UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-01608
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FRANKLIN HIGH INCOME TRUST
--------------------------
(Exact name of registrant as specified in charter)

ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
(Address of principal executive offices) (Zip code)

MURRAY L. SIMPSON, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
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(Name and address of agent for service)

Registrant's telephone number, including area code: 650 312-2000
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Date of fiscal year end: 05/31
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Date of reporting period: 11/30/04
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ITEM 1. REPORTS TO STOCKHOLDERS.

[GRAPHIC OMITTED]

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NOVEMBER 30, 2004
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SEMIANNUAL REPORT AND SHAREHOLDER LETTER INCOME
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WANT TO RECEIVE
THIS DOCUMENT
FASTER VIA EMAIL?
FRANKLIN'S
AGE HIGH INCOME FUND Eligible shareholders can
sign up for eDelivery at
franklintempleton.com.
See inside for details.
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[LOGO](R)
FRANKLIN(R) TEMPLETON(R)
INVESTMENTS

FRANKLIN o Templeton o Mutual Series

FRANKLIN TEMPLETON INVESTMENTS

GAIN FROM OUR PERSPECTIVE

Franklin Templeton's distinct multi-manager
structure combines the specialized expertise of
three world-class investment management groups--
Franklin, Templeton and Mutual Series.

SPECIALIZED EXPERTISE Each of our portfolio management groups operates
autonomously, relying on its own research and
staying true to the unique investment disciplines
that underlie its success.

FRANKLIN. Founded in 1947, Franklin is a recognized
leader in fixed income investing and also brings
expertise in growth- and value-style U.S. equity
investing.

TEMPLETON. Founded in 1940, Templeton pioneered
international investing and, in 1954, launched what
has become the industry's oldest global fund.
Today, with research offices in over 25 countries,
they offer investors the broadest global reach in
the industry.

MUTUAL SERIES. Founded in 1949, Mutual Series is
dedicated to a unique style of value investing,
searching aggressively for opportunity among
undervalued stocks, arbitrage situations and
distressed companies.

TRUE DIVERSIFICATION Because our management groups work independently
and adhere to distinctly different investment
approaches, Franklin, Templeton and Mutual Series
funds typically have a low overlap of securities.
That's why our funds can be used to build truly
diversified portfolios covering every major asset
class.

RELIABILITY YOU CAN TRUST At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as well
as the reliable account services that have helped
us become one of the most trusted names in
financial services.

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MUTUAL FUNDS | RETIREMENT PLANS | 529 COLLEGE SAVINGS PLANS | SEPARATE ACCOUNTS
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[GRAPHIC OMITTED]

Not part of the semiannual report

CONTENTS

SHAREHOLDER LETTER ........................................................ 1

SEMIANNUAL REPORT

Franklin's AGE High Income Fund............................................ 3

Performance Summary ....................................................... 7

Your Fund's Expenses ...................................................... 10

Financial Highlights and Statement of Investments ......................... 12

Financial Statements ...................................................... 24

Notes to Financial Statements ............................................. 28

Shareholder Information ................................................... 39

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SHAREHOLDER LETTER

Dear Shareholder:

Solid domestic economic growth, higher corporate earnings and greater business
spending became more evident during the six months ended November 30, 2004.
Although these factors were favorable for financial markets, record high oil
prices and an uncertain presidential election appeared to dampen the markets.
The Dow Jones Industrial Average returned 3.48% and the Standard & Poor's 500
Composite Index (S&P 500) returned 5.67% for the period under review.(1)
Although volatile, most bond markets had solid returns. In response to the
strong economy and nascent inflationary pressures, the Federal Reserve Board
made quarter percentage point hikes to the federal funds target rate in June,
August, September and November 2004, raising the rate to 2.00%. We found
encouraging signs in economic indicators and continue to hold a positive long-
term outlook for financial markets.

Although future economic and market developments are impossible to predict, as
an investor, you can follow certain basic principles in planning for future
needs. First, investing for the long term is important so that you can better
weather short-term market ups and downs. Second, by choosing a mutual fund that
comprises a range of holdings, you can use diversification to help manage
investment

1. Source: Standard & Poor's Micropal. The Dow Jones Industrial Average is price
weighted based on the average market price of 30 blue chip stocks of companies
that are generally industry leaders. The S&P 500 consists of 500 stocks chosen
for market size, liquidity and industry group representation. Each stock's
weight in the index is proportionate to its market value. The S&P 500 is one of
the most widely used benchmarks of U.S. equity performance.

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EDELIVERY DETAILS

Log in at franklintempleton.com and click on eDelivery. Shareholders who are
registered at franklintempleton.com can receive these reports via email. Not all
accounts are eligible for eDelivery.

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NOT FDIC INSURED | MAY LOSE VALUE | NO BANK GUARANTEE
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Not part of the semiannual report | 1

[SIDEBAR]

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STATEMENT ON CURRENT INDUSTRY ISSUES
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In our efforts to fulfill our ongoing commitment to provide you with timely and
accurate information, we have prepared a statement on current industry issues as
they pertain to Franklin Resources, Inc., and our subsidiary companies (Franklin
Templeton Investments). You can find the most updated "Statement on Current
Industry Issues" and a detailed Q&A at franklintempleton.com, or call us at
1-800/632-2301.
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risk. Third, it may make sense to follow a regular investment plan, also called
dollar-cost averaging. By investing a certain amount of money monthly or
quarterly, you can take advantage of market dips without worrying about when
they will occur. Your money buys more shares when the price is low and fewer
when the price is high, which can mean a lower average cost per share over time.
Remember, however, to consider your financial ability to continue purchases
through times of low price levels or changing economic conditions before
committing to such a strategy. Dollar-cost averaging does not guarantee a profit
or eliminate risk, and it will not protect you from a loss if you sell shares at
a market low. As always, we encourage you to discuss your goals with your
financial advisor who can address concerns about volatility and diversification,
periodically review your overall portfolio and help you stay focused on the long
term. We firmly believe that most people benefit from professional advice, and
that advice is never more valuable than during a volatile market.

In the enclosed semiannual report for Franklin's AGE High Income Fund, the
portfolio manager discusses market conditions, investment management decisions
and Fund performance during the period under review. You will also find
performance data and financial information. Please remember that all securities
markets fluctuate, as do mutual fund share prices.

If you would like more frequent updates, FRANKLINTEMPLETON.COM provides daily
prices, monthly performance figures, portfolio holdings and other information.
You can also access your account, buy and sell shares, read timely commentary
from portfolio managers, and find helpful financial planning tools. We hope you
will take advantage of these online services.

We thank you for investing with Franklin Templeton, welcome your questions and
comments, and look forward to serving your investment needs in the years ahead.

Sincerely,

/s/ Rupert H. Johnson, Jr.

Rupert H. Johnson, Jr.
President and Chief Executive Officer - Investment Management
Franklin High Income Trust

THIS LETTER REFLECTS OUR ANALYSIS AND OPINIONS AS OF NOVEMBER 30, 2004. THE
INFORMATION IS NOT A COMPLETE ANALYSIS OF EVERY ASPECT OF ANY MARKET, COUNTRY,
INDUSTRY, SECURITY OR FUND. STATEMENTS OF FACT HAVE BEEN OBTAINED FROM SOURCES
CONSIDERED RELIABLE.

2 | Not part of the semiannual report

SEMIANNUAL REPORT

FRANKLIN'S AGE HIGH INCOME FUND

YOUR FUND'S GOAL AND MAIN INVESTMENTS: Franklin's AGE High Income Fund seeks to
provide investors with high, current income, with a secondary objective of
capital appreciation. The Fund invests in a diversified portfolio consisting
primarily of high yield, lower-rated debt securities.

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PORTFOLIO BREAKDOWN

Based on Total Net Assets as of 11/30/04

[THE FOLLOWING TABLE WAS DEPICTED AS A PIE CHART IN THE PRINTED MATERIAL.]

Bonds ........................................................... 90.5%
Equities ........................................................ 5.1%
Short-Term Investments & Other Net Assets ....................... 4.4%
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We are pleased to bring you Franklin's AGE High Income Fund's semiannual report
covering the period ended November 30, 2004.

PERFORMANCE OVERVIEW

Franklin's AGE High Income Fund - Class A posted a +9.86% cumulative total
return for the six months under review. The Fund outperformed its benchmark, the
CSFB High Yield Index, which returned 9.31%, and its peers as measured by the
Lipper High Current Yield Funds Objective Average, which returned 8.56% for the
same period.(1) You can find the Fund's long-term performance data in the
Performance Summary beginning on page 7.

(1) Sources: Credit Suisse First Boston; Lipper Inc. The CSFB High Yield Index
is designed to mirror the investable universe of the U.S. dollar
denominated high yield debt market. The Lipper High Current Yield Funds
Objective Average is calculated by averaging the total returns of all
funds within the Lipper High Current Yield Funds classification in the
Lipper Open-End underlying funds universe for the period indicated. Lipper
High Current Yield Funds are defined as funds that aim at high (relative)
current yield from fixed income securities, have no quality or maturity
restrictions, and tend to invest in lower grade debt issues. For the
six-month period ended 11/30/04, there were 434 funds in this category.
Lipper calculations do not include sales charges. Fund performance
relative to the average may have differed if these or other factors had
been considered. Indexes are unmanaged and include reinvestment of any
income or distributions. One cannot invest directly in an index, nor is an
index representative of the Fund's portfolio.

THE DOLLAR VALUE, NUMBER OF SHARES OR PRINCIPAL AMOUNT, AND NAMES OF ALL
PORTFOLIO HOLDINGS ARE LISTED IN THE FUND'S STATEMENT OF INVESTMENTS (SOI). THE
SOI BEGINS ON PAGE 17.

[SIDEBAR]

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PERFORMANCE DATA QUOTED 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 YOUR SELL YOUR SHARES. CURRENT PERFORMANCE MAY
DIFFER FROM FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL
1-800/342-5236 FOR MOST RECENT MONTH-END PERFORMANCE.
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Semiannual Report | 3

ECONOMIC AND MARKET OVERVIEW

During the reporting period, there was much focus on the employment picture and
its resulting effects on the consumer. Although nonfarm payroll statistics were
mixed, underlying employment growth fundamentals were reflected in several
surveys. One example is the National Federation of Independent Businesses (NFIB)
survey, which indicated sequential increases in small business employment in
each month of the reporting period. This is noteworthy as small businesses
historically have created about two-thirds of all new jobs.(2) More jobs
combined with income tax reductions helped increase consumers' disposable income
and allowed them to continue spending, in turn boosting economic growth.

Increases in business spending also contributed to economic growth. After
steadily declining in 2001 and 2002, business spending posted strong results
during 2004. For example, nonresidential investment spending increased 12.5% and
12.9% in the second and third quarters of 2004.(3) Historically low interest
rates during the reporting period allowed many businesses the opportunity to
refinance their old debt at more attractive levels. This helped enhance business
operating performance, and corporate profits reflected this data. Many corporate
debt investments also benefited from this improvement. Productivity continued to
grow, which helped businesses generate more goods and services without
substantially raising inflation.

Although energy prices rose significantly during the period, the core Consumer
Price Index, a measure of inflation excluding food and energy costs, remained
subdued. Expected inflation is a key determinant of interest rates, and this
environment contributed to the continued low interest rate level during the
period. Short-term interest rates rose as the Federal Reserve Board (Fed) raised
the federal funds target rate to 2.0% from 1.0% during the reporting period. The
10-year U.S. Treasury yield, however, declined to 4.36% on November 30, 2004,
from 4.66% at the beginning of the period.

The continuation of generally positive economic trends, including corporate
earnings growth and an improving employment landscape, coupled with a measured
Fed monetary policy, supported the high yield bond market during the past six
months. Lower-rated securities generally realized the largest gains, as
investors' appetite for credit risk apparently remained healthy. High yield
spreads over Treasuries, as measured by the CSFB High Yield Index, fell from
4.7% at the end of May to 3.6% at period-end, which represented the lowest level
in several years.(4) A modest default rate also helped support market
fundamentals.

(2) Source: Dennis, William J., Jr., NFIB Research Foundation, "The Public
Reviews Small Business," 8/04.

(3) Source: Bureau of Economic Analysis.

(4) Source: Credit Suisse First Boston. See footnote 1 for a description of
the CSFB High Yield Index. Treasuries, if held to maturity, offer a fixed
rate of return and fixed principal value; their interest payments and
principal are guaranteed.

4 | Semiannual Report

DIVIDEND DISTRIBUTIONS*
6/1/04-11/30/04

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DIVIDEND PER SHARE
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MONTH CLASS A CLASS B CLASS C CLASS R ADVISOR CLASS
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June 1.25 cents 1.16 cents 1.16 cents 1.19 cents 1.27 cents
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July 1.25 cents 1.16 cents 1.16 cents 1.19 cents 1.27 cents
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August 1.25 cents 1.16 cents 1.16 cents 1.19 cents 1.28 cents
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September 1.25 cents 1.17 cents 1.17 cents 1.20 cents 1.27 cents
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October 1.25 cents 1.17 cents 1.17 cents 1.20 cents 1.28 cents
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November 1.25 cents 1.17 cents 1.17 cents 1.20 cents 1.28 cents
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TOTAL 7.50 CENTS 6.99 CENTS 6.99 CENTS 7.17 CENTS 7.65 CENTS
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* All Fund distributions will vary depending upon current market conditions,
and past distributions are not indicative of future trends.

In addition, technical factors benefited the market, as investors easily
absorbed new issue supply.

INVESTMENT STRATEGY

We are disciplined, fundamental investors who mainly rely on our analysts'
indepth industry expertise to evaluate companies. We examine sectors and
individual securities in detail. When evaluating an issuer's creditworthiness,
we consider the issuer's experience, managerial strength, sensitivity to
economic conditions, credit rating, and current and prospective financial
condition.

MANAGER'S DISCUSSION

During the reporting period, Franklin's AGE High Income Fund continued to
post strong absolute and relative performance. Consistent with our bottom-up
investment strategy, the Fund's outperformance relative to the Lipper High
Current Yield Funds Objective Average resulted from industry and company
credit selection compared with those of our peer group.(5) In particular, Fund
positioning in the aerospace and chemicals industries benefited absolute and
relative performance.(6) The Fund's underweighted aerospace exposure helped the
Fund relative to its peers as this sector underperformed the broader market. In
the chemicals sector, which ranked among the best performing high yield sectors,
the Fund held an overweighted position. Holdings in IMC Global, Huntsman
and Rhodia performed particularly well during the reporting period.

(5) Source: J.P. Morgan. The Fund's peer group consists of some of the largest
mutual funds found within the Lipper High Current Yield Funds Objective
Average.

(6) In the SOI, aerospace holdings are in the electronic technology sector,
and chemicals holdings are in the process industries sector.

Semiannual Report | 5

Despite the Fund's outperformance of its benchmark and peer group, there were
some detractors from performance. For example, the Fund's positioning in the
energy and metals and mining industries negatively affected relative returns.(7)
Compared with the benchmark and peer group, the Fund's underweighted position in
the energy industry detracted from relative performance, as the industry's
returns outpaced the overall market. In metals and mining, the Fund's
underweighting compared with the benchmark hindered relative returns because
this industry ranked among the market's top performing.

Thank you for your continued participation in Franklin's AGE High Income Fund.
We look forward to serving your future investment needs.

[PHOTO OMITTED] /s/ Christopher J. Molumphy

Christopher J. Molumphy, CFA
Senior Portfolio Manager
Franklin's AGE High Income Fund

(7) In the SOI, energy holdings are in the energy minerals and industrial
services sectors, and metals and mining holdings are in the non-energy
minerals sector.

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF NOVEMBER 30, 2004, 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 ADVISER 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.

[SIDEBAR]

TOP 10 HOLDINGS
11/30/04

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COMPANY % OF TOTAL
SECTOR/INDUSTRY NET ASSETS
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Charter Communications Holdings 1.5%
CONSUMER SERVICES
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Georgia-Pacific Corp. 1.5%
PROCESS INDUSTRIES
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Dynegy Holdings 1.4%
UTILITIES
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Aquila Inc. 1.4%
UTILITIES
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Nextel Communications Inc. 1.3%
COMMUNICATIONS
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Allegheny Energy Supply Co. LLC 1.3%
UTILITIES
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BCP Caylux Holding Lux SCA 1.3%
PROCESS INDUSTRIES
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Calpine Corp. 1.2%
UTILITIES
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Host Marriott LP 1.2%
REAL ESTATE INVESTMENT TRUST
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AES Corp. 1.2%
UTILITIES
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6 | Semiannual Report

PERFORMANCE SUMMARY AS OF 11/30/04

Your dividend income will vary depending on dividends or interest paid by
securities in the Fund's portfolio, adjusted for operating expenses of each
class. Capital gain distributions are net profits realized from the sale of
portfolio securities. The performance table does not reflect any taxes due on
Fund dividends, capital gain distributions, if any, or any realized gains on the
sale of Fund shares. Total return reflects the Fund's dividend income, capital
gain distributions, if any, and any unrealized gains or losses.

PRICE AND DISTRIBUTION INFORMATION

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CLASS A CHANGE 11/30/04 5/31/04
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Net Asset Value (NAV) +$0.12 $2.14 $2.02
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DISTRIBUTIONS (6/1/04-11/30/04)
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Dividend Income $0.0750
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CLASS B CHANGE 11/30/04 5/31/04
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Net Asset Value (NAV) +$0.12 $2.14 $2.02
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DISTRIBUTIONS (6/1/04-11/30/04)
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Dividend Income $0.0699
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CLASS C CHANGE 11/30/04 5/31/04
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Net Asset Value (NAV) +$0.12 $2.15 $2.03
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DISTRIBUTIONS (6/1/04-11/30/04)
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Dividend Income $0.0699
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CLASS R CHANGE 11/30/04 5/31/04
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Net Asset Value (NAV) +$0.13 $2.16 $2.03
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DISTRIBUTIONS (6/1/04-11/30/04)
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Dividend Income $0.0717
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ADVISOR CLASS CHANGE 11/30/04 5/31/04
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Net Asset Value (NAV) +$0.13 $2.15 $2.02
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DISTRIBUTIONS (6/1/04-11/30/04)
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Dividend Income $0.0765
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Semiannual Report | 7

PERFORMANCE SUMMARY (CONTINUED)

PERFORMANCE

CLASS A: 4.25% MAXIMUM INITIAL SALES CHARGE; CLASS B: CONTINGENT DEFERRED SALES
CHARGE (CDSC) DECLINING FROM 4% TO 1% OVER SIX YEARS, AND ELIMINATED THEREAFTER;
CLASS C: 1% CDSC IN FIRST YEAR ONLY; CLASS R: 1% CDSC FOR FIRST 18 MONTHS ONLY.
CUMULATIVE TOTAL RETURN EXCLUDES SALES CHARGES. AVERAGE ANNUAL TOTAL RETURNS AND
VALUE OF $10,000 INVESTMENT INCLUDE MAXIMUM SALES CHARGES.

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CLASS A 6-MONTH 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return(1) +9.86% +12.78% +36.38% +112.96%
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Average Annual Total Return(2) +5.17% +8.01% +5.50% +7.37%
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Value of $10,000 Investment(3) $10,517 $10,801 $13,070 $20,357
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Avg. Ann. Total Return (12/31/04)(4) +6.98% +5.89% +7.49%
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Distribution Rate(5) 6.73%
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30-Day Standardized Yield(6) 5.44%
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CLASS B 6-MONTH 1-YEAR 5-YEAR INCEPTION (1/1/99)
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Cumulative Total Return(1) +9.59% +12.22% +33.60% +33.06%
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Average Annual Total Return(2) +5.59% +8.22% +5.69% +4.84%
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Value of $10,000 Investment(3) $10,559 $10,822 $13,190 $13,228
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Avg. Ann. Total Return (12/31/04)(4) +7.07% +5.91% +5.03%
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Distribution Rate(5) 6.56%
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30-Day Standardized Yield(6) 5.18%
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CLASS C 6-MONTH 1-YEAR 5-YEAR INCEPTION (5/16/95)
- ----------------------------------------------------------------------------------------------------------
Cumulative Total Return(1) +9.54% +12.15% +33.35% +81.79%
- ----------------------------------------------------------------------------------------------------------
Average Annual Total Return(2) +8.54% +11.15% +5.93% +6.46%
- ----------------------------------------------------------------------------------------------------------
Value of $10,000 Investment(3) $10,854 $11,115 $13,335 $18,179
- ----------------------------------------------------------------------------------------------------------
Avg. Ann. Total Return (12/31/04)(4) +10.50% +6.24% +6.62%
- ----------------------------------------------------------------------------------------------------------
Distribution Rate(5) 6.53%
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30-Day Standardized Yield(6) 5.18%
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CLASS R 6-MONTH 1-YEAR INCEPTION (1/1/02)
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Cumulative Total Return(1) +10.14% +12.29% +41.92%
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Average Annual Total Return(2) +9.14% +11.29% +12.79%
- ----------------------------------------------------------------------------------------------------------
Value of $10,000 Investment(3) $10,914 $11,129 $14,192
- ----------------------------------------------------------------------------------------------------------
Avg. Ann. Total Return (12/31/04)(4) +10.13% +12.96%
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Distribution Rate(5) 6.67%
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30-Day Standardized Yield(6) 5.34%
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ADVISOR CLASS(7) 6-MONTH 1-YEAR 5-YEAR 10-YEAR
- ----------------------------------------------------------------------------------------------------------
Cumulative Total Return(1) +10.45% +12.90% +37.90% +116.86%
- ----------------------------------------------------------------------------------------------------------
Average Annual Total Return(2) +10.45% +12.90% +6.64% +8.05%
- ----------------------------------------------------------------------------------------------------------
Value of $10,000 Investment(3) $11,045 $11,290 $13,790 $21,686
- ----------------------------------------------------------------------------------------------------------
Avg. Ann. Total Return (12/31/04)(4) +11.74% +6.94% +8.12%
- ----------------------------------------------------------------------------------------------------------
Distribution Rate(5) 7.14%
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30-Day Standardized Yield(6) 5.81%
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PERFORMANCE DATA QUOTED REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE
FUTURE RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU
MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY
DIFFER FROM FIGURES SHOWN.

FOR MOST RECENT MONTH-END PERFORMANCE, SEE "FUNDS AND PERFORMANCE" AT
FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236.

8 | Semiannual Report

PERFORMANCE SUMMARY (CONTINUED)

ENDNOTES

INTEREST RATE MOVEMENTS MAY AFFECT THE FUND'S SHARE PRICE AND YIELD. BOND
PRICES, AND THUS THE FUND'S SHARE PRICE, GENERALLY MOVE IN THE OPPOSITE
DIRECTION FROM INTEREST RATES. THE RISKS ASSOCIATED WITH HIGHER-YIELDING,
LOWER-RATED SECURITIES INCLUDE HIGHER RISK OF DEFAULT AND LOSS OF PRINCIPAL. THE
FUND'S INVESTMENTS IN FOREIGN COMPANIES, INCLUDING EMERGING MARKETS, CAN INVOLVE
SPECIAL RISKS INCLUDING CURRENCY VOLATILITY AND POLITICAL, ECONOMIC AND
REGULATORY UNCERTAINTY. THE FUND'S PROSPECTUS ALSO INCLUDES A DESCRIPTION OF THE
MAIN INVESTMENT RISKS.

CLASS B: These shares have higher annual fees and expenses than Class A shares.

CLASS C: Prior to 1/1/04, these shares were offered with an initial sales charge; thus actual total
returns would have differed. These shares have higher annual fees and expenses than Class A shares.

CLASS R: Shares are available to certain eligible investors as described in the prospectus. These
shares have higher annual fees and expenses than Class A shares.

ADVISOR CLASS: Shares are available to certain eligible investors as described in the prospectus.

1. Cumulative total return represents the change in value of an investment
over the periods indicated and does not include a sales charge.

2. Average annual total return represents the average annual change in value
of an investment over the periods indicated and includes any current,
applicable, maximum sales charge. Six-month return has not been
annualized.

3. These figures represent the value of a hypothetical $10,000 investment in
the Fund over the periods indicated and include any current, applicable,
maximum sales charge.

4. In accordance with SEC rules, we provide standardized average annual total
return information through the latest calendar quarter.

5. Distribution rate is based on an annualization of the respective class's
November dividend and the maximum offering price (NAV for Classes B, C, R
and Advisor) per share on 11/30/04.

6. Yield, calculated as required by the SEC, is based on the earnings of the
Fund's portfolio for the 30 days ended 11/30/04.

7. Effective 1/2/97, the Fund began offering Advisor Class shares, which do
not have sales charges or a Rule 12b-1 plan. Performance quotations for
this class reflect the following methods of calculation: (a) For periods
prior to 1/2/97, a restated figure is used based upon the Fund's Class A
performance, excluding the effect of Class A's maximum initial sales
charge, but reflecting the effect of the Class A Rule 12b-1 fees; and (b)
for periods after 1/1/97, actual Advisor Class performance is used
reflecting all charges and fees applicable to that class. Since 1/2/97
(commencement of sales), the cumulative and average annual total returns
of Advisor Class shares were +58.66% and +6.01%.

Semiannual Report | 9

YOUR FUND'S EXPENSES

As a Fund shareholder, you can incur two types of costs:

o Transaction costs, including sales charges (loads) on Fund purchases and
redemption fees; and

o Ongoing Fund costs, including management fees, distribution and service
(12b-1) fees, and other Fund expenses. All mutual funds have ongoing
costs, sometimes referred to as operating expenses.

The following table shows ongoing costs of investing in the Fund and can help
you understand these costs and compare them with those of other mutual funds.
The table assumes a $1,000 investment held for the six months indicated.

ACTUAL FUND EXPENSES

The first line (Actual) for each share class listed in the table below provides
actual account values and expenses. The "Ending Account Value" is derived from
the Fund's actual return, which includes the effect of Fund expenses.

You can estimate the expenses you paid during the period, by following these
steps. OF COURSE, YOUR ACCOUNT VALUE AND EXPENSES WILL DIFFER FROM THOSE IN THIS
ILLUSTRATION:

1. Divide your account value by $1,000.

IF AN ACCOUNT HAD AN $8,600 VALUE, THEN $8,600 / $1,000 = 8.6.

2. Multiply the result by the number under the heading "Expenses Paid During
Period."

IF EXPENSES PAID DURING PERIOD WERE $7.50, THEN 8.6 X $7.50 = $64.50.

In this illustration, the estimated expenses paid this period are $64.50.

HYPOTHETICAL EXAMPLE FOR COMPARISON WITH OTHER FUNDS

Information in the second line (Hypothetical) for each class in the table can
help you compare ongoing costs of investing in the Fund with those of other
mutual funds. This information may not be used to estimate the actual ending
account balance or expenses you paid during the period. The hypothetical "Ending
Account Value" is based on the actual expense ratio for each class and an
assumed 5% annual rate of return before expenses, which does not represent the
Fund's actual return. The figure under the heading "Expenses Paid During Period"
shows the hypothetical expenses your account would have incurred under this
scenario. You can compare this figure with the 5% hypothetical examples that
appear in shareholder reports of other funds.

10 | Semiannual Report

YOUR FUND'S EXPENSES (CONTINUED)

PLEASE NOTE THAT EXPENSES SHOWN IN THE TABLE ARE MEANT TO HIGHLIGHT ONGOING
COSTS AND DO NOT REFLECT ANY TRANSACTION COSTS, SUCH AS SALES CHARGES OR
REDEMPTION FEES. Therefore, the second line for each class is useful in
comparing ongoing costs only, and will not help you compare total costs of
owning different funds. In addition, if transaction costs were included, your
total costs would have been higher. Please refer to the Fund prospectus for
additional information on operating expenses.

- --------------------------------------------------------------------------------------------------------
BEGINNING ACCOUNT ENDING ACCOUNT EXPENSES PAID DURING
CLASS A VALUE 5/31/04 VALUE 11/30/04 PERIOD* 5/31/04-11/30/04
- --------------------------------------------------------------------------------------------------------

Actual $1,000 $1,098.60 $3.89
- --------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,021.36 $3.75
- --------------------------------------------------------------------------------------------------------
CLASS B
- --------------------------------------------------------------------------------------------------------
Actual $1,000 $1,095.90 $6.52
- --------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,018.85 $6.28
- --------------------------------------------------------------------------------------------------------
CLASS C
- --------------------------------------------------------------------------------------------------------
Actual $1,000 $1,095.40 $6.51
- --------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,018.85 $6.28
- --------------------------------------------------------------------------------------------------------
CLASS R
- --------------------------------------------------------------------------------------------------------
Actual $1,000 $1,101.40 $5.74
- --------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,019.60 $5.52
- --------------------------------------------------------------------------------------------------------
ADVISOR CLASS
- --------------------------------------------------------------------------------------------------------
Actual $1,000 $1,104.50 $3.11
- --------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $1,022.11 $2.99
- --------------------------------------------------------------------------------------------------------

* Expenses are equal to the annualized expense ratio for each class (A:
0.74%; B: 1.24%; C: 1.24%; R: 1.09%; and Advisor: 0.59%), multiplied by
the average account value over the period, multiplied by 183/365 to
reflect the one-half year period.

Semiannual Report | 11

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS

AGE HIGH INCOME FUND

------------------------------------------------------------------------------------------
SIX MONTHS
ENDED
NOVEMBER 30,
2004 YEAR ENDED MAY 31,
CLASS A (UNAUDITED) 2004 2003 2002 2001 2000
------------------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning of
period ............................. $ 2.02 $ 1.88 $ 1.87 $ 2.09 $ 2.30 $ 2.69
------------------------------------------------------------------------------------------
Income from investment operations:

Net investment income(a) ........... .08 .16 .16 .20 .23 .26

Net realized and unrealized gains
(losses) .......................... .12 .13 .01 (.22) (.19) (.39)
------------------------------------------------------------------------------------------
Total from investment operations ..... .20 .29 .17 (.02) .04 (.13)
------------------------------------------------------------------------------------------
Less distributions from net investment
income ............................. (.08) (.15) (.16) (.20) (.25) (.26)

Redemption fees ...................... --(c) --(c) --(c) -- -- --
------------------------------------------------------------------------------------------
Net asset value, end of period ....... $ 2.14 $ 2.02 $ 1.88 $ 1.87 $ 2.09 $ 2.30
==========================================================================================
Total return(b) ...................... 9.86% 15.67% 10.67% (.68)% 1.73% (5.01)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) .... $2,375,801 $2,172,749 $2,077,768 $2,024,885 $2,222,713 $2,442,432

Ratios to average net assets:

Expenses ........................... .74%(d) .75% .76% .75% .76% .74%

Net investment income .............. 7.29%(d) 7.73% 9.72% 10.27% 10.30% 10.28%

Portfolio turnover rate .............. 16.93% 44.07% 36.52% 18.56% 21.37% 18.79%

(a) Based on average daily shares outstanding.

(b) Total return does not reflect sales commissions or the contingent deferred
sales charge, and is not annualized for periods less than one year.

(d) Annualized.

12 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

AGE HIGH INCOME FUND (CONTINUED)

-------------------------------------------------------------------------------
SIX MONTHS
ENDED
NOVEMBER 30,
2004 YEAR ENDED MAY 31,
CLASS B (UNAUDITED) 2004 2003 2002 2001 2000
-------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period .......... $ 2.02 $ 1.88 $ 1.87 $ 2.08 $ 2.30 $ 2.68
-------------------------------------------------------------------------------

Income from investment operations:

Net investment income(a) .................... .07 .15 .16 .19 .21 .24

Net realized and unrealized gains (losses) .. .12 .13 -- (.21) (.19) (.37)
-------------------------------------------------------------------------------

Total from investment operations .............. .19 .28 .16 (.02) .02 (.13)
-------------------------------------------------------------------------------

Less distributions from net investment income . (.07) (.14) (.15) (.19) (.24) (.25)

Redemption fees ............................... --(c) --(c) --(c) -- -- --
-------------------------------------------------------------------------------

Net asset value, end of period ................ $ 2.14 $ 2.02 $ 1.88 $ 1.87 $ 2.08 $ 2.30
===============================================================================

Total return(b) ............................... 9.59% 15.12% 10.13% (.70)% .73% (5.49)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $229,067 $207,680 $182,494 $153,639 $119,496 $ 69,565

Ratios to average net assets:

Expenses .................................... 1.24%(d) 1.25% 1.27% 1.26% 1.27% 1.25%

Net investment income ....................... 6.79%(d) 7.23% 9.21% 9.75% 9.79% 9.85%

Portfolio turnover rate ....................... 16.93% 44.07% 36.52% 18.56% 21.37% 18.79%

(a) Based on average daily shares outstanding.

(b) Total return does not reflect contingent deferred sales charge, and is not
annualized for periods less than one year.

(d) Annualized.

Semiannual Report | See notes to financial statements. | 13

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

AGE HIGH INCOME FUND (CONTINUED)

-------------------------------------------------------------------------------
SIX MONTHS
ENDED
NOVEMBER 30,
2004 YEAR ENDED MAY 31,
CLASS C (UNAUDITED) 2004 2003 2002 2001 2000
-------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout
the period)

Net asset value, beginning of period .......... $ 2.03 $ 1.89 $ 1.88 $ 2.09 $ 2.31 $ 2.69
-------------------------------------------------------------------------------

Income from investment operations:

Net investment income(a) .................... .07 .15 .16 .19 .22 .25

Net realized and unrealized gains (losses) .. .12 .13 -- (.21) (.20) (.38)
-------------------------------------------------------------------------------

Total from investment operations .............. .19 .28 .16 (.02) .02 (.13)
-------------------------------------------------------------------------------

Less distributions from net investment
income .................................... (.07) (.14) (.15) (.19) (.24) (.25)

Redemption fees ............................... --(c) --(c) --(c) -- -- --
-------------------------------------------------------------------------------

Net asset value, end of period ................ $ 2.15 $ 2.03 $ 1.89 $ 1.88 $ 2.09 $ 2.31
===============================================================================

Total return(b) ............................... 9.54% 15.01% 10.07% (.71)% .75% (5.46)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $439,785 $416,171 $421,795 $383,584 $172,959 $367,151

Ratios to average net assets:

Expenses .................................... 1.24%(d) 1.25% 1.27% 1.25% 1.27% 1.25%

Net investment income ....................... 6.79%(d) 7.23% 9.21% 9.76% 9.79% 9.76%

Portfolio turnover rate ....................... 16.93% 44.07% 36.52% 18.56% 21.37% 18.79%

(a) Based on average daily shares outstanding.

(b) Total return does not reflect contingent deferred sales charge, and is not
annualized for periods less than one year.

(d) Annualized.

14 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

AGE HIGH INCOME FUND (CONTINUED)

--------------------------------------------------------
SIX MONTHS
ENDED
NOVEMBER 30,
2004 YEAR ENDED MAY 31,
CLASS R (UNAUDITED) 2004 2003 2002(e)
--------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period .......... $ 2.03 $ 1.89 $ 1.88 $ 1.93
--------------------------------------------------------
Income from investment operations:

Net investment income(a) .................... .07 .15 .16 .08

Net realized and unrealized gains (losses) .. .13 .13 .01 (.05)
--------------------------------------------------------

Total from investment operations .............. .20 .28 .17 .03
--------------------------------------------------------

Less distributions from net investment income . (.07) (.14) (.16) (.08)

Redemption fees ............................... --(c) --(c) --(c) --
--------------------------------------------------------

Net asset value, end of period ................ $ 2.16 $ 2.03 $ 1.89 $ 1.88
========================================================

Total return(b) ............................... 10.14% 15.17% 10.21% 1.52%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $4,925 $3,467 $2,574 $ 713

Ratios to average net assets:

Expenses .................................... 1.09%(d) 1.10% 1.12% 1.11%(d)

Net investment income ....................... 6.94%(d) 7.38% 9.36% 9.73%(d)

Portfolio turnover rate ....................... 16.93% 44.07% 36.52% 18.56%

(a) Based on average daily shares outstanding.

(b) Total return does not reflect contingent deferred sales charge, and is not
annualized for periods less than one year.

(d) Annualized.

(e) For the period January 1, 2002 (effective date) to May 31, 2002.

Semiannual Report | See notes to financial statements. | 15

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

AGE HIGH INCOME FUND (CONTINUED)

------------------------------------------------------------------------------
SIX MONTHS
ENDED
NOVEMBER 30,
2004 YEAR ENDED MAY 31,
ADVISOR CLASS (UNAUDITED) 2004 2003 2002 2001 2000
------------------------------------------------------------------------------

PER SHARE OPERATING PERFORMANCE
(for a share outstanding throughout the period)

Net asset value, beginning of period .......... $ 2.02 $ 1.88 $ 1.88 $ 2.09 $ 2.30 $ 2.69
------------------------------------------------------------------------------
Income from investment operations:

Net investment income(a) .................... .08 .16 .16 .21 .23 .26

Net realized and unrealized gains (losses) .. .13 .13 -- (.21) (.19) (.38)
------------------------------------------------------------------------------
Total from investment operations .............. .21 .29 .16 -- .04 (.12)
------------------------------------------------------------------------------
Less distributions from net investment income . (.08) (.15) (.16) (.21) (.25) (.27)

Redemption fees ............................... --(c) --(c) --(c) -- -- --
------------------------------------------------------------------------------

Net asset value, end of period ................ $ 2.15 $ 2.02 $ 1.88 $ 1.88 $ 2.09 $ 2.30
==============================================================================

Total return(b) ............................... 10.45% 15.82% 10.23% (.03)% 1.86% (4.88)%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $41,514 $37,569 $28,045 $20,758 $22,041 $17,234

Ratios to average net assets:

Expenses .................................... .59%(d) .60% .62% .61% .62% .60%

Net investment income ....................... 7.44%(d) 7.88% 9.86% 10.42% 10.43% 10.29%

Portfolio turnover rate ....................... 16.93% 44.07% 36.52% 18.56% 21.37% 18.79%

(a) Based on average daily shares outstanding.

(b) Total return is not annualized for periods less than one year.

(d) Annualized.

16 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED)

- -------------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AGE HIGH INCOME FUND COUNTRY AMOUNT(h) VALUE
- -------------------------------------------------------------------------------------------------------------------------------

BONDS 90.5%
COMMERCIAL SERVICES 1.0%
JohnsonDiversey Holdings Inc., senior disc. note, zero cpn. to 5/17/07,
10.67% thereafter, 5/15/13 .......................................... United States $35,000,000 $ 30,450,000
(a) Key3Media Group Inc., senior sub. note, 11.25%, 6/15/11 ............... United States 20,000,000 25,000
------------
30,475,000
------------
COMMUNICATIONS 10.6%
(a) Asia Global Crossing Ltd., senior note, 13.375%, 10/15/10 ............. Bermuda 11,000,000 797,500
AT&T Wireless Services Inc., senior note, 7.875%, 3/01/11 ............. United States 22,000,000 25,763,121
Crown Castle International Corp., senior note, 7.50%, 12/01/13 ........ United States 15,000,000 16,162,500
Dobson Cellular Systems Inc., secured note, 144A, 9.875%,
11/01/12 ............................................................ United States 18,000,000 17,730,000
Inmarsat Finance PLC, 144A, zero cpn. to 11/15/08, 10.375%
thereafter, 11/15/12 ................................................ United Kingdom 37,200,000 25,854,000
(a) Iridium LLC/Capital Corp., senior note, D, 10.875%, 7/15/05 ........... Bermuda 17,000,000 2,380,000
MCI Inc., senior note, 5.908%, 5/01/07 ................................ United States 5,542,000 5,625,130
MCI Inc., senior note, 6.688%, 5/01/09 ................................ United States 5,542,000 5,597,420
MCI Inc., senior note, 7.735%, 5/01/14 ................................ United States 4,750,000 4,868,750
Millicom International Cellular SA, senior note, 144A, 10.00%,
12/01/13 ............................................................ Luxembourg 10,000,000 10,375,000
Nextel Communications Inc., senior note, 7.375%, 8/01/15 .............. United States 33,300,000 36,796,500
Nextel Partners Inc., senior note, 8.125%, 7/01/11 .................... United States 26,100,000 28,840,500
NTL Cable PLC, senior note, 144A, 8.75%, 4/15/14 ...................... United Kingdom 8,900,000 10,079,250
PanAmSat Corp., senior note, 144A, 9.00%, 8/15/14 ..................... United States 20,500,000 22,037,500
(a) Poland Telecom Finance BV, B, 14.00%, 12/01/07 ........................ Poland 30,000,000 3,000
Qwest Communications International Inc., senior note, 144A, 7.50%,
2/15/14 ............................................................. United States 20,000,000 19,600,000
Qwest Corp., 6.875%, 9/15/33 .......................................... United States 28,300,000 24,974,750
(b) Rogers Wireless Communications Inc., senior secured note, 144A,
7.25%, 12/15/12 ..................................................... Canada 12,580,000 13,130,375
(b) Rogers Wireless Communications Inc., senior secured note, 144A,
7.50%, 3/15/15 ...................................................... Canada 15,500,000 16,158,750
(a) RSL Communications PLC, senior disc. note, 10.125%, 3/01/08 ........... United Kingdom 44,500,000 333,750
(a) RSL Communications PLC, senior note, 12.00%, 11/01/08 ................. United Kingdom 6,250,000 46,875
Time Warner Telecom Holdings, senior note, 9.25%, 2/15/14 ............. United States 20,000,000 20,200,000
Triton PCS Inc., senior note, 8.50%, 6/01/13 .......................... United States 15,300,000 14,076,000
Triton PCS Inc., senior sub. note, 9.375%, 2/01/11 .................... United States 6,900,000 5,502,750
------------
326,933,421
------------

CONSUMER DURABLES 3.4%
D.R. Horton Inc., senior note, 8.50%, 4/15/12 ......................... United States 25,000,000 28,250,000
Sealy Mattress Co., senior sub. note, 8.25%, 6/15/14 .................. United States 30,000,000 31,875,000
Simmons Co., senior sub. note, 7.875%, 1/15/14 ........................ United States 16,400,000 17,138,000
William Lyon Homes Inc., senior note, 7.50%, 2/15/14 .................. United States 18,500,000 17,945,000
William Lyon Homes Inc., senior note, 144A, 7.625%, 12/15/12 .......... United States 10,000,000 9,850,000
------------
105,058,000
------------

Semiannual Report | 17

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)

BONDS (CONT.)
CONSUMER NON-DURABLES 1.0%
Smithfield Foods Inc., senior note, 7.00%, 8/01/11 .................... United States $18,900,000 $ 20,128,500
Smithfield Foods Inc., senior note, 7.75%, 5/15/13 .................... United States 9,600,000 10,608,000
------------
30,736,500
------------

CONSUMER SERVICES 21.2%
(a) Adelphia Communications Corp., senior note, 10.875%, 10/01/10 ......... United States 25,000,000 23,437,500
Aztar Corp., senior sub. note, 7.875%, 6/15/14 ........................ United States 13,700,000 15,104,250
Boyd Gaming Corp., senior sub. note, 6.75%, 4/15/14 ................... United States 21,600,000 22,842,000
Cablevision Systems Corp., senior note, 144A, 8.00%, 4/15/12 .......... United States 19,200,000 20,544,000
(a) Callahan NordRhein-Westfalen, senior disc. note, zero cpn. to 7/15/05,
16.00% thereafter, 7/15/10 .......................................... Germany 38,000,000 2,850,000
CanWest Media Inc., senior sub. note, 10.625%, 5/15/11 ................ Canada 15,600,000 17,628,000
CanWest Media Inc., senior sub. note, 144A, 8.00%, 9/15/12 ............ Canada 6,000,000 6,450,000
CanWest Media Inc., senior sub. note, B, 7.625%, 4/15/13 .............. Canada 3,500,000 3,806,250
Charter Communications Holdings II, senior note, 10.25%, 9/15/10 ...... United States 33,800,000 35,490,000
Charter Communications Holdings LLC, senior disc. note, zero cpn. to
1/15/06, 13.50% thereafter, 1/15/11 ................................. United States 15,500,000 12,012,500
CSC Holdings Inc., senior deb., 7.625%, 7/15/18 ....................... United States 20,000,000 21,200,000
Dex Media East LLC, senior sub. note, B, 12.125%, 11/15/12 ............ United States 12,865,000 15,759,625
Dex Media Inc., B, 8.00%, 11/15/13 .................................... United States 7,500,000 8,071,875
Dex Media Inc., senior disc. note, zero cpn. to 11/15/08, 9.00%
thereafter, 11/15/13 ................................................ United States 12,600,000 9,733,500
DIRECTV Holdings LLC, senior note, 8.375%, 3/15/13 .................... United States 29,200,000 32,923,000
EchoStar DBS Corp., senior note, 6.375%, 10/01/11 ..................... United States 20,000,000 20,550,000
Emmis Operating Co., senior sub. note, 6.875%, 5/15/12 ................ United States 26,500,000 27,891,250
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ................ United States 19,600,000 20,188,000
Mandalay Resort Group, senior note, 9.50%, 8/01/08 .................... United States 5,900,000 6,770,250
Mandalay Resort Group, senior sub. note, 10.25%, 8/01/07 .............. United States 14,600,000 16,607,500
Marquee Holdings Inc., senior disc. note, 144A, zero cpn. to 8/15/09,
12.00% thereafter, 8/15/14 .......................................... United States 17,700,000 11,416,500
Marquee Inc., senior note, 144A, 8.625%, 8/15/12 ...................... United States 9,400,000 10,410,500
Park Place Entertainment Corp., senior sub. note, 7.875%, 3/15/10 ..... United States 25,000,000 28,250,000
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 ........ United States 6,300,000 6,819,750
Quebecor Media Inc., senior disc. note, zero cpn. to 7/15/06, 13.75%
thereafter, 7/15/11 ................................................. Canada 31,500,000 31,185,000
Rainbow National Services LLC, senior sub. deb., 144A, 10.375%,
9/01/14 ............................................................. United States 29,000,000 30,885,000
(b) Rogers Cable Inc., senior secured note, 144A, 6.75%, 3/15/15 .......... Canada 9,000,000 9,180,000
Royal Caribbean Cruises Ltd., senior deb., 7.25%, 3/15/18 ............. United States 14,400,000 15,660,000
Royal Caribbean Cruises Ltd., senior note, 8.00%, 5/15/10 ............. United States 4,200,000 4,767,000
Royal Caribbean Cruises Ltd., senior note, 6.875%, 12/01/13 ........... United States 13,800,000 15,024,750
Six Flags Inc., senior note, 9.50%, 2/01/09 ........................... United States 30,000,000 31,350,000
Station Casinos Inc., senior note, 6.00%, 4/01/12 ..................... United States 9,300,000 9,625,500
Station Casinos Inc., senior sub. note, 6.50%, 2/01/14 ................ United States 7,000,000 7,297,500
Station Casinos Inc., senior sub. note, 6.875%, 3/01/16 ............... United States 15,000,000 15,712,500
Universal City Development, senior note, 11.75%, 4/01/10 .............. United States 15,000,000 17,475,000
Venetian Casino Resort LLC/Las Vegas Sands Inn, secured note,
11.00%, 6/15/10 ..................................................... United States 24,800,000 28,396,000

18 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)

- ---------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AGE HIGH INCOME FUND COUNTRY AMOUNT(h) VALUE
- ---------------------------------------------------------------------------------------------------------------------------

BONDS (CONT.)
CONSUMER SERVICES (CONT.)
Yell Finance BV, senior disc. note, zero cpn. to 8/01/06, 13.50%
thereafter, 8/01/11 ................................................. United Kingdom $12,325,000 $ 12,016,875
Yell Finance BV, senior note, 10.75%, 8/01/11 ......................... United Kingdom 6,485,000 7,619,875
Young Broadcasting Inc., senior sub. note, 10.00%, 3/01/11 ............ United States 5,000,000 5,337,500
Young Broadcasting Inc., senior sub. note, 8.75%, 1/15/14 ............. United States 17,900,000 17,676,250
------------
655,965,000
------------
ELECTRONIC TECHNOLOGY 3.3%
Alliant Techsystems Inc., senior sub. note, 8.50%, 5/15/11 ............ United States 6,900,000 7,624,500
Flextronics International Ltd., senior sub. note, 6.50%, 5/15/13 ...... Singapore 8,900,000 9,033,500
L-3 Communications Corp., senior sub. note, 6.125%, 1/15/14 ........... United States 26,500,000 27,295,000
L-3 Communications Corp., senior sub. note, 144A, 5.875%,
1/15/15 ............................................................. United States 3,700,000 3,681,500
ON Semiconductor Corp., senior secured note, 13.00%, 5/15/08 .......... United States 8,224,000 9,457,600
SCG Holding Corp., zero cpn., 144A, 8/04/11 ........................... United States 7,300,000 10,366,000
Solectron Corp., senior note, 9.625%, 2/15/09 ......................... United States 9,100,000 10,078,250
Xerox Corp., senior note, 7.125%, 6/15/10 ............................. United States 8,000,000 8,640,000
Xerox Corp., senior note, 6.875%, 8/15/11 ............................. United States 15,600,000 16,575,000
------------
102,751,350
------------
ENERGY MINERALS 1.6%
Arch Western Finance, senior note, 6.75%, 7/01/13 ..................... United States 19,100,000 20,102,750
Arch Western Finance, senior note, 144A, 6.75%, 7/01/13 ............... United States 10,900,000 11,472,250
Peabody Energy Corp., senior note, B, 6.875%, 3/15/13 ................. United States 15,900,000 17,172,000
------------
48,747,000
------------
FINANCE 1.0%
AmeriCredit Corp., senior note, 9.25%, 5/01/09 ........................ United States 15,000,000 16,125,000
Western Financial Bank-FSB, sub. deb., 9.625%, 5/15/12 ................ United States 12,400,000 14,198,000
------------
30,323,000
------------
GOVERNMENT BONDS .3%
Eskom, E168, utility deb., 11.00%, 6/01/08 ............................ South Africa 51,800,000 ZAR 9,635,914
------------
HEALTH SERVICES 5.2%
HCA Inc., senior note, 8.75%, 9/01/10 ................................. United States 30,000,000 34,133,160
HealthSouth Corp., senior note, 7.625%, 6/01/12 ....................... United States 27,000,000 26,696,250
Pacificare Health Systems Inc., senior note, 10.75%, 6/01/09 .......... United States 15,792,000 18,239,760
Tenet Healthcare Corp., senior note, 7.375%, 2/01/13 .................. United States 18,000,000 17,640,000
Tenet Healthcare Corp., senior note, 144A, 9.875%, 7/01/14 ............ United States 14,000,000 15,120,000
United Surgical Partners International Inc., senior sub. note, 10.00%,
12/15/11 ............................................................ United States 27,000,000 30,915,000
Vanguard Health Holding Co. II LLC, senior sub. note, 144A, 9.00%,
10/01/14 ............................................................ United States 17,300,000 18,467,750
------------
161,211,920
------------
HEALTH TECHNOLOGY .5%
Alliance Imaging Inc., senior sub. note, 10.375%, 4/15/11 ............. United States 14,000,000 15,680,000
------------

Semiannual Report | 19

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)

- -----------------------------------------------------------------------------------------------------------------------------
PRINCIPAL
AGE HIGH INCOME FUND COUNTRY AMOUNT(h) VALUE
- -----------------------------------------------------------------------------------------------------------------------------

BONDS (CONT.)
INDUSTRIAL SERVICES 3.8%
Allied Waste North America Inc., senior note, 7.875%, 4/15/13 ......... United States $21,600,000 $ 21,870,000
Allied Waste North America Inc., senior secured note, 6.50%,
11/15/10 ............................................................ United States 10,000,000 9,700,000
Allied Waste North America Inc., senior secured note, 6.125%,
2/15/14 ............................................................. United States 5,000,000 4,637,500
El Paso Corp., senior note, 7.75%, 1/15/32 ............................ United States 20,000,000 18,500,000
Hanover Equipment Trust 01, senior secured note, A, 8.50%,
9/01/08 ............................................................. United States 18,000,000 19,260,000
Hanover Equipment Trust 01, senior secured note, B, 8.75%,
9/01/11 ............................................................. United States 12,000,000 13,080,000
Pride International Inc., senior note, 144A, 7.375%, 7/15/14 .......... United States 20,700,000 23,028,750
(a) Safety Kleen Services, senior sub. note, 9.25%, 6/01/08 ............... United States 10,000,000 25,000
Universal Compression Inc., senior note, 7.25%, 5/15/10 ............... United States 7,100,000 7,632,500
-------------
117,733,750
-------------
NON-ENERGY MINERALS 1.8%
Glencore Funding LLC, 144A, 6.00%, 4/15/14 ............................ United States 21,100,000 20,067,113
Ispat Inland ULC, senior secured note, 9.75%, 4/01/14 ................. United States 29,200,000 35,405,000
-------------
55,472,113
-------------
PROCESS INDUSTRIES 13.2%
BCP Caylux Holding Lux SCA, senior sub. note, 144A, 9.625%,
6/15/14 ............................................................. United States 35,000,000 39,462,500
Bear Island Paper Co. LLC, senior note, B, 10.00%, 12/01/07 ........... United States 11,700,000 11,173,500
Buckeye Technologies Inc., senior note, 8.50%, 10/01/13 ............... United States 11,700,000 12,987,000
Equistar Chemicals LP, senior note, 8.75%, 2/15/09 .................... United States 20,000,000 22,300,000
Equistar Chemicals LP, senior note, 10.625%, 5/01/11 .................. United States 4,400,000 5,104,000
(a) FiberMark Inc., senior note, 10.75%, 4/15/11 .......................... United States 17,000,000 11,730,000
Georgia-Pacific Corp., 7.25%, 6/01/28 ................................. United States 3,000,000 3,195,000
Georgia-Pacific Corp., senior note, 9.375%, 2/01/13 ................... United States 14,800,000 17,316,000
Georgia Pacific Corp., senior note, 8.00%, 1/15/14 .................... United States 8,000,000 9,200,000
Georgia-Pacific Corp., senior note, 8.00%, 1/15/24 .................... United States 15,000,000 17,475,000
Huntsman ICI Holdings LLC, senior disc. note, zero cpn., 12/31/09 ..... United States 56,130,000 31,573,125
IMC Global Inc., senior note, 10.875%, 8/01/13 ........................ United States 28,000,000 35,420,000
Jefferson Smurfit Corp., senior note, 7.50%, 6/01/13 .................. United Kingdom 15,800,000 17,024,500
Lyondell Chemical Co., senior secured note, 10.50%, 6/01/13 ........... United States 17,400,000 20,706,000
MDP Acquisitions PLC, senior note, 9.625%, 10/01/12 ................... Irish Republic 18,600,000 21,297,000
Nalco Co., senior note, 7.75%, 11/15/11 ............................... United States 2,700,000 2,922,750
Nalco Co., senior sub. note, 8.875%, 11/15/13 ......................... United States 27,200,000 30,158,000
(b) Owens-Brockway Glass Container Inc., senior note, 144A, 6.75%,
12/01/14 ............................................................ United States 6,700,000 6,750,250
Owens-Illinois Inc., senior note, 7.80%, 5/15/18 ...................... United States 29,000,000 29,797,500
(a),(c) Pindo Deli Finance Mauritius Ltd., senior note, 11.75%, 10/01/17 ...... Singapore 28,800,000 6,610,464
(a) Polysindo International Finance Co. BV, secured note, 9.375%,
7/30/07 ............................................................ Indonesia 27,750,000 2,358,750
Rhodia SA, senior note, 10.25%, 6/01/10 ............................... France 30,000,000 33,450,000
Stone Container Corp., senior note, 8.375%, 7/01/12 ................... United States 15,400,000 16,940,000
(a),(c) Tjiwi Kimia Finance Mauritius, senior note, 10.00%, 8/01/04 ........... Indonesia 11,000,000 3,326,400
-------------
408,277,739
-------------

20 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)

BONDS (CONT.)
PRODUCER MANUFACTURING 6.0%
Case New Holland Inc., senior note, 144A, 9.25%, 8/01/11 .............. United States $32,000,000 $ 35,600,000
Fimep SA, senior note, 10.50%, 2/15/13 ................................ France 20,700,000 24,322,500
(a) Goss Graphic Systems Inc., senior sub. note, 12.25%, 11/19/05 ......... United States 9,053,899 --
HLI Operating Co. Inc., senior sub. note, 10.50%, 6/15/10 ............. United States 16,262,000 17,481,650
Invensys PLC, senior note, 144A, 9.875%, 3/15/11 ...................... United Kingdom 18,000,000 19,485,000
Milacron Escrow Corp., secured note, 11.50%, 5/15/11 .................. United States 30,000,000 31,950,000
Russel Metals Inc., senior note, 6.375%, 3/01/14 ...................... United States 17,000,000 17,255,000
THL Buildco Inc., senior sub. note, 144A, 8.50%, 9/01/14 .............. United States 18,300,000 19,764,000
TRW Automotive Inc., senior note, 9.375%, 2/15/13 ..................... United States 15,203,000 17,787,510
------------
183,645,660
------------
REAL ESTATE INVESTMENT TRUSTS 2.1%
Host Marriott LP, senior note, 7.125%, 11/01/13 ....................... United States 20,000,000 21,500,000
Host Marriott LP, senior note, 144A, 7.00%, 8/15/12 ................... United States 7,100,000 7,526,000
Host Marriott LP, senior note, I, 9.50%, 1/15/07 ...................... United States 7,000,000 7,673,750
Meristar Hospitality Corp., senior note, 9.00%, 1/15/08 ............... United States 16,500,000 17,490,000
Meristar Hospitality Corp., senior note, 10.50%, 6/15/09 .............. United States 10,700,000 11,770,000
------------
65,959,750
------------
RETAIL TRADE 2.8%
Office Depot Inc., senior sub. note, 10.00%, 7/15/08 .................. United States 22,000,000 26,400,000
Rite Aid Corp., senior deb., 7.70%, 2/15/27 ........................... United States 10,000,000 8,400,000
Rite Aid Corp., senior note, 144A, 6.125%, 12/15/08 ................... United States 26,900,000 25,420,500
Stater Brothers Holdings, senior note, 8.125%, 6/15/12 ................ United States 25,800,000 27,348,000
------------
87,568,500
------------
TECHNOLOGY SERVICES .9%
(a) PSINet Inc., senior note, 11.00%, 8/01/09 ............................. United States 18,750,000 281,250
UGS Corp., senior sub. note, 144A, 10.00%, 6/01/12 .................... United States 25,000,000 28,625,000
------------
28,906,250
------------
TRANSPORTATION 2.2%
CP Ships Ltd., senior note, 10.375%, 7/15/12 .......................... Canada 20,000,000 23,100,000
Great Lakes Dredge & Dock Corp., senior sub. note, 7.75%, 12/15/13 .... United States 12,400,000 11,563,000
Laidlaw International Inc., senior note, 10.75%, 6/15/11 .............. United States 19,800,000 22,893,750
(a),(d) United Air Lines Inc., pass through certificates, 93B2, 9.06%,
9/26/14 ............................................................. United States 20,422,000 9,574,344
------------
67,131,094
------------
UTILITIES 8.6%
AES Corp., senior secured note, 144A, 9.00%, 5/15/15 .................. United States 31,700,000 36,375,750
Allegheny Energy Supply Co. LLC, 144A, 8.25%, 4/15/12 ................. United States 35,000,000 39,812,500
Aquila Inc., senior note, 14.875%, 7/01/12 ............................ United States 30,000,000 41,850,000
Calpine Corp., senior secured note, 144A, 8.75%, 7/15/13 .............. United States 48,000,000 37,080,000
Dynegy Holdings Inc., senior note, 8.75%, 2/15/12 ..................... United States 19,000,000 19,950,000
Dynegy Holdings Inc., senior secured note, 144A, 10.125%, 7/15/13 ..... United States 20,000,000 23,450,000
ESI Tractebel Acquisition Corp., secured note, 7.99%, 12/30/11 ........ United States 7,177,000 7,591,544
Midland Funding II, sub. secured lease obligation, A, 11.75%,
7/23/05 ............................................................. United States 1,548,676 1,625,743

Semiannual Report | 21

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)

BONDS (CONT.)
UTILITIES (CONT.)
Midland Funding II, sub. secured lease obligation, B, 13.25%,
7/23/06 ............................................................. United States $11,500,000 $ 12,830,492
Midwest Generation LLC, senior secured note, 8.75%, 5/01/34 ........... United States 31,600,000 35,984,500
NRG Energy Inc., senior secured note, 144A, 8.00%, 12/15/13 ........... United States 9,500,000 10,545,000
--------------
267,095,529
--------------
TOTAL BONDS (COST $2,790,867,378) ..................................... 2,799,307,490
--------------

---------------
SHARES/WARRANTS
---------------
COMMON STOCKS AND WARRANTS 2.2%
COMMUNICATIONS 1.5%

(e) Call-Net Enterprises Inc., B .......................................... Canada 254,140 584,522
(e) Dobson Communications Corp. ........................................... United States 1,335,237 2,416,779
(e) ICO Global Communications Holdings Ltd. ............................... United States 2,105,368 289,488
(e),(f) International Wireless Communications Holdings Inc. ................... United States 1,759,743 211,169
(e) Nextel Communications Inc., A ......................................... United States 128,674 3,662,062
(e) NII Holdings Inc., B .................................................. United States 223,719 9,678,084
(e) NTL Inc. .............................................................. United Kingdom 100,000 6,958,000
(c),(e) Poland Telecom Finance, wts., 144A, 12/01/07 .......................... Poland 30,000 --
(e) Telewest Global Inc. .................................................. United Kingdom 951,951 13,936,563
(e) USA Mobility Inc. ..................................................... United States 212,035 7,709,596
--------------
45,446,263
--------------
CONSUMER SERVICES
(e) Jack in the Box Inc ................................................... United States 24,090 910,120
--------------
ELECTRONIC TECHNOLOGY
(e) Loral Space & Communications Ltd., wts., 12/27/06 ..................... United States 155,654 1,245
(e) Loral Space & Communications Ltd., wts., 1/15/07 ...................... United States 35,300 4
--------------
1,249
--------------
ENERGY MINERALS
(e) Horizon Natural Resources Co. ......................................... United States 533,333 --
(e) McMoRan Exploration Co. ............................................... United States 25,937 406,951
--------------
406,951
--------------
HEALTH SERVICES .4%
(e) Kindred Healthcare Inc ................................................ United States 72 1,965
(e) Kindred Healthcare Inc., wts., A, 4/20/06 ............................. United States 134,263 3,430,420
(e) Kindred Healthcare Inc., wts., B, 4/20/06 ............................. United States 335,658 7,585,871
--------------
11,018,256
--------------
INDUSTRIAL SERVICES .1%
(e) Transocean Inc., wts., 144A, 5/01/09 .................................. United States 11,750 4,782,250
--------------
PRODUCER MANUFACTURING .2%
(e) Cambridge Industries Liquidating Trust Interest ....................... United States 4,853,892 24,269
(e) Goss Holdings Inc., B ................................................. United States 211,174 --
(e),(f) Harvard Industries Inc. ............................................... United States 793,966 3,970

22 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2004 (UNAUDITED) (CONTINUED)

- ----------------------------------------------------------------------------------------------------------------
SHARES/
AGE HIGH INCOME FUND COUNTRY WARRANTS VALUE
- ----------------------------------------------------------------------------------------------------------------

COMMON STOCKS AND WARRANTS (CONT.)
PRODUCER MANUFACTURING (CONT.)
(e),(f) VS Holdings ........................................... United States 1,685,375 $ 169
Walter Industries Inc. ................................ United States 189,505 4,771,736
--------------
4,800,144
--------------
RETAIL TRADE
(e) Penn Traffic Co. ...................................... United States 389,598 19,480
--------------
TOTAL COMMON STOCKS AND WARRANTS (COST $181,315,273) .. 67,384,713
--------------
PREFERRED STOCKS 1.1%
COMMUNICATIONS
PTV Inc., 10.00%, pfd., A ............................. United Kingdom 388 2,231
--------------
HEALTH SERVICES 1.1%
Fresenius Medical Care, Capital Trust II, 7.875%,
2/01/08, pfd ........................................ Germany 30,600 33,277,500
--------------
PROCESS INDUSTRIES
(a),(c) Asia Pulp & Paper Co. Ltd., 12.00%, Perpetual, pfd .... Indonesia 24,700,000 269,971
--------------
TOTAL PREFERRED STOCKS (COST $55,292,487) ............. 33,549,702
--------------
CONVERTIBLE PREFERRED STOCKS 1.8%
COMMUNICATIONS .1%
Dobson Communications Corp., 6.00%, cvt. pfd .......... United States 28,400 1,874,400
--------------
CONSUMER DURABLES .9%
Ford Motor Co. Capital Trust II, 6.50%, cvt. pfd ...... United States 560,000 29,372,000
--------------
UTILITIES .8%
CMS Energy Trust I, 7.75%, cvt. pfd ................... United States 530,000 24,914,240
--------------
TOTAL CONVERTIBLE PREFERRED STOCKS (COST $ 56,582,961) 56,160,640
--------------
TOTAL LONG TERM INVESTMENTS (COST $3,084,058,099) ..... 2,956,402,545
--------------
SHORT TERM INVESTMENTS (COST $98,899,721) 3.2%
(g) Franklin Institutional Fiduciary Trust Money
Market Portfolio .................................... United States 98,899,721 98,899,721
--------------
TOTAL INVESTMENTS (COST $3,182,957,820) 98.8% ......... 3,055,302,266
OTHER ASSETS, LESS LIABILITIES 1.2% ................... 35,789,627
--------------
NET ASSETS 100.0% ..................................... $3,091,091,893
==============

CURRENCY ABBREVIATIONS | ZAR - South African Rand

(a) Defaulted securities. See Note 8.

(b) See Note 1(c) regarding securities purchased on a when-issued or delayed
delivery basis.

(d) See Note 11 regarding other considerations.

(e) Non-income producing.

(f) See Note 10 regarding holdings of 5% voting securities.

(g) See Note 7 regarding investments in Franklin Institutional Fiduciary Trust
Money Market Portfolio.

(h) The principal amount is stated in U.S. dollars unless otherwise indicated.

Semiannual Report | See notes to financial statements. | 23

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
November 30, 2004 (unaudited)

---------------
AGE HIGH
INCOME FUND
---------------
Assets:
Investments in securities:
Cost - Unaffiliated issuers ............................ $ 3,053,490,726
Cost - Non-controlled affiliated issuers (Note 10) ..... 30,567,373
Cost - Sweep Money Fund (Note 7) ....................... 98,899,721
---------------
Value - Unaffiliated issuers ........................... 2,956,187,237
Value - Non-controlled affiliated issuers (Note 10) .... 215,308
Value - Sweep Money Fund (Note 7) ...................... 98,899,721
Receivables:
Capital shares sold .................................... 4,435,384
Dividends and interest ................................. 59,375,180
---------------
Total assets ......................................... 3,119,112,830
---------------
Liabilities:
Payables:
Investment securities purchased ........................ 21,075,799
Capital shares redeemed ................................ 4,614,053
Affiliates ............................................. 1,964,223
Other liabilities ........................................ 366,862
---------------
Total liabilities .................................... 28,020,937
---------------
Net assets, at value ............................... $ 3,091,091,893
===============
Net assets consist of:
Distributions in excess of net investment income ......... $ (3,988,335)
Net unrealized appreciation (depreciation) ............... (127,614,548)
Accumulated net realized gain (loss) ..................... (874,263,997)
Capital shares ........................................... 4,096,958,773
---------------
Net assets, at value ............................... $ 3,091,091,893
===============

24 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
November 30, 2004 (unaudited)

---------------
AGE HIGH
INCOME FUND
---------------
CLASS A:
Net assets, at value ..................................... $ 2,375,800,704
---------------
Shares outstanding ....................................... 1,107,864,837
---------------
Net asset value per share(a) ............................. $2.14
---------------
Maximum offering price per share (net asset value
per share / 95.75%) .................................... $2.23
---------------
CLASS B:
Net assets, at value ..................................... $ 229,067,126
---------------
Shares outstanding ....................................... 107,054,316
---------------
Net asset value and maximum offering price per share(a) .. $2.14
---------------
CLASS C:
Net assets, at value ..................................... $ 439,785,481
---------------
Shares outstanding ....................................... 204,191,542
---------------
Net asset value and maximum offering price per share(a) .. $2.15
---------------
CLASS R:
Net assets, at value ..................................... $ 4,924,769
---------------
Shares outstanding ....................................... 2,282,328
---------------
Net asset value and maximum offering price per share(a) .. $2.16
---------------
ADVISOR CLASS:
Net assets, at value ..................................... $ 41,513,813
---------------
Shares outstanding ....................................... 19,334,056
---------------
Net asset value and maximum offering price per share(b) .. $2.15
---------------

(a) Redemption price is equal to net asset value less any applicable
contingent deferred sales charge and redemption fees retained by the Fund.

(b) Redemption price is equal to net asset value less any applicable
redemption fees retained by the Fund.

Semiannual Report | See notes to financial statements. | 25

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended November 30, 2004 (unaudited)

-------------
AGE HIGH
INCOME FUND
-------------

Investment income:
Dividends:
Unaffiliated issuers ................................................ $ 3,155,985
Sweep Money Fund (Note 7) ........................................... 576,156
Interest .............................................................. 114,701,314
-------------
Total investment income ......................................... 118,433,455
-------------
Expenses:
Management fees (Note 3) .............................................. 6,620,396
Distribution fees: (Note 3)
Class A ............................................................. 1,655,736
Class B ............................................................. 703,224
Class C ............................................................. 1,376,212
Class R ............................................................. 10,467
Transfer agent fees (Note 3) .......................................... 1,726,073
Custodian fees (Note 4) ............................................... 21,320
Reports to shareholders ............................................... 83,150
Registration and filing fees .......................................... 96,813
Professional fees ..................................................... 47,728
Trustees' fees and expenses ........................................... 40,370
Other ................................................................. 62,948
-------------
Total expenses .................................................. 12,444,437
Expense reductions (Note 4) ..................................... (6,590)
-------------
Net expenses .................................................. 12,437,847
-------------
Net investment income ........................................ 105,995,608
-------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments - unaffiliated issuers .................................. (37,813,001)
Foreign currency transactions ....................................... 5,462
-------------
Net realized gain (loss) ...................................... (37,807,539)
Net change in unrealized appreciation (depreciation) on:
Investments ......................................................... 210,673,617
Translation of assets and liabilities denominated in foreign
currencies ........................................................ 25,351
-------------
Net change in unrealized appreciation (depreciation) .......... 210,698,968
-------------
Net realized and unrealized gain (loss) ................................. 172,891,429
-------------
Net increase (decrease) in net assets resulting from operations ......... $ 278,887,037
-------------

26 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS
for the six months ended November 30, 2004 (unaudited)
and the year ended May 31, 2004

------------------------------------
AGE HIGH INCOME FUND
------------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 2004 MAY 31, 2004
------------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income ................................................................ $ 105,995,608 $ 222,975,112
Net realized gain (loss) from investments and foreign currency transactions .......... (37,807,539) (43,075,282)
Net change in unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies ........................... 210,698,968 234,036,619
-----------------------------------
Net increase (decrease) in net assets resulting from operations .................. 278,887,037 413,936,449
Distributions to shareholders from net investment income:
Class A ............................................................................. (81,058,158) (163,501,651)
Class B ............................................................................. (7,294,844) (14,174,976)
Class C ............................................................................. (14,159,874) (31,131,017)
Class R ............................................................................. (139,922) (207,761)
Advisor Class ....................................................................... (1,438,817) (2,415,998)
-----------------------------------
Total distributions to shareholders .................................................... (104,091,615) (211,431,403)
Capital share transactions: (Note 2)
Class A ............................................................................. 68,868,965 (59,185,787)
Class B ............................................................................. 8,498,423 11,436,843
Class C ............................................................................. (1,535,780) (37,982,228)
Class R ............................................................................. 1,206,859 729,626
Advisor Class ....................................................................... 1,613,907 7,456,531
-----------------------------------
Total capital share transactions ....................................................... 78,652,374 (77,545,015)
Redemption fees ........................................................................ 7,993 579
-----------------------------------
Net increase (decrease) in net assets ............................................ 253,455,789 124,960,610
Net assets:
Beginning of period .................................................................... 2,837,636,104 2,712,675,494
-----------------------------------
End of period .......................................................................... $ 3,091,091,893 $ 2,837,636,104
===================================
Distributions in excess of net investment income:
End of period .......................................................................... $ (3,988,335) $ (5,892,328)
===================================

Semiannual Report | See notes to financial statements. | 27

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

AGE HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Franklin High Income Trust (the Trust) is registered under the Investment
Company Act of 1940 as a diversified, open-end investment company, consisting of
one Fund, the Franklin AGE High Income Fund (the Fund). The Fund seeks to
provide a high level of current income while seeking capital appreciation. The
following summarizes the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed or traded on a recognized national exchange are valued at the
last reported sales price. Securities listed or traded on NASDAQ are valued at
their official closing price. Debt securities, other over-the-counter securities
and listed securities for which no sale is reported are valued within the range
of the latest quoted bid and asked prices by independent pricing services or
recognized dealers in such securities. Foreign securities are valued at the
close of trading of the foreign exchange or the NYSE, whichever is earlier. If
events occur that materially affect the values of securities after the prices or
foreign exchange rates are determined, but prior to 4:00 p.m. Eastern time or
the close of trading on the NYSE, whichever is earlier, or if market quotations
are deemed not readily available or reliable, the securities (including
restricted securities) will be valued at fair value. Investments in open-end
mutual funds are valued at the closing net asset value. All security valuation
procedures are approved by the Board of Trustees.

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. 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.

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 on 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.

28 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

C. SECURITIES PURCHASED ON A WHEN-ISSUED OR DELAYED DELIVERY BASIS

The Fund may purchase securities on a when-issued or delayed delivery basis,
with payment and delivery scheduled for a future date. These transactions are
subject to market fluctuations and are subject to the risk that the value at
delivery may be more or less than the trade date purchase price. Although the
Fund will generally purchase these securities with the intention of holding the
securities, it may sell the securities before the settlement date. Sufficient
assets have been segregated for these securities.

D. FOREIGN CURRENCY CONTRACTS

When the Fund purchases or sells foreign securities it may enter into foreign
exchange contracts to minimize foreign exchange risk from the trade date to the
settlement date of the transactions. A foreign exchange contract is an agreement
between two parties to exchange different currencies at an agreed upon exchange
rate on a specified date. Realized and unrealized gains and losses on these
contracts are included in the Statement of Operations.

The risks of these contracts include movement in the values of the foreign
currencies relative to the U.S. dollar and the possible inability of the
counterparties to fulfill their obligations under the contracts.

E. INCOME TAXES

No provision has been made for income taxes because the Fund's policy is to
qualify as a regulated investment company under Sub Chapter M of the Internal
Revenue Code and to distribute substantially all of its taxable income. Fund
distributions to shareholders are determined on an income tax basis and may
differ from net investment income and realized gains for financial reporting
purposes.

F. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Discounts and premiums
on securities purchased are amortized over the lives of the respective
securities. Dividend income and distributions to shareholders are recorded on
the ex-dividend date.

Realized and unrealized gains and losses and net investment income, other than
class specific expenses, are allocated daily to each class of shares based upon
the relative proportion of net assets of each class.

Semiannual Report | 29

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

G. ACCOUNTING ESTIMATES

The preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the amounts of income
and expenses during the reporting period. Actual results could differ from those
estimates.

H. REDEMPTION FEES

Redemptions and exchanges of Fund shares held five trading days or less (30 days
or less prior to June 1, 2004 and 90 days or less prior to January 1, 2004) may
be subject to the Fund's redemption fee, which is 2% of the amount redeemed.
Such fees are retained by the Fund and accounted for as additional paid-in
capital as noted in the retained by the Statements of Changes in Net Assets.

I. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified against certain liability arising out of the performance of their
duties to the Trust. Additionally, in the normal course of business, the Trust
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. However, based on experience, the Trust
expects the risk of loss to be remote.

2. SHARES OF BENEFICIAL INTEREST

The Fund offers five classes of shares: Class A, Class B, Class C, Class R, and
Advisor Class. Each class of shares differs by its initial sales load,
contingent deferred sales charges, distribution fees, voting rights on matters
affecting a single class and its exchange privilege.

At November 30, 2004, there were an unlimited number of shares authorized (no
par value). Transactions in the Fund's shares were as follows:

---------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 2004 MAY 31, 2004
---------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
---------------------------------------------------------------

CLASS A SHARES:
Shares sold ................. 125,868,373 $ 261,465,783 322,737,471 $ 645,402,214
Shares issued in reinvestment
of distributions .......... 20,353,361 41,925,491 42,017,908 84,130,019
Shares redeemed ............. (113,383,063) (234,522,309) (394,752,090) (788,718,020)
---------------------------------------------------------------
Net increase (decrease) ..... 32,838,671 $ 68,868,965 (29,996,711) $ (59,185,787)
===============================================================

30 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

2. SHARES OF BENEFICIAL INTEREST (CONTINUED)

------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
NOVEMBER 30, 2004 MAY 31, 2004
------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
------------------------------------------------------------

CLASS B SHARES:
Shares sold ................. 10,245,951 $ 21,222,550 26,315,038 $ 52,613,598
Shares issued in reinvestment
of distributions .......... 1,770,875 3,641,981 3,515,829 7,030,439
Shares redeemed ............. (7,934,023) (16,366,108) (24,098,452) (48,207,194)
------------------------------------------------------------
Net increase (decrease) ..... 4,082,803 $ 8,498,423 5,732,415 $ 11,436,843
============================================================
CLASS C SHARES:
Shares sold ................. 21,999,497 $ 46,078,473 59,304,437 $ 119,410,593
Shares issued in reinvestment
of distributions .......... 3,985,743 8,248,248 9,151,660 18,397,269
Shares redeemed ............. (26,837,733) (55,862,501) (86,866,856) (175,790,090)
------------------------------------------------------------
Net increase (decrease) ..... (852,493) $ (1,535,780) (18,410,759) $ (37,982,228)
============================================================
CLASS R SHARES:
Shares sold ................. 848,719 $ 1,771,566 1,574,046 $ 3,190,000
Shares issued in reinvestment
of distributions .......... 58,265 120,987 88,754 179,149
Shares redeemed ............. (329,650) (685,694) (1,320,753) (2,639,523)
------------------------------------------------------------
Net increase (decrease) ..... 577,334 $ 1,206,859 342,047 $ 729,626
============================================================
ADVISOR CLASS SHARES:
Shares sold ................. 3,337,208 $ 6,960,142 26,490,542 $ 53,448,197
Shares issued in reinvestment
of distributions .......... 476,783 983,025 742,012 1,492,992
Shares redeemed ............. (3,046,631) (6,329,260) (23,554,779) (47,484,658)
------------------------------------------------------------
Net increase (decrease) ..... 767,360 $ 1,613,907 3,677,775 $ 7,456,531
============================================================

3. TRANSACTIONS WITH AFFILIATES

Certain officers and trustees of the Fund are also officers and/or directors of
the following entities:

- ---------------------------------------------------------------------------------------
ENTITY AFFILIATION
- --------------------------------------------------------------------------------------

Franklin Advisers Inc. (Advisers) Investment manager
Franklin Templeton Services LLC (FT Services) Administrative manager
Franklin Templeton Distributors Inc. (Distributors) Principal underwriter
Franklin Templeton Investor Services LLC (Investor Services) Transfer agent

Semiannual Report | 31

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

A. MANAGEMENT FEE

The Fund pays an investment management fee to Advisers based on the month-end
net assets of the Fund as follows:

- --------------------------------------------------------------------------------
ANNUALIZED FEE RATE NET ASSETS
- --------------------------------------------------------------------------------
.625% First $100 million
.500% Over $100 million, up to and including $250 million
.450% In excess of $250 million

Under an agreement with Advisers, FT Services provides administrative services
to the Fund. The fee is paid by Advisers based on the average daily net assets,
and is not an additional expense of the Fund.

B. DISTRIBUTION FEES

The Fund reimburses Distributors up to .15%, .65%, .65% and .50% per year of its
average daily net asset of Class A, Class B, Class C, and Class R, respectively,
for costs incurred in marketing the Fund's shares under a Rule 12b-1 plan. Under
the Class A distribution plan, costs exceeding the maximum for the current plan
year cannot be reimbursed in subsequent periods.

C. SALES CHARGES/UNDERWRITING AGREEMENTS

Distributors has advised the Fund of the following commission transactions
related to the sale of the Fund's shares for the period:

Sales charges received ................... $284,832
Contingent deferred sales charges retained $210,165

D. TRANSFER AGENT FEES

The Fund paid transfer agent fees of $1,726,073, of which $1,233,321 was paid to
Investor Services.

4. EXPENSE OFFSET ARRANGEMENT

The Fund has entered into an arrangement with its custodian whereby credits
realized as a result of uninvested cash balances are used to reduce a portion of
the Fund's custodian expenses. During the period ended November 30, 2004, the
custodian fees were reduced as noted in the Statement of Operations.

32 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

5. INCOME TAXES

At May 31, 2004, the Fund had tax basis capital losses which may be carried over
to offset future capital gains. Such losses expire as follows:

Capital loss carryovers expiring in:
2009 .......................................... $126,000,271
2010 .......................................... 147,493,159
2011 .......................................... 273,783,877
2012 .......................................... 273,526,078
------------
$820,803,385
============

At May 31, 2004, the Fund had deferred capital losses occurring subsequent to
October 31, 2003 of $15,653,073. For tax purposes, such losses will be reflected
in the year ending May 31, 2005.

At November 30, 2004, the net unrealized appreciation (depreciation) based on
the cost of investments for income tax purposes was as follows:

Cost of investments ............................. $3,184,419,479
==============
Unrealized appreciation ......................... $ 289,364,458
Unrealized depreciation ......................... (418,481,671)
--------------
Net unrealized appreciation (depreciation) ...... $ (129,117,213)
==============

Net investment income and net realized losses differ for financial statement and
tax purposes primarily due to differing treatments of defaulted securities,
foreign currency transactions, bond discounts and premiums.

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short-term securities) for the
period ended November 30, 2004 aggregated $545,589,994 and $476,360,033,
respectively.

7. INVESTMENTS IN AFFILIATED MONEY MARKET PORTFOLIO

The Fund may invest in the Franklin Institutional Fiduciary Trust Money Market
Portfolio (the Sweep Money Fund), an open-end investment company managed by
Advisers. Management fees paid by the Fund are reduced on assets invested in the
Sweep Money Fund, in an amount not to exceed the management fees paid by the
Sweep Money Fund.

Semiannual Report | 33

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

8. CREDIT RISK AND DEFAULTED SECURITIES

The Fund has 91.4% of its portfolio invested in below investment grade and
comparable quality unrated high yield securities, which tend to be more
sensitive to economic conditions than higher rated securities. The risk of loss
due to default by the issuer may be significantly greater for the holders of
high yielding securities because such securities are generally unsecured and are
often subordinated to other creditors of the issuer.

The Fund held defaulted securities and/or other securities for which the income
has been deemed uncollectible. At November 30, 2004, the value of these
securities was $64,049,804, representing 2.1% of the Fund's net assets. The Fund
discontinues accruing income on securities for which income has been deemed
uncollectible and provides an estimate for losses on interest receivable. For
information as to specific securities, see the accompanying Statement of
Investments.

9. RESTRICTED SECURITIES

At November 30, 2004, investments in securities included issues that are
restricted and illiquid. Restricted securities are often purchased in private
placement transactions, are not registered under the Securities Act of 1933, may
have contractual restrictions on resale, and are valued under methods approved
by the Board of Trustees as reflecting fair value. A security may also be
considered illiquid if it lacks a readily available market or if its valuation
has not changed for a certain period of time. At November 30, 2004, the Fund
held investments in restricted and illiquid securities that were valued under
approved methods by the Trustees, as follows:

- -------------------------------------------------------------------------------------------------------------------
PRINCIPAL AMOUNT/ ACQUISITION
SHARES/WARRANTS ISSUER DATE COST VALUE
- -------------------------------------------------------------------------------------------------------------------

24,700,000 Asia Pulp & Paper Co. Ltd.,
12.00%, Perpetual, pfd ....................... 2/14/97 $24,700,000 $ 269,671
28,800,000 Pindo Deli Finance Mauritius Ltd., senior
note, 11.75%, 10/01/17 ....................... 9/25/97 28,581,120 6,610,464
30,000 Poland Telecom Finance, wts., 144A,
12/01/07 ..................................... 11/24/97 180,000 --
11,000,000 Tjiwi Kimia Finance Mauritius, senior note,
10.00%, 8/01/04 .............................. 7/29/97 10,940,050 3,326,400
-----------
TOTAL RESTRICTED SECURITIES (.3% OF NET ASSETS) ................................ $10,206,535
===========

34 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

10. HOLDINGS OF 5% VOTING SECURITIES OF PORTFOLIO COMPANIES

The Investment Company Act of 1940 defines "affiliated companies" to include
investments in portfolio companies in which a fund owns 5% or more of the
outstanding voting securities. Investments in "affiliated companies" for the
Fund at November 30, 2004 were as shown below.

- ----------------------------------------------------------------------------------------------------------------------------
NUMBER OF NUMBER OF
SHARES HELD SHARES HELD VALUE
AT BEGINNING GROSS GROSS AT END AT END DIVIDEND REALIZED
NAME OF ISSUER OF PERIOD ADDITIONS REDUCTIONS OF PERIOD OF PERIOD INCOME GAIN (LOSS)
- ----------------------------------------------------------------------------------------------------------------------------

Harvard Industries Inc. ............. 793,966 -- -- 793,966 $ 3,970 $ -- $ --
International Wireless Communications
Holdings Inc. ..................... 1,759,743 -- -- 1,759,743 211,169 -- --
VS Holdings ......................... 1,685,375 -- -- 1,685,375 169 -- --
------------------------------
TOTAL AFFILIATED SECURITIES
(.01% OF NETASSETS) ........................ $215,308 $ -- $ --
==============================

11. OTHER CONSIDERATIONS

Advisers, as the Fund's Manager, may serve as a member of various bondholders'
steering committees, on credit committees, or may represent the Funds in certain
corporate restructuring negotiations. Currently the Manager serves in one or
more of these capacities for United Air Lines. As a result of this involvement,
Advisers may be in possession of certain material non-public information. If the
Fund's Manager, while in possession of such information, seeks to sell any of
its holdings in these securities it will comply with all applicable federal
securities laws.

12. REGULATORY MATTERS

GOVERNMENTAL INVESTIGATIONS AND SETTLEMENTS

A. INVESTIGATIONS

As part of various investigations by the Securities and Exchange Commission
("SEC"), the U.S. Attorney for the Northern District of California, the New York
Attorney General, the California Attorney General, the U.S. Attorney for the
District of Massachusetts, the Securities Division of the Office of the
Secretary of the Commonwealth of Massachusetts, the Florida Department of
Financial Services and the Commissioner of Securities, the West Virginia
Attorney General, the Vermont Department of Banking, Insurance, Securities, and
Health Care Administration and the National Association of Securities Dealers,
Inc. ("NASD") relating to certain practices in the mutual fund industry,
including late trading, market timing and market support payments to securities
dealers who sell fund shares, Franklin Resources, Inc. and certain of its
subsidiaries (as used in this section, together, the "Company"), as well as
certain current or former executives and employees

Semiannual Report | 35

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

12. REGULATORY MATTERS (CONTINUED)

GOVERNMENTAL INVESTIGATIONS AND SETTLEMENTS (CONTINUED)

A. INVESTIGATIONS (CONTINUED)

of the Company received requests for information and/or subpoenas to testify or
produce documents. The Company and its current employees provided documents and
information in response to those requests and subpoenas. In addition, the
Company responded, and in one instance, is currently responding to requests for
similar kinds of information from regulatory authorities in some of the foreign
countries where the Company conducts its global asset management business.

B. SETTLEMENTS

On August 2, 2004, Franklin Resources, Inc. announced that its subsidiary,
Franklin Advisers, Inc., reached an agreement with the SEC that resolved the
issues resulting from the SEC's investigation into market timing activity. In
connection with that agreement, the SEC issued an "Order Instituting
Administrative and Cease-and-Desist Proceedings Pursuant to Sections 203(e) and
203(k) of the Investment Advisers Act of 1940 and Sections 9(b) and 9(f) of the
Investment Company Act of 1940, Making Findings and Imposing Remedial Sanctions
and a Cease-and-Desist Order" (the "Order"). The SEC's Order concerned the
activities of a limited number of third parties that ended in 2000 and those
that were the subject of the first Massachusetts administrative complaint
described below.

Under the terms of the SEC's Order, pursuant to which Franklin Advisers, Inc.
neither admitted nor denied any of the findings contained therein, Franklin
Advisers, Inc. agreed to pay $50 million, of which $20 million is a civil
penalty, to be distributed to shareholders of certain funds in accordance with a
plan to be developed by an independent distribution consultant. At this time, it
is unclear which funds or which shareholders of any particular fund will receive
distributions. The SEC Order also requires Franklin Advisers, Inc. to, among
other things, enhance and periodically review compliance policies and
procedures.

On September 20, 2004, Franklin Resources, Inc. announced that two of its
subsidiaries, Franklin Advisers, Inc. and Franklin Templeton Alternative
Strategies, Inc. ("FTAS"), reached an agreement with the Securities Division of
the Office of the Secretary of the Commonwealth of Massachusetts (the "State of
Massachusetts") related to the administrative complaint filed on February 4,
2004. The administrative complaint concerned one instance of market timing that
was also a subject of the August 2, 2004 settlement that Franklin Advisers, Inc.
reached with the SEC, as described above.

Under the terms of the settlement consent order issued by the State of
Massachusetts, Franklin Advisers, Inc. and FTAS consented to the entry of a
cease-and-desist order and agreed to pay a $5 million administrative fine to the
State of Massachusetts (the "Massachusetts Consent Order"). The Massachusetts
Consent Order included two different sections: "Statement of Fact" and

36 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

12. REGULATORY MATTERS (CONTINUED)

GOVERNMENTAL INVESTIGATIONS AND SETTLEMENTS (CONTINUED)

B. SETTLEMENTS (CONTINUED)

"Violations of Massachusetts Securities Laws." Franklin Advisers, Inc. and FTAS
admitted the facts in the Statements of Fact.

On October 25, 2004, the State of Massachusetts filed a second administrative
complaint, alleging that Franklin Resources Inc.'s Form 8-K filing (in which it
described the Massachusetts Consent Order and stated that "Franklin did not
admit or deny engaging in any wrongdoing") failed to state that Franklin
Advisers, Inc. and FTAS admitted the Statements of Fact portion of the
Massachusetts Consent Order (the "Second Complaint"). Franklin Resources, Inc.
reached a second agreement with the State of Massachusetts on November 19, 2004,
resolving the Second Complaint. As a result of the November 19, 2004 settlement,
Franklin Resources, Inc. filed a new Form 8-K. The terms of the Massachusetts
Consent Order did not change and there was no monetary fine associated with this
second settlement.

On November 17, 2004, Franklin Resources, Inc. announced that Franklin/Templeton
Distributors, Inc. ("FTDI") reached an agreement with the California Attorney
General's Office ("CAGO"), resolving the issues resulting from the CAGO's
investigation concerning sales and marketing support payments. The Company
believes that the settlement of the CAGO matter is in the best interest of the
Company and its fund shareholders. Under the terms of the settlement, FTDI
neither admitted nor denied the allegations in the CAGO's complaint and agreed
to pay $2 million to the State of California as a civil penalty, $14 million to
Franklin Templeton funds and $2 million to the CAGO for its investigative costs.

On December 13, 2004, Franklin Resources, Inc. announced that FTDI and Franklin
Advisers, Inc. reached an agreement with the SEC, resolving the issues resulting
from the SEC's investigation concerning marketing support payments to securities
dealers who sell fund shares. In connection with that agreement, the SEC issued
an "Order Instituting Administrative and Cease-and-Desist Proceedings, Making
Findings, and Imposing Remedial Sanctions Pursuant to Sections 203(e) and 203(k)
of the Investment Advisers Act of 1940, Sections 9(b) and 9(f) of the Investment
Company Act of 1940, and Section 15(b) of the Securities Exchange Act of 1934"
(the "Order").

The Company believes that the settlement of this matter is in the best interest
of the Company and its fund shareholders. Under the terms of the Order, in which
FTDI and Franklin Advisers, Inc. neither admitted nor denied the findings
contained therein, they agreed to pay the funds a penalty of $20 million and
disgorgement of $1 (one dollar). FTDI and Franklin Advisers, Inc. also agreed to
implement certain measures and undertakings relating to marketing support
payments to broker-dealers for the promotion or sale of fund shares, including
making additional disclosures

Semiannual Report | 37

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

12. REGULATORY MATTERS (CONTINUED)

GOVERNMENTAL INVESTIGATIONS AND SETTLEMENTS (CONTINUED)

B. SETTLEMENTS (CONTINUED)

in the funds' Prospectuses and Statements of Additional Information. The Order
further requires the appointment of an independent distribution consultant, at
the Company's expense, who shall develop a plan for the distribution of the
penalty and disgorgement to the funds.

OTHER LEGAL PROCEEDINGS

The Fund, in addition to the Company and other funds, and certain current and
former officers, employees, and directors have been named in multiple lawsuits
in different federal courts in Nevada, California, Illinois, New York and
Florida, alleging violations of various federal securities laws and seeking,
among other things, monetary damages and costs. Various subsidiaries of Franklin
Resources, Inc., as well as certain funds managed by those subsidiaries, have
also been named in multiple lawsuits filed in state courts in Illinois.
Specifically, the lawsuits claim breach of duty with respect to alleged
arrangements to permit market timing and/or late trading activity, or breach of
duty with respect to the valuation of the portfolio securities of certain funds
managed by Franklin Resources, Inc. subsidiaries, resulting in alleged market
timing activity. The majority of these lawsuits duplicate, in whole or in part,
the allegations asserted in the Massachusetts administrative complaint described
above. The lawsuits are styled as class actions, or derivative actions on behalf
of either the named funds or Franklin Resources, Inc.

In addition, the Company, as well as certain current and former officers,
employees, and directors have been named in multiple lawsuits alleging
violations of various securities laws and pendent state law claims relating to
the disclosure of directed brokerage payments and/or payment of allegedly
excessive advisory, commission, and distribution fees. These lawsuits are styled
as class actions and derivative actions brought on behalf of certain funds.

The Company's management strongly believes that the claims made in each of the
lawsuits are without merit and intends to vigorously defend against them. The
Company cannot predict with certainty, however, the eventual outcome of the
remaining governmental investigations or private lawsuits, nor whether they will
have a material negative impact on the Company. Public trust and confidence are
critical to the Company's business and any material loss of investor and/or
client confidence could result in a significant decline in assets under
management by the Company, which would have an adverse effect on future
financial results. If the Company finds that it bears responsibility for any
unlawful or inappropriate conduct that caused losses to the Fund, it is
committed to making the Fund or their shareholders whole, as appropriate. The
Company is committed to taking all appropriate actions to protect the interests
of the funds' shareholders.

38 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

SHAREHOLDER INFORMATION

FRANKLIN'S AGE HIGH INCOME FUND

PROXY VOTING POLICIES AND PROCEDURES

The Fund has established Proxy Voting Policies and Procedures ("Policies") that
the Fund uses to determine how to vote proxies relating to portfolio securities.
Shareholders may view the Fund's complete Policies online at
franklintempleton.com. Alternatively, shareholders may request copies of the
Policies free of charge by calling the Proxy Group collect at 1-954/847-2268 or
by sending a written request to: Franklin Templeton Companies, LLC, 500 East
Broward Boulevard, Suite 1500, Fort Lauderdale, FL 33394, Attention: Proxy
Group. Copies of the Fund's proxy voting records are also made available online
at franklintempleton.com and posted on the Securities and Exchange Commission's
website at sec.gov and reflect the 12-month period beginning July 1, 2003, and
ending June 30, 2004.

QUARTERLY STATEMENT OF INVESTMENTS

The Fund files a complete statement of investments with the Securities and
Exchange Commission for the first and third quarters for each fiscal year on
Form N-Q. Shareholders may view the filed Form N-Q 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
1-800/SEC-0330.

Semiannual Report | 39

This page intentionally left blank.

LITERATURE REQUEST

LITERATURE REQUEST. TO RECEIVE A BROCHURE AND PROSPECTUS, PLEASE CALL US AT
1-800/DIAL BEN(R) (1-800/342-5236) OR VISIT FRANKLINTEMPLETON.COM. INVESTORS
SHOULD CAREFULLY CONSIDER A FUND'S INVESTMENT GOALS, RISKS, CHARGES AND EXPENSES
BEFORE INVESTING. THE PROSPECTUS CONTAINS THIS AND OTHER INFORMATION. PLEASE
CAREFULLY READ THE PROSPECTUS BEFORE INVESTING. TO ENSURE THE HIGHEST QUALITY OF
SERVICE, WE MAY MONITOR, RECORD AND ACCESS TELEPHONE CALLS TO OR FROM OUR
SERVICE DEPARTMENTS. THESE CALLS CAN BE IDENTIFIED BY THE PRESENCE OF A REGULAR
BEEPING TONE.

FRANKLIN TEMPLETON INVESTMENTS

INTERNATIONAL
Mutual European Fund
Templeton China World Fund
Templeton Developing Markets Trust
Templeton Foreign Fund
Templeton Foreign Smaller Companies Fund
Templeton International (Ex EM) Fund

GLOBAL
Mutual Discovery Fund
Templeton Capital Accumulator Fund
Templeton Global Long-Short Fund
Templeton Global Opportunities Trust
Templeton Global Smaller Companies Fund
Templeton Growth Fund
Templeton World Fund

GROWTH
Franklin Aggressive Growth Fund
Franklin Capital Growth Fund
Franklin Flex Cap Growth Fund
Franklin Small-Mid Cap Growth Fund
Franklin Small Cap Growth Fund II(1)

VALUE
Franklin Balance Sheet Investment Fund(2)
Franklin Equity Income Fund
Franklin Large Cap Value Fund
Franklin MicroCap Value Fund(2)
Franklin Small Cap Value Fund
Mutual Beacon Fund
Mutual Qualified Fund
Mutual Recovery Fund(3)
Mutual Shares Fund

BLEND
Franklin Blue Chip Fund
Franklin Convertible Securities Fund
Franklin Growth Fund
Franklin Rising Dividends Fund
Franklin U.S. Long-Short Fund(4)

SECTOR
Franklin Biotechnology Discovery Fund
Franklin DynaTech Fund
Franklin Global Communications Fund
Franklin Global Health Care Fund
Franklin Gold and Precious Metals Fund
Franklin Natural Resources Fund
Franklin Real Estate Securities Fund
Franklin Technology Fund
Franklin Utilities Fund
Mutual Financial Services Fund

ASSET ALLOCATION
Franklin Templeton Corefolio Allocation Fund
Franklin Templeton Founding Funds Allocation Fund
Franklin Templeton Perspectives Allocation Fund

TARGET FUNDS
Franklin Templeton Conservative Target Fund
Franklin Templeton Growth Target Fund
Franklin Templeton Moderate Target Fund

INCOME
Franklin Adjustable U.S. Government Securities Fund(5)
Franklin's AGE High Income Fund
Franklin Floating Rate Daily Access Fund
Franklin Floating Rate Trust(3)
Franklin Income Fund
Franklin Limited Maturity U.S. Government Securities Fund(5),(6)
Franklin Low Duration Total Return Fund
Franklin Real Return Fund
Franklin Strategic Income Fund
Franklin Strategic Mortgage Portfolio
Franklin Templeton Hard Currency Fund
Franklin Total Return Fund
Franklin U.S. Government Securities Fund(5)
Templeton Global Bond Fund

TAX-FREE INCOME(7)

NATIONAL FUNDS
Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund(8)

LIMITED-TERM FUNDS
California Limited-Term Tax-Free Income Fund
Federal Limited-Term Tax-Free Income Fund
New York Limited-Term Tax-Free Income Fund

INTERMEDIATE-TERM FUNDS
California Intermediate-Term Tax-Free Income Fund
Federal Intermediate-Term Tax-Free Income Fund
New York Intermediate-Term Tax-Free Income Fund

STATE-SPECIFIC
Alabama
Arizona
California(9)
Colorado
Connecticut
Florida(9)
Georgia
Kentucky
Louisiana
Maryland
Massachusetts(8)
Michigan(8)
Minnesota(8)
Missouri
New Jersey
New York(9)
North Carolina
Ohio(8)
Oregon
Pennsylvania
Tennessee
Virginia

INSURANCE FUNDS
Franklin Templeton Variable Insurance Products Trust(10)

(1) The fund is closed to new investors. Existing shareholders can continue
adding to their accounts.

(2) The fund is only open to existing shareholders and select retirement
plans.

(3) The fund is a continuously offered, closed-end fund. Shares may be
purchased daily; there is no daily redemption. However, each quarter,
pending board approval, the fund will authorize the repurchase of 5%-25%
of the outstanding number of shares. Investors may tender all or a portion
of their shares during the tender period.

(4) Upon reaching approximately $350 million in assets, the fund intends to
close to all investors.

(5) An investment in the fund is neither insured nor guaranteed by the U.S.
government or by any other entity or institution.

(6) Formerly Franklin Short-Intermediate U.S. Government Securities Fund.
Effective 9/1/04, the fund's name changed; its investment goal and
strategy remained the same.

(7) For investors subject to the alternative minimum tax, a small portion of
fund dividends may be taxable. Distributions of capital gains are
generally taxable.

(8) Portfolio of insured municipal securities.

(9) These funds are available in two or more variations, including long-term
portfolios, portfolios of insured securities, a high-yield portfolio (CA)
and limited-term, intermediate-term and money market portfolios (CA and
NY).

(10) The funds of the Franklin Templeton Variable Insurance Products Trust are
generally available only through insurance company variable contracts.

Not part of the semiannual report

11/04

[LOGO](R)
FRANKLIN(R) TEMPLETON(R) One Franklin Parkway
INVESTMENTS San Mateo, CA 94403-1906

o WANT TO RECEIVE THIS DOCUMENT FASTER VIA EMAIL?

Eligible shareholders can sign up for eDelivery at franklintempleton.com.
See inside for details.

SEMIANNUAL REPORT AND SHAREHOLDER LETTER

FRANKLIN'S AGE HIGH INCOME FUND

INVESTMENT MANAGER

Franklin Advisers, Inc.

DISTRIBUTOR

Franklin Templeton Distributors, Inc.
1-800/DIAL BEN(R)
franklintempleton.com

SHAREHOLDER SERVICES

1-800/632-2301

Authorized for distribution only when accompanied or preceded by a prospectus.
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 ensure the highest quality of service, telephone calls to or from our service
departments may be monitored, recorded and accessed. These calls can be
identified by the presence of a regular beeping tone.

105 S2004 01/05

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.

(d) N/A

(f) Pursuant to Item 11(A), 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 Frank W. T. LaHaye and he 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. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT
INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 9. 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 10. CONTROLS AND PROCEDURES.
(A) EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES. The Registrant maintains
disclosure controls and procedures that are designed to ensure that information
required to be disclosed in the Registrant's filings under the Securities
Exchange Act of 1934 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 significant changes in the
Registrant's internal controls or in other factors that could significantly
affect the internal controls subsequent to the date of their evaluation in
connection with the preparation of this Shareholder Report on Form N-CSR.

ITEM 11. EXHIBITS.

(A) Code of Ethics

(B) (1) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

(B) (2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
of Jimmy D. Gambill, Chief Executive Officer - Finance and Administration, and
Galen G. Vetter, Chief Financial Officer

SIGNATURES

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

FRANKLIN HIGH INCOME TRUST

By /s/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date January 20, 2005

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/Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date January 20, 2005

By /s/Galen G. Vetter
Chief Financial Officer
Date January 20, 2005