
Advisor
Class
Shares:
Shares
sold
...................................
13,929,184
$22,892,050
Shares
issued
in
reinvestment
of
distributions
..........
3,272,102
5,293,260
Shares
redeemed
...............................
(58,534,993)
(96,685,376)
Net
increase
(decrease)
..........................
(41,333,707)
$(68,500,066)
1.
Organization
and
Significant
Accounting
Policies
(continued)
h.
Guarantees
and
Indemnifications
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
36
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
Year
Ended
May
31,
2022
Year
Ended
May
31,
2021
Shares
Amount
Shares
Amount
Class
A
Shares:
Shares
sold
b
...................................
200,948,612
$370,941,307
201,122,114
$369,221,416
Shares
issued
in
reinvestment
of
distributions
..........
17,092,553
30,970,243
11,507,607
21,062,321
Shares
redeemed
...............................
(107,938,951)
(196,678,114)
(96,268,762)
(176,937,165)
Net
increase
(decrease)
..........................
110,102,214
$205,233,436
116,360,959
$213,346,572
Class
A1
Shares:
Shares
sold
...................................
39,484,317
$72,976,305
41,790,440
$77,074,890
Shares
issued
in
reinvestment
of
distributions
..........
38,385,436
70,510,008
44,371,191
81,646,761
Shares
redeemed
...............................
(144,890,033)
(267,295,108)
(166,785,921)
(307,126,891)
Net
increase
(decrease)
..........................
(67,020,280)
$(123,808,795)
(80,624,290)
$(148,405,240)
Class
C
Shares:
Shares
sold
...................................
12,604,351
$23,778,635
14,831,857
$27,811,972
Shares
issued
in
reinvestment
of
distributions
..........
3,304,666
6,182,808
5,404,840
10,082,816
Shares
redeemed
b
..............................
(62,543,521)
(118,366,486)
(48,050,021)
(89,514,186)
Net
increase
(decrease)
..........................
(46,634,504)
$(88,405,043)
(27,813,324)
$(51,619,398)
Class
R
Shares:
Shares
sold
...................................
5,263,216
$9,879,452
7,662,759
$14,420,125
Shares
issued
in
reinvestment
of
distributions
..........
1,652,660
3,103,115
1,919,393
3,606,273
Shares
redeemed
...............................
(8,965,664)
(16,880,853)
(14,439,068)
(27,024,147)
Net
increase
(decrease)
..........................
(2,049,788)
$(3,898,286)
(4,856,916)
$(8,997,749)
Class
R6
Shares:
Shares
sold
...................................
20,707,734
$38,283,732
51,020,473
$93,337,827
Shares
issued
in
reinvestment
of
distributions
..........
2,724,050
4,966,000
3,035,743
5,586,374
Shares
redeemed
...............................
(12,826,935)
(23,339,790)
(45,562,830)
(84,562,358)
Net
increase
(decrease)
..........................
10,604,849
$19,909,942
8,493,386
$14,361,843
Advisor
Class
Shares:
Shares
sold
...................................
118,594,870
$214,891,375
119,683,675
$220,733,309
Shares
issued
in
reinvestment
of
distributions
..........
8,487,738
15,593,616
8,737,167
16,093,976
Shares
redeemed
...............................
(101,961,748)
(187,892,432)
(119,351,678)
(219,212,381)
Net
increase
(decrease)
..........................
25,120,860
$42,592,559
9,069,164
$17,614,904
a
For
the
period
June
1,
2022
to
September
30,
2022.
b
May
include
a
portion
of
Class
C
shares
that
were
automatically
converted
to
Class
A.
2.
Shares
of
Beneficial
Interest
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
37
franklintempleton.com
Annual
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,
calculated
daily
and
paid
monthly, to
Advisers
based
on
the
month-end
net
assets
of
the
Fund
as
follows:
For
the
period
ended
September
30,
2022,
the
annualized
gross
effective
investment
management
fee
rate
was 0.455%
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.
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Services,
LLC
(FT
Services)
Administrative
manager
Franklin
Distributors,
LLC
(Distributors)
Principal
underwriter
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
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
38
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
The
maximum
annual
plan
rates,
based
on
the
average
daily
net
assets,
for
each
class,
are
as
follows:
d.
Sales
Charges/Underwriting
Agreements
Front-end
sales
charges
and
contingent
deferred
sales
charges
(CDSC)
do
not
represent
expenses
of
the
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
to
Investor
Services
for
its
performance
of
shareholder
servicing
obligations.
Effective
October
1,
2022,
the
fees
are
based
on
an
annualized
asset
based
fee
of
0.016%
plus
a
reduced
transaction
based
fee.
Prior
to
October
1,
2022,
the
fees
were
based
on
an
annualized
asset
based
fee
of
0.02%
plus
a
transaction
based
fee.
In
addition,
each
class
reimburses
Investor
Services
for
out
of
pocket
expenses
incurred
and,
except
for
Class
R6,
reimburses
shareholder
servicing
fees
paid
to
third
parties.
These
fees
are
allocated
daily
based
upon
their
relative
proportion
of
such
classes'
aggregate
net
assets.
Class
R6
pays
Investor
Services
transfer
agent
fees
specific
to
that
class.
For
the
period
ended
September
30,
2022,
the
Fund
paid
transfer
agent
fees
of
$1,272,326,
of
which
$562,610
was
retained
by
Investor
Services.
f.
Investments
in
Affiliated
Management
Investment
Companies
The
Fund
invests
in
one
or
more
affiliated
management
investment
companies.
As
defined
in
the
1940
Act,
an
investment
is
deemed
to
be
a
“Controlled
Affiliate”
of
a
fund
when
a
fund
owns,
either
directly
or
indirectly,
25%
or
more
of
the
affiliated
fund’s
outstanding
shares
or
has
the
power
to
exercise
control
over
management
or
policies
of
such
fund.
The
Fund
does
not
invest
for
purposes
of
exercising
a
controlling
influence
over
the
management
or
policies.
Management
fees
paid
by
the
Fund
are
waived
on
assets
invested
in
the
affiliated
management
investment
companies,
as
noted
in
the
Statement
of
Operations,
in
an
amount
not
to
exceed
the
management
and
administrative
fees
paid
directly
or
indirectly
by
each
affiliate.
During
the
period
ended
September
30,
2022,
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
..............................
$22,971
CDSC
retained
..............................................................................
$26,768
3.
Transactions
with
Affiliates
(continued)
c.
Distribution
Fees
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
39
franklintempleton.com
Annual
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,
2023.
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
September
30,
2022,
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
September
30,
2022,
the
capital
loss
carryforwards
were
as
follows:
The
tax
character
of
distributions
paid
during
the
period
ended
September
30,
2022
and
years
ended
May
31,
2022
and
2021,
was
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,
2.42%
.
$
165,462,540
$
182,261,258
$
(265,907,308)
$
—
$
—
$
81,816,490
81,816,490
$
484,925
Total
Affiliated
Securities
...
$165,462,540
$182,261,258
$(265,907,308)
$—
$—
$81,816,490
$484,925
Franklin
High
Income
Fund
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$2,179,395
Long
term
................................................................................
731,237,289
Total
capital
loss
carryforwards
...............................................................
$733,416,684
September
30,
2022
May
31,
2022
Distributions
paid
from:
Ordinary
income
..........................................................
$51,960,373
$145,032,697
3.
Transactions
with
Affiliates
(continued)
f.
Investments
in
Affiliated
Management
Investment
Companies
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
40
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
At
September
30,
2022,
the
cost
of
investments,
net
unrealized
appreciation
(depreciation)
and
undistributed
ordinary
income
for
income
tax
purposes
were
as
follows:
Differences
between
income
and/or
capital
gains
as
determined
on
a
book
basis
and
a
tax
basis
are
primarily
due
to
differing
treatment
of
defaulted
securities
and
bond
discounts
and
premiums.
6.
Investment
Transactions
Purchases
and
sales
of
investments
(excluding
short
term
securities) for
the
period
ended
September
30,
2022,
aggregated
$147,677,476 and
$122,237,045,
respectively.
7.
Credit Risk
and
Defaulted
Securities
At
September
30,
2022,
the
Fund
had
85.0%
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
September
30,
2022,
the
aggregate
value
of
these
securities
represents
1.2%
of
the
Fund's
net
assets.
The
Fund
discontinues
accruing
income
on
securities
for
which
income
has
been
deemed
uncollectible
and
provides
an
estimate
for
losses
on
interest
receivable.
The
securities
have
been
identified
in
the
accompanying
Schedule
of
Investments.
8.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
May
31,
2021
Distributions
paid
from:
Ordinary
income
..........................................................
$153,326,117
Cost
of
investments
..........................................................................
$2,977,837,771
Unrealized
appreciation
........................................................................
$13,751,324
Unrealized
depreciation
........................................................................
(572,144,077)
Net
unrealized
appreciation
(depreciation)
..........................................................
$(558,392,753)
Distributable
earnings:
Undistributed
ordinary
income
...................................................................
$3,891,122
5.
Income
Taxes
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
41
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
9. Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
10.
Restricted
Securities
The
Fund
invests
in
securities
that
are
restricted
under
the
Securities
Act
of
1933
(1933
Act).
Restricted
securities
are
often
purchased
in
private
placement
transactions,
and
cannot
be
sold
without
prior
registration
unless
the
sale
is
pursuant
to
an
exemption
under
the
1933
Act.
Disposal
of
these
securities
may
require
greater
effort
and
expense,
and
prompt
sale
at
an
acceptable
price
may
be
difficult.
The Fund
may
have
registration
rights
for
restricted
securities.
The
issuer
generally
incurs
all
registration
costs.
At
September
30,
2022,
investments
in
restricted
securities,
excluding
securities
exempt
from
registration
under
the
1933
Act,
were
as
follows:
11.
Unfunded
Loan
Commitments
The
Fund
enters
into
certain
credit
agreements,
all
or
a
portion
of
which
may
be
unfunded.
The Fund
is
obligated
to
fund
these
loan
commitments
at
the
borrowers’
discretion.
Unfunded
loan
commitments
and
funded
portions
of
credit
agreements
are
marked
to
market
daily
and
any
unrealized
appreciation
or
depreciation
is
included
in
the
Statement
of
Assets
and
Liabilities
and
the
Statement
of
Operations.
Funded
portions
of
credit
agreements
are
presented
in
the
Schedule
of
Investments.
At
September
30,
2022,
unfunded
commitments
were
as
follows:
12.
Credit
Facility
The
Fund,
together
with
other
U.S.
registered
and
foreign
investment
funds
(collectively,
Borrowers),
managed
by
Franklin
Templeton,
are
borrowers
in
a
joint
syndicated
senior
unsecured
credit
facility
totaling
$2.675
billion
(Global
Credit
Facility)
which
matures
on
February
3,
2023.
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
September
30,
2022,
the Fund
did
not
use
the
Global
Credit
Facility.
Shares
Issuer
Acquisition
Date
Cost
Value
Franklin
High
Income
Fund
46,695,277
Nine
Point
Energy
Holdings,
Inc.
................
7/15/14
-
3/24/17
$
26,331,865
$
—
149,317
Riviera
Resources,
Inc.
.......................
8/08/18
1,366,251
—
Total
Restricted
Securities
(Value
is
—%
of
Net
Assets)
..............
$27,698,116
$—
Borrower
Unfunded
Commitment
Franklin
High
Income
Fund
athenahealth
Group,
Inc.
$
1,898,551
$
1,898,551
Franklin
High
Income
Trust
Notes
to
Financial
Statements
42
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
13.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the
Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
A
summary
of
inputs
used
as
of
September
30,
2022,
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
:
Oil,
Gas
&
Consumable
Fuels
.............
$
760,001
$
10,321,629
$
—
a
$
11,081,630
Warrants
:
Metals
&
Mining
.......................
546,307
—
—
546,307
Oil,
Gas
&
Consumable
Fuels
.............
987,287
—
—
a
987,287
Convertible
Bonds
.......................
—
60,777
—
60,777
Corporate
Bonds
:
Airlines
..............................
—
34,235,807
—
34,235,807
Auto
Components
......................
—
42,860,361
—
42,860,361
Automobiles
..........................
—
17,450,250
—
17,450,250
Banks
...............................
—
14,662,500
—
14,662,500
Beverages
...........................
—
9,371,245
—
9,371,245
Biotechnology
.........................
—
12,179,830
—
12,179,830
Building
Products
......................
—
63,545,491
—
63,545,491
Capital
Markets
........................
—
4,910,008
—
4,910,008
Chemicals
...........................
—
90,006,144
—
90,006,144
Commercial
Services
&
Supplies
...........
—
45,037,147
—
45,037,147
Communications
Equipment
..............
—
10,512,008
—
10,512,008
Construction
&
Engineering
...............
—
12,181,260
—
12,181,260
Consumer
Finance
.....................
—
33,814,891
—
33,814,891
Containers
&
Packaging
.................
—
107,000,878
—
107,000,878
Diversified
Consumer
Services
............
—
12,973,389
—
12,973,389
Diversified
Financial
Services
.............
—
41,587,725
—
41,587,725
Diversified
Telecommunication
Services
.....
—
99,465,101
—
99,465,101
Electric
Utilities
........................
—
25,041,277
—
25,041,277
Electrical
Equipment
....................
—
26,916,807
—
26,916,807
Electronic
Equipment,
Instruments
&
Components
........................
—
7,508,820
—
7,508,820
Energy
Equipment
&
Services
.............
—
61,094,376
—
61,094,376
Entertainment
.........................
—
40,575,378
—
40,575,378
Equity
Real
Estate
Investment
Trusts
(REITs)
.
—
79,280,847
—
79,280,847
Food
Products
........................
—
26,670,447
—
26,670,447
Health
Care
Equipment
&
Supplies
.........
—
23,701,643
—
23,701,643
Health
Care
Providers
&
Services
..........
—
112,967,448
—
112,967,448
Hotels,
Restaurants
&
Leisure
.............
—
166,487,469
6,900
166,494,369
Household
Durables
....................
—
32,619,601
—
32,619,601
Franklin
High
Income
Trust
Notes
to
Financial
Statements
43
franklintempleton.com
Annual
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.
14.
New
Accounting
Pronouncements
In
March
2020,
the
Financial
Accounting
Standards
Board
(FASB)
issued
Accounting
Standards
Update
(ASU)
No.
2020-04,
Reference
Rate
Reform
(Topic
848)
–
Facilitation
of
the
Effects
of
Reference
Rate
Reform
on
Financial
Reporting.
In
January
2021,
the
FASB
issued
ASU
No.
2021-01,
with
further
amendments
to
Topic
848.
The
amendments
in
the
ASUs
provide
optional
temporary
accounting
recognition
and financial
reporting
relief
from
the
effect
of
certain
types
of
contract
modifications
due
to
the
planned
discontinuation
of
the
London
Interbank
Offered
Rate
(LIBOR)
and
other
interbank-offered
based
reference
rates
as
of
the
end
of
2021
for
certain
LIBOR
settings
and
2023
for
the
remainder. The
ASUs
are
effective
for
certain
reference
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.
Level
1
Level
2
Level
3
Total
Franklin
High
Income
Fund
(continued)
Assets:
(continued)
Investments
in
Securities:
Corporate
Bonds:
Independent
Power
and
Renewable
Electricity
Producers
..........................
$
—
$
87,414,606
$
—
$
87,414,606
Insurance
............................
—
7,920,985
—
7,920,985
Interactive
Media
&
Services
..............
—
5,989,930
—
5,989,930
Internet
&
Direct
Marketing
Retail
..........
—
11,605,302
—
11,605,302
IT
Services
...........................
—
53,149,061
—
53,149,061
Life
Sciences
Tools
&
Services
............
—
1,999,536
—
1,999,536
Machinery
............................
—
15,584,684
—
15,584,684
Media
...............................
—
129,461,036
—
129,461,036
Metals
&
Mining
.......................
—
38,077,598
—
38,077,598
Mortgage
Real
Estate
Investment
Trusts
(REITs)
............................
—
15,634,710
—
15,634,710
Oil,
Gas
&
Consumable
Fuels
.............
—
327,007,563
—
327,007,563
Paper
&
Forest
Products
.................
—
4,731,236
—
4,731,236
Personal
Products
.....................
—
4,779,113
—
4,779,113
Pharmaceuticals
.......................
—
67,859,599
—
67,859,599
Real
Estate
Management
&
Development
....
—
36,988,085
—
36,988,085
Road
&
Rail
..........................
—
18,680,250
—
18,680,250
Software
.............................
—
34,659,818
—
34,659,818
Specialty
Retail
........................
—
48,749,500
—
48,749,500
Textiles,
Apparel
&
Luxury
Goods
..........
—
5,029,160
—
5,029,160
Thrifts
&
Mortgage
Finance
...............
—
32,543,140
—
32,543,140
Trading
Companies
&
Distributors
..........
—
32,900,269
—
32,900,269
Wireless
Telecommunication
Services
.......
—
21,932,261
—
21,932,261
Senior
Floating
Rate
Interests
...............
—
62,620,945
—
62,620,945
Escrows
and
Litigation
Trusts
...............
—
4,969,092
—
a
4,969,092
Short
Term
Investments
...................
81,816,490
—
—
81,816,490
Total
Investments
in
Securities
...........
$84,110,085
$2,335,328,033
$6,900
$2,419,445,018
Liabilities:
Other
Financial
Instruments:
Unfunded
Loan
Commitments
...............
$
—
$
192,703
$
—
$
192,703
Total
Other
Financial
Instruments
.........
$—
$192,703
$—
$192,703
a
Includes
financial
instruments
determined
to
have
no
value
at
September
30,
2022.
13.
Fair
Value
Measurements
(continued)
Franklin
High
Income
Trust
Notes
to
Financial
Statements
44
franklintempleton.com
Annual
Report
Franklin
High
Income
Fund
(continued)
In June
2022,
the
FASB
issued
ASU
No.
2022-03,
Fair
Value
Measurement
(Topic
820)
–
Fair
Value
Measurement
of
Equity
Securities
Subject
to
Contractual
Sale
Restrictions.
The
amendments
in
the
ASU
clarify
that
a
contractual
restriction
on
the
sale
of
an
equity
security
is
not
considered
part
of
the
unit
of
account
of
the
equity
security
and,
therefore,
should
not
be
considered
in
measuring
fair
value.
The
ASU
is
effective
for
interim
and
annual
reporting
periods
beginning
after
December
15,
2023,
with
the
option
of
early
adoption.
Management
is
currently
evaluating
the
impact,
if
any,
of
applying
this
ASU.
15.
Subsequent
Events
The
Fund
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Currency
USD
United
States
Dollar
Selected
Portfolio
CME
Chicago
Mercantile
Exchange
FRN
Floating
Rate
Note
LIBOR
London
Inter-Bank
Offered
Rate
PIK
Payment-In-Kind
SOFR
Secured
Overnight
Financing
Rate
14.
New
Accounting
Pronouncements
(continued)
Franklin
High
Income
Trust
Report
of
Independent
Registered
Public
Accounting
Firm
45
franklintempleton.com
Annual
Report
To
the
Board
of
Trustees
of
Franklin
High
Income
Trust
and
Shareholders
of
Franklin
High
Income
Fund
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Franklin
High
Income
Fund
(the
"Fund")
as
of
September
30,
2022,
the
related
statement
of
operations
for
the
period
June
1,
2022
through
September
30,
2022
and
year
ended
May
31,
2022,
the
statement
of
changes
in
net
assets
for
the
period
June
1,
2022
through
September
30,
2022,
and
years
ended
May
31,
2022
and
2021
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
September
30,
2022,
the
results
of
its
operations
for
the
period
June
1,
2022
through
September
30,
2022
and
year
ended
May
31,
2022,
the
changes
in
its
net
assets
for
the
period
June
1,
2022
through
September
30,
2022,
and
years
ended
May
31,
2022
and
2021
and
the
financial
highlights
for
each
of
the
periods
indicated
therein
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
of
these
financial
statements
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
September
30,
2022
by
correspondence
with
the
custodian,
transfer
agent,
and
brokers;
when
replies
were
not
received
from
brokers,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
PricewaterhouseCoopers
LLP
San
Francisco,
California
November
15,
2022
We
have
served
as
the
auditor
of
one
or
more
investment
companies
in
the
Franklin
Templeton
Group
of
Funds
since
1948.
Franklin
High
Income
Trust
Tax
Information
(unaudited)
Franklin
High
Income
Fund
46
franklintempleton.com
Annual
Report
By
mid-February,
tax
information
related
to
a
shareholder's
proportionate
share
of
distributions
paid
during
the
preceding
calendar
year
will
be
received,
if
applicable.
Please
also
refer
to
www.franklintempleton.com
for
per
share
tax
information
related
to
any
distributions
paid
during
the
preceding
calendar
year.
Shareholders
are
advised
to
consult
with
their
tax
advisors
for
further
information
on
the
treatment
of
these
amounts
on
their
tax
returns.
The
following
tax
information
for
the
Fund
is
required
to
be
furnished
to
shareholders
with
respect
to
income
earned
and
distributions
paid
during
its
period.
The
Fund
hereby
reports
the
following
amounts,
or
if
subsequently
determined
to
be
different,
the
maximum
allowable
amounts,
for
the
period
ended
September
30,
2022:
Pursuant
to:
Amount
Reported
Income
Eligible
for
Dividends
Received
Deduction
(DRD)
§854(b)(1)(A)
$5,746,586
Qualified
Dividend
Income
Earned
(QDI)
§854(b)(1)(B)
$5,746,586
Qualified
Net
Interest
Income
(QII)
§871(k)(1)(C)
$40,760,784
Section
163(j)
Interest
Earned
§163(j)
$49,249,597
Franklin
High
Income
Trust
Board
Members
and
Officers
47
franklintempleton.com
Annual
Report
The
name,
year
of
birth
and
address
of
the
officers
and
board
members,
as
well
as
their
affiliations,
positions
held
with
the
Trust,
principal
occupations
during
at
least
the
past
five
years
and
number
of
U.S.
registered
portfolios
overseen
in
the
Franklin
Templeton/Legg
Mason
fund
complex,
are
shown
below.
Generally,
each
board
member
serves
until
that
person’s
successor
is
elected
and
qualified.
Independent
Board
Members
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Harris
J.
Ashton
(1932)
Trustee
Since
2007
119
Bar-S
Foods
(meat
packing
company)
(1981-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Director,
RBC
Holdings,
Inc.
(bank
holding
company)
(until
2002);
and
President,
Chief
Executive
Officer
and
Chairman
of
the
Board,
General
Host
Corporation
(nursery
and
craft
centers)
(until
1998).
Terrence
J.
Checki
(1945)
Trustee
Since
2017
100
Hess
Corporation
(exploration
of
oil
and
gas)
(2014-present).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Member
of
the
Council
on
Foreign
Relations
(1996-present);
Member
of
the
National
Committee
on
U.S.-China
Relations
(1999-present);
member
of
the
board
of
trustees
of
the
Economic
Club
of
New
York
(2013-present);
member
of
the
board
of
trustees
of
the
Foreign
Policy
Association
(2005-present);
member
of
the
board
of
directors
of
Council
of
the
Americas
(2007-present)
and
the
Tallberg
Foundation
(2018-present);
and
formerly
,
Executive
Vice
President
of
the
Federal
Reserve
Bank
of
New
York
and
Head
of
its
Emerging
Markets
and
Internal
Affairs
Group
and
Member
of
Management
Committee
(1995-2014);
and
Visiting
Fellow
at
the
Council
on
Foreign
Relations
(2014).
Mary
C.
Choksi
(1950)
Trustee
Since
2014
120
Omnicom
Group
Inc.
(advertising
and
marketing
communications
services)
(2011-present)
and
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2017-present);
and
formerly
,
Avis
Budget
Group
Inc.
(car
rental)
(2007-2020).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(investment
management
group)
(2015-2017);
Founding
Partner
and
Senior
Managing
Director,
Strategic
Investment
Group
(1987-2015);
Founding
Partner
and
Managing
Director,
Emerging
Markets
Management
LLC
(investment
management
firm)
(1987-2011);
and
Loan
Officer/Senior
Loan
Officer/Senior
Pension
Investment
Officer,
World
Bank
Group
(international
financial
institution)
(1977-1987).
Franklin
High
Income
Trust
48
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Edith
E.
Holiday
(1952)
Lead
Independent
Trustee
Trustee
since
2005
and
Lead
Independent
Trustee
since
2019
120
Hess
Corporation
(exploration
of
oil
and
gas)
(1993-present),
Santander
Consumer
USA
Holdings,
Inc.
(consumer
finance)
(2016-present);
Santander
Holdings
USA
(holding
company)
(2019-present);
and
formerly
,
Canadian
National
Railway
(railroad)
(2001-2021),
White
Mountains
Insurance
Group,
Ltd.
(holding
company)
(2004-
2021),
RTI
International
Metals,
Inc.
(manufacture
and
distribution
of
titanium)
(1999-2015)
and
H.J.
Heinz
Company
(processed
foods
and
allied
products)
(1994-2013).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
or
Trustee
of
various
companies
and
trusts;
and
formerly
,
Assistant
to
the
President
of
the
United
States
and
Secretary
of
the
Cabinet
(1990-1993);
General
Counsel
to
the
United
States
Treasury
Department
(1989-1990);
and
Counselor
to
the
Secretary
and
Assistant
Secretary
for
Public
Affairs
and
Public
Liaison-United
States
Treasury
Department
(1988-1989).
J.
Michael
Luttig
(1954)
Trustee
Since
2009
120
Boeing
Capital
Corporation
(aircraft
financing)
(2006-2010).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Counselor
and
Special
Advisor
to
the
CEO
and
Board
of
Directors
of
the
Coca-Cola
Company
(beverage
company)
(2021-present);
and
formerly
,
Counselor
and
Senior
Advisor
to
the
Chairman,
CEO,
and
Board
of
Directors,
of
The
Boeing
Company
(aerospace
company),
and
member
of
the
Executive
Council
(2019-2020);
Executive
Vice
President,
General
Counsel
and
member
of
the
Executive
Council,
The
Boeing
Company
(2006-2019);
and
Federal
Appeals
Court
Judge,
United
States
Court
of
Appeals
for
the
Fourth
Circuit
(1991-2006).
Larry
D.
Thompson
(1945)
Trustee
Since
2007
120
Graham
Holdings
Company
(education
and
media
organization)
(2011-2021);
The
Southern
Company
(energy
company)
(2014-2020;
previously
2010-
2012)
and
Cbeyond,
Inc.
(business
communications
provider)
(2010-
2012).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
Counsel,
Finch
McCranie,
LLP
(law
firm)
(2015-present);
John
A.
Sibley
Professor
of
Corporate
and
Business
Law,
University
of
Georgia
School
of
Law
(2015-present;
previously
2011-2012);
and
formerly
,
Independent
Compliance
Monitor
and
Auditor,
Volkswagen
AG
(manufacturer
of
automobiles
and
commercial
vehicles)
(2017-2020);
Executive
Vice
President
-
Government
Affairs,
General
Counsel
and
Corporate
Secretary,
PepsiCo,
Inc.
(consumer
products)
(2012-2014);
Senior
Vice
President
-
Government
Affairs,
General
Counsel
and
Secretary,
PepsiCo,
Inc.
(2004-2011);
Senior
Fellow
of
The
Brookings
Institution
(2003-2004);
Visiting
Professor,
University
of
Georgia
School
of
Law
(2004);
and
Deputy
Attorney
General,
U.S.
Department
of
Justice
(2001-2003).
Independent
Board
Members
(continued)
Franklin
High
Income
Trust
49
franklintempleton.com
Annual
Report
Interested
Board
Members
and
Officers
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
Valerie
M.
Williams
(1956)
Trustee
Since
2021
100
Omnicom
Group,
Inc.
(advertising
and
marketing
communications
services)
(2016-present),
DTE
Energy
Co.
(gas
and
electric
utility)
(2018-present),
Devon
Energy
Corporation
(exploration
and
production
of
oil
and
gas)
(2021-present);
and
formerly
,
WPX
Energy,
Inc.
(exploration
and
production
of
oil
and
gas)
(2018-
2021).
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
of
various
companies;
and
formerly
,
Regional
Assurance
Managing
Partner,
Ernst
&
Young
LLP
(public
accounting)
(2005-2016),
various
roles
of
increasing
responsibility
at
Ernst
&
Young
(1981-2005).
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
Past
5
Years
**Gregory
E.
Johnson
(1961)
Trustee
Since
2013
131
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Executive
Chairman,
Chairman
of
the
Board
and
Director,
Franklin
Resources,
Inc.;
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
Vice
Chairman,
Investment
Company
Institute;
and
formerly
,
Chief
Executive
Officer
(2013-2020)
and
President
(1994-2015)
Franklin
Resources,
Inc.
**Rupert
H.
Johnson,
Jr.
(1940)
Chairman
of
the
Board
and
Trustee
Chairman
of
the
Board
since
2013
and
Trustee
since
1978
120
None
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
(Vice
Chairman),
Franklin
Resources,
Inc.;
Director,
Franklin
Advisers,
Inc.;
and
officer
and/or
director
or
trustee,
as
the
case
may
be,
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Alison
E.
Baur
(1964)
Vice
President
Since
2012
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Deputy
General
Counsel,
Franklin
Templeton;
and
officer
of
some
of
the
other
subsidiaries
of
Franklin
Resources,
Inc.
and
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Breda
M.
Beckerle
(1958)
Chief
Compliance
Officer
Since
2020
Not
Applicable
Not
Applicable
280
Park
Avenue
New
York,
NY
10017
Principal
Occupation
During
at
Least
the
Past
5
Years:
Chief
Compliance
Officer,
Fiduciary
Investment
Management
International,
Inc.,
Franklin
Advisers,
Inc.,
Franklin
Mutual
Advisers,
LLC,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Independent
Board
Members
(continued)
Franklin
High
Income
Trust
50
franklintempleton.com
Annual
Report
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
5
Years
Sonal
Desai,
Ph.D.
(1963)
President
and
Chief
Executive
Officer
–
Investment
Management
Since
2018
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Director
and
Executive
Vice
President,
Franklin
Advisers,
Inc.;
Executive
Vice
President,
Franklin
Templeton
Institutional,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Steven
J.
Gray
(1955)
Vice
President
and
Co-Secretary
Vice
President
since
2009
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Distributors,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Matthew
T.
Hinkle
(1971)
Chief
Executive
Officer
–
Finance
and
Administration
Since
2017
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Vice
President,
Franklin
Templeton
Services,
LLC;
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex;
and
formerly
,
Vice
President,
Global
Tax
(2012-April
2017)
and
Treasurer/Assistant
Treasurer,
Franklin
Templeton
(2009-2017).
Susan
Kerr
(1949)
Vice
President
–
AML
Since
2021
Not
Applicable
Not
Applicable
620
Eighth
Avenue
New
York,
NY
10018
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Compliance
Analyst,
Franklin
Templeton;
Chief
Anti-Money
Laundering
Compliance
Officer,
Legg
Mason
&
Co.,
or
its
affiliates;
Anti
Money
Laundering
Compliance
Officer;
Senior
Compliance
Officer,
LMIS;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Christopher
Kings
(1974)
Chief
Financial
Officer,
Chief
Accounting
Officer
and
Treasurer
Since
January
2022
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Treasurer,
U.S.
Fund
Administration
&
Reporting;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Navid
J.
Tofigh
(1972)
Vice
President
Since
2015
Not
Applicable
Not
Applicable
One
Franklin
Parkway
San
Mateo,
CA
94403-1906
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
High
Income
Trust
51
franklintempleton.com
Annual
Report
*We
base
the
number
of
portfolios
on
each
separate
series
of
the
U.S.
registered
investment
companies
within
the
Franklin
Templeton/Legg
Mason
fund
complex.
These
portfolios
have
a
common
investment
manager
or
affiliated
investment
managers.
**Gregory
E.
Johnson
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
of
Franklin
Resources,
Inc.
(Resources),
which
is
the
parent
company
of
the
Fund’s
investment
manager
and
distributor.
Rupert
H.
Johnson,
Jr.
is
considered
to
be
an
interested
person
of
the
Fund
under
the
federal
securities
laws
due
to
his
position
as
an
officer
and
director
and
major
shareholder
of
Resources.
Note
1:
Rupert
H.
Johnson,
Jr.
is
the
uncle
of
Gregory
E.
Johnson.
Note
2:
Officer
information
is
current
as
of
the
date
of
this
report.
It
is
possible
that
after
this
date,
information
about
officers
may
change.
The
Sarbanes-Oxley
Act
of
2002
and
Rules
adopted
by
the
Securities
and
Exchange
Commission
require
the
Fund
to
disclose
whether
the
Fund’s
Audit
Committee
includes
at
least
one
member
who
is
an
audit
committee
financial
expert
within
the
meaning
of
such
Act
and
Rules.
The
Fund’s
Board
has
determined
that
there
is
at
least
one
such
financial
expert
on
the
Audit
Committee
and
has
designated
Mary
C.
Choksi
as
its
audit
committee
financial
expert.
The
Board
believes
that
Ms.
Choksi
qualifies
as
such
an
expert
in
view
of
her
extensive
business
background
and
experience.
She
served
as
a
director
of
Avis
Budget
Group,
Inc.
(2007-2020)
and
formerly,
Founder
and
Senior
Advisor,
Strategic
Investment
Group
(1987
to
2017).
Ms.
Choksi
has
been
a
Member
of
the
Fund’s
Audit
Committee
since
2014.
As
a
result
of
such
background
and
experience,
the
Board
believes
that
Ms.
Choksi
has
acquired
an
understanding
of
generally
accepted
accounting
principles
and
financial
statements,
the
general
application
of
such
principles
in
connection
with
the
accounting
estimates,
accruals
and
reserves,
and
analyzing
and
evaluating
financial
statements
that
present
a
breadth
and
level
of
complexity
of
accounting
issues
generally
comparable
to
those
of
the
Fund,
as
well
as
an
understanding
of
internal
controls
and
procedures
for
financial
reporting
and
an
understanding
of
audit
committee
functions.
Ms.
Choksi
is
an
independent
Board
member
as
that
term
is
defined
under
the
relevant
Securities
and
Exchange
Commission
Rules
and
Releases.
The
Statement
of
Additional
Information
(SAI)
includes
additional
information
about
the
board
members
and
is
available,
without
charge,
upon
request.
Shareholders
may
call
(800)
DIAL
BEN/342-5236
to
request
the
SAI.
Name,
Year
of
Birth
and
Address
Position
Length
of
Time
Served
Number
of
Portfolios
in
Fund
Complex
Overseen
by
Board
Member*
Other
Directorships
Held
During
at
Least
the
5
Years
Lori
A.
Weber
(1964)
Vice
President
and
Co-Secretary
Vice
President
since
2011
and
Co-Secretary
since
2019
Not
Applicable
Not
Applicable
300
S.E.
2nd
Street
Fort
Lauderdale,
FL
33301-
1923
Principal
Occupation
During
at
Least
the
Past
5
Years:
Senior
Associate
General
Counsel,
Franklin
Templeton;
Assistant
Secretary,
Franklin
Resources,
Inc.;
Vice
President
and
Secretary,
Templeton
Investment
Counsel,
LLC;
and
officer
of
certain
funds
in
the
Franklin
Templeton/Legg
Mason
fund
complex.
Interested
Board
Members
and
Officers
(continued)
Franklin
High
Income
Trust
Shareholder
Information
52
franklintempleton.com
Annual
Report
Proxy
Voting
Policies
and
Procedures
The
Fund’s
investment
manager
has
established
Proxy
Voting
Policies
and
Procedures
(Policies)
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities.
Shareholders
may
view
the
Fund’s
complete
Policies
online
at
franklintempleton.com.
Alternatively,
shareholders
may
request
copies
of
the
Policies
free
of
charge
by
calling
the
Proxy
Group
collect
at
(954)
527-
7678
or
by
sending
a
written
request
to:
Franklin
Templeton
Companies,
LLC,
300
S.E.
2nd
Street,
Fort
Lauderdale,
FL
33301,
Attention:
Proxy
Group.
Copies
of
the
Fund’s
proxy
voting
records
are
also
made
available
online
at
franklintempleton.com
and
posted
on
the
U.S.
Securities
and
Exchange
Commission’s
website
at
sec.gov
and
reflect
the
most
recent
12-month
period
ended
June
30.
Quarterly
Schedule
of
Investments
The
Trust,
on
behalf
of
the
Fund,
files
a
complete
schedule
of
investments
with
the
U.S.
Securities
and
Exchange
Commission
for
the
first
and
third
quarters
for
each
fiscal
year
as
an
exhibit
to
its
report
on
Form
N-PORT.
Shareholders
may
view
the
filed
Form
N-PORT
by
visiting
the
Commission’s
website
at
sec.gov.
The
filed
form
may
also
be
viewed
and
copied
at
the
Commission’s
Public
Reference
Room
in
Washington,
DC.
Information
regarding
the
operations
of
the
Public
Reference
Room
may
be
obtained
by
calling
(800)
SEC-0330.
Householding
of
Reports
and
Prospectuses
You
will
receive,
or
receive
notice
of
the
availability
of,
the
Fund’s
financial
reports
every
six
months.
In
addition,
you
will
receive
as
an
annual
updated
summary
prospectus
(detail
prospectus
available
upon
request).
To
reduce
Fund
expenses,
we
try
to
identify
related
shareholders
in
a
household
and
send
only
one
copy
of
the
financial
reports
(to
the
extent
received
by
mail)
and
summary
prospectus.
This
process,
called
“householding,”
will
continue
indefinitely
unless
you
instruct
us
otherwise.
If
you
prefer
not
to
have
these
documents
householded,
please
call
us
at
(800)
632-2301.
At
any
time
you
may
view
current
prospectuses/
summary
prospectuses
and
financial
reports
on
our
website.
If
you
choose,
you
may
receive
these
documents
through
electronic
delivery.
1105
A
11/22
©
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.
Annual
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.
(a) Audit Fees
The aggregate fees paid to the principal accountant for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements or for services that are normally provided by the principal accountant in connection with statutory and regulatory filings or engagements were $41,018 for the fiscal year ended September 30, 2022 and $61,208 for the fiscal year ended May 31, 2022.
(b) Audit-Related Fees
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of Item 4.
There were no fees paid to the principal accountant for assurance and related services rendered by the principal accountant to the registrant's investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that are reasonably related to the performance of the audit of their financial statements.
(c) Tax Fees
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant for tax compliance, tax advice and tax planning.
There were no fees paid to the principal accountant for professional services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant for tax compliance, tax advice and tax planning.
(d) All Other Fees
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant not reported in paragraphs (a)-(c) of Item 4 were $1,977 for the fiscal year ended September 30, 2022 and $1,342 for the fiscal year ended May 31, 2022. The services for which these fees were paid included review of materials provided to the fund Board in connection with the investment management contract renewal process and professional fees in connection with SOC 1 Reports.
The aggregate fees paid to the principal accountant for products and services rendered by the principal accountant to the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant not reported in paragraphs (a)-(c) of Item 4 were $23,276 for the fiscal year ended September 30, 2022 and $243,743 for the fiscal year ended May 31, 2022. The services for which these fees were paid included professional fees in connection with determining the feasibility of a U.S. direct lending structure, professional services relating to the readiness assessment over Greenhouse Gas Emissions and Energy, fees in connection with a license for accounting and business knowledge platform Viewpoint, fees in connection with license for employee development tool ProEdge, and professional fees in connection with SOC 1 Reports.
(e) (1) The registrant’s audit committee is directly responsible for approving the services to be provided by the auditors, including:
(i) pre-approval of all audit and audit related services;
(ii) pre-approval of all non-audit related services to be provided to the Fund by the auditors;
(iii) pre-approval of all non-audit related services to be provided to the registrant by the auditors to the registrant’s investment adviser or to any entity that controls, is controlled by or is under common control with the registrant’s investment adviser and that provides ongoing services to the registrant where the non-audit services relate directly to the operations or financial reporting of the registrant; and
(iv) establishment by the audit committee, if deemed necessary or appropriate, as an alternative to committee pre-approval of services to be provided by the auditors, as required by paragraphs (ii) and (iii) above, of policies and procedures to permit such services to be pre-approved by other means, such as through establishment of guidelines or by action of a designated member or members of the committee; provided the policies and procedures are detailed as to the particular service and the committee is informed of each service and such policies and procedures do not include delegation of audit committee responsibilities, as contemplated under the Securities Exchange Act of 1934, to management; subject, in the case of (ii) through (iv), to any waivers, exceptions or exemptions that may be available under applicable law or rules.
(e) (2) None of the services provided to the registrant described in paragraphs (b)-(d) of Item 4 were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of regulation S-X.
(f) No disclosures are required by this Item 4(f).
(g) The aggregate non-audit fees paid to the principal accountant for services rendered by the principal accountant to the registrant and the registrant’s investment adviser and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant were $25,253 for the fiscal year ended September 30, 2022 and $245,085 for the fiscal year ended May 31, 2022.
(h) The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
(i) N/A
(j) N/A
Item 5. Audit Committee
of Listed Registrants.
N/A
Item 6. Schedule of Investments.
N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a)
Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls
.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
FRANKLIN HIGH INCOME TRUST
By S\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date November 30, 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 November 30, 2022
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date November 30, 2022