Franklin Templeton Variable Insurance Products Trust N-CSRS Certified semi-annual shareholder report (management investment company)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-05583

Franklin Templeton Variable Insurance Products 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: 12/31

Date of reporting period: 6/30/22

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

.

Semiannual

Report

Franklin

Templeton

Variable

Insurance

Products

Trust

June

30,

2022

Not

FDIC

Insured

May

Lose

Value

No

Bank

Guarantee

MASTER

CLASS

-

5

Franklin

Templeton

Variable

Insurance

Products

Trust

Semiannual

Report

Table

of

Contents

Important

Notes

to

Performance

Information

...........

i

Fund

Summaries

Franklin

VolSmart

Allocation

VIP

Fund

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

FVA-1

Index

Descriptions

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

I-1

Shareholder

Information

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

SI-1

i

Semiannual

Report

Important

Notes

to

Performance

Information

Performance

data

is

historical

and

cannot

predict

or

guarantee

future

results.

Principal

value

and

investment

return

will

fluctuate

with

market

conditions,

and

you

may

have

a

gain

or

loss

when

you

withdraw

your

money.

Inception

dates

of

the

funds

may

have

preceded

the

effective

dates

of

the

subaccounts,

contracts

or

their

availability

in

all

states.

When

reviewing

the

index

comparisons,

please

keep

in

mind

that

indexes

have

a

number

of

inherent

performance

differentials

over

the

funds.

First,

unlike

the

funds,

which

must

hold

a

minimum

amount

of

cash

to

maintain

liquidity,

indexes

do

not

have

a

cash

component.

Second,

the

funds

are

actively

managed

and,

thus,

are

subject

to

management

fees

to

cover

salaries

of

securities

analysts

or

portfolio

managers

in

addition

to

other

expenses.

Indexes

are

unmanaged

and

do

not

include

any

commissions

or

other

expenses

typically

associated

with

investing

in

securities.

Third,

indexes

often

contain

a

different

mix

of

securities

than

the

fund

to

which

they

are

compared.

Additionally,

please

remember

that

indexes

are

simply

a

measure

of

performance

and

cannot

be

invested

in

directly.

FVA-1

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

This

semiannual

report

for

Franklin

VolSmart

Allocation

VIP

Fund

covers

the

period

ended

June

30,

2022

.

Class

5

Performance

Summary

as

of

June

30,

2022

The

Fund’s

Class

5

Shares

posted

a

-14.08%

total

return*

for

the

six-month

period

ended

June

30,

2022.

*Prior

to

5/1/15,

the

Fund

followed

different

investment

strategies,

had

different

subadvisory

arrangements,

allocated

its

core

portfolio

differently,

had

a

different

current

target

volatility

goal

and

made

different

use

of

derivative

instruments.

As

a

result,

the

Fund

generally

held

different

investments

and

had

a

different

investment

profile.

The

Fund

has

an

expense

reduction

and

a

fee

waiver

associated

with

any

investments

it

makes

in

a

Franklin

Templeton

money

fund

and/or

other

Franklin

Templeton

fund,

contractually

guaranteed

through

4/30/23.

Fund

investment

results

reflect

the

expense

reduction

and

fee

waiver;

without

these

reductions,

the

results

would

have

been

lower.

Performance

reflects

the

Fund’s

Class

5

operating

expenses,

but

does

not

include

any

contract

fees,

expenses

or

sales

charges.

If

they

had

been

included,

performance

would

be

lower.

These

charges

and

deductions,

particularly

for

variable

life

policies,

can

have

a

significant

effect

on

contract

values

and

insurance

benefits.

See

the

contract

prospectus

for

a

complete

description

of

these

expenses,

including

sales

charges.

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.

FVA-2

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

Fund

Goal

and

Main

Investments

The

Fund

seeks

total

return

(including

income

and

capital

gains)

while

seeking

to

manage

volatility.

The

Fund

is

structured

as

a

limited

fund-of-funds

that

seeks

to

achieve

its

investment

goal

by

investing

its

assets

partially

in

other

mutual

funds,

which

include

other

Franklin

Templeton

and

Legg

Mason

mutual

funds

and

exchange-traded

funds

(ETFs)

and

third-party

ETFs

(underlying

funds).

Each

underlying

fund

is

allocated

to

the

equity,

fixed

income,

multi-

class

or

cash

asset

class

based

on

its

predominant

asset

class

and

strategies.

These

underlying

funds,

in

turn,

invest

in

a

variety

of

U.S.

and

foreign

equity,

fixed-income

and

money

market

securities.

The

Fund

also

obtains

exposure

to

certain

strategies

and

investments

in

its

core

portfolio

by

directly

investing

in

the

securities

and

instruments

in

that

strategy.

Fund

Risks

All

investments

involve

risks,

including

possible

loss

of

principal.

Events

such

as

the

spread

of

deadly

diseases,

disasters,

and

financial,

political

or

social

disruptions,

may

heighten

risks

and

adversely

affect

performance.

Generally,

investors

should

be

comfortable

with

fluctuation

in

the

value

of

their

investments,

especially

over

the

short

term.

Stock

prices

fluctuate,

sometimes

rapidly

and

dramatically,

due

to

factors

affecting

individual

companies,

particular

industries

or

sectors,

or

general

market

conditions.

There

can

be

no

guarantee

that

the

Fund’s

volatility

management

strategy

will

be

successful;

moreover,

achieving

the

Fund’s

strategy

of

limiting

the

Fund’s

annual

volatility

does

not

mean

the

Fund

will

achieve

a

positive

or

competitive

return.

Bond

prices

generally

move

in

the

opposite

direction

of

interest

rates.

Changes

in

an

issuer's

financial

strength

or

in

a

security's

or

government's

credit

rating

may

affect

a

security's

value.

Derivative

investments

involve

costs

and

can

create

economic

leverage

in

the

Fund’s

portfolio,

which

may

result

in

significant

volatility

and

cause

the

Fund

to

participate

in

losses

(as

well

as

gains)

in

an

amount

that

exceeds

the

Fund’s

initial

investment.

With

over-the-counter

derivatives,

there

is

the

risk

that

the

other

party

to

the

transaction

will

fail

to

perform.

Because

the

Fund

invests

in

underlying

funds,

and

the

Fund’s

performance

is

directly

related

to

the

performance

of

the

underlying

funds

held

by

it,

the

ability

of

the

Fund

to

achieve

its

investment

goal

is

directly

related

to

the

ability

of

the

underlying

funds

to

meet

their

investment

goals.

The

Fund

is

actively

managed

but

there

is

no

guarantee

that

the

manager’s

investment

decisions

will

produce

the

desired

results.

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

imposed

broad-

ranging

economic

sanctions

on

Russia

and

certain

Russian

individuals,

banking

entities

and

corporations

as

a

response

to

its

invasion

of

Ukraine.

The

United

States

and

other

countries

have

also

imposed

economic

sanctions

on

Belarus

and

may

impose

sanctions

on

other

countries

that

support

Russia's

military

invasion.

These

sanctions,

as

well

as

any

other

economic

consequences

related

to

the

invasion,

such

as

additional

sanctions,

boycotts

or

changes

in

consumer

or

purchaser

preferences

or

cyberattacks

on

governments,

companies

or

individuals,

may

further

decrease

the

value

and

liquidity

of

certain

Russian

securities

and

securities

of

issuers

in

other

countries

that

are

subject

to

economic

sanctions

related

to

the

invasion.

*The

portfolio

composition

is

based

on

the

Schedule

of

Investments

(SOI),

which

classifies

each

underlying

fund

into

a

broad

asset

class.

Performance

Overview

You

can

find

the

Fund’s

six-month

total

return

in

the

Performance

Summary.

For

comparison,

the

Fund’s

equity

benchmark,

the

Standard

&

Poor’s

®

500

Index

(S&P

500

®

),

posted

a

-19.96%

total

return,

while

the

Fund’s

fixed

income

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

period

under

review.

1

The

Fund’s

Blended

Benchmark,

a

combination

of

leading

stock

and

bond

indexes

that

better

reflects

the

asset

allocation

of

the

Fund’s

portfolio,

posted

a

-15.12%

total

return

for

the

same

period.

2

Portfolio

Composition

*

6/30/22

%

of

Total

Net

Assets

Common

Stocks

63.5%

Domestic

Fixed

Income

24.1%

Domestic

Hybrid

8.0%

Foreign

Equity

1.3%

Short-Term

Investments

&

Other

Net

Assets

3.1%

1.

Source:

Morningstar.

2.

Source:

FactSet.

The

Fund’s

Blended

Benchmark

was

calculated

internally

and

was

composed

of

60%

S&P

500,

30%

Bloomberg

U.S.

Aggregate

Bond

Index

and

10%

Bloomberg

1-3

Month

U.S.

Treasury

Bill

Index.

One

cannot

invest

directly

in

an

index,

and

an

index

is

not

representative

of

the

Fund’s

portfolio.

Please

see

Index

Descriptions

following

the

Fund

Summaries.

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).

Franklin

VolSmart

Allocation

VIP

Fund

FVA-3

Semiannual

Report

Economic

and

Market

Overview

U.S.

equities,

as

measured

by

the

S&P

500,

posted

a

-19.96%

total

return

for

the

six

months

ended

June

30,

2022.

1

Concerns

surrounding

higher

inflation,

geopolitical

stability

and

rising

interest

rates

pressured

stocks,

particularly

in

the

second

half

of

the

period.

Elevated

demand

combined

with

supply

chain

disruptions

led

to

the

highest

inflation

since

1981

and

borrowing

costs

increased

from

historically

low

levels.

Russia’s

invasion

of

Ukraine

injected

further

uncertainty

into

financial

markets,

provoking

significant

volatility

in

commodity

and

equity

prices.

Gross

domestic

product

growth

contracted

in

the

first

quarter

of

2022

amid

lower

investments

in

inventories

and

a

growing

trade

deficit.

Private

domestic

investment

slowed

sharply,

while

government

spending

declined

in

the

first

quarter.

Rising

prices

precipitated

a

notable

decline

in

consumer

confidence,

despite

high

spending

levels.

The

inflation

rate

was

elevated

during

the

six-month

period

amid

increased

demand

and

supply

chain

bottlenecks.

U.S.

consumer

spending

on

goods

remained

strong

during

the

first

half

of

the

period,

adding

to

pressure

on

the

prices

of

many

products.

Energy

costs

also

rose,

as

oil

prices

increased

significantly,

driven

by

greater

global

demand

and

sanctions

on

Russia,

one

of

the

world’s

largest

oil

producers.

The

personal

consumption

expenditures

index,

a

measure

of

inflation,

rose

dramatically

during

the

period,

representing

the

highest

12-month

increase

in

decades.

The

unemployment

rate

declined

from

4.0%

in

January

2022

to

3.6%

in

June

2022,

but

a

relative

lack

of

available

workers

fueled

wage

growth,

adding

to

some

investors’

inflation

concerns.

In

an

effort

to

control

inflation,

the

U.S.

Federal

Reserve

(Fed)

raised

the

federal

funds

target

rate

in

March

2022

for

the

first

time

since

2018.

The

Fed

raised

the

federal

funds

rate

again

at

its

subsequent

two

meetings,

accelerating

the

rate

of

increase

each

time

to

end

the

period

at

a

range

of

1.50%–1.75%.

The

Fed

noted

in

its

June

2022

meeting

that

inflation

remained

elevated,

as

job

growth

was

robust

and

the

unemployment

rate

remained

low.

Furthermore,

the

Fed

said

it

will

continue

to

reduce

its

bond

holdings,

and

it

anticipated

instituting

further

interest-rate

increases

at

future

meetings.

The

U.S.

bond

market,

as

measured

by

the

Bloomberg

U.S.

Aggregate

Bond

Index,

posted

a

-10.35%

total

return

for

the

six

months

ended

June

30,

2022.

1

High

inflation

amid

supply

chain

disruptions

and

increased

consumer

spending

led

to

significantly

tighter

monetary

policy,

reducing

the

value

of

most

bonds.

Geopolitical

instability

disrupted

financial

markets

following

Russia’s

invasion

of

Ukraine,

adding

to

the

uncertainty

surrounding

the

global

economy.

The

yield

curve

flattened

notably

during

the

period,

reflecting

investors’

expectations

that

short-term

interest

rates

would

continue

to

rise,

while

the

outlook

for

long-term

economic

growth

was

uncertain.

U.S.

Treasury

(UST)

bonds,

as

measured

by

the

Bloomberg

U.S.

Treasury

Index,

posted

a

-9.14%

total

return

for

the

six-month

period.

1

The

10-year

UST

yield

(which

moves

inversely

to

price)

grew

notably,

particularly

beginning

in

March

2022,

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

-8.78%

total

return

for

the

period

as

mortgage

rates

rose

to

the

highest

level

in

over

a

decade.

1

Corporate

bond

prices

also

declined

overall,

constrained

by

inflation,

rising

interest

rates

and

concerns

about

the

impact

of

higher

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

-14.19%

total

return,

and

investment-grade

corporate

bonds,

as

represented

by

the

Bloomberg

U.S.

Corporate

Bond

Index,

posted

a

-14.39%

total

return.

1

Investment

Strategy

Under

normal

market

conditions,

the

Fund

seeks

to

achieve

its

investment

goal

by

allocating

its

assets

across

certain

asset

classes,

sectors

and

strategies

in

an

attempt

to

produce

a

diversified

portfolio

that

will

generate

returns,

while

minimizing

the

expected

volatility

of

the

Fund’s

returns

Top

10

Holdings

6/30/22

Issuer

%

of

Total

Net

Assets

a

a

Franklin

Liberty

U.S.

Core

Bond

ETF

15.6%

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

8.5%

Franklin

Income

VIP

Fund,

Class

1

8.0%

Microsoft

Corp.

4.7%

Apple,

Inc.

2.2%

UnitedHealth

Group,

Inc.

1.5%

Texas

Instruments,

Inc.

1.4%

Raytheon

Technologies

Corp.

1.3%

iShares

Core

MSCI

EAFE

ETF

1.3%

Roper

Technologies,

Inc.

1.2%

Franklin

VolSmart

Allocation

VIP

Fund

FVA-4

Semiannual

Report

so

that

volatility

does

not

exceed

a

target

of

10%

per

year

(volatility

within

the

10%

target

is

referred

to

as

“Target

Volatility”).

The

Fund’s

assets

are

primarily

invested

in

its

“core

portfolio,”

which

is

principally

composed

of

various

U.S.

equity

and

fixed

income

investments

and

strategies,

including

investments

in

other

mutual

funds

and

ETFs

that

provide

exposure

to

such

investments

and

strategies.

In

addition,

the

Fund

employs

a

volatility

management

strategy,

which

is

designed

to

manage

the

expected

volatility

of

the

Fund’s

returns

so

that

volatility

remains

within

the

Fund’s

Target

Volatility.

Thus,

the

Fund

may

utilize

certain

derivative

instruments

(primarily

futures

contracts

on

indexes)

in

an

effort

to

adjust

the

Fund’s

expected

volatility

to

within

the

Target

Volatility.

There

is

no

guarantee

that

the

Fund

will

stay

within

its

Target

Volatility.

Manager’s

Discussion

Asset

Allocation

The

Fund’s

cross-asset

allocation

positioning,

in

aggregate,

detracted

from

relative

performance

throughout

much

of

the

period

as

the

portfolio’s

equity

position

remained

toward

the

upper

band

of

its

allowable

range.

The

overweight

exposure

to

equities

and

underweight

to

fixed

income

had

a

negative

impact

amid

growing

investor

concerns

over

rising

inflation,

tightening

monetary

policy,

geopolitical

instability

and

slowing

economic

growth.

However,

the

Fund’s

volatility

hedges

served

to

reduce

equity

weight

and

added

value

beyond

the

core

equity

allocation

detraction.

Equities

The

Franklin

Rising

Dividends

Strategy,

the

largest

underlying

equity

strategy

in

the

Fund,

contributed

to

performance,

due

in

part

to

its

focus

on

dividend-paying

equities.

The

Franklin

Smart

Beta

Equity

Strategy

also

contributed,

as

its

overweighting

to

quality

and

style

value

factors

made

positive

impacts.

Fixed

Income

The

Fund’s

fixed

income

exposures

detracted

from

relative

returns.

The

Franklin

Core

Bond

ETF

comprised

the

bulk

of

the

fixed

income

allocation

and

declined,

underperforming

its

benchmark.

Multi-Asset

A

small

allocation

to

the

Franklin

Income

Fund

was

a

meaningful

contributor

to

relative

performance

for

the

period.

The

fund’s

dividend

orientation

and

exposure

to

the

energy

sector

were

primary

drivers

of

outperformance.

Hedging

Overall,

hedging

strategies

had

a

positive

impact

on

performance

as

equity

markets

fell

precipitously

during

the

period.

Specifically,

the

volatility

overlay

added

meaningful

value

as

it

was

engaged

for

much

of

the

period,

building

in

position

as

a

result.

Positioning

There

were

no

portfolio

changes

during

the

period.

Derivatives

The

Fund

holds

two

hedging

strategies:

one

tail

hedge,

or

VIX-linked

note,

and

one

volatility

overlay,

which

holds

S&P

500

Index

futures

when

engaged.

Thank

you

for

your

participation

in

Franklin

VolSmart

Allocation

VIP

Fund.

We

look

forward

to

serving

your

future

investment

needs.

The

foregoing

information

reflects

our

analysis,

opinions

and

portfolio

holdings

as

of

June

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.

Class

5

Fund

Expenses

Franklin

VolSmart

Allocation

VIP

Fund

FVA-5

Semiannual

Report

As

an

investor

in

a

variable

insurance

contract

(Contract)

that

indirectly

provides

for

investment

in

an

underlying

mutual

fund,

you

can

incur

transaction

and/or

ongoing

expenses

at

both

the

Fund

level

and

the

Contract

Level:

(1)

transaction

expenses

can

include

sales

charges

(loads)

on

purchases,

surrender

fees,

transfer

fees

and

premium

taxes;

and

(2)

ongoing

expenses

can

include

management

fees,

distribution

and

service

(12b-1)

fees,

contract

fees,

annual

maintenance

fees,

mortality

and

expense

risk

fees

and

other

fees

and

expenses.

All

mutual

funds

and

Contracts

have

some

types

of

ongoing

expenses.

The

table

below

shows

Fund-level

ongoing

expenses

and

can

help

you

understand

these

costs

and

compare

them

with

those

of

other

mutual

funds

offered

through

the

Contract.

The

table

assumes

a

$1,000

investment

held

for

the

six

months

indicated.

Please

refer

to

the

Fund

prospectus

for

additional

information

on

operating

expenses.

Actual

Fund

Expenses

The

table

below

provides

information

about

the

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

ongoing

Fund

expenses

but

does

not

include

the

effect

of

ongoing

Contract

expenses,

is

used

to

calculate

the

“Ending

Account

Value.”

You

can

estimate

the

Fund-level

expenses

you

paid

during

the

period

by

following

these

steps

(

of

course,

your

account

value

and

expenses

will

differ

from

those

in

this

illustration

):

Divide

your

account

value

by

$1,000

(

if

your

account

had

an

$8,600

value,

then

$8,600

÷

$1,000

=

8.6

).

Then

multiply

the

result

by

the

number

under

the

headings

“Actual”

and

“Fund-Level

Expenses

Paid

During

Period”

(

if

Fund-Level

Expenses

Paid

During

Period

were

$7.50,

then

8.6

x

$7.50

=

$64.50

).

In

this

illustration,

the

estimated

expenses

paid

this

period

at

the

Fund

level

are

$64.50.

Hypothetical

Example

for

Comparison

with

Other

Mutual

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

mutual

funds

offered

through

the

Contract.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

other

funds

offered

through

the

Contract.

Please

note

that

expenses

shown

in

the

table

are

meant

to

highlight

ongoing

costs

at

the

Fund

level

only

and

do

not

reflect

any

ongoing

expenses

at

the

Contract

level,

or

transaction

expenses

at

either

the

Fund

or

Contract

levels.

In

addition,

while

the

Fund

does

not

have

transaction

expenses,

if

the

transaction

and

ongoing

expenses

at

the

Contract

level

were

included,

the

expenses

shown

below

would

be

higher.

You

should

consult

your

Contract

prospectus

or

disclosure

document

for

more

information.

1.

Expenses

are

equal

to

the

annualized

expense

ratio

for

the

six-month

period

as

indicated

above—in

the

far

right

column—multiplied

by

the

simple

average

account

value

over

the

period

indicated,

and

then

multiplied

by

181/365

to

reflect

the

one-half

year

period.

2.

Reflects

expenses

after

fee

waivers

and

expense

reimbursements.

Does

not

include

any

ongoing

expenses

of

the

Contract

for

which

the

Fund

is

an

investment

option

or

acquired

fund

fees

and

expenses.

Actual

(actual

return

after

expenses)

Hypothetical

(5%

annual

return

before

expenses)

Share

Class

Beginning

Account

Value

1/1/22

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

Ending

Account

Value

6/30/22

Fund-Level

Expenses

Paid

During

Period

1/1/22–6/30/22

1,2

a

Net

Annualized

Expense

Ratio

2

5

$1,000

$859.20

$3.68

$1,020.84

$4.00

0.80%

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

VolSmart

Allocation

VIP

Fund

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-6

a

Period

Ended

June

30,

2022

a

Class

1

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

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

$13.60

Income

from

investment

operations

b

:

Net

investment

income

c,d

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

0.35

Net

realized

and

unrealized

gains

(losses)

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

(0.62)

Total

from

investment

operations

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

(0.27)

Less

distributions

from:

Net

investment

income

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

(0.25)

Net

realized

gains

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

(1.21)

Total

distributions

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

(1.46)

Net

asset

value,

end

of

period

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

$11.87

Total

return

e

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

(1.99)%

Ratios

to

average

net

assets

f

Expenses

before

waiver

and

payments

by

affiliates

g

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

0.86%

Expenses

net

of

waiver

and

payments

by

affiliates

g,h

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

0.65%

Net

investment

income

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

5.41%

Supplemental

data

Net

assets,

end

of

period

(000’s)

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

$4

Portfolio

turnover

rate

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

26.79%

a

For

the

period

May

20,

2022

(effective

date)

to

June

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

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Based

on

average

daily

shares

outstanding.

e

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

f

Ratios

are

annualized

for

periods

less

than

one

year.

g

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.10%

for

the

period

ended

June

30,

2022.

h

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-7

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

2

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.57

$14.55

$12.60

$10.82

$11.67

$10.10

Income

from

investment

operations

a

:

Net

investment

income

b

,c

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

0.13

0.26

0.24

0.22

0.21

0.16

Net

realized

and

unrealized

gains

(losses)

(2.31)

2.19

1.86

1.70

(1.02)

1.41

Total

from

investment

operations

........

(2.18)

2.45

2.10

1.92

(0.81)

1.57

Less

distributions

from:

Net

investment

income

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

(0.25)

(0.64)

(0.15)

—

(0.04)

—

Net

realized

gains

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

(1.21)

(0.79)

—

(0.14)

—

—

Total

distributions

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

(1.46)

(1.43)

(0.15)

(0.14)

(0.04)

—

Net

asset

value,

end

of

period

..........

$11.93

$15.57

$14.55

$12.60

$10.82

$11.67

Total

return

d

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

(14.01)%

17.62%

16.85%

17.82%

(6.93)%

15.54%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

0.87%

0.88%

0.88%

1.12%

1.10%

1.14%

Expenses

net

of

waiver

and

payments

by

affiliates

f

,g

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

0.65%

0.65%

0.65%

0.90%

0.75%

0.73%

Net

investment

income

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

1.86%

1.75%

1.85%

1.87%

1.85%

1.44%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$32

$48

$45

$39

$33

$36

Portfolio

turnover

rate

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

26.79%

41.28%

69.19%

4.99%

6.28%

5.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.10%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Highlights

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-8

a

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

2020

2019

2018

2017

Class

5

Per

share

operating

performance

(for

a

share

outstanding

throughout

the

period)

Net

asset

value,

beginning

of

period

.....

$15.52

$14.52

$12.59

$10.80

$11.65

$10.07

Income

from

investment

operations

a

:

Net

investment

income

b,c

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

0.12

0.23

0.23

0.23

0.22

0.17

Net

realized

and

unrealized

gains

(losses)

(2.30)

2.18

1.86

1.70

(1.01)

1.41

Total

from

investment

operations

........

(2.18)

2.41

2.09

1.93

(0.79)

1.58

Less

distributions

from:

Net

investment

income

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

(0.23)

(0.62)

(0.16)

—

(0.06)

—

Net

realized

gains

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

(1.21)

(0.79)

—

(0.14)

—

—

Total

distributions

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

(1.44)

(1.41)

(0.16)

(0.14)

(0.06)

—

Net

asset

value,

end

of

period

..........

$11.90

$15.52

$14.52

$12.59

$10.80

$11.65

Total

return

d

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

(14.08)%

17.36%

16.78%

17.95%

(6.85)%

15.69%

Ratios

to

average

net

assets

e

Expenses

before

waiver

and

payments

by

affiliates

f

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

1.02%

1.03%

1.03%

1.02%

1.00%

1.04%

Expenses

net

of

waiver

and

payments

by

affiliates

f,g

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

0.80%

0.80%

0.80%

0.80%

0.65%

0.63%

Net

investment

income

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

1.76%

1.57%

1.70%

1.97%

1.95%

1.54%

Supplemental

data

Net

assets,

end

of

period

(000’s)

........

$169,723

$209,784

$195,818

$185,381

$171,173

$188,240

Portfolio

turnover

rate

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

26.79%

41.28%

69.19%

4.99%

6.28%

5.69%

a

The

amount

shown

for

a

share

outstanding

throughout

the

period

may

not

correlate

with

the

Statement

of

Operations

for

the

period

due

to

the

timing

of

sales

and

repurchases

of

the

Fund’s

shares

in

relation

to

income

earned

and/or

fluctuating

fair

value

of

the

investments

of

the

Fund.

b

Based

on

average

daily

shares

outstanding.

c

Recognition

of

net

investment

income

by

the

Fund

is

affected

by

the

timing

of

declaration

of

dividends

by

the

Underlying

Funds

and

exchange

traded

funds

in

which

the

Fund

invests.

d

Total

return

does

not

include

fees,

charges

or

expenses

imposed

by

the

variable

annuity

and

life

insurance

contracts

for

which

Franklin

Templeton

Variable

Insurance

Products

Trust

serves

as

an

underlying

investment

vehicle.

Total

return

is

not

annualized

for

periods

less

than

one

year.

e

Ratios

are

annualized

for

periods

less

than

one

year.

f

Does

not

include

expenses

of

the

Underlying

Funds

in

which

the

Fund

invests.

The

weighted

average

indirect

expenses

of

the

Underlying

Funds

was

0.10%

for

the

period

ended

June

30,

2022.

g

Benefit

of

expense

reduction

rounds

to

less

than

0.01%.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited),

June

30,

2022

Franklin

VolSmart

Allocation

VIP

Fund

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-9

a

a

Shares

a

Value

a

Common

Stocks

63.5%

Aerospace

&

Defense

2.8%

Curtiss-Wright

Corp.

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

405

$

53,484

General

Dynamics

Corp.

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

5,105

1,129,481

Huntington

Ingalls

Industries,

Inc.

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

271

59,029

L3Harris

Technologies,

Inc.

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

906

218,980

Lockheed

Martin

Corp.

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

1,426

613,123

Northrop

Grumman

Corp.

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

843

403,435

Raytheon

Technologies

Corp.

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

23,361

2,245,226

4,722,758

Air

Freight

&

Logistics

1.2%

CH

Robinson

Worldwide,

Inc.

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

544

55,145

United

Parcel

Service,

Inc.,

B

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

10,498

1,916,305

1,971,450

Automobiles

0.4%

a

Tesla,

Inc.

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

1,124

756,924

a

Banks

0.4%

First

Horizon

Corp.

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

2,682

58,628

JPMorgan

Chase

&

Co.

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

5,990

674,534

733,162

Beverages

1.2%

Coca-Cola

Co.

(The)

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

14,553

915,529

PepsiCo,

Inc.

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

6,425

1,070,791

1,986,320

Biotechnology

2.0%

AbbVie,

Inc.

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

12,499

1,914,347

Amgen,

Inc.

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

2,880

700,704

a

Regeneron

Pharmaceuticals,

Inc.

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

562

332,215

a

United

Therapeutics

Corp.

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

255

60,088

a

Vertex

Pharmaceuticals,

Inc.

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

1,395

393,097

3,400,451

Building

Products

0.9%

a

Builders

FirstSource

,

Inc.

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

977

52,465

Carlisle

Cos.,

Inc.

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

2,844

678,607

Johnson

Controls

International

plc

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

16,147

773,118

Owens

Corning

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

603

44,809

1,548,999

Capital

Markets

0.6%

Blackstone,

Inc.

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

3,763

343,298

Nasdaq,

Inc.

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

4,225

644,482

987,780

Chemicals

3.3%

Air

Products

and

Chemicals,

Inc.

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

5,490

1,320,235

Albemarle

Corp.

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

5,130

1,072,067

CF

Industries

Holdings,

Inc.

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

1,037

88,902

Ecolab,

Inc.

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

4,085

628,110

Huntsman

Corp.

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

1,576

44,680

Linde

plc

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

6,395

1,838,754

LyondellBasell

Industries

NV,

A

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

1,217

106,439

Mosaic

Co.

(The)

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

1,668

78,780

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-10

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Chemicals

(continued)

Sherwin-Williams

Co.

(The)

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

1,600

$

358,256

5,536,223

Commercial

Services

&

Supplies

0.7%

Cintas

Corp.

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

2,920

1,090,708

Rollins,

Inc.

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

1,649

57,583

1,148,291

Communications

Equipment

0.6%

a

Arista

Networks,

Inc.

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

1,292

121,112

Cisco

Systems,

Inc.

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

18,548

790,887

Juniper

Networks,

Inc.

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

1,904

54,264

966,263

Consumer

Finance

0.4%

American

Express

Co.

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

2,661

368,868

Capital

One

Financial

Corp.

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

1,886

196,502

a

Credit

Acceptance

Corp.

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

100

47,341

Synchrony

Financial

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

2,504

69,161

681,872

Containers

&

Packaging

0.1%

Graphic

Packaging

Holding

Co.

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

2,589

53,075

Packaging

Corp.

of

America

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

489

67,237

Sealed

Air

Corp.

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

945

54,545

174,857

Distributors

0.0%

†

Genuine

Parts

Co.

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

621

82,593

Diversified

Consumer

Services

0.1%

a

Grand

Canyon

Education,

Inc.

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

656

61,789

H&R

Block,

Inc.

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

1,848

65,271

Service

Corp.

International

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

954

65,940

193,000

Diversified

Financial

Services

0.4%

a

Berkshire

Hathaway,

Inc.,

B

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

2,593

707,941

a

Diversified

Telecommunication

Services

0.8%

AT&T,

Inc.

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

20,111

421,527

Lumen

Technologies,

Inc.

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

5,764

62,885

Verizon

Communications,

Inc.

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

17,040

864,780

1,349,192

Electric

Utilities

0.2%

Exelon

Corp.

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

4,837

219,213

NRG

Energy,

Inc.

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

1,599

61,034

OGE

Energy

Corp.

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

1,370

52,827

333,074

Electrical

Equipment

0.2%

nVent

Electric

plc

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

11,620

364,055

Electronic

Equipment,

Instruments

&

Components

0.2%

Amphenol

Corp.,

A

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

2,510

161,594

a

Arrow

Electronics,

Inc.

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

475

53,243

Avnet,

Inc.

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

1,181

50,641

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-11

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Electronic

Equipment,

Instruments

&

Components

(continued)

Corning,

Inc.

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

3,519

$

110,883

Jabil,

Inc.

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

962

49,264

425,625

Entertainment

0.0%

†

World

Wrestling

Entertainment,

Inc.,

A

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

852

53,241

Equity

Real

Estate

Investment

Trusts

(REITs)

0.7%

American

Campus

Communities,

Inc.

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

881

56,798

Cousins

Properties,

Inc.

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

1,664

48,639

EPR

Properties

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

1,114

52,280

Extra

Space

Storage,

Inc.

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

553

94,076

Gaming

and

Leisure

Properties,

Inc.

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

1,236

56,683

Kimco

Realty

Corp.

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

2,933

57,985

Life

Storage,

Inc.

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

495

55,272

Medical

Properties

Trust,

Inc.

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

3,075

46,955

National

Retail

Properties,

Inc.

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

1,282

55,126

Omega

Healthcare

Investors,

Inc.

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

1,933

54,491

Public

Storage

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

803

251,074

Realty

Income

Corp.

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

1,501

102,458

Rexford

Industrial

Realty,

Inc.

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

918

52,868

SL

Green

Realty

Corp.

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

951

43,889

VICI

Properties,

Inc.

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

3,839

114,364

WP

Carey,

Inc.

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

952

78,883

1,221,841

Food

&

Staples

Retailing

1.1%

Costco

Wholesale

Corp.

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

1,889

905,360

Kroger

Co.

(The)

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

1,635

77,384

Walgreens

Boots

Alliance,

Inc.

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

3,230

122,417

Walmart,

Inc.

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

5,910

718,538

1,823,699

Food

Products

1.1%

Archer-Daniels-Midland

Co.

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

2,937

227,911

Bunge

Ltd.

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

643

58,314

General

Mills,

Inc.

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

2,600

196,170

Hershey

Co.

(The)

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

689

148,245

McCormick

&

Co.,

Inc.

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

10,020

834,165

Mondelez

International,

Inc.,

A

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

4,200

260,778

Tyson

Foods,

Inc.,

A

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

1,354

116,525

1,842,108

Gas

Utilities

0.0%

†

National

Fuel

Gas

Co.

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

782

51,651

Health

Care

Equipment

&

Supplies

3.5%

Abbott

Laboratories

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

10,510

1,141,912

Becton

Dickinson

and

Co.

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

6,931

1,708,699

a

Edwards

Lifesciences

Corp.

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

2,769

263,304

a

Hologic

,

Inc.

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

776

53,777

Medtronic

plc

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

12,900

1,157,775

STERIS

plc

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

400

82,460

Stryker

Corp.

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

7,965

1,584,477

5,992,404

Health

Care

Providers

&

Services

3.1%

AmerisourceBergen

Corp.

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

697

98,612

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-12

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Health

Care

Providers

&

Services

(continued)

Cardinal

Health,

Inc.

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

1,222

$

63,874

a

Centene

Corp.

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

2,577

218,040

Chemed

Corp.

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

118

55,388

Cigna

Corp.

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

1,539

405,557

CVS

Health

Corp.

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

8,997

833,662

Elevance

Health,

Inc.

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

1,257

606,603

HCA

Healthcare,

Inc.

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

1,069

179,656

a

Henry

Schein,

Inc.

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

731

56,097

a

Molina

Healthcare,

Inc.

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

245

68,504

Premier,

Inc.,

A

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

1,574

56,160

Quest

Diagnostics,

Inc.

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

572

76,065

UnitedHealth

Group,

Inc.

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

4,846

2,489,051

5,207,269

Hotels,

Restaurants

&

Leisure

1.4%

Choice

Hotels

International,

Inc.

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

459

51,238

McDonald's

Corp.

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

7,703

1,901,717

Starbucks

Corp.

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

3,000

229,170

Yum!

Brands,

Inc.

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

1,380

156,644

2,338,769

Household

Durables

0.3%

DR

Horton,

Inc.

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

1,443

95,512

Lennar

Corp.,

A

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

1,151

81,226

a

NVR,

Inc.

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

14

56,058

PulteGroup,

Inc.

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

1,284

50,885

Tempur

Sealy

International,

Inc.

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

2,292

48,980

Toll

Brothers,

Inc.

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

1,148

51,201

Whirlpool

Corp.

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

322

49,868

433,730

Household

Products

1.0%

Colgate-Palmolive

Co.

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

8,370

670,772

Procter

&

Gamble

Co.

(The)

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

6,765

972,739

1,643,511

Industrial

Conglomerates

0.7%

Honeywell

International,

Inc.

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

6,980

1,213,194

Insurance

0.8%

American

International

Group,

Inc.

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

1,941

99,243

Assured

Guaranty

Ltd.

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

990

55,232

Axis

Capital

Holdings

Ltd.

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

989

56,462

Chubb

Ltd.

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

1,039

204,247

Erie

Indemnity

Co.,

A

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

2,190

420,896

Loews

Corp.

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

881

52,208

Old

Republic

International

Corp.

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

2,425

54,223

Progressive

Corp.

(The)

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

1,457

169,405

Travelers

Cos.,

Inc.

(The)

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

563

95,220

Unum

Group

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

1,775

60,386

W

R

Berkley

Corp.

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

796

54,335

1,321,857

Interactive

Media

&

Services

1.3%

a

Alphabet,

Inc.,

A

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

448

976,309

a

Alphabet,

Inc.,

C

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

407

890,292

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-13

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Interactive

Media

&

Services

(continued)

a

Meta

Platforms,

Inc.,

A

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

2,685

$

432,956

2,299,557

Internet

&

Direct

Marketing

Retail

0.6%

a

Amazon.com,

Inc.

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

9,138

970,547

a

IT

Services

3.0%

Accenture

plc,

A

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

6,995

1,942,162

Amdocs

Ltd.

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

802

66,815

Cognizant

Technology

Solutions

Corp.,

A

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

2,619

176,756

International

Business

Machines

Corp.

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

4,399

621,095

Jack

Henry

&

Associates,

Inc.

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

310

55,806

Mastercard

,

Inc.,

A

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

2,178

687,115

Paychex,

Inc.

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

1,620

184,469

Switch,

Inc.,

A

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

1,700

56,950

Visa,

Inc.,

A

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

6,725

1,324,085

Western

Union

Co.

(The)

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

3,191

52,556

5,167,809

Leisure

Products

0.0%

†

a

Mattel,

Inc.

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

2,312

51,627

a

Life

Sciences

Tools

&

Services

0.8%

Danaher

Corp.

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

600

152,112

West

Pharmaceutical

Services,

Inc.

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

3,810

1,152,030

1,304,142

Machinery

1.0%

Allison

Transmission

Holdings,

Inc.

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

1,408

54,138

Crane

Holdings

Co.

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

606

53,061

Donaldson

Co.,

Inc.

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

6,205

298,709

Dover

Corp.

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

6,194

751,456

PACCAR,

Inc.

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

1,575

129,686

Pentair

plc

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

9,950

455,411

1,742,461

Media

0.1%

Interpublic

Group

of

Cos.,

Inc.

(The)

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

1,954

53,794

Nexstar

Media

Group,

Inc.,

A

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

324

52,773

Omnicom

Group,

Inc.

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

1,046

66,536

173,103

Metals

&

Mining

0.2%

a

Cleveland-Cliffs,

Inc.

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

2,997

46,064

Nucor

Corp.

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

1,305

136,255

Reliance

Steel

&

Aluminum

Co.

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

316

53,676

Steel

Dynamics,

Inc.

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

983

65,025

United

States

Steel

Corp.

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

2,394

42,877

343,897

Mortgage

Real

Estate

Investment

Trusts

(REITs)

0.0%

†

New

Residential

Investment

Corp.

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

5,086

47,401

Multiline

Retail

0.8%

a

Dollar

Tree,

Inc.

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

1,021

159,123

Kohl's

Corp.

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

1,519

54,213

Macy's,

Inc.

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

2,628

48,145

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-14

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Multiline

Retail

(continued)

Target

Corp.

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

7,270

$

1,026,742

1,288,223

Multi-Utilities

0.1%

Consolidated

Edison,

Inc.

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

1,610

153,111

NiSource,

Inc.

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

2,001

59,009

212,120

Oil,

Gas

&

Consumable

Fuels

3.0%

APA

Corp.

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

1,674

58,423

Chevron

Corp.

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

10,959

1,586,644

ConocoPhillips

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

6,428

577,299

Continental

Resources,

Inc.

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

812

53,064

Coterra

Energy,

Inc.

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

3,365

86,783

Devon

Energy

Corp.

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

2,731

150,506

Diamondback

Energy,

Inc.

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

748

90,620

EOG

Resources,

Inc.

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

7,518

830,288

Exxon

Mobil

Corp.

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

14,372

1,230,818

PDC

Energy,

Inc.

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

658

40,539

Pioneer

Natural

Resources

Co.

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

1,110

247,619

Valero

Energy

Corp.

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

872

92,676

5,045,279

Paper

&

Forest

Products

0.0%

†

Louisiana-Pacific

Corp.

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

854

44,758

Pharmaceuticals

3.7%

Bristol-Myers

Squibb

Co.

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

10,734

826,518

Eli

Lilly

&

Co.

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

3,059

991,820

Johnson

&

Johnson

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

10,881

1,931,486

Merck

&

Co.,

Inc.

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

9,803

893,739

Organon

&

Co.

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

1,592

53,730

Pfizer,

Inc.

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

30,425

1,595,183

6,292,476

Professional

Services

0.2%

a

CACI

International,

Inc.,

A

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

207

58,329

a

FTI

Consulting,

Inc.

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

353

63,840

Leidos

Holdings,

Inc.

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

689

69,389

Robert

Half

International,

Inc.

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

655

49,053

Science

Applications

International

Corp.

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

681

63,401

304,012

Road

&

Rail

0.8%

a

Avis

Budget

Group,

Inc.

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

319

46,919

JB

Hunt

Transport

Services,

Inc.

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

2,545

400,761

Knight-Swift

Transportation

Holdings,

Inc.

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

1,204

55,733

Norfolk

Southern

Corp.

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

3,260

740,966

Ryder

System,

Inc.

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

716

50,879

Schneider

National,

Inc.,

B

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

2,401

53,734

1,348,992

Semiconductors

&

Semiconductor

Equipment

5.2%

a

Advanced

Micro

Devices,

Inc.

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

8,137

622,236

Analog

Devices,

Inc.

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

11,724

1,712,759

Applied

Materials,

Inc.

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

4,106

373,564

Broadcom,

Inc.

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

1,564

759,807

a

Cirrus

Logic,

Inc.

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

701

50,851

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-15

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Semiconductors

&

Semiconductor

Equipment

(continued)

Intel

Corp.

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

19,411

$

726,165

KLA

Corp.

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

766

244,415

Lam

Research

Corp.

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

635

270,605

Micron

Technology,

Inc.

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

5,301

293,039

NVIDIA

Corp.

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

3,684

558,458

a

ON

Semiconductor

Corp.

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

2,138

107,563

QUALCOMM,

Inc.

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

5,390

688,519

Texas

Instruments,

Inc.

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

15,324

2,354,533

8,762,514

Software

6.3%

a

Aspen

Technology,

Inc.

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

304

55,839

a

Cadence

Design

Systems,

Inc.

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

691

103,671

CDK

Global,

Inc.

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

1,052

57,618

a

Fortinet,

Inc.

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

3,295

186,431

Microsoft

Corp.

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

30,824

7,916,528

a

Palo

Alto

Networks,

Inc.

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

447

220,791

Roper

Technologies,

Inc.

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

5,165

2,038,367

a

Synopsys,

Inc.

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

377

114,495

10,693,740

Specialty

Retail

1.9%

Advance

Auto

Parts,

Inc.

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

310

53,658

a

AutoNation,

Inc.

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

483

53,980

a

AutoZone,

Inc.

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

114

245,000

Best

Buy

Co.,

Inc.

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

1,001

65,255

Dick's

Sporting

Goods,

Inc.

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

772

58,186

Lithia

Motors,

Inc.,

A

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

192

52,763

Lowe's

Cos.,

Inc.

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

9,628

1,681,723

a

O'Reilly

Automotive,

Inc.

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

343

216,694

Penske

Automotive

Group,

Inc.

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

500

52,345

Ross

Stores,

Inc.

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

9,100

639,093

a

Ulta

Beauty,

Inc.

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

144

55,509

Williams-Sonoma,

Inc.

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

478

53,034

3,227,240

Technology

Hardware,

Storage

&

Peripherals

2.5%

Apple,

Inc.

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

27,682

3,784,683

Dell

Technologies,

Inc.,

C

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

1,496

69,130

Hewlett

Packard

Enterprise

Co.

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

7,210

95,605

HP,

Inc.

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

6,286

206,055

NetApp,

Inc.

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

1,099

71,699

4,227,172

Textiles,

Apparel

&

Luxury

Goods

0.6%

NIKE,

Inc.,

B

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

9,515

972,433

Ralph

Lauren

Corp.

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

589

52,804

Tapestry,

Inc.

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

1,723

52,586

1,077,823

Tobacco

0.7%

Altria

Group,

Inc.

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

10,522

439,504

Philip

Morris

International,

Inc.

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

7,773

767,506

1,207,010

Trading

Companies

&

Distributors

0.5%

MSC

Industrial

Direct

Co.,

Inc.,

A

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

695

52,201

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-16

a

a

Shares

a

Value

a

Common

Stocks

(continued)

Trading

Companies

&

Distributors

(continued)

WW

Grainger,

Inc.

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

1,639

$

744,811

797,012

Total

Common

Stocks

(Cost

$79,123,679)

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

107,843,019

a

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

33.4%

Domestic

Fixed

Income

24.1%

b

Franklin

Liberty

U.S.

Core

Bond

ETF

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

1,200,150

26,565,320

b

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

1,455,148

14,376,858

40,942,178

Domestic

Hybrid

8.0%

b

Franklin

Income

VIP

Fund,

Class

1

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

902,748

13,550,251

Foreign

Equity

1.3%

iShares

Core

MSCI

EAFE

ETF

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

36,862

2,169,329

Total

Investments

In

Underlying

Funds

and

Exchange

Traded

Funds

(Cost

$65,468,411)

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

56,661,758

Total

Long

Term

Investments

(Cost

$144,592,090)

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

164,504,777

a

a

a

a

a

Short

Term

Investments

1.8%

a

Money

Market

Funds

1.8%

b,c

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

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

3,091,649

3,091,649

Total

Money

Market

Funds

(Cost

$3,091,649)

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

3,091,649

Total

Short

Term

Investments

(Cost

$3,091,649

)

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

3,091,649

a

Total

Investments

(Cost

$147,683,739)

98.7%

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

$167,596,426

Other

Assets,

less

Liabilities

1.3%

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

2,162,826

Net

Assets

100.0%

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

$169,759,252

†

Rounds

to

less

than

0.1%

of

net

assets.

a

Non-income

producing.

b

See

Note

3(e)

regarding

investments

in

FT

Underlying

Funds.

c

The

rate

shown

is

the

annualized

seven-day

effective

yield

at

period

end.

Franklin

Templeton

Variable

Insurance

Products

Trust

Schedule

of

Investments

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-17

At

June

30,

2022,

the

Fund

had

the

following futures

contracts

outstanding.

See

Note

1(c). 

At

June

30,

2022,

the

Fund

had

the

following total

return swap

contracts

outstanding.

See

Note

1(c). 

Futures

Contracts

Description

Type

Number

of

Contracts

Notional

Amount

*

Expiration

Date

Value/

Unrealized

Appreciation

(Depreciation)

Equity

contracts

S&P

500

E-Mini

Index

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

Short

224

$

42,442,400

9/16/22

$

(668,458)

Total

Futures

Contracts

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

$(668,458)

*

As

of

period

end.

Total

Return

Swap

Contracts

Underlying

Instruments

Financing

Rate

Payment

Frequency

Counter-

party

Maturity

Date

Notional

Value

*

Value/

Unrealized

Appreciation

(Depreciation)

OTC

Swap

Contracts

Long

Dynamic

VIX

Backwardation

(BEFSDVB1

Index)

..

—

Monthly

BZWS

8/30/22

4,000,000

$

(599)

Total

Return

Swap

Contracts

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

$(599)

*

In

U.S.

dollars

unless

otherwise

indicated.

See

Note 9 regarding

other

derivative

information.

See

Abbreviations

on

page

FVA-

30

.

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Assets

and

Liabilities

June

30,

2022

(unaudited)

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-18

Franklin

VolSmart

Allocation

VIP

Fund

Assets:

Investments

in

securities:

Cost

-

Unaffiliated

issuers

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

$81,900,678

Cost

-

Non-controlled

affiliates

(Note

3e)

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

65,783,061

Value

-

Unaffiliated

issuers

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

$110,012,348

Value

-

Non-controlled

affiliates

(Note

3e)

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

57,584,078

Receivables:

Investment

securities

sold

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

7,265,085

Capital

shares

sold

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

5,683

Dividends

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

141,906

Affiliates

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

26,797

Deposits

with

brokers

for:

Futures

contracts

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

2,352,000

Variation

margin

on

futures

contracts

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

355,600

Total

assets

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

177,743,497

Liabilities:

Payables:

Investment

securities

purchased

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

7,713,728

Capital

shares

redeemed

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

56,467

Management

fees

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

108,212

Distribution

fees

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

21,348

Trustees'

fees

and

expenses

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

550

Unrealized

depreciation

on

OTC

swap

contracts

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

599

Accrued

expenses

and

other

liabilities

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

83,341

Total

liabilities

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

7,984,245

Net

assets,

at

value

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

$169,759,252

Net

assets

consist

of:

Paid-in

capital

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

$135,840,783

Total

distributable

earnings

(losses)

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

33,918,469

Net

assets,

at

value

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

$169,759,252

Franklin

VolSmart

Allocation

VIP

Fund

Class

1:

Net

assets,

at

value

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

$4,365

Shares

outstanding

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

368

Net

asset

value

and

maximum

offering

price

per

share

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

$11.87

Class

2:

Net

assets,

at

value

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

$32,146

Shares

outstanding

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

2,695

Net

asset

value

and

maximum

offering

price

per

share

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

$11.93

Class

5:

Net

assets,

at

value

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

$169,722,741

Shares

outstanding

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

14,266,744

Net

asset

value

and

maximum

offering

price

per

share

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

$11.90

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statement

of

Operations

for

the

six

months

ended

June

30,

2022

(unaudited)

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

Semiannual

Report

FVA-19

Franklin

VolSmart

Allocation

VIP

Fund

Investment

income:

Dividends:

Unaffiliated

issuers

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

$1,198,897

Non-controlled

affiliates

(Note

3e)

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

1,190,858

Interest:

Unaffiliated

issuers

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

1,279

Total

investment

income

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

2,391,034

Expenses:

Management

fees

(Note

3

a

)

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

747,155

Distribution

fees:

(Note

3c

)

    Class

5

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

140,059

Custodian

fees

(Note

4

)

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

2,804

Reports

to

shareholders

fees

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

8,191

Professional

fees

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

48,106

Trustees'

fees

and

expenses

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

1,446

Other

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

7,842

Total

expenses

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

955,603

Expense

reductions

(Note

4

)

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

(331)

Expenses

waived/paid

by

affiliates

(Note

3e

and

3f)

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

(209,793)

Net

expenses

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

745,479

Net

investment

income

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

1,645,555

Realized

and

unrealized

gains

(losses):

Net

realized

gain

(loss)

from:

Investments:

Unaffiliated

issuers

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

9,213,960

Non-controlled

affiliates

(Note

3e)

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

115,320

Futures

contracts

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

3,747,123

Swap

contracts

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

27,368

Capital

gain

distributions

from

Underlying

Funds:

Non-controlled

affiliates

(Note

3e)

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

265,359

Net

realized

gain

(loss)

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

13,369,130

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments:

Unaffiliated

issuers

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

(35,064,519)

Non-controlled

affiliates

(Note

3e)

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

(8,252,801)

Futures

contracts

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

(668,458)

Swap

contracts

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

(566)

Net

change

in

unrealized

appreciation

(depreciation)

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

(43,986,344)

Net

realized

and

unrealized

gain

(loss)

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

(30,617,214)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

$(28,971,659)

Franklin

Templeton

Variable

Insurance

Products

Trust

Financial

Statements

Statements

of

Changes

in

Net

Assets

Semiannual

Report

The

accompanying

notes

are

an

integral

part

of

these

financial

statements.

FVA-20

Franklin

VolSmart

Allocation

VIP

Fund

Six

Months

Ended

June

30,

2022

(unaudited)

Year

Ended

December

31,

2021

Increase

(decrease)

in

net

assets:

Operations:

Net

investment

income

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

$1,645,555

$3,214,793

Net

realized

gain

(loss)

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

13,369,130

15,665,750

Net

change

in

unrealized

appreciation

(depreciation)

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

(43,986,344)

13,859,014

Net

increase

(decrease)

in

net

assets

resulting

from

operations

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

(28,971,659)

32,739,557

Distributions

to

shareholders:

Class

1

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

(536)

—

Class

2

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

(3,925)

(4,360)

Class

5

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

(18,414,714)

(18,228,062)

Total

distributions

to

shareholders

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

(18,419,175)

(18,232,422)

Capital

share

transactions:

(Note

2

)

Class

1

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

5,000

—

Class

2

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

(5,000)

—

Class

5

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

7,318,364

(537,826)

Total

capital

share

transactions

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

7,318,364

(537,826)

Net

increase

(decrease)

in

net

assets

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

(40,072,470)

13,969,309

Net

assets:

Beginning

of

period

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

209,831,722

195,862,413

End

of

period

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

$169,759,252

$209,831,722

Franklin

Templeton

Variable

Insurance

Products

Trust

FVA-21

Semiannual

Report

Notes

to

Financial

Statements

(unaudited)

Franklin

VolSmart

Allocation

VIP

Fund

1.

Organization

and

Significant

Accounting

Policies

Franklin

Templeton

Variable

Insurance

Products

Trust (Trust)

is

registered

under

the

Investment

Company

Act

of

1940

(1940

Act)

as

an

open-end

management

investment

company,

consisting

of

eighteen separate

funds

and

applies

the

specialized

accounting

and

reporting

guidance

in

U.S.

Generally

Accepted

Accounting

Principles

(U.S.

GAAP).

Franklin

VolSmart

Allocation

VIP

Fund

(Fund)

is

included

in

this

report.

The

Fund

invests

a

large

percentage

of

its

assets

in

mutual

funds

(Underlying

Funds)

and

exchange

traded

funds

(ETFs),

including

affiliated

funds

managed

by

Franklin

Templeton

(FT

Underlying

Funds).

Shares

of

the

Fund

are

generally

sold

only

to

insurance

company

separate

accounts

to

fund

the

benefits

of

variable

life

insurance

policies

or

variable

annuity

contracts.

At

June

30,

2022,

98.2%

of

the

Fund's

shares

were

held

through

one

insurance

company.

Investment

activities

of

these

insurance

company

separate

accounts

could

have

a

material

impact

on

the

Fund.

The

Fund

offers

three

classes

of

shares:

Class

1,

Class

2

and

Class

5.

Effective

May

20,

2022,

the

Fund

began

offering

a

new

class

of

shares,

Class

1.

Each

class

of

shares

may

differ

by

its

distribution

fees,

voting

rights

on

matters

affecting

a

single

class

and

its

exchange

privilege. 

The

accounting

policies

of

the

Underlying

Funds

are

outlined

in

their

respective

shareholder

reports.

A

copy

of

the

Underlying

Funds’

shareholder

reports

is

available

on

the

U.S.

Securities

and

Exchange

Commission

(SEC)

website

at

sec.gov.

The

Underlying

Funds’

shareholder

reports

are

not

covered

by

this

report.

The

following

summarizes

the Fund's

significant

accounting

policies.

a.

Financial

Instrument

Valuation 

The

Fund's

investments

in

financial

instruments

are

carried

at

fair

value

daily.

Fair

value

is

the

price

that

would

be

received

to

sell

an

asset

or

paid

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

on

the

measurement

date.

The

Fund

calculates

the

net

asset

value

(NAV)

per

share

each business

day as

of

4

p.m.

Eastern

time

or

the

regularly

scheduled

close

of

the

New

York

Stock

Exchange

(NYSE),

whichever

is

earlier.

Under

compliance

policies

and

procedures

approved

by

the

Trust's

Board

of

Trustees

(the

Board),

the Fund's

administrator

has

responsibility

for

oversight

of

valuation,

including

leading

the

cross-functional

Valuation

Committee

(VC).

The

Fund

may

utilize

independent

pricing

services,

quotations

from

securities

and

financial

instrument

dealers,

and

other

market

sources

to

determine

fair

value. 

Investments

in

the

Underlying

Funds

are

valued

at

their

closing

NAV

each

trading

day.

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.

Foreign

equity

securities

are

valued

as

of

the

close

of

trading

on

the

foreign

stock

exchange

on

which

the

security

is

primarily

traded,

or

as

of

4

p.m.

Eastern

time.

The

value

is

then

converted

into

its

U.S.

dollar

equivalent

at

the

foreign

exchange

rate

in

effect

at

4

p.m.

Eastern

time

on

the

day

that

the

value

of

the

security

is

determined.

Over-the-counter

(OTC)

securities

are

valued

within

the

range

of

the

most

recent

quoted

bid

and

ask

prices.

Securities

that

trade

in

multiple

markets

or

on

multiple

exchanges

are

valued

according

to

the

broadest

and

most

representative

market.

Certain

equity

securities

are

valued

based

upon

fundamental

characteristics

or

relationships

to

similar

securities. 

Certain

derivative

financial

instruments

trade

in

the

OTC

market.

The

Fund's

pricing

services

use

various

techniques

including

industry

standard

option

pricing

models

and

proprietary

discounted

cash

flow

models

to

determine

the

fair

value

of

those

instruments.

The

Fund's

net

benefit

or

obligation

under

the

derivative

contract,

as

measured

by

the

fair

value

of

the

contract,

is

included

in

net

assets.

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

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-22

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

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.

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.

Derivative

Financial

Instruments

The

Fund invested

in

derivative

financial

instruments

in

order

to

manage

risk

or

gain

exposure

to

various

other

investments

or

markets.

Derivatives

are

financial

contracts

based

on

an

underlying

or

notional

amount,

require

no

initial

investment

or

an

initial

net

investment

that

is

smaller

than

would

normally

be

required

to

have

a

similar

response

to

changes

in

market

factors,

and

require

or

permit

net

settlement.

Derivatives

contain

various

risks

including

the

potential

inability

of

the

counterparty

to

fulfill

their

obligations

under

the

terms

of

the

contract,

the

potential

for

an

illiquid

secondary

market,

and/or

the

potential

for

market

movements

which

expose

the

Fund

to

gains

or

losses

in

excess

of

the

amounts

shown

in

the

Statement

of

Assets

and

Liabilities.

Realized

gain

and

loss

and

unrealized

appreciation

and

depreciation

on

these

contracts

for

the

period

are

included

in

the

Statement

of

Operations.

Derivative

counterparty

credit

risk

is

managed

through

a

formal

evaluation

of

the

creditworthiness

of

all

potential

counterparties.

The

Fund

attempts

to

reduce

its

exposure

to

counterparty

credit

risk

on

OTC

derivatives,

whenever

possible,

by

entering

into

International

Swaps

and

Derivatives

Association

(ISDA)

master

agreements

with

certain

counterparties.

These

agreements

contain

various

provisions,

including

but

not

limited

to

collateral

requirements,

events

of

default,

or

early

termination.

Termination

events

applicable

to

the

counterparty

include

certain

deteriorations

in

the

credit

quality

of

the

counterparty.

Termination

events

applicable

to

the

Fund

include

failure

of

the

Fund

to

maintain

certain

net

asset

levels

and/or

limit

1.

Organization

and

Significant

Accounting

Policies

(continued)

a.

Financial

Instrument

Valuation 

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-23

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

the

decline

in

net

assets

over

various

periods

of

time.

In

the

event

of

default

or

early

termination,

the

ISDA

master

agreement

gives

the

non-defaulting

party

the

right

to

net

and

close-out

all

transactions

traded,

whether

or

not

arising

under

the

ISDA

agreement,

to

one

net

amount

payable

by

one

counterparty

to

the

other.

However,

absent

an

event

of

default

or

early

termination,

OTC

derivative

assets

and

liabilities

are

presented

gross

and

not

offset

in

the

Statement

of

Assets

and

Liabilities.

Early

termination

by

the

counterparty

may

result

in

an

immediate

payment

by

the

Fund

of

any

net

liability

owed

to

that

counterparty

under

the

ISDA

agreement.

At

June

30,

2022, the

Fund

had

OTC

derivatives

in

a

net

liability

position

of

$599.

Collateral

requirements

differ

by

type

of

derivative.

Collateral

or

initial

margin

requirements

are

set

by

the

broker

or

exchange

clearing

house

for

exchange

traded

and

centrally

cleared

derivatives.

Initial

margin

deposited

is

held

at

the

exchange

and

can

be

in

the

form

of

cash

and/or

securities.

For

OTC

derivatives

traded

under

an

ISDA

master

agreement,

posting

of

collateral

is

required

by

either

the

Fund

or

the

applicable

counterparty

if

the

total

net

exposure

of

all

OTC

derivatives

with

the

applicable

counterparty

exceeds

the

minimum

transfer

amount,

which

typically

ranges

from

$100,000

to

$250,000,

and

can

vary

depending

on

the

counterparty

and

the

type

of

the

agreement.

Generally,

collateral

is

determined

at

the

close

of

Fund

business

each

day

and

any

additional

collateral

required

due

to

changes

in

derivative

values

may

be

delivered

by

the

Fund

or

the

counterparty

the

next

business

day,

or

within

a

few

business

days.

Collateral

pledged

and/or

received

by

the

Fund

for

OTC

derivatives,

if

any,

is

held

in

segregated

accounts

with

the

Fund's

custodian/counterparty

broker

and

can

be

in

the

form

of

cash

and/or

securities.

Unrestricted

cash

may

be

invested

according

to

the

Fund's

investment

objectives.

To

the

extent

that

the

amounts

due

to

the

Fund

from

its

counterparties

are

not

subject

to

collateralization

or

are

not

fully

collateralized,

the

Fund

bears

the

risk

of

loss

from

counterparty

non-performance.

The

Fund

entered

into

exchange

traded

futures

contracts

primarily

to

manage

and/or

gain

exposure

to

interest

rate

and

equity

price

risk.

A

futures

contract

is

an

agreement

between

the

Fund

and

a

counterparty

to

buy

or

sell

an

asset

at

a

specified

price

on

a

future

date.

Required

initial

margins

are

pledged

by

the

Fund,

and

the

daily

change

in

fair

value

is

accounted

for

as

a

variation

margin

payable

or

receivable

in

the

Statement

of

Assets

and

Liabilities.

The

Fund

entered

into

OTC

total

return

swap

contracts

primarily

to

manage

and/or

gain

exposure

to

credit

and

market

risk

of

an

underlying

instrument

such

as

a

stock,

bond,

index

or

basket

of

securities

or

indices.

A

total

return

swap

is

an

agreement

between

the

Fund

and

a

counterparty

to

exchange

a

return

linked

to

an

underlying

instrument

for

a

floating

or

fixed

rate

payment,

both

based

upon

a

notional

amount.

Over

the

term

of

the

contract,

contractually

required

payments

to

be

paid

or

received

are

accrued

daily

and

recorded

as

unrealized

appreciation

or

depreciation

until

the

payments

are

made,

at

which

time

they

are

recognized

as

realized

gain

or

loss.

See

Note

9

regarding

other

derivative

information.

d.

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 if

applicable, 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

June

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. 

1.

Organization

and

Significant

Accounting

Policies

(continued)

c.

Derivative

Financial

Instruments

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-24

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

e.

Security

Transactions,

Investment

Income,

Expenses

and

Distributions

Security

transactions

are

accounted

for

on

trade

date.

Realized

gains

and

losses

on

security

transactions

are

determined

on

a

specific

identification

basis.

Estimated

expenses

are

accrued

daily.

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.

Common

expenses

incurred

by

the

Trust

are

allocated

among

the

Funds

based

on

the

ratio

of

net

assets

of

each

Fund

to

the

combined

net

assets

of

the

Trust

or

based

on

the

ratio

of

number

of

shareholders

of

each

Fund

to

the

combined

number

of

shareholders

of

the

Trust.

Fund

specific

expenses

are

charged

directly

to

the

Fund

that

incurred

the

expense.

The

Fund

indirectly

bears

its

proportionate

share

of

expenses

from

the

Underlying

Funds

and

ETFs.

Since

the

Underlying

Funds

and

ETFs

have

varied

expense

levels

and

the

Fund may

own

different

proportions

of

the

Underlying

Funds

and

ETFs

at

different

times,

the

amount

of

expenses

incurred

indirectly

by

the Fund

will

vary.

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.

f.

Accounting

Estimates

The

preparation

of

financial

statements

in

accordance

with

U.S.

GAAP

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

amounts

of

income

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

g.

Guarantees

and

Indemnifications

Under

the

Trust's

organizational

documents,

its

officers

and

trustees

are

indemnified

by

the

Trust

against

certain

liabilities

arising

out

of

the

performance

of

their

duties

to

the

Trust.

Additionally,

in

the

normal

course

of

business,

the

Trust, on

behalf

of

the

Fund,

enters

into

contracts

with

service

providers

that

contain

general

indemnification

clauses.

The

Trust's

maximum

exposure

under

these

arrangements

is

unknown

as

this

would

involve

future

claims

that

may

be

made

against

the

Trust

that

have

not

yet

occurred.

Currently,

the

Trust

expects

the

risk

of

loss

to

be

remote.

1.

Organization

and

Significant

Accounting

Policies

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-25

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

2.

Shares

of

Beneficial

Interest

At

June

30,

2022,

there

were

an

unlimited

number

of

shares

authorized

(without

par

value).

Transactions

in

the

Fund's

shares

were

as

follows:

3.Transactions

with

Affiliates

Franklin

Resources,

Inc.

is

the

holding

company

for

various

subsidiaries

that

together

are

referred

to

as

Franklin

Templeton.

Certain

officers

and

trustees

of

the

Fund

are

also

officers,

directors

and/or

trustees

of

certain

of

the

Underlying

Funds

and

of

the

following

subsidiaries:

a.

Management

Fees

The

Fund

pays

an

investment

management

fee,

calculated

daily

and

paid

monthly,

to

Advisers

of

0.80%

per

year

of

the

average

daily

net

assets

of

the

Fund.

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.

Six

Months

Ended

June

30,

2022

a

Year

Ended

December

31,

2021

Shares

Amount

Shares

Amount

Class

1

Shares:

Shares

sold

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

368

$5,000

—

$—

Net

increase

(decrease)

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

368

$5,000

—

$—

Class

2

Shares:

Shares

redeemed

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

(366)

$(5,000)

—

$—

Net

increase

(decrease)

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

(366)

$(5,000)

—

$—

Class

5

Shares:

Shares

sold

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

469,984

$6,756,536

1,228,354

$18,215,053

Shares

issued

in

reinvestment

of

distributions

..........

1,550,060

18,414,714

1,272,021

18,228,062

Shares

redeemed

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

(1,269,459)

(17,852,886)

(2,466,397)

(36,980,941)

Net

increase

(decrease)

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

750,585

$7,318,364

33,978

$(537,826)

a

For

the

period

May

20,

2022

(effective

date)

to

June

30,

2022

for

Class

1.

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

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-26

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

c.

Distribution

Fees

The

Board

has

adopted

distribution

plans

for

Class

2

and

Class

5

shares

pursuant

to

Rule

12b-1

under

the

1940

Act.

Under

the

Fund's

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

0.35%

and

0.15%

per

year

of

its

average

daily

net

assets

of

Class

2

and

Class

5,

respectively.

The

Board

has

agreed

to

limit

the

current

rate

to

0.25%

per

year

for

Class

2.

The

plan

year,

for

purposes

of

monitoring

compliance

with

the

maximum

annual

plan

rates,

is

February

1

through

January

31.

d.

Transfer

Agent

Fees

Investor

Services,

under

terms

of

an

agreement,

performs

shareholder

servicing

for

the

Fund

and

is

not

paid

by

the Fund

for

the

services.

e.

Investments

in

Underlying

Funds

The Fund

invests in Underlying

Funds

which

are

managed

by

affiliates

of

the

Fund’s

administrative

manager,

Franklin

Templeton

Services,

LLC.

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

Underlying

Fund’s

outstanding

shares

or

has

the

power

to

exercise

control

over

management

or

policies

of

such

Underlying

Fund.

The

Fund

does

not

invest

in

Underlying

Funds

for

the

purpose

of

exercising

a

controlling

influence

over

the

management

or

policies.

Management

fees

paid

by

the

Fund

are

waived

on

assets

invested

in

the

Underlying

Funds,

as

noted

in

the

Statement

of

Operations,

in

an

amount

not

to

exceed

the

management

and

administrative

fees

paid

directly

or

indirectly

by

the

Underlying

Funds.

Investments

in

Underlying

Funds

for

the

period

ended

June

30,

2022,

were

as

follows:

f.

Waiver

and

Expense

Reimbursements

Advisers

has

contractually

agreed

in

advance

to

waive

or

limit

its

fees

and

to

assume

as

its

own

expense

certain

expenses

otherwise

payable

by

the

Fund

so

that

the

operating expenses

(excluding

interest

expense,

distribution

fees,

acquired

fund

fees and

expenses

and

certain

non-routine

expenses

or

costs,

including

those

relating

to

litigation,

indemnification,

reorganizations,

and

liquidations) for

each

class

of

the

Fund

do not

exceed

0.65%,

based

on

the

average

net

assets

of

each

class

until

April

30,

2023.

Total

expenses

waived

or

paid

are

not

subject

to

recapture

subsequent

to

the

Fund's

fiscal

year

end.

    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

Dividend

Income

a

a

a

a

a

a

a

a

a

Franklin

VolSmart

Allocation

VIP

Fund

Non-Controlled

Affiliates

Franklin

Income

VIP

Fund,

Class

1

$

16,987,187

$

961,317

$

(2,311,000)

$

115,320

$

(2,202,573)

$

13,550,251

902,748

$

961,317

a

Franklin

Liberty

U.S.

Core

Bond

ETF

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

25,689,597

3,976,251

—

—

(3,100,528)

26,565,320

1,200,150

284,141

Institutional

Fiduciary

Trust

-

Money

Market

Portfolio,

0.895%

......

4,067,757

26,837,772

(27,813,880)

—

—

3,091,649

3,091,649

3,342

Western

Asset

Core

Plus

Bond

Fund,

Class

IS

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

17,152,572

173,986

—

—

(2,949,700)

14,376,858

1,455,148

207,417

Total

Non-Controlled

Affiliates

$63,897,113

$31,949,326

$(30,124,880)

$115,320

$(8,252,801)

$57,584,078

$1,456,217

Total

Affiliated

Securities

....

$63,897,113

$31,949,326

$(30,124,880)

$115,320

$(8,252,801)

$57,584,078

$1,456,217

a

Dividend

income

includes

capital

gain

distributions

received,

if

any,

from

underlying

funds,

and

are

presented

in

corresponding

line

item

in

Statement

of

Operations.

3.Transactions

with

Affiliates

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-27

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

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

June

30,

2022,

the

custodian

fees

were

reduced

as

noted

in

the

Statement

of

Operations. 

5.

Income

Taxes

At

June

30,

2022,

the

cost

of

investments

and

net

unrealized

appreciation

(depreciation)

for

income

tax

purposes

were

as

follows:

Differences

between

income

and/or

capital

gains

as

determined

on

a

book

basis

and

a

tax

basis

are

primarily

due

to

differing

treatment

of

wash

sales.

6.

Investment

Transactions

Purchases

and

sales

of

investments

(excluding

short

term

securities)

for

the

period

ended

June

30,

2022,

aggregated

$49,214,308

and

$57,306,025,

respectively.

7.

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.

8.

Novel

Coronavirus

Pandemic 

The

global

outbreak

of

the

novel

coronavirus

disease,

known

as

COVID-19, has

caused

adverse

effects

on

many

companies,

sectors,

nations,

regions

and

the

markets

in

general, and

may

continue for

an unpredictable duration.

The

effects

of

this

pandemic

may

materially

impact

the

value

and

performance

of

the Fund, its ability

to

buy

and

sell

fund

investments

at

appropriate

valuations

and its ability

to

achieve its investment

objectives.

Cost

of

investments

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

$147,809,413

Unrealized

appreciation

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

$33,425,544

Unrealized

depreciation

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

(14,307,588)

Net

unrealized

appreciation

(depreciation)

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

$19,117,956

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-28

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

9.

Other

Derivative

Information

At

June

30,

2022,

investments

in

derivative

contracts

are

reflected

in

the

Statement of

Assets

and

Liabilities

as

follows:

For

the

period

ended

June

30,

2022,

the

effect

of

derivative

contracts

in

the

Statement

of

Operations

was

as

follows:

For

the

period

ended

June

30,

2022,

the

average

month

end

notional

amount

of

futures

contracts

and

swap

contracts

represented

$17,999,695

and

$4,742,857,

respectively.

See

Note

1(c) regarding

derivative

financial

instruments. 

10.

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,

Asset

Derivatives

Liability

Derivatives

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Franklin

VolSmart

Allocation

VIP

Fund

Equity

contracts

...........

Variation

margin

on

futures

contracts

$

—

Variation

margin

on

futures

contracts

$

668,458

a

Unrealized

appreciation

on

OTC

swap

contracts

—

Unrealized

depreciation

on

OTC

swap

contracts

599

Total

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

$—

$669,057

a

This

amount

reflects

the

cumulative

appreciation

(depreciation)

of

futures

contracts

as

reported

in

the

Schedule

of

Investments.

Only

the

variation

margin

receivable/payable

at

period

end

is

separately

reported

within

the

Statement

of

Assets

and

Liabilities.

Prior

variation

margin

movements

were

recorded

to

cash

upon

receipt

or

payment.

Derivative

Contracts

Not

Accounted

for

as

Hedging

Instruments

Statement

of

Operations

Location

Net

Realized

Gain

(Loss)

for

the

Period

Statement

of

Operations

Location

Net

Change

in

Unrealized

Appreciation

(Depreciation)

for

the

Period

Franklin

VolSmart

Allocation

VIP

Fund

Net

realized

gain

(loss)

from:

Net

change

in

unrealized

  appreciation

(depreciation)

on:

Equity

Contracts

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

Futures

contracts

$3,747,123

Futures

contracts

$(668,458)

Swap

contracts

27,368

Swap

contracts

(566)

Total

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

$3,774,491

$(669,024)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-29

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

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

June

30,

2022,

the Fund

did

not

use

the

Global

Credit

Facility.

11.

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

June

30,

2022,

in

valuing

the

Fund's assets

and

liabilities

carried

at

fair

value,

is

as

follows:

12.

New

Accounting

Pronouncements

In June

2022,

the

Financial

Accounting

Standards

Board

(FASB)

issued

Accounting

Standards

Update

(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.

13.

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.

Level

1

Level

2

Level

3

Total

Franklin

VolSmart

Allocation

VIP

Fund

Assets:

Investments

in

Securities:

a

Common

Stocks

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

$

107,843,019

$

—

$

—

$

107,843,019

Management

Investment

Companies

.........

56,661,758

—

—

56,661,758

Short

Term

Investments

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

3,091,649

—

—

3,091,649

Total

Investments

in

Securities

...........

$167,596,426

$—

$—

$167,596,426

Liabilities:

Other

Financial

Instruments:

Futures

contracts

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

$

668,458

$

—

$

—

$

668,458

Swap

contracts

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

—

599

—

599

Total

Other

Financial

Instruments

.........

$668,458

$599

$—

$669,057

a

For

detailed

categories,

see

the

accompanying

Schedule

of

Investments.

10.

Credit

Facility

(continued)

Franklin

Templeton

Variable

Insurance

Products

Trust

Notes

to

Financial

Statements

(unaudited)

FVA-30

Semiannual

Report

Franklin

VolSmart

Allocation

VIP

Fund

(continued)

Abbreviations

Counterparty

BZWS

Barclays

Bank

plc

Selected

Portfolio

ETF

Exchange-Traded

Fund

REIT

Real

Estate

Investment

Trust

VIX

Market

Volatility

Index

Franklin

Templeton

Variable

Insurance

Products

Trust

Index

Descriptions

I-1

Semiannual

Report

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.

Net

Returns

(NR)

include

income

net

of

tax

withholding

when

dividends

are

paid.

For

Russell

Indexes:

Frank

Russell

Company

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

Russell

®

is

a

trademark

of

Frank

Russell

Company.

See

www.franklintempletondatasources.com

for

additional

data

provider

information.

Bloomberg

1-3

Month

U.S.

Treasury

Bill

Index

measures

the

performance

of

U.S.

Treasury

bills

that

have

a

remaining

maturity

of

greater

than

or

equal

to

one

month

and

less

than

three

months.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

Bloomberg

U.S.

Aggregate

Bond

Index

measures

the

performance

of

the

investment-grade,

U.S.

dollar-

denominated,

fixed-rate

taxable

bond

market.

The

index

includes

Treasuries,

government-related

and

corporate

securities,

mortgage-backed

securities

(agency

fixed-

rate

and

hybrid

adjustable-rate

mortgage

pass-throughs),

asset-backed

securities

and

commercial

mortgage-backed

securities

(agency

and

nonagency).

Bloomberg

U.S.

Corporate

Bond

Index

measures

the

performance

of

the

investment-grade,

fixed-rate,

taxable

corporate

bond

market.

It

includes

U.S.

dollar-denominated

securities

publicly

issued

by

U.S.

and

non-U.S.

industrial,

utility

and

financial

issuers.

Bloomberg

U.S.

Corporate

High

Yield

Bond

Index

measures

the

performance

of

the

U.S.

dollar-denominated,

high-yield,

fixed-rate

corporate

bond

market.

Securities

are

classified

as

high

yield

if

the

middle

rating

of

Moody’s,

Fitch

and

Standard

&

Poor’s

is

Ba1/BB+/BB+

or

below.

Bonds

from

issuers

with

an

emerging

markets

(EM)

country

of

risk,

based

on

Bloomberg

EM

country

definition,

are

excluded.

Bloomberg

U.S.

Government

-

Intermediate

Index

is

the

intermediate

component

of

the

Bloomberg

U.S.

Government

Index,

which

includes

U.S.

dollar-denominated,

fixed-rate,

nominal

U.S.

Treasuries

and

U.S.

agency

debentures

(securities

issued

by

U.S.

government-owned

or

government-sponsored

entities,

and

debt

explicitly

guaranteed

by

the

U.S.

government).

Bloomberg

U.S.

High

Yield

Very

Liquid

Index

is

a

component

of

the

U.S.

Corporate

High

Yield

Index

that

is

designed

to

track

a

more

liquid

component

of

the

U.S.

dollar-

denominated,

high-yield,

fixed-rate

corporate

bond

market.

Bloomberg

U.S.

Mortgage-Backed

Securities

(MBS)

Index

tracks

the

performance

of

fixed-rate

agency

mortgage-

backed

pass-through

securities

guaranteed

by

Ginnie

Mae

(GNMA),

Fannie

Mae

(FNMA)

and

Freddie

Mac

(FHLMC).

Effective

June

1,

2017,

hybrid

adjustable-rate

mortgages

were

removed

from

the

index.

Bloomberg

U.S.

Treasury

Index

measures

the

performance

of

U.S.

dollar-denominated,

fixed-rate,

nominal

debt

issued

by

the

U.S.

Treasury

with

at

least

one

year

until

final

maturity.

Treasuries,

if

held

to

maturity,

offer

a

fixed

rate

of

return

and

a

fixed

principal

value;

their

interest

payments

and

principal

are

guaranteed.

FTSE

®

EPRA

®

/NAREIT

®

Developed

Index

is

a

free

float-

adjusted

index

designed

to

measure

the

performance

of

publicly

traded

real

estate

securities

in

the

North

American,

European

and

Asian

real

estate

markets.

FTSE

World

Government

Bond

Index

measures

the

performance

of

fixed-rate,

local

currency,

investment-grade

sovereign

bonds

and

is

stated

in

U.S.

dollar

terms.

J.P.

Morgan

(JPM)

Global

Government

Bond

Index

(GGBI)

tracks

total

returns

for

liquid,

fixed-rate,

domestic

government

bonds

with

maturities

greater

than

one

year

issued

by

developed

countries

globally.

MSCI

All

Country

Asia

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

developed

and

emerging

markets

in

Asia.

MSCI

All

Country

World

Index

(ACWI)-NR

is

a

free

float-

adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets.

Franklin

Templeton

Variable

Insurance

Products

Trust

Index

Descriptions

I-2

Semiannual

Report

MSCI

All

Country

World

Index

(ACWI)

ex

USA

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

and

emerging

markets,

excluding

the

U.S.

MSCI

Emerging

Markets

(EM)

Index-NR

is

a

free

float-

adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

emerging

markets.

MSCI

Europe

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

developed

markets

in

Europe.

MSCI

USA

High

Dividend

Yield

Index

is

based

on

the

MSCI

USA

Index,

its

parent

index,

and

includes

large-

and

mid-capitalization

stocks.

The

index

is

designed

to

reflect

the

performance

of

equities

in

the

parent

index

(excluding

real

estate

investment

trusts)

with

higher

dividend

income

and

quality

characteristics

than

average

dividend

yields

that

are

both

sustainable

and

persistent.

MSCI

USA

Index

is

designed

to

measure

the

performance

of

the

large-

and

mid-capitalization

segments

of

the

U.S.

market.

With

627

constituents,

the

index

covers

approximately

85%

of

the

free

float

adjusted

market

capitalization

in

the

U.S.

MSCI

World

ex

USA

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

equity

market

performance

of

global

developed

markets,

excluding

the

U.S.

MSCI

World

Value

Index-NR

is

a

free

float-adjusted,

market

capitalization-weighted

index

designed

to

measure

the

performance

of

stocks

exhibiting

overall

value

style

characteristics

in

global

developed

markets.

Russell

1000

®

Growth

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

1000

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

Russell

1000

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

1,000

largest

companies

in

the

Russell

3000

®

Index,

which

represents

the

majority

of

the

U.S.

market’s

total

capitalization.

Russell

1000

®

Value

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

1000

®

Index

companies

with

relatively

lower

price-to-book

ratios

and

lower

forecasted

growth

rates.

Russell

2000

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

2,000

smallest

companies

in

the

Russell

3000

®

Index

that

represent

a

small

amount

of

the

total

market

capitalization

of

the

Russell

3000

®

Index.

Russell

2000

®

Value

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

2000

®

Index

companies

with

relatively

lower

price-to-book

ratios

and

lower

forecasted

growth

rates.

Russell

2500

TM

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

2,500

smallest

companies

in

the

Russell

3000

®

Index

that

represent

a

modest

amount

of

the

Russell

3000

®

Index’s

total

market

capitalization.

Russell

3000

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

largest

3,000

U.S.

companies

representing

the

majority

of

the

U.S.

market’s

total

capitalization.

Russell

Midcap

®

Growth

Index

is

market

capitalization

weighted

and

measures

the

performance

of

those

Russell

Midcap

®

Index

companies

with

relatively

higher

price-to-book

ratios

and

higher

forecasted

growth

rates.

Russell

Midcap

®

Index

is

market

capitalization

weighted

and

measures

the

performance

of

the

approximately

800

smallest

companies

in

the

Russell

1000

®

Index

that

represent

a

modest

amount

of

the

Russell

1000

®

Index’s

total

market

capitalization.

Standard

&

Poor’s

®

500

Index

(S&P

500

®

)

is

a

market

capitalization-weighted

index

of

500

stocks

designed

to

measure

total

U.S.

equity

market

performance.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-1

Semiannual

Report

Board

Approval

of

Investment

Management

Agreements

FRANKLIN

TEMPLETON

VARIABLE

INSURANCE

PRODUCTS

TRUST

Franklin

Allocation

VIP

Fund

Franklin

DynaTech

VIP

Fund

Franklin

Global

Real

Estate

VIP

Fund

Franklin

Growth

and

Income

VIP

Fund

Franklin

Income

VIP

Fund

Franklin

Large

Cap

Growth

VIP

Fund

Franklin

Mutual

Global

Discovery

VIP

Fund

Franklin

Mutual

Shares

VIP

Fund

Franklin

Rising

Dividends

VIP

Fund

Franklin

Small

Cap

Value

VIP

Fund

Franklin

Small-Mid

Cap

Growth

VIP

Fund

Franklin

Strategic

Income

VIP

Fund

Franklin

U.S.

Government

Securities

VIP

Fund

Franklin

VolSmart

Allocation

VIP

Fund

Templeton

Developing

Markets

VIP

Fund

Templeton

Foreign

VIP

Fund

Templeton

Global

Bond

VIP

Fund

Templeton

Growth

VIP

Fund

(each

a

Fund)

At

an

in-person

meeting

held

on

April

12,

2022

(Meeting),

the

Board

of

Trustees

(Board)

of

Franklin

Templeton

Variable

Insurance

Products

Trust

(Trust),

including

a

majority

of

the

trustees

who

are

not

“interested

persons”

as

defined

in

the

Investment

Company

Act

of

1940

(Independent

Trustees),

reviewed

and

approved

the

continuance

of

the

(i)

investment

management

agreement

between

Franklin

Advisers,

Inc.

(FAV)

and

the

Trust,

on

behalf

of

each

of

Franklin

Allocation

VIP

Fund,

Franklin

DynaTech

Growth

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund,

Franklin

Small-Mid

Cap

Growth

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund,

Franklin

U.S.

Government

Securities

VIP

Fund,

Franklin

VolSmart

Allocation

VIP

Fund,

and

Templeton

Global

Bond

VIP

Fund;

(ii)

the

investment

sub-advisory

agreement

between

FAV

and

Franklin

Templeton

Institutional,

LLC

(FTIL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(iii)

the

investment

sub-advisory

agreement

between

FAV

and

Templeton

Global

Advisors

Limited

(TGAL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(iv)

the

investment

sub-advisory

agreement

between

FAV

and

Brandywine

Global

Investment

Management,

LLC

(BGIM),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(v)

the

investment

sub-advisory

agreement

between

FAV

and

ClearBridge

Investments,

LLC

(CIL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(vi)

the

investment

sub-advisory

agreement

between

FAV

and

Western

Asset

Management

Company,

LLC

(WAMC),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(vii)

the

investment

sub-advisory

agreement

between

FAV

and

Western

Asset

Management

Company

Limited

(WAMCL),

an

affiliate

of

FAV,

on

behalf

of

Franklin

Allocation

VIP

Fund;

(viii)

the

investment

management

agreement

between

FTIL

and

the

Trust,

on

behalf

of

Franklin

Global

Real

Estate

VIP

Fund;

(ix)

the

investment

management

agreement

between

Franklin

Mutual

Advisers,

LLC

(FMA)

and

the

Trust,

on

behalf

of

each

of

Franklin

Mutual

Global

Discovery

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund

and

Franklin

Small

Cap

Value

VIP

Fund;

(x)

the

investment

management

agreement

between

Templeton

Asset

Management

Ltd.

(TAML)

and

the

Trust,

on

behalf

of

Templeton

Developing

Markets

VIP

Fund;

(xi)

the

investment

sub-advisory

agreement

between

TAML

and

Franklin

Templeton

Investment

Management

Ltd.

(FTIML),

on

behalf

of

Templeton

Developing

Markets

VIP

Fund;

(xii)

the

investment

management

agreement

between

Templeton

Investment

Counsel,

LLC

(TICL)

and

the

Trust,

on

behalf

of

Templeton

Foreign

VIP

Fund;

and

(xiii)

the

investment

management

agreement

between

TGAL

and

the

Trust,

on

behalf

of

Templeton

Growth

VIP

Fund

(each

a

Management

Agreement)

for

an

additional

one-year

period.

The

Independent

Trustees

received

advice

from

and

met

separately

with

Independent

Trustee

counsel

in

considering

whether

to

approve

the

continuation

of

each

Management

Agreement.

Although

the

Management

Agreements

for

the

Funds

were

considered

at

the

same

Board

meeting,

the

Board

considered

the

information

provided

to

it

about

the

Funds

together

and

with

respect

to

each

Fund

separately

as

the

Board

deemed

appropriate.

BGIM,

CIL,

FAV,

FTIL,

FTIML,

FMA,

TAML,

TICL,

TGAL,

WAMC

and

WAMCL

are

each

referred

to

herein

as

a

Manager.

In

considering

the

continuation

of

each

Management

Agreement,

the

Board

reviewed

and

considered

information

provided

by

each

Manager

at

the

Meeting

and

throughout

the

year

at

meetings

of

the

Board

and

its

committees.

The

Board

also

reviewed

and

considered

information

provided

in

response

to

a

detailed

set

of

requests

for

information

submitted

to

each

Manager

by

Independent

Trustee

counsel

on

behalf

of

the

Independent

Trustees

in

connection

with

the

annual

contract

renewal

process.

In

addition,

prior

to

the

Meeting,

the

Independent

Trustees

held

a

virtual

contract

renewal

meeting

at

which

the

Independent

Trustees

first

conferred

amongst

themselves

and

Independent

Trustee

counsel

about

contract

renewal

matters;

and

then

met

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-2

Semiannual

Report

with

management

to

request

additional

information

that

the

Independent

Trustees

reviewed

and

considered

at

the

Meeting.

The

Board

reviewed

and

considered

all

of

the

factors

it

deemed

relevant

in

approving

the

continuance

of

each

Management

Agreement,

including,

but

not

limited

to:

(i)

the

nature,

extent

and

quality

of

the

services

provided

by

each

Manager;

(ii)

the

investment

performance

of

each

Fund;

(iii)

the

costs

of

the

services

provided

and

profits

realized

by

each

Manager

and

its

affiliates

from

the

relationship

with

each

Fund;

(iv)

the

extent

to

which

economies

of

scale

are

realized

as

each

Fund

grows;

and

(v)

whether

fee

levels

reflect

these

economies

of

scale

for

the

benefit

of

Fund

investors.

In

approving

the

continuance

of

each

Management

Agreement,

the

Board,

including

a

majority

of

the

Independent

Trustees,

determined

that

the

terms

of

each

Management

Agreement

are

fair

and

reasonable

and

that

the

continuance

of

such

Management

Agreement

is

in

the

best

interests

of

the

applicable

Fund

and

its

shareholders.

While

attention

was

given

to

all

information

furnished,

the

following

discusses

some

primary

factors

relevant

to

the

Board’s

determination.

Nature,

Extent

and

Quality

of

Services

The

Board

reviewed

and

considered

information

regarding

the

nature,

extent

and

quality

of

investment

management

services

provided

by

each

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

This

information

included,

among

other

things,

the

qualifications,

background

and

experience

of

the

senior

management

and

investment

personnel

of

each

Manager;

as

well

as

information

on

succession

planning

where

appropriate;

the

structure

of

investment

personnel

compensation;

oversight

of

third-

party

service

providers;

investment

performance

reports

and

related

financial

information

for

each

Fund;

reports

on

expenses

and

shareholder

services;

legal

and

compliance

matters;

risk

controls;

pricing

and

other

services

provided

by

each

Manager

and

its

affiliates;

and

management

fees

charged

by

each

Manager

and

its

affiliates

to

US

funds

and

other

accounts,

including

management’s

explanation

of

differences

among

accounts

where

relevant.

The

Board

also

reviewed

and

considered

an

annual

report

on

payments

made

by

Franklin

Templeton

(FT)

or

the

Funds

to

financial

intermediaries,

as

well

as

a

memorandum

relating

to

third-

party

servicing

arrangements,

which

included

discussion

of

the

changing

distribution

landscape

for

the

Funds.

The

Board

acknowledged

the

ongoing

integration

of

the

Legg

Mason

family

of

funds

into

the

FT

family

of

funds

and

developing

strategies

to

address

areas

of

heightened

concern

in

the

mutual

fund

industry,

including

various

regulatory

initiatives

and

recent

geopolitical

concerns.

The

Board

also

reviewed

and

considered

the

benefits

provided

to

Fund

shareholders

of

investing

in

a

fund

that

is

part

of

the

FT

family

of

funds.

The

Board

noted

the

financial

position

of

Franklin

Resources,

Inc.

(FRI),

the

Managers’

parent,

and

its

commitment

to

the

mutual

fund

business

as

evidenced

by

its

reassessment

of

the

fund

offerings

in

response

to

the

market

environment

and

project

initiatives

and

capital

investments

relating

to

the

services

provided

to

the

Funds

by

the

FT

organization.

The

Board

specifically

noted

FT’s

commitment

to

being

a

global

leader

in

stewardship

and

sustainability

and

the

recent

addition

of

a

senior

executive

focused

on

environmental,

social

and

governance

and

climate

control

initiatives.

Following

consideration

of

such

information,

the

Board

was

satisfied

with

the

nature,

extent

and

quality

of

services

provided

by

each

Manager

and

its

affiliates

to

the

Funds

and

their

shareholders.

Fund

Performance

The

Board

reviewed

and

considered

the

performance

results

of

each

Fund

over

various

time

periods

ended

January

31,

2022.

The

Board

considered

the

performance

returns

for

each

Fund

in

comparison

to

the

performance

returns

of

mutual

funds

deemed

comparable

to

the

Fund

included

in

a

universe

(Performance

Universe)

selected

by

Broadridge

Financial

Solutions,

Inc.

(Broadridge),

an

independent

provider

of

investment

company

data.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

a

Performance

Universe.

The

Board

also

reviewed

and

considered

Fund

performance

reports

provided

and

discussions

that

occurred

with

portfolio

managers

at

Board

meetings

throughout

the

year.

A

summary

of

each

Fund’s

performance

results

is

below.

Franklin

Allocation

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

mixed-asset

target

allocation

growth

funds

underlying

variable

insurance

products

(VIPs).

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

discussed

the

Fund’s

performance

with

management

and

management

explained

that

the

Fund

maintains

a

strategic

equity

asset

allocation

that

is

on

the

lower

end

of

its

peers

that

comprise

the

Performance

Universe,

which

has

negatively

impacted

the

Fund’s

relative

returns

in

a

risk-on

market

environment

in

recent

years.

Management

reminded

the

Board

that,

effective

May

1,

2019,

the

Fund

was

repositioned

to

a

direct

investment

fund

with

an

actively

managed

allocation

strategy

which

is

not

reflected

in

the

Fund’s

longer-term

performance.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-3

Semiannual

Report

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

address

the

sources

of

the

Fund’s

underperformance,

including

enhancements

made

to

the

Fund’s

investment

strategies.

The

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

Income

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

flexible

portfolio

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

considered

the

income-related

attributes

of

the

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-related

attributes

and

investor

expectations.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Strategic

Income

VIP

Fund

and

Franklin

U.S.

Government

Securities

VIP

Fund

-

The

Performance

Universe

for

the

Franklin

Strategic

Income

VIP

Fund

included

the

Fund

and

all

multi-sector

income

funds

underlying

VIPs.

The

Performance

Universe

for

the

Franklin

U.S.

Government

Securities

VIP

Fund

included

the

Fund

and

all

intermediate

US

government

funds

underlying

VIPs.

The

Board

noted

that

each

Fund’s

annualized

income

return

for

the

one-,

three-,

five-

and

10-year

periods

was

above

the

median

of

its

respective

Performance

Universe.

The

Board

also

noted

that

each

Fund’s

annualized

total

return

for

the

three-,

five-

and

10-year

periods

was

below

the

median

of

its

respective

Performance

Universe,

but

for

the

one-year

period

was

above

the

median

of

the

Fund’s

respective

Performance

Universe.

The

Board

further

noted

the

Franklin

U.S.

Government

Securities

VIP

Fund’s

conservative

policy

of

investing

substantially

all

of

its

assets

in

Ginnie

Mae

obligations.

The

Board

considered

the

income-related

attributes

of

each

Fund

(such

as

a

fund’s

investment

objective

and/or

investment

strategy)

and

that

the

evaluation

of

the

Fund’s

performance

relative

to

its

peers

on

an

income

return

basis

was

appropriate

given

the

Fund’s

income-

related

attributes

and

investor

expectations.

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Templeton

Global

Bond

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

global

income

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

income

return

for

the

three-,

five-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

also

noted

that

the

Fund’s

annualized

total

return

for

the

three-,

five-,

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

one-year

period

was

equal

to

the

median

of

its

Performance

Universe.

The

Board

discussed

this

performance

with

management

and

management

explained

that

the

Fund’s

relative

underperformance

in

comparison

to

its

Performance

Universe

over

the

three-

and

five-year

reporting

periods

was

largely

due

to

the

Fund’s

performance

in

2019

and

2020.

Management

further

explained

that

the

underperformance

was

driven

by

the

Fund’s

defensive

positioning

amid

the

pandemic,

which

restrained

the

Fund’s

participation

in

the

risk

asset

rallies

in

the

second

half

of

2020.

Management

also

explained

that

the

Fund’s

long

exposure

to

emerging

market

local

currency

assets

and

short

exposure

to

US

Treasury

duration

during

the

three-

and

five-year

reporting

periods

detracted

from

the

Fund’s

relative

performance

versus

the

Performance

Universe.

Management

further

explained

that

after

vaccines

were

approved

toward

the

end

of

2020

management

significantly

repositioned

the

Fund’s

strategies

back

towards

risk

allocations

and

expanded

on

that

risk

positioning

throughout

2021,

emphasizing

specific

currencies

against

the

US

dollar

and

the

euro,

as

well

as

local

currency

bonds

in

a

select

set

of

emerging

markets.

Management

further

explained

the

steps

the

portfolio

management

team

is

taking

in

an

effort

to

improve

the

Fund’s

peer

rankings

across

all

reporting

periods

and

reduce

the

impact

of

the

Fund’s

relative

underperformance

in

2019

and

2020.

The

Board

noted

management’s

continued

confidence

in

the

Fund’s

portfolio

management

team,

commitment

to

an

enhanced

investment

process

for

the

benefit

of

Fund

shareholders

and

commitment

to

have

ongoing

conversations

with

the

Board

regarding

management’s

strategies

for

addressing

the

performance

of

the

global

macro

funds

as

a

whole.

Based

on

the

foregoing,

the

Board

concluded

that

the

Fund’s

Management

Agreement

should

be

continued

for

an

additional

one-year

period,

and

that

management’s

efforts

and

the

recent

improved

performance

of

the

Fund

should

continue

to

be

closely

monitored.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-4

Semiannual

Report

Franklin

Growth

and

Income

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

equity

income

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

income

return

and

annualized

total

return

for

the

one-,

three-,

five-

and

10-year

periods

were

above

the

medians

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

DynaTech

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Templeton

Foreign

VIP

Fund

and

Templeton

Growth

VIP

Fund

-

The

Performance

Universe

for

the

Franklin

DynaTech

VIP

Fund

included

the

Fund

and

all

large-cap

growth

funds

underlying

VIPs.

The

Performance

Universe

for

the

Franklin

Mutual

Shares

VIP

Fund

included

the

Fund

and

all

multi-cap

value

funds

underlying

VIPs.

The

Performance

Universe

for

the

Templeton

Foreign

VIP

Fund

included

the

Fund

and

all

international

multi-cap

value

funds

underlying

VIPs.

The

Performance

Universe

for

the

Templeton

Growth

VIP

Fund

included

the

Fund

and

all

global

multi-cap

value

funds

underlying

VIPs.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

one-,

three-,

five

and

10-year

periods

was

below

the

median

of

its

respective

Performance

Universe.

The

Board

further

noted

that,

effective

May

1,

2021,

the

Franklin

DynaTech

VIP

Fund

changed

its

name,

investment

strategy,

and

primary

benchmark

to

align

with

the

Franklin

DynaTech

Fund

and

that

it

would

need

more

time

to

assess

the

implication

of

these

changes

on

Fund

performance.

The

Board

also

noted

management’s

explanation

that

the

Franklin

Mutual

Shares

VIP

Fund’s

underperformance

in

2017

was

material

and

continues

to

adversely

impact

the

Fund’s

ranking

over

longer-term

periods.

Management

reminded

the

Board

of

the

primary

factors

that

impacted

the

2017

performance,

including,

among

factors,

exposure

to

non-US

equities

and

stock

selection.

Management

explained

that

the

Fund

has

a

more

value

oriented

tilt

and

underweight

position

in

US

securities

as

compared

to

its

Performance

Universe,

both

of

which

detracted

from

the

Fund’s

relative

performance

during

a

period

of

historic

and

sustained

outperformance

of

growth

over

value.

Management

further

explained

that

key

detractors

from

the

Fund’s

three-year

performance

included

the

Fund’s

stock

selection

in

the

financials

and

industrials

sectors

and

the

Fund’s

underweight

position

in

the

industrials

sector.

Management

reviewed

with

the

Board

ongoing

enhancements

to

the

Fund’s

investment

team

and

processes

in

an

effort

to

improve

performance.

The

Board

discussed

Templeton

Foreign

VIP

Fund’s

performance

with

management

and

management

explained

the

Fund’s

relative

performance

over

the

reporting

periods

was

negatively

impacted

by

the

Fund’s

overweight

positions

in

cash

and

the

information

technology

and

energy

sectors,

and

underweight

positions

in

the

financials,

consumer

staples

and

communication

services

sectors

as

compared

to

the

Performance

Universe.

Management

then

noted

that

the

Fund

outperformed

its

benchmark,

the

MSCI

All

Country

World

ex-US

Index-NR,

for

the

one-year

period,

more

than

doubling

the

gains

of

the

index.

Management

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund

and

the

global

equity

funds

as

a

whole.

Management

specifically

highlighted

the

strategic

initiatives

being

undertaken

in

the

Templeton

Global

Equity

Group,

including

enhancements

to

the

leadership

of

the

group

and

the

commitment

of

additional

resources

important

to

delivering

sustainable

returns.

The

Board

discussed

Templeton

Growth

VIP

Fund’s

performance

with

management

and

management

explained

that

the

Fund’s

relative

performance

over

the

reporting

periods

was

negatively

impacted

by

the

Fund’s

overweight

positions

in

cash

and

the

consumer

discretionary

sector

and

underweight

position

in

the

financials

sector

as

compared

to

the

Performance

Universe.

Management

also

explained

that

the

Fund’s

one-year

relative

underperformance

was

primarily

attributable

to

stock-specific

weakness

and

underweight

allocations

in

the

US

market

and

the

information

technology

sector.

Management

then

discussed

with

the

Board

the

actions

that

are

being

taken

in

an

effort

to

improve

the

performance

of

the

Fund

and

the

global

equity

funds

as

a

whole.

Management

specifically

highlighted

the

strategic

initiatives

being

undertaken

in

the

Templeton

Global

Equity

Group,

including

enhancements

to

the

leadership

of

the

group

and

the

commitment

of

additional

resources

important

to

delivering

sustainable

returns.

The

Board

concluded

that

the

Funds’

Management

Agreements

should

be

continued

for

an

additional

one-year

period,

and

management’s

efforts

should

continue

to

be

closely

monitored.

Franklin

Global

Real

Estate

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

global

real

estate

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-

year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that,

while

below

the

median,

the

Fund’s

three-

and

five-year

annualized

total

returns

were

7.98%

and

7.55%,

respectively.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-5

Semiannual

Report

Franklin

Large

Cap

Growth

VIP

Fund

-

The

Performance

Universe

for

the

Franklin

Large

Cap

Growth

VIP

Fund

included

the

Fund

and

all

multi-cap

growth

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

10-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Templeton

Developing

Markets

VIP

Fund

and

Franklin

Small

Cap

Value

VIP

Fund

-

The

Performance

Universe

for

the

Templeton

Developing

Markets

VIP

Fund

included

the

Fund

and

all

emerging

markets

funds

underlying

VIPs.

The

Performance

Universe

for

the

Franklin

Small

Cap

Value

VIP

Fund

included

the

Fund

and

all

small-cap

value

funds

underlying

VIPs.

The

Board

noted

that

each

Fund’s

annualized

total

return

for

the

three-,

five

and

10-year

periods

was

above

the

median

of

its

respective

Performance

Universe,

but

for

the

one-year

period

was

below

the

median

of

its

respective

Performance

Universe

(noting

the

one-year

annualized

total

return

for

the

Franklin

Small

Cap

Value

VIP

Fund

exceeded

20%).

The

Board

concluded

that

each

Fund’s

performance

was

satisfactory.

Franklin

Mutual

Global

Discovery

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

global

multi-cap

value

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-,

three-

and

10-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Rising

Dividends

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

large-cap

core

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe.

The

Board

further

noted

that,

while

below

the

median,

the

Fund’s

five-

and

10-year

annualized

total

returns

were

15.42%

and

13.68%,

respectively.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

VolSmart

Allocation

VIP

Fund

-

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

flexible

portfolio

funds

underlying

VIPs.

The

Board

noted

that

the

Fund

incepted

on

April

1,

2013

and

has

been

in

operation

for

less

than

10

years.

The

Board

further

noted

that

its

annualized

total

return

for

the

one-,

three-

and

five-year

periods

was

above

the

median

and

in

the

first

quintile

(best)

of

its

Performance

Universe.

The

Board

also

noted

that

its

annualized

income

return

for

the

one-

and

three-year

periods

was

above

the

median

of

its

Performance

Universe,

but

for

the

five-year

period

was

below

the

median

of

its

Performance

Universe.

The

Board

concluded

that

the

Fund’s

performance

was

satisfactory.

Franklin

Small-Mid

Cap

Growth

VIP

Fund

–

The

Performance

Universe

for

the

Fund

included

the

Fund

and

all

mid-cap

growth

funds

underlying

VIPs.

The

Board

noted

that

the

Fund’s

annualized

total

return

for

the

one-

and

10-year

periods

was

below

the

median

of

its

Performance

Universe,

but

for

the

three-

and

five-year

periods

was

above

the

median

of

its

Performance

Universe

and

exceeded

16.35%.

The

Board

concluded

that

the

Fund’s

performance

was

acceptable.

Comparative

Fees

and

Expenses

The

Board

reviewed

and

considered

information

regarding

each

Fund’s

actual

total

expense

ratio

and

its

various

components,

including,

as

applicable,

management

fees;

transfer

agent

expenses;

underlying

fund

expenses;

Rule

12b-1

and

non-Rule

12b-1

service

fees;

and

other

non-

management

fees.

The

Board

also

noted

the

quarterly

and

annual

reports

it

receives

on

all

marketing

support

payments

made

by

FT

to

financial

intermediaries.

The

Board

considered

the

actual

total

expense

ratio

and,

separately,

the

contractual

management

fee

rate,

without

the

effect

of

fee

waivers,

if

any

(Management

Rate)

of

each

Fund

in

comparison

to

the

median

expense

ratio

and

median

Management

Rate,

respectively,

of

other

mutual

funds

deemed

comparable

to

and

with

a

similar

expense

structure

to

the

Fund

selected

by

Broadridge

(Expense

Group).

Broadridge

fee

and

expense

data

is

based

upon

information

taken

from

each

fund’s

most

recent

annual

or

semi-annual

report,

which

reflects

historical

asset

levels

that

may

be

quite

different

from

those

currently

existing,

particularly

in

a

period

of

market

volatility.

While

recognizing

such

inherent

limitation

and

the

fact

that

expense

ratios

and

Management

Rates

generally

increase

as

assets

decline

and

decrease

as

assets

grow,

the

Board

believed

the

independent

analysis

conducted

by

Broadridge

to

be

an

appropriate

measure

of

comparative

fees

and

expenses.

The

Broadridge

Management

Rate

includes

administrative

charges.

The

Board

received

a

description

of

the

methodology

used

by

Broadridge

to

select

the

mutual

funds

included

in

an

Expense

Group.

Franklin

Allocation

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Income

VIP

Fund,

Franklin

Small

Cap

Value

VIP

Fund,

Templeton

Global

Bond

VIP

Fund,

Franklin

DynaTech

VIP

Fund,

Franklin

Rising

Dividends

VIP

Fund

and

Franklin

Small-Mid

Cap

Growth

VIP

Fund

–

The

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-6

Semiannual

Report

Expense

Group

for

the

Franklin

Allocation

VIP

Fund

included

the

Fund

and

10

other

mixed-asset

target

allocation

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Growth

and

Income

VIP

Fund

included

the

Fund

and

11

other

equity

income

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Income

VIP

Fund

included

the

Fund

and

11

other

flexible

portfolio

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Small

Cap

Value

VIP

Fund

included

the

Fund

and

eight

other

small-cap

value

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Global

Bond

VIP

Fund

included

the

Fund

and

10

other

global

income

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

DynaTech

VIP

Fund

included

the

Fund

and

12

other

large-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Rising

Dividends

VIP

Fund

included

the

Fund

and

11

other

large-cap

core

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Small-Mid

Cap

Growth

VIP

Fund

included

the

Fund

and

11

other

mid-cap

growth

funds

underlying

VIPs.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

each

Fund

were

below

the

medians

of

its

respective

Expense

Group.

The

Board

also

noted

that

the

Franklin

Allocation

VIP

Fund,

Franklin

DynaTech

VIP

Fund

and

Franklin

Growth

and

Income

VIP

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Franklin

Allocation

VIP

Fund’s

sub-advisers

are

paid

by

FAV

out

of

the

management

fee

FAV

receives

from

the

Fund

and

that

the

allocation

of

the

fee

between

FAV

and

each

sub-adviser

reflected

the

services

provided

by

each

to

the

Fund.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

and

the

sub-advisory

fee

paid

to

each

sub-adviser

of

the

Franklin

Allocation

VIP

Fund

are

reasonable.

Franklin

U.S.

Government

Securities

VIP

Fund

-

The

Expense

Group

for

the

Fund

included

the

Fund,

three

other

intermediate

US

government

funds

underlying

VIPs

and

11

inflation-protected

bond

funds

underlying

VIPs.

The

Board

noted

that

the

Management

Rate

for

the

Fund

was

below

the

median

of

its

Expense

Group,

and

the

actual

total

expense

ratio

for

the

Fund

was

slightly

above

the

median

of

its

Expense

Group.

The

Board

concluded

that

the

Management

Rate

charged

to

the

Fund

is

reasonable.

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Mutual

Global

Discovery

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Templeton

Developing

Markets

VIP

Fund,

Templeton

Growth

VIP

Fund,

Templeton

Foreign

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

VolSmart

Allocation

VIP

Fund

and

Franklin

Strategic

Income

VIP

Fund

–

The

Expense

Group

for

the

Franklin

Global

Real

Estate

VIP

Fund

included

the

Fund

and

seven

other

global

real

estate

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Mutual

Global

Discovery

VIP

Fund

included

the

Fund,

one

other

global

multi-cap

value

fund

underlying

VIPs,

two

global

multi-cap

core

funds

underlying

VIPs,

and

two

global

multi-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Mutual

Shares

VIP

Fund

included

the

Fund

and

12

other

multi-cap

value

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Developing

Markets

VIP

Fund

included

the

Fund

and

13

other

emerging

markets

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Growth

VIP

Fund

included

the

Fund,

one

other

global

multi-cap

value

fund

underlying

VIPs,

two

global

multi-

cap

core

funds

underlying

VIPs,

and

two

global

multi-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Templeton

Foreign

VIP

Fund

included

the

Fund,

nine

other

international

multi-cap

value

funds

underlying

VIPs

and

four

international

large-cap

value

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Large

Cap

Growth

VIP

Fund

included

the

Fund

and

11

other

multi-cap

growth

funds

underlying

VIPs.

The

Expense

Group

for

the

Franklin

VolSmart

Allocation

VIP

Fund

included

the

Fund,

three

other

flexible

portfolio

funds

underlying

VIPs,

and

three

mixed-

asset

target

allocation

growth

fund

underlying

VIPs.

The

Expense

Group

for

the

Franklin

Strategic

Income

VIP

Fund

included

the

Fund

and

nine

other

multi-sector

income

funds

underlying

VIPs.

The

Board

noted

that

the

Management

Rate

and

actual

total

expense

ratio

for

each

Fund

were

above

the

median

of

its

respective

Expense

Group.

With

respect

to

the

Franklin

Mutual

Global

Discovery

VIP

Fund,

the

Board

noted

management’s

explanation

that

the

portfolio

management

team

makes

investments

in

the

debt

and

equity

of

distressed

companies

and

merger

arbitrage

securities

that

are

specialized

in

nature

and

therefore

require

additional

expertise

and

resources,

whereas

the

Fund’s

Expense

Group

generally

does

not

make

such

investments.

With

respect

to

the

Franklin

Large

Cap

Growth

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund

and

Templeton

Developing

Markets

VIP

Fund,

the

Board

noted

that

each

Fund’s

Management

Rate

and

actual

total

expense

ratio

were

less

than

5

basis

points

above

the

respective

median

of

the

Fund’s

Expense

Group.

With

respect

to

each

of

the

Templeton

Foreign

VIP

Fund

and

the

Templeton

Growth

VIP

Fund,

the

Board

noted

management’s

explanation

that

the

Expense

Group

for

each

Fund

is

not

directly

comparable

to

the

Fund

because

funds

that

comprise

the

Expense

Group

have

a

higher

allocation

to

domestic

equity

than

the

Fund.

Management

further

explained

that

when

each

Fund

is

compared

to

a

subset

of

its

Expense

Group

that

has

a

smaller

allocation

to

domestic

equity

similar

to

the

Fund,

the

Fund’s

actual

total

expense

ratio

is

more

aligned

with

peers.

The

Board

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-7

Semiannual

Report

discussed

with

management

the

expenses

of

both

of

these

Funds

and

management

agreed

to

implement

a

reduction

in

the

Management

Rate

for

the

Templeton

Foreign

VIP

Fund

and

implement

an

expense

cap

on

the

Templeton

Growth

VIP

Fund’s

actual

total

expense

ratio

of

0.87%,

effective

May

1,

2022.

The

Board

also

noted

that

the

Franklin

VolSmart

Allocation

VIP

Fund’s

actual

total

expense

ratio

reflected

a

fee

waiver

from

management.

The

Board

further

noted

that

the

Templeton

Developing

Markets

VIP

Fund’s

sub-adviser

is

paid

by

TAML

out

of

the

management

fee

TAML

receives

from

the

Fund

and

that

the

allocation

of

the

fee

between

TAML

and

the

sub-adviser

reflected

the

services

provided

by

each

to

the

Fund.

After

consideration

of

the

above,

the

Board

concluded

that

the

Management

Rate

charged

to

each

Fund

and

the

sub-advisory

fee

paid

to

the

Templeton

Developing

Markets

VIP

Fund’s

sub-adviser

are

reasonable.

Profitability

The

Board

reviewed

and

considered

information

regarding

the

profits

realized

by

each

Manager

and

its

affiliates

in

connection

with

the

operation

of

each

Fund.

In

this

respect,

the

Board

considered

the

Fund

profitability

analysis

that

addresses

the

overall

profitability

of

FT’s

US

fund

business,

as

well

as

its

profits

in

providing

investment

management

and

other

services

to

each

of

the

individual

funds

during

the

12-month

period

ended

September

30,

2021,

being

the

most

recent

fiscal

year-end

for

FRI.

The

Board

noted

that

although

management

continually

makes

refinements

to

its

methodologies

used

in

calculating

profitability

in

response

to

organizational

and

product-related

changes,

the

overall

methodology

has

remained

consistent

with

that

used

in

the

Funds’

profitability

report

presentations

from

prior

years.

The

Board

also

noted

that

PricewaterhouseCoopers

LLP,

auditor

to

FRI

and

certain

FT

funds,

has

been

engaged

to

periodically

review

and

assess

the

allocation

methodologies

to

be

used

solely

by

the

Funds’

Board

with

respect

to

the

profitability

analysis.

The

Board

noted

management’s

belief

that

costs

incurred

in

establishing

the

infrastructure

necessary

for

the

type

of

mutual

fund

operations

conducted

by

each

Manager

and

its

affiliates

may

not

be

fully

reflected

in

the

expenses

allocated

to

each

Fund

in

determining

its

profitability,

as

well

as

the

fact

that

the

level

of

profits,

to

a

certain

extent,

reflected

operational

cost

savings

and

efficiencies

initiated

by

management.

As

part

of

this

evaluation,

the

Board

considered

management’s

outsourcing

of

certain

operations,

which

effort

has

required

considerable

up-front

expenditures

by

the

Managers

but,

over

the

long

run

is

expected

to

result

in

greater

efficiencies.

The

Board

also

noted

management’s

expenditures

in

improving

shareholder

services

provided

to

the

Funds,

as

well

as

the

need

to

implement

systems

and

meet

additional

regulatory

and

compliance

requirements

resulting

from

recent

US

Securities

and

Exchange

Commission

and

other

regulatory

requirements.

The

Board

also

considered

the

extent

to

which

each

Manager

and

its

affiliates

might

derive

ancillary

benefits

from

fund

operations,

including

revenues

generated

from

transfer

agent

services,

potential

benefits

resulting

from

personnel

and

systems

enhancements

necessitated

by

fund

growth,

as

well

as

increased

leverage

with

service

providers

and

counterparties.

Based

upon

its

consideration

of

all

these

factors,

the

Board

concluded

that

the

level

of

profits

realized

by

each

Manager

and

its

affiliates

from

providing

services

to

each

Fund

was

not

excessive

in

view

of

the

nature,

extent

and

quality

of

services

provided

to

each

Fund.

Economies

of

Scale

The

Board

reviewed

and

considered

the

extent

to

which

each

Manager

may

realize

economies

of

scale,

if

any,

as

each

Fund

grows

larger

and

whether

each

Fund’s

management

fee

structure

reflects

any

economies

of

scale

for

the

benefit

of

shareholders.

With

respect

to

possible

economies

of

scale,

the

Board

noted

the

existence

of

management

fee

breakpoints

for

each

Fund

(except

for

the

Franklin

Allocation

VIP

Fund

and

the

Franklin

VolSmart

Allocation

VIP

Fund),

which

operate

generally

to

share

any

economies

of

scale

with

a

Fund’s

shareholders

by

reducing

the

Fund’s

effective

management

fees

as

the

Fund

grows

in

size.

The

Board

considered

management’s

view

that

any

analyses

of

potential

economies

of

scale

in

managing

a

particular

fund

are

inherently

limited

in

light

of

the

joint

and

common

costs

and

investments

each

Manager

incurs

across

the

FT

family

of

funds

as

a

whole.

The

Board

concluded

that

to

the

extent

economies

of

scale

may

be

realized

by

each

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

(except

for

the

Franklin

Allocation

VIP

Fund

and

the

Franklin

VolSmart

Allocation

VIP

Fund)

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

The

Board

recognized

that

there

would

not

likely

be

any

economies

of

scale

for

the

Franklin

DynaTech

VIP

Fund,

Franklin

Global

Real

Estate

VIP

Fund,

Franklin

Growth

and

Income

VIP

Fund,

Franklin

Large

Cap

Growth

VIP

Fund

and

Franklin

VolSmart

Allocation

VIP

Fund

until

each

Fund’s

assets

grow.

The

Board

also

recognized

that

given

the

decline

in

assets

over

the

past

three

calendar

years

for

each

of

the

Franklin

Income

VIP

Fund,

Franklin

Mutual

Shares

VIP

Fund,

Franklin

Strategic

Income

VIP

Fund,

Franklin

U.S.

Government

Securities

VIP

Fund,

Templeton

Global

Bond

VIP

Fund

and

Templeton

Growth

VIP

Fund,

these

Funds

are

not

expected

to

experience

additional

economies

of

scale

in

the

foreseeable

future.

The

Board

concluded

that

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-8

Semiannual

Report

to

the

extent

economies

of

scale

may

be

realized

by

each

Manager

and

its

affiliates,

each

Fund’s

management

fee

structure

provided

a

sharing

of

benefits

with

the

Fund

and

its

shareholders

as

the

Fund

grows.

Conclusion

Based

on

its

review,

consideration

and

evaluation

of

all

factors

it

believed

relevant,

including

the

above-described

factors

and

conclusions,

the

Board

unanimously

approved

the

continuation

of

each

Management

Agreement

for

an

additional

one-year

period.

Liquidity

Risk

Management

Program

Each

Fund

has

adopted

and

implemented

a

written

Liquidity

Risk

Management

Program

(the

“LRMP”)

as

required

by

Rule

22e-4

under

the

Investment

Company

Act

of

1940

(the

“Liquidity

Rule”).

The

LRMP

is

designed

to

assess

and

manage

each

Fund’s

liquidity

risk,

which

is

defined

as

the

risk

that

the

Fund

could

not

meet

requests

to

redeem

shares

issued

by

the

Fund

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

In

accordance

with

the

Liquidity

Rule,

the

LRMP

includes

policies

and

procedures

that

provide

for:

(1)

assessment,

management,

and

review

(no

less

frequently

than

annually)

of

each

Fund’s

liquidity

risk;

(2)

classification

of

each

Fund’s

portfolio

holdings

into

one

of

four

liquidity

categories

(Highly

Liquid,

Moderately

Liquid,

Less

Liquid,

and

Illiquid);

(3)

for

Funds

that

do

not

primarily

hold

assets

that

are

Highly

Liquid,

establishing

and

maintaining

a

minimum

percentage

of

the

Fund’s

net

assets

in

Highly

Liquid

investments

(called

a

“Highly

Liquid

Investment

Minimum”

or

“HLIM”);

and

(4)

prohibiting

the

Fund’s

acquisition

of

Illiquid

investments

that

would

result

in

the

Fund

holding

more

than

15%

of

its

net

assets

in

Illiquid

assets.

The

LRMP

also

requires

reporting

to

the

Securities

and

Exchange

Commission

(“SEC”)

(on

a

non-public

basis)

and

to

the

Board

if

the

Fund’s

holdings

of

Illiquid

assets

exceed

15%

of

the

Fund’s

net

assets.

Funds

with

HLIMs

must

have

procedures

for

addressing

HLIM

shortfalls,

including

reporting

to

the

Board

and,

with

respect

to

HLIM

shortfalls

lasting

more

than

seven

consecutive

calendar

days,

reporting

to

the

SEC

(on

a

non-public

basis).

The

Director

of

Liquidity

Risk

within

the

Investment

Risk

Management

Group

(the

“IRMG”)

is

the

appointed

Administrator

of

the

LRMP.

The

IRMG

maintains

the

Investment

Liquidity

Committee

(the

“ILC”)

to

provide

oversight

and

administration

of

policies

and

procedures

governing

liquidity

risk

management

for

Franklin

Templeton

and

Legg

Mason

products

and

portfolios.

The

ILC

includes

representatives

from

Franklin

Templeton’s

Risk,

Trading,

Global

Compliance,

Legal,

Investment

Compliance,

Investment

Operations,

Valuation

Committee,

Product

Management

and

Global

Product

Strategy.

In

assessing

and

managing

each

Fund’s

liquidity

risk,

the

ILC

considers,

as

relevant,

a

variety

of

factors,

including

the

Fund’s

investment

strategy

and

the

liquidity

of

its

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

its

short

and

long-term

cash

flow

projections;

and

its

cash

holdings

and

access

to

other

funding

sources

including

the

Funds’

interfund

lending

facility

and

line

of

credit.

Classification

of

the

Fund’s

portfolio

holdings

in

the

four

liquidity

categories

is

based

on

the

number

of

days

it

is

reasonably

expected

to

take

to

convert

the

investment

to

cash

(for

Highly

Liquid

and

Moderately

Liquid

holdings)

or

sell

or

dispose

of

the

investment

(for

Less

Liquid

and

Illiquid

investments),

in

current

market

conditions

without

significantly

changing

the

investment’s

market

value.

Each

Fund

primarily

holds

liquid

assets

that

are

defined

under

the

Liquidity

Rule

as

"Highly

Liquid

Investments,"

and

therefore

is

not

required

to

establish

an

HLIM.

Highly

Liquid

Investments

are

defined

as

cash

and

any

investment

reasonably

expected

to

be

convertible

to

cash

in

current

market

conditions

in

three

business

days

or

less

without

the

conversion

to

cash

significantly

changing

the

market

value

of

the

investment.

At

meetings

of

the

Funds’

Board

of

Trustees

held

in

May

2022,

the

Program

Administrator

provided

a

written

report

to

the

Board

addressing

the

adequacy

and

effectiveness

of

the

program

for

the

year

ended

December

31,

2021.

The

Program

Administrator

report

concluded

that

(i.)

the

LRMP,

as

adopted

and

implemented,

remains

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk;

(ii.)

the

LRMP,

including

the

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

was

implemented

and

operated

effectively

to

achieve

the

goal

of

assessing

and

managing

each

Fund’s

liquidity

risk;

and

(iii.)

each

Fund

was

able

to

meet

requests

for

redemption

without

significant

dilution

of

remaining

investors’

interests

in

the

Fund.

Proxy

Voting

Policies

and

Procedures

The

Trust’s

investment

manager

has

established

Proxy

Voting

Policies

and

Procedures

(Policies)

that

the

Trust

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities.

Shareholders

may

view

the

Trust’s

complete

Policies

online

at

franklintempleton.com.

Alternatively,

shareholders

may

request

copies

of

the

Policies

free

of

charge

by

calling

the

Proxy

Group

collect

at

(954)

527-

7678

or

by

sending

a

written

request

to:

Franklin

Templeton

Companies,

LLC,

300

S.E.

2nd

Street,

Fort

Lauderdale,

FL

33301,

Attention:

Proxy

Group.

Copies

of

the

Trust’s

Franklin

Templeton

Variable

Insurance

Products

Trust

Shareholder

Information

SI-9

Semiannual

Report

proxy

voting

records

are

also

made

available

online

at

franklintempleton.com

and

posted

on

the

U.S.

Securities

and

Exchange

Commission’s

website

at

sec.gov

and

reflect

the

most

recent

12-month

period

ended

June

30.

Quarterly

Schedule

of

Investments

The

Trust

files

a

complete

schedule

of

investments

with

the

U.S.

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

for

each

fiscal

year

as

an

exhibit

to

its

report

on

Form

N-PORT.

Shareholders

may

view

the

filed

Form

N-PORT

by

visiting

the

Commission’s

website

at

sec.

gov.

The

filed

form

may

also

be

viewed

and

copied

at

the

Commission’s

Public

Reference

Room

in

Washington,

DC.

Information

regarding

the

operations

of

the

Public

Reference

Room

may

be

obtained

by

calling

(800)

SEC-0330.

VIP5

S

08/22

©

2022

Franklin

Templeton

Investments.

All

rights

reserved.

Franklin

Templeton

Variable

Insurance

Products

Trust

(FTVIP)

shares

are

not

offered

to

the

public;

they

are

offered

and

sold

only

to:

(1)

insurance

company

separate

accounts

(Separate

Account)

to

serve

as

the

underlying

investment

vehicle

for

variable

contracts;

(2)

certain

qualified

plans;

and

(3)

other

mutual

funds

(funds

of

funds).

Authorized

for

distribution

to

investors

in

Separate

Accounts

only

when

accompanied

or

preceded

by

the

current

prospectus

for

the

applicable

contract,

which

includes

the

Separate

Account

and

the

FTVIP

prospectuses.

Investors

should

carefully

consider

a

fund’s

investment

goals,

risks,

charges

and

expenses

before

investing.

The

prospectus

contains

this

and

other

information;

please

read

it

carefully

before

investing.

To

help

ensure

we

provide

you

with

quality

service,

all

calls

to

and

from

our

service

areas

are

monitored

and/or

recorded.

Semiannual

Report

Franklin

Templeton

Variable

Insurance

Products

Trust

Investment

Manager

Fund

Administrator

Distributor

Franklin

Advisers,

Inc.

Franklin

Templeton

Services,

LLC

Franklin

Distributors,

LLC

Item 2. Code of Ethics.

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

(c) N/A

(d) N/A

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

Item 3. Audit Committee Financial Expert.

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

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

Item 4.

Principal Accountant Fees and Services.             N/A  

Item 5. Audit Committee

of Listed Registrants.             

N/A

Item 6. Schedule of Investments.                           

N/A

Item 7

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

Item 8

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

Item 9

. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.       N/A

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

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

Item 11. Controls and Procedures.

(a) Evaluation

of Disclosure Controls and Procedures

.

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

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

(b) Changes in Internal Controls.

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

Item 12

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

Item 13. Exhibits.

(a)(1) Code of Ethics

codeofethics

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

section302

(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

section906

SIGNATURES

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

Franklin Templeton Variable Insurance Products Trust

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 2022

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

By S\MATTHEW T. HINKLE______________________

Matthew T. Hinkle

      Chief Executive Officer - Finance and Administration

Date  August 26, 2022

By S\CHRISTOPHER KINGS______________________

      Christopher Kings

      Chief Financial Officer, Chief Accounting Officer and Treasurer

Date  August 26, 2022