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
---------

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)

CRAIG S. TYLE, ONE FRANKLIN PARKWAY, SAN MATEO, CA 94403-1906
-------------------------------------------------------------
(Name and address of agent for service)

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

[GRAPHIC OMITTED]

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NOVEMBER 30, 2005
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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 TEMPLETON
INVESTMENTS

FRANKLIN o Templeton o Mutual Series

FRANKLIN TEMPLETON INVESTMENTS

GAIN FROM OUR PERSPECTIVE(R)

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 offices in over 25 countries,
Templeton offers investors a truly global
perspective.

Mutual Series. Founded in 1949, Mutual Series
is dedicated to a unique style of value
investing, searching aggressively for
opportunity among what it believes are
undervalued stocks, as well as arbitrage
situations and distressed securities.

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

RELIABILITY YOU CAN At Franklin Templeton Investments, we seek to
consistently provide investors with exceptional
risk-adjusted returns over the long term, as
well as the reliable, accurate and personal
service that has helped us become one

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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 ........................................... 4

Performance Summary ....................................................... 9

Your Fund's Expenses ...................................................... 12

Financial Highlights and Statement of Investments ......................... 14

Financial Statements ...................................................... 26

Notes to Financial Statements ............................................. 30

Shareholder Information ................................................... 40

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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
mainly of high yield, lower-rated debt securities.

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ASSET ALLOCATION
Based on Total Net Assets as of 11/30/05

[THE FOLLOWING TABLE WAS REPRESENTED BY A PIE CHART IN THE PRINTED MATERIAL.]

Bonds .................................................................. 94.9%
Equities ............................................................... 1.5%
Short-Term Investments & Other Net Assets .............................. 3.6%

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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN. PLEASE VISIT FRANKLINTEMPLETON.COM OR CALL 1-800/342-5236 FOR
MOST RECENT MONTH-END PERFORMANCE.
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We are pleased to bring you Franklin's AGE High Income Fund's semiannual report
for the period ended November 30, 2005.

PERFORMANCE OVERVIEW

Franklin's AGE High Income Fund - Class A posted a +3.14% cumulative total
return for the six months under review. The Fund outperformed its benchmark, the
CSFB High Yield Index, which returned +2.32%, and its peers as measured by the
Lipper High Current Yield Funds Classification Average, which returned +2.90%
for the same period.(1) You can find the Fund's long-term performance data in
the Performance Summary beginning on page 9.

(1) Sources: Credit Suisse First Boston; Lipper Inc. The CSFB High Yield
Index is designed to mirror the investible universe of the U.S. dollar
denominated high yield debt market. The Lipper High Current Yield Funds
Classification Average is calculated by averaging the total returns of
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 11/30/05, there were 438 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 19.

4 | Semiannual Report

ECONOMIC AND MARKET OVERVIEW

The economy continued to grow at a healthy pace during the six months under
review. Over the reporting period, nonfarm payroll data, as well as other
indexes, showed growing employment. This along with other factors helped
consumer spending increase 5.75% (not adjusted for inflation) in November 2005
compared with the same month a year earlier, which supported U.S. economic
growth.(2)

Business spending also rose during the reporting period, contributing to
economic growth. Historically low interest rates continued to allow many
companies easy access to capital, and ample cash also helped some companies to
support their spending plans.

Oil prices increased substantially during the period amid concerns about
potential long-term supply limitations in the face of expected strong growth in
global demand, especially from China and India. Despite rising commodity prices,
inflation remained relatively contained for the 12 months ended November 30,
2005, as measured by the 2.1% rise for the core Consumer Price Index (CPI).(3)
The increase was less than the core CPI's 2.2% 10-year average.(3) The Federal
Reserve Board (Fed) noted in its November statement that there were near-term
economic effects due to the recent hurricanes, but Gulf Coast rebuilding efforts
also boosted productivity growth. Acknowledging the economy's strength as well
as potential inflationary pressure from high energy prices, the Fed raised the
federal funds target rate to 4.0% from 3.0% during the six-month period and
indicated "measured" increases could follow.

The 10-year Treasury note yield rose from 4.00% at the beginning of the period
to 4.49% on November 30, 2005. Although core inflationary pressures appeared
relatively well contained, the U.S. economy's resilience caused some concern
about future pricing pressures. Some market participants also pointed to the
upcoming change in the Fed chairman as another possible catalyst for the 10-year
Treasury's rise, as there is some market perception that Ben Bernanke, the
nominee for the next Fed chairman, may not be as aggressive as Alan Greenspan at
raising rates as long as inflation expectations remain low. However, Mr.
Bernanke is reported to share many of Mr. Greenspan's economic philosophies and
the desire to show policy continuity may keep the Fed on the inflation
offensive. Furthermore, if Mr. Bernanke is confirmed, it is likely to take some
time before his own approach to dealing with inflation is apparent.

(2) Source: Bureau of Economic Analysis.

(3) Source: Bureau of Labor Statistics. Core CPI excludes food and energy
costs.

Semiannual Report | 5

DIVIDEND DISTRIBUTIONS*
6/1/05-11/30/05

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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 1.28 cents
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July 1.25 cents 1.16 cents 1.16 cents 1.19 cents 1.28 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 1.16 cents 1.16 cents 1.19 cents 1.28 cents
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October 1.25 cents 1.16 cents 1.16 cents 1.19 cents 1.28 cents
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November 1.25 cents 1.16 cents 1.16 cents 1.19 cents 1.28 cents
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TOTAL 7.50 CENTS 6.96 CENTS 6.96 CENTS 7.14 CENTS 7.68 CENTS
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* All Fund distributions will vary depending upon current market conditions,
and past distributions are not indicative of future trends.

INVESTMENT STRATEGY

We are disciplined, fundamental investors who mainly rely on our analysts'
in-depth 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 six-month period under review, high yield corporate bonds continued
to be buoyed by a generally healthy domestic and global economic outlook, strong
liquidity on corporate balance sheets, positive earnings growth and rising
equities markets. As a result, default rates for high yield issuers remained
below their longer-term averages. Even with the rise in U.S. interest rates, the
high yield asset class was able to post positive total return performance, which
also drove high yield valuations to somewhat richer levels. In this environment,
individual security selection and proactive sector positioning supported the
Fund's relative and absolute performance.

6 | Semiannual Report

Our weightings in several industries compared with those of our peer group
helped the Fund's relative performance.(4) For example, the Fund benefited from
its lack of direct airline exposure, as that industry continued to be plagued by
high energy prices and ongoing low-fare competition. In fact, two more major
airlines, Delta and Northwest, filed for bankruptcy protection during the
period. The Fund's underweighted exposure to the automotive industry was also a
positive contributor to relative performance, as concerns surrounding domestic
automotive manufacturers' longer-term competitiveness weighed on the trading
levels for bonds in that industry.(5) On the other hand, the Fund's overweighted
exposure to the telecommunications industry was a positive contributor to
performance, as that industry delivered one of the stronger sector returns in
the high yield market due largely to improved balance sheets and further
industry consolidation.(6)

Although the Fund's overall performance compared favorably to its benchmark
index and peer group, certain industry positioning detracted from our results.
We selectively added to the Fund's energy industry holdings during the period,
but still remained somewhat underweighted relative to the peer group given what
we considered to be relatively rich valuation levels for many energy issuers.(7)
Nonetheless, with energy prices reaching historical highs during the period, the
energy sector outperformed the broader high yield market as these companies
were expected to generate significant cash flows in the current energy pricing
environment. The Fund's overweighted utilities sector position also constrained
relative performance.(8) After providing some of the high yield asset class's
stronger returns during calendar years 2003 and 2004, the utility sector gave
back some gains during the reporting period, as valuations had richened relative
to the broader market. Finally, the Fund's overweighted exposure in the pay
television industry detracted from performance, as increasing competition
between cable, satellite, and the regional telecommunications companies
heightened concerns over the longer-term operating outlook for issuers within
the pay television sector.(9)

(4) 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
Classification Average.

(5) In the SOI, automotive industry holdings are in the producer manufacturing
sector.

(6) In the SOI, telecommunications industry holdings are in the communications
sector.

(7) In the SOI, energy holdings are in the energy minerals and industrial
services sectors.

(8) Certain holdings in the industrial services industry may be considered
part of the utilities sector weighting.

(9) In the SOI, pay television holdings are in the consumer services and
communications sectors.

TOP 10 HOLDINGS
11/30/05

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COMPANY % OF TOTAL
SECTOR/INDUSTRY NET ASSETS
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El Paso Corp./Tennessee Gas Pipeline Co. 2.2%
INDUSTRIAL SERVICES
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Qwest 1.9%
COMMUNICATIONS
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CCH 1.6%
CONSUMER SERVICES
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Dynegy Holdings Inc. 1.5%
UTILITIES
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Chesapeake Energy Corp. 1.5%
ENERGY MINERALS
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Allied Waste North America Inc. 1.5%
INDUSTRIAL SERVICES
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Aquila Inc. 1.4%
UTILITIES
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Calpine Corp. 1.4%
UTILITIES
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Host Marriott LP 1.4%
REAL ESTATE INVESTMENT TRUSTS
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Allegheny Energy Supply Co. LLC 1.4%
UTILITIES
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Semiannual Report | 7

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

/s/ Christopher J. Molumphy
[PHOTO OMITTED]
Christopher J. Molumphy, CFA
Senior Portfolio Manager

/s/ Eric G. Takaha
[PHOTO OMITTED]
Eric G. Takaha, CFA
Portfolio Manager

Franklin's AGE High Income Fund

THE FOREGOING INFORMATION REFLECTS OUR ANALYSIS, OPINIONS AND PORTFOLIO HOLDINGS
AS OF NOVEMBER 30, 2005, 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.

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ERIC TAKAHA is a senior vice president and portfolio manager for Franklin
Advisers, Inc. Mr. Takaha assumed assistant portfolio management
responsibilities for Franklin's AGE High Income Fund in 2005. He is the director
of the Franklin high yield group with portfolio management duties for several
high income funds. He has been a member of high yield group at Franklin
Templeton for more than 14 years.

Mr. Takaha earned a bachelor of science degree from the University of
California, Berkeley, and an M.B.A. from Stanford University. He is a Chartered
Financial Analyst (CFA) Charterholder. He is also a member of the Security
Analysts of San Francisco (SASF) and the Stanford Business School Alumni
Association.
- --------------------------------------------------------------------------------

8 | Semiannual Report

PERFORMANCE SUMMARY AS OF 11/30/05

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 that a
shareholder would pay on Fund dividends, capital gain distributions, if any, or
any realized gains on the sale of Fund shares. Total return reflects
reinvestment of the Fund's dividends and capital gain distributions, if any, and
any unrealized gains or losses.

PRICE AND DISTRIBUTION INFORMATION

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CLASS A (SYMBOL: AGEFX) CHANGE 11/30/05 5/31/05
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Net Asset Value (NAV) -$0.01 $2.08 $2.09
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DISTRIBUTIONS (6/1/05-11/30/05)
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Dividend Income $ 0.0750
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CLASS B (SYMBOL: FHIBX) CHANGE 11/30/05 5/31/05
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Net Asset Value (NAV) $0.00 $2.08 $2.08
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DISTRIBUTIONS (6/1/05-11/30/05)
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Dividend Income $ 0.0696
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CLASS C (SYMBOL: FRAIX) CHANGE 11/30/05 5/31/05
- ----------------------------------------------------------------------------------------
Net Asset Value (NAV) -$0.01 $2.09 $2.10
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DISTRIBUTIONS (6/1/05-11/30/05)
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Dividend Income $ 0.0696
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CLASS R (SYMBOL: FAHRX) CHANGE 11/30/05 5/31/05
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Net Asset Value (NAV) $0.00 $2.10 $2.10
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DISTRIBUTIONS (6/1/05-11/30/05)
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Dividend Income $ 0.0714
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ADVISOR CLASS (SYMBOL: FAHAX) CHANGE 11/30/05 5/31/05
- ----------------------------------------------------------------------------------------
Net Asset Value (NAV) $0.00 $2.09 $2.09
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DISTRIBUTIONS (6/1/05-11/30/05)
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Dividend Income $ 0.0768
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Semiannual Report | 9

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) +3.14% +4.34% +56.51% +88.49%
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Average Annual Total Return(2) -1.12% +0.13% +8.44% +6.09%
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Value of $10,000 Investment(3) $ 9,888 $10,013 $ 14,996 $18,069
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Avg. Ann. Total Return (12/31/05)(4) -0.67% +8.37% +6.10%
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Distribution Rate(5) 6.91%
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30-Day Standardized Yield(6) 6.73%
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INCEPTION
CLASS B 6-MONTH 1-YEAR 5-YEAR (1/1/99)
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Cumulative Total Return(1) +3.37% +3.84% +53.49% +38.17%
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Average Annual Total Return(2) -0.63% -0.05% +8.66% +4.79%
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Value of $10,000 Investment(3) $ 9,937 $ 9,995 $ 15,149 $13,817
- ----------------------------------------------------------------------------------------
Avg. Ann. Total Return (12/31/05)(4) -0.48% +8.47% +4.88%
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Distribution Rate(5) 6.99%
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30-Day Standardized Yield(6) 6.54%
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CLASS C 6-MONTH 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return(1) +2.86% +3.79% +53.04% +79.26%
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Average Annual Total Return(2) +1.87% +2.82% +8.88% +6.01%
- ----------------------------------------------------------------------------------------
Value of $10,000 Investment(3) $ 10,187 $10,282 $ 15,304 $17,926
- ----------------------------------------------------------------------------------------
Avg. Ann. Total Return (12/31/05)(4) +2.39% +8.80% +6.02%
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Distribution Rate(5) 6.66%
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30-Day Standardized Yield(6) 6.55%
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INCEPTION
CLASS R 6-MONTH 1-YEAR 3-YEAR (1/1/02)
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Cumulative Total Return(1) +3.43% +3.94% +54.34% +47.51%
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Average Annual Total Return(2) +2.43% +2.96% +15.56% +10.45%
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Value of $10,000 Investment(3) $ 10,243 $10,296 $ 15,434 $14,751
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Avg. Ann. Total Return (12/31/05)(4) +2.52% +15.91% +10.51%
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Distribution Rate(5) 6.80%
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30-Day Standardized Yield(6) 6.70%
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ADVISOR CLASS(7) 6-MONTH 1-YEAR 5-YEAR 10-YEAR
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Cumulative Total Return(1) +3.72% +4.51% +58.29% +92.24%
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Average Annual Total Return(2) +3.72% +4.51% +9.62% +6.75%
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Value of $10,000 Investment(3) $ 10,372 $10,451 $ 15,829 $19,224
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Avg. Ann. Total Return (12/31/05)(4) +4.06% +9.43% +6.71%
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Distribution Rate(5) 7.35%
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30-Day Standardized Yield(6) 7.17%
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PERFORMANCE DATA REPRESENT PAST PERFORMANCE, WHICH DOES NOT GUARANTEE FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND YOU MAY HAVE
A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. CURRENT PERFORMANCE MAY DIFFER FROM
FIGURES SHOWN.

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

10 | Semiannual Report

PERFORMANCE SUMMARY (CONTINUED)

ENDNOTES

THE RISKS ASSOCIATED WITH HIGHER-YIELDING, LOWER-RATED SECURITIES (COMMONLY
CALLED JUNK BONDS) INCLUDE HIGHER RISK OF DEFAULT AND LOSS OF PRINCIPAL.
INVESTMENT IN FOREIGN SECURITIES ALSO INVOLVES SPECIAL RISKS, INCLUDING CURRENCY
FLUCTUATIONS, AND POLITICAL AND ECONOMIC UNCERTAINTY. IN ADDITION, INTEREST RATE
MOVEMENTS WILL AFFECT THE FUND'S SHARE PRICE AND YIELD. BOND PRICES GENERALLY
MOVE IN THE OPPOSITE DIRECTION FROM INTEREST RATES. THUS, AS THE PRICES OF BONDS
IN THE FUND ADJUST TO A RISE IN INTEREST RATES, THE FUND'S SHARE PRICE MAY
DECLINE. 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 11/30/05.

(6) Yield, calculated as required by the SEC, is based on the earnings of the
Fund's portfolio for the 30 days ended 11/30/05.

(7) Effective 1/2/97, the Fund began offering Advisor Class shares, which do
not have sales charges or a Rule 12b-l 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-l 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 +65.81% and +5.84%.

Semiannual Report | 11

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-l) 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.

12 | 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 6/1/05 VALUE 11/30/05 PERIOD* 6/1/05-11/30/05
- ----------------------------------------------------------------------------------------------------------

Actual $1,000 $ 1,031.40 $3.77
- ----------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $ 1,021.36 $3.75
- ----------------------------------------------------------------------------------------------------------
CLASS B
- ----------------------------------------------------------------------------------------------------------
Actual $1,000 $ 1,033.70 $6.32
- ----------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $ 1,018.85 $6.28
- ----------------------------------------------------------------------------------------------------------
CLASS C
- ----------------------------------------------------------------------------------------------------------
Actual $1,000 $ 1,028.06 $6.31
- ----------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $ 1,018.85 $6.28
- ----------------------------------------------------------------------------------------------------------
CLASS R
- ----------------------------------------------------------------------------------------------------------
Actual $1,000 $ 1,034.30 $5.56
- ----------------------------------------------------------------------------------------------------------
Hypothetical (5% return before expenses) $1,000 $ 1,019.60 $5.52
- ----------------------------------------------------------------------------------------------------------
ADVISOR CLASS
- ----------------------------------------------------------------------------------------------------------
Actual $1,000 $ 1,037.20 $3.01
- ----------------------------------------------------------------------------------------------------------
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 | 13

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS

AGE HIGH INCOME FUND

-----------------------------------------------------------------------------------------
SIX MONTHS ENDED
NOVEMBER 30, 2005 YEAR ENDED MAY 31,
CLASS A (UNAUDITED) 2005 2004 2003 2002 2001
----------------------------------------------------------------------------------------

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

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

Net investment income(a) ............ 0.08 0.16 0.16 0.16 0.20 0.23

Net realized and unrealized gains
(losses) .......................... (0.01) 0.06 0.13 0.01 (0.22) (0.19)
----------------------------------------------------------------------------------------
Total from investment operations ...... 0.07 0.22 0.29 0.17 (0.02) 0.04
----------------------------------------------------------------------------------------
Less distributions from net
investment income ................... (0.08) (0.15) (0.15) (0.16) (0.20) (0.25)

Redemption fees ....................... --(c) --(c) --(c) --(c) -- --
----------------------------------------------------------------------------------------
Net asset value, end of period ........ $ 2.08 $ 2.09 $ 2.02 $ 1.88 $ 1.87 $ 2.09
========================================================================================

Total return(b) ....................... 3.14% 11.14% 15.67% 10.67% (0.68)% 1.73%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ..... $2,179,009 $2,233,772 $2,172,749 $2,077,768 $2,024,885 $2,222,713

Ratios to average net assets:

Expenses ............................ 0.74%(d) 0.74% 0.75% 0.76% 0.75% 0.76%

Net investment income ............... 7.14%(d) 7.40% 7.73% 9.72% 10.27% 10.30%

Portfolio turnover rate ............... 11.69% 30.19% 44.07% 36.52% 18.56% 21.37%

(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.

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, 2005 YEAR ENDED MAY 31,
CLASS B (UNAUDITED) 2005 2004 2003 2002 2001
--------------------------------------------------------------------------------

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

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

Income from investment operations:

Net investment income(a) .................... 0.07 0.14 0.15 0.16 0.19 0.21

Net realized and unrealized gains
(losses) .................................. -- 0.06 0.13 -- (0.21) (0.19)
--------------------------------------------------------------------------------
Total from investment operations .............. 0.07 0.20 0.28 0.16 (0.02) 0.02
--------------------------------------------------------------------------------
Less distributions from net
investment income ........................... (0.07) (0.14) (0.14) (0.15) (0.19) (0.24)

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

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

Total return(b) .............................. 3.37% 10.09% 15.12% 10.13% (0.70)% 0.73%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $195,351 $207,881 $207,680 $182,494 $153,639 $119,496

Ratios to average net assets:

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

Net investment income ....................... 6.64%(d) 6.90% 7.23% 9.21% 9.75% 9.79%

Portfolio turnover rate ....................... 11.69% 30.19% 44.07% 36.52% 18.56% 21.37%

(a) Based on average daily shares outstanding.

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

(d) Annualized.

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, 2005 YEAR ENDED MAY 31,
CLASS C (UNAUDITED) 2005 2004 2003 2002 2001
-----------------------------------------------------------------------------

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

Net asset value, beginning of period ............. $ 2.10 $ 2.03 $ 1.89 $ 1.88 $ 2.09 $ 2.31
-----------------------------------------------------------------------------
Income from investment operations:

Net investment income(a) ....................... 0.07 0.15 0.15 0.16 0.19 0.22

Net realized and unrealized gains (losses) ..... (0.01) 0.06 0.13 -- (0.21) (0.20)
-----------------------------------------------------------------------------
Total from investment operations ................. 0.06 0.21 0.28 0.16 (0.02) 0.02
-----------------------------------------------------------------------------
Less distributions from net investment income .... (0.07) (0.14) (0.14) (0.15) (0.19) (0.24)

Redemption fees .................................. --(c) --(c) --(c) --(c) -- --
-----------------------------------------------------------------------------
Net asset value, end of period ................... $ 2.09 $ 2.10 $ 2.03 $ 1.89 $ 1.88 $ 2.09
=============================================================================

Total return(b) .................................. 2.86% 10.53% 15.01% 10.07% (0.71)% 0.75%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ................ $372,424 $388,250 $416,171 $421,795 $383,584 $172,959

Ratios to average net assets:

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

Net investment income .......................... 6.64%(d) 6.90% 7.23% 9.21% 9.76% 9.79%

Portfolio turnover rate .......................... 11.69% 30.19% 44.07% 36.52% 18.56% 21.37%

(a) Based on average daily shares outstanding.

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

(d) Annualized.

16 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

AGE HIGH INCOME FUND (CONTINUED)

----------------------------------------------------------------------------
SIX MONTHS ENDED
NOVEMBER 30, 2005 YEAR ENDED MAY 31,
CLASS R (UNAUDITED) 2005 2004 2003 2002(e)
----------------------------------------------------------------------------

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

Net asset value, beginning of period ............. $ 2.10 $ 2.03 $ 1.89 $ 1.88 $ 1.93
----------------------------------------------------------------------------
Income from investment operations:

Net investment income(a) ....................... 0.07 0.15 0.15 0.16 0.08

Net realized and unrealized gains (losses) ..... -- 0.06 0.13 0.01 (0.05)
----------------------------------------------------------------------------
Total from investment operations ................. 0.07 0.21 0.28 0.17 0.03
----------------------------------------------------------------------------
Less distributions from net investment income .... (0.07) (0.14) (0.14) (0.16) (0.08)

Redemption fees .................................. --(c) --(c) --(c) --(c) --
----------------------------------------------------------------------------
Net asset value, end of period ................... $ 2.10 $ 2.10 $ 2.03 $ 1.89 $ 1.88
============================================================================

Total return(b) ................................. 3.43% 10.68% 15.17% 10.21% 1.52%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ................ $ 6,689 $ 5,300 $ 3,467 $ 2,574 $ 713

Ratios to average net assets:

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

Net investment income .......................... 6.79%(d) 7.05% 7.38% 9.36% 9.73%(d)

Portfolio turnover rate .......................... 11.69% 30.19% 44.07% 36.52% 18.56%

(a) Based on average daily shares outstanding.

(b) Total return 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. | 17

FRANKLIN HIGH INCOME TRUST

FINANCIAL HIGHLIGHTS (CONTINUED)

AGE HIGH INCOME FUND (CONTINUED)

--------------------------------------------------------------------------------
SIX MONTHS ENDED
NOVEMBER 30, 2005 YEAR ENDED MAY 31,
ADVISOR CLASS (UNAUDITED) 2005 2004 2003 2002 2001
--------------------------------------------------------------------------------

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

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

Net investment income(a) .................... 0.08 0.16 0.16 0.16 0.21 0.23

Net realized and unrealized gains (losses) .. -- 0.06 0.13 -- (0.21) (0.19)
--------------------------------------------------------------------------------
Total from investment operations .............. 0.08 0.22 0.29 0.16 -- 0.04
--------------------------------------------------------------------------------
Less distributions from net investment
income ...................................... (0.08) (0.15) (0.15) (0.16) (0.21) (0.25)

Redemption fees ............................... --(c) --(c) --(c) --(c) -- --
--------------------------------------------------------------------------------
Net asset value, end of period ................ $ 2.09 $ 2.09 $ 2.02 $ 1.88 $ 1.88 $ 2.09
================================================================================

Total return(b) ............................... 3.72% 11.29% 15.82% 10.23% (0.03)% 1.86%

RATIOS/SUPPLEMENTAL DATA

Net assets, end of period (000's) ............. $ 34,960 $ 28,231 $ 37,569 $ 28,045 $ 20,758 $ 22,041

Ratios to average net assets:

Expenses .................................... 0.59%(d) 0.59% 0.60% 0.62% 0.61% 0.62%

Net investment income ....................... 7.29%(d) 7.55% 7.88% 9.86% 10.42% 10.43%

Portfolio turnover rate ....................... 11.69% 30.19% 44.07% 36.52% 18.56% 21.37%

(a) Based on average daily shares outstanding.

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

(d) Annualized.

18 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED)

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

CORPORATE BONDS 94.9%
COMMERCIAL SERVICES 2.8%
Dex Media East LLC, senior sub. note, B, 12.125%, 11/15/12 .................. United States 12,865,000 $ 15,052,050
Dex Media Inc.,
B, 8.00%, 11/15/13 ....................................................... United States 7,500,000 7,687,500
senior disc. note, zero cpn. to 11/15/08, 9.00% thereafter,
11/15/13 ............................................................... United States 12,600,000 10,048,500
JohnsonDiversey Holdings Inc., senior disc. note, zero cpn. to 5/17/07,
10.67% thereafter, 5/15/13 ................................................ United States 35,000,000 26,600,000
(a)Lamar Media Corp., senior sub. note, 144A, 6.625%, 8/15/15 .................. United States 17,800,000 17,933,500
-------------
77,321,550
-------------
COMMUNICATIONS 11.9%
(b)Asia Global Crossing Ltd., senior note, 13.375%, 10/15/10 ................... Bermuda 11,000,000 330,000
Dobson Cellular Systems Inc., senior secured note, 9.875%,
11/01/12 .................................................................. United States 18,000,000 20,025,000
Inmarsat Finance II PLC, senior note, zero cpn. to 11/15/08,
10.375% thereafter, 11/15/12 .............................................. United Kingdom 37,200,000 30,504,000
(a)Intelsat Bermuda Ltd., senior note, 144A,
8.25%, 1/15/13 ........................................................... Bermuda 12,200,000 12,261,000
8.625%, 1/15/15 .......................................................... Bermuda 17,500,000 17,631,250
(b)Iridium LLC/Capital Corp., senior note, D, 10.875%, 7/15/05 ................. Bermuda 17,000,000 4,207,500
MCI Inc., senior note, 8.735%, 5/01/14 ...................................... United States 4,750,000 5,254,687
Millicom International Cellular SA, senior note, 10.00%, 12/01/13 ........... Luxembourg 10,000,000 10,387,500
Nextel Communications Inc., senior note, D, 7.375%, 8/01/15 ................. United States 33,300,000 35,079,852
Nextel Partners Inc., senior note, 8.125%, 7/01/11 .......................... United States 26,100,000 27,927,000
NTL Cable PLC, senior note, 8.75%, 4/15/14 .................................. United Kingdom 8,900,000 9,389,500
Panamsat Corp., senior note, 9.00%, 8/15/14 ................................. United States 13,177,000 13,901,735
Qwest Communications International Inc., senior note,
7.50%, 2/15/14 ........................................................... United States 20,000,000 20,300,000
(a)144A, 7.50%, 2/15/14 ..................................................... United States 15,000,000 15,225,000
Qwest Corp., 6.875%, 9/15/33 ................................................ United States 18,300,000 17,156,250
Rogers Wireless Inc., senior secured note,
7.25%, 12/15/12 .......................................................... Canada 12,580,000 13,287,625
7.50%, 3/15/15 ........................................................... Canada 15,500,000 16,662,500
(b)RSL Communications PLC,
senior disc. note, 10.125%, 3/01/08 ...................................... United Kingdom 44,500,000 333,750
senior note, 12.00%, 11/01/08 ............................................ United Kingdom 6,250,000 46,875
Time Warner Telecom Holdings Inc., senior note, 9.25%, 2/15/14 .............. United States 20,000,000 20,800,000
Verizon New York Inc., senior note, 7.375%, 4/01/32 ......................... United States 15,000,000 15,437,130
(a)Wind Acquisition Fin SA, senior note, 144A, 10.75%, 12/01/15 ................ Italy 24,150,000 25,236,750
-------------
331,384,904
-------------
CONSUMER DURABLES 4.0%
D.R. Horton Inc., senior note, 8.50%, 4/15/12 ............................... United States 25,000,000 26,858,250
General Motors Acceptance Corp., 6.875%, 9/15/11 ............................ United States 15,000,000 13,568,505
Sealy Mattress Co., senior sub. note, 8.25%, 6/15/14 ........................ United States 30,000,000 30,750,000
Simmons Co., senior sub. note, 7.875%, 1/15/14 .............................. United States 16,400,000 14,924,000
William Lyon Homes Inc., senior note,
7.625%, 12/15/12 ......................................................... United States 10,000,000 8,900,000
7.50%, 2/15/14 ........................................................... United States 18,500,000 16,095,000
-------------
111,095,755
-------------

Semiannual Report | 19

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)

CORPORATE BONDS (CONT.)
CONSUMER NON-DURABLES 2.1%
Smithfield Foods Inc., senior note,
7.00%, 8/01/11 ........................................................... United States 18,900,000 $ 19,348,875
7.75%, 5/15/13 ........................................................... United States 9,600,000 10,224,000
Spectrum Brands Inc., senior sub. note, 7.375%, 2/01/15 ..................... United States 32,800,000 28,536,000
-------------
58,108,875
-------------
CONSUMER SERVICES 18.1%
(b)Adelphia Communications Corp., senior note, 10.875%, 10/01/10 ............... United States 25,000,000 15,000,000
AMC Entertainment Inc.,
senior note, B, 8.625%, 8/15/12 .......................................... United States 9,400,000 9,799,500
senior sub. note, 9.50%, 2/01/11 ......................................... United States 5,000,000 4,900,000
senior sub. note, 9.875%, 2/01/12 ........................................ United States 12,500,000 12,343,750
Aztar Corp., senior sub. note, 7.875%, 6/15/14 .............................. United States 13,700,000 14,248,000
Boyd Gaming Corp., senior sub. note, 6.75%, 4/15/14 ......................... United States 21,600,000 21,546,000
Cablevision Systems Corp., senior note, B, 8.00%, 4/15/12 ................... United States 19,200,000 18,432,000
Caesars Entertainment Inc., senior sub. note, 7.875%, 3/15/10 ............... United States 25,000,000 26,968,750
(b)Callahan NordRhein-Westfalen, senior disc. note, 16.00%, 7/15/10 ............ Germany 38,000,000 3,800
CanWest Media Inc., senior sub. note, 8.00%, 9/15/12 ........................ Canada 6,000,000 6,180,000
(a)CCH I Holdings LLC, senior note, 144A, zero cpn. to 1/15/06,
13.50% thereafter, 1/15/14 ................................................ United States 15,500,000 11,160,000
CCH II LLC, senior note, 10.25%, 9/15/10 .................................... United States 33,800,000 33,800,000
CSC Holdings Inc., senior deb., 7.625%, 7/15/18 ............................. United States 20,000,000 19,100,000
DIRECTV Holdings LLC, senior note,
8.375%, 3/15/13 .......................................................... United States 18,901,000 20,602,090
6.375%, 6/15/15 .......................................................... United States 10,000,000 9,862,500
EchoStar DBS Corp., senior note, 6.375%, 10/01/11 ........................... United States 20,000,000 19,450,000
Emmis Operating Co., senior sub. note, 6.875%, 5/15/12 ...................... United States 26,500,000 26,268,125
Liberty Media Corp., senior note, 5.70%, 5/15/13 ............................ United States 20,000,000 18,341,660
LIN Television Corp., senior sub. note, 6.50%, 5/15/13 ...................... United States 30,000,000 28,875,000
Mandalay Resort Group,
senior note, 9.50%, 8/01/08 .............................................. United States 5,900,000 6,401,500
senior sub. note, 10.25%, 8/01/07 ........................................ United States 14,600,000 15,658,500
(a)MGM Mirage Inc., senior note, 144A, 6.625%, 7/15/15 ......................... United States 20,000,000 19,850,000
Pinnacle Entertainment Inc., senior sub. note, 8.75%, 10/01/13 .............. United States 11,300,000 11,978,000
(a)Rainbow National Services LLC, senior sub. deb., 144A, 10.375%,
9/01/14 ................................................................... United States 29,000,000 31,755,000
Rogers Cable Inc., senior secured note, 6.75%, 3/15/15 ...................... Canada 9,000,000 9,090,000
Royal Caribbean Cruises Ltd.,
senior deb., 7.25%, 3/15/18 .............................................. United States 14,400,000 15,318,000
senior note, 8.00%, 5/15/10 .............................................. United States 4,200,000 4,583,250
senior note, 6.875%, 12/01/13 ............................................ United States 13,800,000 14,559,000
Station Casinos Inc.,
senior note, 6.00%, 4/01/12 .............................................. United States 9,300,000 9,323,250
senior sub. note, 6.50%, 2/01/14 ......................................... United States 7,000,000 7,070,000
senior sub. note, 6.875%, 3/01/16 ........................................ United States 15,000,000 15,300,000
Universal City Development, senior note, 11.75%, 4/01/10 .................... United States 15,000,000 16,875,000
Universal City Florida, senior note, 8.375%, 5/01/10 ........................ United States 7,000,000 6,930,000
Young Broadcasting Inc., senior sub. note, 8.75%, 1/15/14 ................... United States 4,400,000 3,883,000
-------------
505,455,675
-------------

20 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)

CORPORATE BONDS (CONT.)
ELECTRONIC TECHNOLOGY 3.4%
Flextronics International Ltd., senior sub. note, 6.50%, 5/15/13 ............ Singapore 15,600,000 $ 15,834,000
L-3 Communications Corp., senior sub. note,
6.125%, 1/15/14 ......................................................... United States 26,500,000 25,970,000
5.875%, 1/15/15 ......................................................... United States 3,700,000 3,570,500
(a)144A, 6.375%, 10/15/15 .................................................. United States 9,300,000 9,207,000
Sanmina-SCI Corp., senior sub. note, 6.75%, 3/01/13 ......................... United States 9,600,000 9,192,000
(a)SCG Holding Corp., 144A, 10.00%, 8/04/11 .................................... United States 7,300,000 7,327,375
Xerox Corp., senior note,
7.125%, 6/15/10 ......................................................... United States 8,000,000 8,360,000
6.875%, 8/15/11 ......................................................... United States 15,600,000 16,243,500
-------------
95,704,375
-------------
ENERGY MINERALS 3.8%
Arch Western Finance, senior note, 6.75%, 7/01/13 ........................... United States 30,000,000 30,450,000
Chesapeake Energy Corp., senior note,
6.25%, 1/15/18 .......................................................... United States 27,600,000 26,565,000
6.625%, 1/15/16 ......................................................... United States 10,000,000 9,950,000
(a)144A, 6.875%, 11/15/20 .................................................. United States 5,000,000 4,950,000
Peabody Energy Corp., senior note, B, 6.875%, 3/15/13 ....................... United States 15,900,000 16,496,250
(a)Pogo Producing Co., senior sub. note, 144A, 6.875%, 10/01/17 ................ United States 18,700,000 18,326,000
-------------
106,737,250
-------------
FINANCE 0.6%
AmeriCredit Corp., senior note, 9.25%, 5/01/09 .............................. United States 15,000,000 15,825,000
-------------
HEALTH SERVICES 5.8%
DaVita Inc.,
senior note, 6.625%, 3/15/13 ............................................ United States 4,700,000 4,841,000
senior sub. note, 7.25%, 3/15/15 ........................................ United States 18,700,000 19,190,875
Fresenius Medical Care Capital Trust II, 7.875%, 2/01/08 .................... Germany 34,600,000 35,811,000
HCA Inc., senior note, 8.75%, 9/01/10 ....................................... United States 25,000,000 27,579,700
HealthSouth Corp., senior note, 7.625%, 6/01/12 ............................. United States 27,000,000 25,110,000
Tenet Healthcare Corp., senior note,
7.375%, 2/01/13 ......................................................... United States 18,000,000 16,470,000
9.875%, 7/01/14 ......................................................... United States 14,000,000 14,105,000
Vanguard Health Holding Co. II LLC, senior sub. note, 9.00%,
10/01/14 .................................................................. United States 17,300,000 18,338,000
-------------
161,445,575
-------------
INDUSTRIAL SERVICES 4.7%
Allied Waste North America Inc.,
senior note, 7.875%, 4/15/13 ............................................ United States 21,600,000 22,572,000
senior note, 7.25%, 3/15/15 ............................................. United States 4,000,000 4,090,000
senior secured note, 6.50%, 11/15/10 .................................... United States 7,500,000 7,462,500
senior secured note, 6.125%, 2/15/14 .................................... United States 5,000,000 4,762,500
senior secured note, B, 5.75%, 2/15/11 .................................. United States 2,500,000 2,393,750
El Paso Corp., senior note, 7.75%, 1/15/32 .................................. United States 42,000,000 41,580,000
Pride International Inc., senior note, 7.35%, 7/15/14 ....................... United States 20,700,000 22,407,750
(b)Safety Kleen Services, senior sub. note, 9.25%, 6/01/08 ..................... United States 10,000,000 5,000
Tennessee Gas Pipeline Co., senior deb., 7.00%, 10/15/28 .................... United States 20,000,000 19,430,840

Semiannual Report | 21

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)

CORPORATE BONDS (CONT.)
INDUSTRIAL SERVICES (CONT.)
Universal Compression Inc., senior note, 7.25%, 5/15/10 .............. United States 7,100,000 $ 7,206,500
-------------
131,910,840
-------------
NON-ENERGY MINERALS 2.1%
(a)Glencore Funding LLC, 144A, 6.00%, 4/15/14 ........................... Switzerland 21,100,000 19,678,556
Ispat Inland ULC, senior secured note, 9.75%, 4/01/14 ................ United States 18,917,000 21,315,676
(a)Novelis Inc., senior note, 144A, 7.25%, 2/15/15 ...................... Canada 17,600,000 16,544,000
-------------
57,538,232
-------------
PROCESS INDUSTRIES 12.6%
BCP Crystal Holdings Corp., senior sub. note, 9.625%, 6/15/14 ........ United States 22,455,000 25,009,256
Buckeye Technologies Inc., senior note, 8.50%, 10/01/13 .............. United States 11,700,000 11,817,000
(a)Crown Americas Inc., senior note, 144A, 7.75%, 11/15/15 .............. United States 28,000,000 28,700,000
Equistar Chemicals LP, senior note,
8.75%, 2/15/09 ................................................... United States 20,000,000 21,200,000
10.625%, 5/01/11 ................................................. United States 4,400,000 4,873,000
Georgia-Pacific Corp.,
7.25%, 6/01/28 ................................................... United States 3,000,000 2,670,000
senior note, 8.00%, 1/15/14 ...................................... United States 8,000,000 8,870,000
senior note, 8.00%, 1/15/24 ...................................... United States 15,000,000 14,512,500
(a)Huntsman International LLC, senior sub. note, 144A, 7.375%,
1/01/15 ............................................................. United States 10,000,000 9,712,500
IMC Global Inc., senior note, 10.875%, 8/01/13 ....................... United States 28,000,000 32,690,000
Jefferson Smurfit Corp., senior note, 7.50%, 6/01/13 ................. United States 15,800,000 14,654,500
JSG Funding PLC, senior sub. note, 7.75%, 4/01/15 .................... Ireland 11,000,000 9,075,000
Lyondell Chemical Co., senior secured note, 10.50%, 6/01/13 .......... United States 17,400,000 19,857,750
MDP Acquisitions PLC, senior note, 9.625%, 10/01/12 .................. Ireland 18,600,000 18,507,000
Nalco Co.,
senior note, 7.75%, 11/15/11 ..................................... United States 2,700,000 2,787,750
senior sub. note, 8.875%, 11/15/13 ............................... United States 27,200,000 28,356,000
NewPage Corp., senior secured note, 10.00%, 5/01/12 .................. United States 20,000,000 19,800,000
Owens-Brockway Glass Container Inc., senior note, 6.75%,
12/01/14 ............................................................ United States 6,700,000 6,448,750
Owens-Illinois Inc., senior note, 7.80%, 5/15/18 ..................... United States 29,000,000 28,710,000
(d),(e),(f)Pindo Deli Finance Mauritius Ltd., 144A,
(g)FRN, 5.248%, 4/29/15 ............................................. Indonesia 3,256,502 762,347
(g)FRN, 5.248%, 4/29/18 ............................................. Indonesia 8,467,542 1,982,252
zero cpn., 4/29/25 ............................................... Indonesia 17,495,011 4,095,582
Rhodia SA, senior note, 10.25%, 6/01/10 .............................. France 30,000,000 33,075,000
(d),(e),(f)Tjiwi Kimia Finance Mauritius, secured note, 144A,
(g)FRN, 5.248%, 4/29/15 ............................................. Indonesia 1,628,955 500,252
(g)FRN, 5.248%, 4/29/18 ............................................. Indonesia 4,192,714 1,287,583
zero cpn., 4/29/25 ............................................... Indonesia 5,386,416 1,654,168
-------------
351,608,190
-------------
PRODUCER MANUFACTURING 6.4%
Case New Holland Inc., senior note, 9.25%, 8/01/11 ................... United States 32,000,000 34,080,000
Cooper-Standard Automotive Inc.,
senior note, 7.00%, 12/15/12 ..................................... United States 7,500,000 6,825,000
senior sub. note, 8.375%, 12/15/14 ............................... United States 17,500,000 13,212,500

22 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)

CORPORATE BONDS (CONT.)
PRODUCER MANUFACTURING (CONT.)
Fimep SA, senior note, 10.50%, 2/15/13 ............................... France 20,700,000 $ 23,520,375
(b)Goss Graphic Systems Inc., senior sub. note, 12.25%, 11/19/05 ........ United States 9,053,899 --
(a)Invensys PLC, senior note, 144A, 9.875%, 3/15/11 ..................... United Kingdom 18,000,000 17,730,000
Milacron Escrow Corp., senior secured note, 11.50%, 5/15/11 .......... United States 20,000,000 17,300,000
(a)Nell AF Sarl, senior note, 144A, 8.375%, 8/15/15 ..................... Luxembourg 11,400,000 11,229,000
Nortek Inc., senior sub. note, 8.50%, 9/01/14 ........................ United States 21,000,000 20,265,000
Russel Metals Inc., senior note, 6.375%, 3/01/14 ..................... United States 17,000,000 16,532,500
TRW Automotive Inc., senior note, 9.375%, 2/15/13 .................... United States 15,203,000 16,457,247
-------------
177,151,622
-------------
REAL ESTATE INVESTMENT TRUSTS 2.0%
Host Marriott LP, senior note,
I, 9.50%, 1/15/07 ................................................ United States 7,000,000 7,332,500
K, 7.125%, 11/01/13 .............................................. United States 20,000,000 20,850,000
M, 7.00%, 8/15/12 ................................................ United States 7,100,000 7,357,375
O, 6.375%, 3/15/15 ............................................... United States 4,100,000 4,089,750
MeriStar Hospitality Corp., senior note, 9.00%, 1/15/08 .............. United States 16,500,000 17,201,250
-------------
56,830,875
-------------
RETAIL TRADE 2.1%
Rite Aid Corp.,
senior deb., 7.70%, 2/15/27 ...................................... United States 10,000,000 7,550,000
(a)senior note, 144A, 6.125%, 12/15/08 .............................. United States 26,900,000 25,286,000
Stater Brothers Holdings Inc., senior note, 8.125%, 6/15/12 .......... United States 25,800,000 25,542,000
-------------
58,378,000
-------------
TECHNOLOGY SERVICES 1.8%
(b)PSINet Inc., senior note, 11.00%, 8/01/09 ............................ United States 18,750,000 23,438
(a)SunGard Data Systems Inc.,
senior note, 144A, 9.125%, 8/15/13 ............................... United States 11,100,000 11,544,000
senior sub. note, 144A, 10.25%, 8/15/15 .......................... United States 11,100,000 11,266,500
UGS Corp., senior sub. note, 10.00%, 6/01/12 ......................... United States 25,000,000 27,375,000
-------------
50,208,938
-------------
TRANSPORTATION 0.8%
Great Lakes Dredge & Dock Co., senior sub. note, 7.75%, 12/15/13 ..... United States 25,900,000 22,986,250
-------------
UTILITIES 9.9%
(a)AES Corp., senior secured note, 144A, 9.00%, 5/15/15 ................. United States 31,700,000 34,830,375
(a)Allegheny Energy Supply Co. LLC, 144A, 8.25%, 4/15/12 ................ United States 35,000,000 39,550,000
Aquila Inc., senior note, 14.875%, 7/01/12 ........................... United States 30,000,000 40,350,000
(a),(f),(k)Calpine Corp., senior secured note, 144A, 8.75%, 7/15/13 ............. United States 53,000,000 40,015,000
Dynegy Holdings Inc.,
senior note, 8.75%, 2/15/12 ...................................... United States 19,000,000 20,330,000
(a)senior secured note, 144A, 10.125%, 7/15/13 ...................... United States 20,000,000 22,500,000
ESI Tractebel Acquisition Corp., secured note, 7.99%, 12/30/11 ....... United States 6,800,000 7,161,937
Midland Funding II, sub. secured lease obligation, B, 13.25%,
7/23/06 ............................................................. United States 8,490,640 8,890,753
Midwest Generation LLC, senior secured note, 8.75%, 5/01/34 .......... United States 31,600,000 34,997,000
NRG Energy Inc., senior secured note, 8.00%, 12/15/13 ................ United States 6,150,000 6,780,375

Semiannual Report | 23

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)

CORPORATE BONDS (CONT.)
UTILITIES (CONT.)
(a)Texas Genco LLC, senior note, 144A, 6.875%, 12/15/14 ............... United States 18,700,000 $ 20,102,500
--------------
275,507,940
--------------
TOTAL CORPORATE BONDS (COST $2,677,714,399) ........................ 2,645,199,846
--------------
FOREIGN GOVERNMENT AND AGENCY SECURITIES
(COST $1,377,506) 0.0%(h)
GOVERNMENT BONDS 0.0%(h)
Eskom, E168, 11.00%, 6/01/08 ....................................... South Africa 5,300,000 ZAR 875,973

---------------
SHARES
---------------

COMMON STOCKS 0.6%
COMMUNICATIONS 0.6%
(d)NII Holdings Inc. .................................................. United States 50,000 2,172,500
Sprint Nextel Corp. ................................................ United States 163,094 4,083,873
(d)Telewest Global Inc. ............................................... United Kingdom 376,951 8,402,238
--------------
14,658,611
--------------
ENERGY MINERALS 0.0%(h)
dMcMoRan Exploration Co. ............................................ United States 25,937 469,460
--------------
PRODUCER MANUFACTURING 0.0%(h)
(d),(e)Cambridge Industries Liquidating Trust Interest .................... United States 4,853,892 24,269
(d),(e)Goss Holdings Inc., B .............................................. United States 211,174 --
(d),(i)Harvard Industries Inc. ............................................ United States 793,966 7,940
(d),(e),(i)VS Holdings ........................................................ United States 1,685,375 --
--------------
32,209
--------------
TOTAL COMMON STOCKS (COST $45,899,904) ............................. 15,160,280
--------------
PREFERRED STOCK (COST $24,700,000) 0.0%(h)
PROCESS INDUSTRIES 0.0%(h)
(b),(e),(f)Asia Pulp & Paper Co. Ltd., 12.00%, pfd., Perpetual ................ Indonesia 24,700,000 279,110
--------------
CONVERTIBLE PREFERRED STOCK (COST $26,500,000) 0.9%
UTILITIES 0.9%
CMS Energy Trust I, 7.75%, cvt. pfd. ............................... United States 530,000 25,277,290
--------------
TOTAL LONG TERM INVESTMENTS (COST $2,776,191,809) .................. 2,686,792,499
--------------

24 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

STATEMENT OF INVESTMENTS, NOVEMBER 30, 2005 (UNAUDITED) (CONTINUED)

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

SHORT TERM INVESTMENT (COST $53,810,200) 1.9%

MONEY FUND
(j)Franklin Institutional Fiduciary Trust Money Market Portfolio ............ United States 53,810,200 $ 53,810,200
--------------
TOTAL INVESTMENTS (COST $2,830,002,009) 98.3%............................. 2,740,602,699
OTHER ASSETS, LESS LIABILITIES 1.7%....................................... 47,830,706
--------------
NET ASSETS 100.0%......................................................... $2,788,433,405
==============

CURRENCY ABBREVIATIONS

ZAR - South African Rand

SELECTED PORTFOLIO ABBREVIATIONS

FRN - Floating Rate Note

(a) Security was purchased pursuant to Rule 144A under the Securities Act of
1933 and may be sold in transactions exempt from registration only to
qualified institutional buyers or in a public offering registered under
the Securities Act of 1933. These securities have been deemed liquid under
the guidelines approved by the Fund's Board of Trustees. At November 30,
2005, the value of these securities was $499,551,306, representing 17.92%
of net assets.

(b) See Note 8 regarding defaulted securities.

(d) Non-income producing.

(e) See Note 9 regarding restricted and illiquid securities.

(f) See Note 11 regarding other considerations.

(g) The coupon rate shown represents the rate at period end.

(h) Rounds to less than 0.05% of net assets.

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

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

(k) Subsequent to November 30, 2005, the security defaulted. See Note 8.

Semiannual Report | See notes to financial statements. | 25

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES
November 30, 2005 (unaudited)

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

Assets:
Investments in securities:
Cost - Unaffiliated issuers ............................................. $ 2,748,967,948
Cost - Non-controlled affiliated issuers (Note 10) ...................... 27,223,861
Cost - Sweep Money Fund (Note 7) ........................................ 53,810,200
---------------
Total cost of investments ............................................... $ 2,830,002,009
===============
Value - Unaffiliated issuers ............................................ $ 2,686,784,559
Value - Non-controlled affiliated issuers (Note 10) ..................... 7,940
Value - Sweep Money Fund (Note 7) ....................................... 53,810,200
---------------
Total value of investments .............................................. 2,740,602,699
Receivables:
Investment securities sold .............................................. 2,475,656
Capital shares sold ..................................................... 2,757,908
Interest ................................................................ 55,237,327
---------------
Total assets ........................................................ 2,801,073,590
---------------
Liabilities:
Payables:
Capital shares redeemed ................................................. 5,867,209
Affiliates .............................................................. 1,775,961
Deferred sale proceeds (Note 11) ......................................... 4,654,870
Accrued expenses and other liabilities ................................... 342,145
---------------
Total liabilities ................................................... 12,640,185
---------------
Net assets, at value ............................................... $ 2,788,433,405
===============
Net assets consist of:
Paid-in capital .......................................................... $ 3,878,618,864
Undistributed net investment income ...................................... 3,265,447
Net unrealized appreciation (depreciation) ............................... (89,398,645)
Accumulated net realized gain (loss) ..................................... (1,004,052,261)
---------------
Net assets, at value ............................................... $ 2,788,433,405
===============

26 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
November 30, 2005 (unaudited)

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

CLASS A:
Net assets, at value ........................................................ $2,179,009,261
==============
Shares outstanding .......................................................... 1,045,248,264
==============
Net asset value per share(a) ................................................ $ 2.08
==============
Maximum offering price per share (net asset value per share / 95.75%) ....... $ 2.17
==============
CLASS B:
Net assets, at value ........................................................ $ 195,351,493
==============
Shares outstanding .......................................................... 93,944,479
==============
Net asset value and maximum offering price per share(a) ..................... $ 2.08
==============
CLASS C:
Net assets, at value ........................................................ $ 372,423,932
==============
Shares outstanding .......................................................... 177,821,949
==============
Net asset value and maximum offering price per share(a) ..................... $ 2.09
==============
CLASS R:
Net assets, at value ........................................................ $ 6,688,564
==============
Shares outstanding .......................................................... 3,185,675
==============
Net asset value and maximum offering price per share(a) ..................... $ 2.10
==============
ADVISOR CLASS:
Net assets, at value ........................................................ $ 34,960,155
==============
Shares outstanding .......................................................... 16,760,984
==============
Net asset value and maximum offering price per share(a) ..................... $ 2.09
==============

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

Semiannual Report | See notes to financial statements. | 27

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS (CONTINUED)

STATEMENT OF OPERATIONS
for the six months ended November 30, 2005 (unaudited)

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

Investment income:
Dividends:
Unaffiliated issuers ........................................................... $ 1,047,243
Sweep Money Fund (Note 7) ...................................................... 900,457
Interest ........................................................................ 111,544,698
-------------
Total investment income .................................................... 113,492,398
-------------
Expenses:
Management fees (Note 3a) ....................................................... 6,486,431
Distribution fees: (Note 3c)
Class A ........................................................................ 1,631,563
Class B ........................................................................ 660,525
Class C ........................................................................ 1,267,192
Class R ........................................................................ 14,688
Transfer agent fees (Note 3e) ................................................... 1,740,864
Custodian fees (Note 4) ......................................................... 25,434
Reports to shareholders ......................................................... 94,650
Registration and filing fees .................................................... 64,173
Professional fees ............................................................... 38,454
Trustees' fees and expenses ..................................................... 26,350
Other ........................................................................... 53,247
-------------
Total expenses ............................................................. 12,103,571
Expense reductions (Note 4) ................................................ (7,714)
-------------
Net expenses .............................................................. 12,095,857
-------------
Net investment income .................................................... 101,396,541
-------------
Realized and unrealized gains (losses):
Net realized gain (loss) from:
Investments
Unaffiliated issuers .......................................................... (76,430,790)
Non-controlled affiliated issuers ............................................. (3,229,128)
Foreign currency transactions ................................................. (43,066)
-------------
Net realized gain (loss) ................................................. (79,702,984)
-------------
Net change in unrealized appreciation (depreciation) on:
Investments ..................................................................... 74,555,477
Translation of assets and liabilities denominated in foreign currencies ......... 45,056
-------------
Net change in unrealized appreciation (depreciation) ..................... 74,600,533
-------------
Net realized and unrealized gain (loss) .......................................... (5,102,451)
-------------
Net increase (decrease) in net assets resulting from operations .................. $ 96,294,090
=============

28 | See notes to financial statements. | Semiannual Report

FRANKLIN HIGH INCOME TRUST

FINANCIAL STATEMENTS (CONTINUED)

STATEMENTS OF CHANGES IN NET ASSETS

-----------------------------------
AGE HIGH INCOME FUND
-----------------------------------
SIX MONTHS ENDED
NOVEMBER 30, 2005 YEAR ENDED
(UNAUDITED) MAY 31, 2005
-----------------------------------

Increase (decrease) in net assets:
Operations:
Net investment income .................................................................... $ 101,396,541 $ 216,844,180
Net realized gain (loss) from investments and foreign currency transactions .............. (79,702,984) (87,298,973)
Net change in unrealized appreciation (depreciation) on investments and translation of
assets and liabilities denominated in foreign currencies ................................ 74,600,533 174,314,338
-----------------------------------
Net increase (decrease) in net assets resulting from operations ..................... 96,294,090 303,859,545
Distributions to shareholders from net investment income:
Class A ................................................................................. (80,070,788) (162,906,782)
Class B ................................................................................. (6,800,425) (14,664,330)
Class C ................................................................................. (12,843,138) (27,933,386)
Class R ................................................................................. (194,220) (304,203)
Advisor Class ........................................................................... (1,200,253) (2,774,213)
-----------------------------------
Total distributions to shareholders ....................................................... (101,108,824) (208,582,914)
-----------------------------------
Capital share transactions: (Note 2)
Class A ................................................................................. (50,948,342) (11,782,866)
Class B ................................................................................. (12,220,235) (6,726,218)
Class C ................................................................................. (15,256,642) (41,971,635)
Class R ................................................................................. 1,398,410 1,716,595
Advisor Class ........................................................................... 6,836,127 (10,736,797)
-----------------------------------
Total capital share transactions .......................................................... (70,190,682) (69,500,921)
-----------------------------------
Redemption fees ........................................................................... 5,248 21,759
-----------------------------------
Net increase (decrease) in net assets ............................................... (75,000,168) 25,797,469
Net assets:
Beginning of period ....................................................................... 2,863,433,573 2,837,636,104
-----------------------------------
End of period ............................................................................. $ 2,788,433,405 $ 2,863,433,573
===================================
Undistributed net investment income included in net assets:
End of period ............................................................................. $ 3,265,447 $ 2,977,730
===================================

Semiannual Report | See notes to financial statements. | 29

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 following summarizes
the Fund's significant accounting policies.

A. SECURITY VALUATION

Securities listed on a securities exchange or on the NASDAQ National Market
System are valued at the last quoted sale price or the official closing price of
the day, respectively. Over-the-counter securities and listed securities for
which there is no reported sale are valued within the range of the most recent
quoted bid and ask prices. Securities that trade in multiple markets or on
multiple exchanges are valued according to the broadest and most representative
market. Investments in open-end mutual funds are valued at the closing net asset
value.

Corporate debt securities and government securities generally trade in the
over-the-counter market rather than on a securities exchange. The Fund may
utilize independent pricing services, quotations from bond dealers, and
information with respect to bond and note transactions, to assist in determining
a current market value for each security. The Fund's pricing services may use
valuation models or matrix pricing which considers information with respect to
comparable bond and note transactions, quotations from bond dealers, or by
reference to other securities that are considered comparable in such
characteristics as rating, interest rate and maturity date, option adjusted
spread models, prepayment projections, interest rate spreads and yield curves,
to determine current value.

Foreign securities are valued as of the close of trading on the foreign stock
exchange on which the security is primarily traded, or the NYSE, whichever is
earlier. If no sale is reported at that time, the foreign security will be
valued within the range of the most recent quoted bid and ask prices. The value
is then converted into its U.S. dollar equivalent at the foreign exchange rate
in effect at the close of the NYSE on the day that the value of the foreign
security is determined.

The Fund has procedures to determine the fair value of individual securities and
other assets for which market prices are not readily available or which may not
be reliably priced. Methods for valuing these securities may include:
fundamental analysis, matrix pricing, discounts from market prices of similar
securities, or discounts applied due to the nature and duration of restrictions
on the disposition of the securities. Due to the inherent uncertainty of
valuations of such securities, the fair values may differ significantly from the
values that would have been used had a ready market for such investments
existed. Occasionally, events occur between the time at which trading in a
security is completed and the close of the NYSE that might call into question
the availability (including the reliability) of the value of a portfolio
security held by the Fund. If such an event occurs, the securities may be valued
using fair value procedures, which may include the use of independent pricing
services. All security valuation procedures are approved by the Fund's Board of
Trustees.

30 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

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. Occasionally, events may impact the availability or reliability of foreign
exchange rates used to convert the U.S. dollar equivalent value. If such an
event occurs, the foreign exchange rate will be valued at fair value using
procedures established and approved by the Fund's Board of Trustees.

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.

C. 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, which may be in
excess of the amount reflected in the Statement of Assets and Liabilities.

D. INCOME TAXES

No provision has been made for U.S. income taxes because the Fund's policy is to
continue to qualify as a regulated investment company under the Internal Revenue
Code and to distribute to shareholders substantially all of its taxable income
and net realized gains.

Semiannual Report | 31

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

E. SECURITY TRANSACTIONS, INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS

Security transactions are accounted for on trade date. Realized gains and losses
on security transactions are determined on a specific identification basis.
Interest income and estimated expenses are accrued daily. Amortization of
premium and accretion of discount on debt securities are included in interest
income. Dividend income is recorded on the ex-dividend date. Distributions to
shareholders are recorded on the ex-dividend date and are determined according
to income tax regulations (tax basis). Distributable earnings determined on a
tax basis may differ from earnings recorded in accordance with generally
accepted accounting principles. These differences may be permanent or temporary.
Permanent differences are reclassified among capital accounts to reflect their
tax character. These reclassifications have no impact on net assets or the
results of operations. Temporary differences are not reclassified, as they will
reverse in subsequent periods.

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.

F. 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.

G. REDEMPTION FEES

A short term trading redemption fee will be imposed, with some exceptions, on
any Fund shares that are redeemed or exchanged within seven calendar days
following their purchase date. The redemption fee is 2% of the amount redeemed.
Such fees are retained by the Fund and accounted for as an addition to paid-in
capital.

H. GUARANTEES AND INDEMNIFICATIONS

Under the Trust's organizational documents, its officers and trustees are
indemnified by the Trust against certain liabilities arising out of the
performance of their duties to the Trust. Additionally, in the normal course of
business, the Trust 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.

32 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

2. SHARES OF BENEFICIAL INTEREST

The Fund offers five classes of shares: Class A, Class B, Class C, Class R, and
Advisor Class. Effective March 1, 2005, Class B shares are only offered to
existing Class B shareholders in the form of reinvested distributions and
certain exchanges from other Franklin Templeton Class B shares. 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, 2005, 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, 2005 MAY 31, 2005
-------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
-------------------------------------------------------------------------------

CLASS A SHARES:
Shares sold ................................. 87,808,241 $ 184,090,335 239,265,772 $ 502,017,517
Shares issued in reinvestment
of distributions ........................... 20,079,026 42,066,020 40,718,892 85,126,959
Shares redeemed ............................. (132,243,518) (277,104,697) (285,406,315) (598,927,342)
-------------------------------------------------------------------------------
Net increase (decrease) ..................... (24,356,251) $ (50,948,342) (5,421,651) $ (11,782,866)
===============================================================================
CLASS B SHARES:
Shares sold ................................. 2,011,737 $ 4,202,530 14,098,824 $ 29,448,490
Shares issued in reinvestment
of distributions ........................... 1,642,848 3,438,924 3,523,859 7,349,610
Shares redeemed ............................. (9,497,067) (19,861,689) (20,807,235) (43,524,318)
-------------------------------------------------------------------------------
Net increase (decrease) ..................... (5,842,482) $ (12,220,235) (3,184,552) $ (6,726,218)
===============================================================================
CLASS C SHARES:
Shares sold ................................. 19,078,734 $ 40,189,845 40,448,987 $ 85,397,167
Shares issued in reinvestment
of distributions ........................... 3,570,799 7,517,375 7,767,097 16,316,793
Shares redeemed ............................. (29,908,560) (62,963,862) (68,179,143) (143,685,595)
-------------------------------------------------------------------------------
Net increase (decrease) ..................... (7,259,027) $ (15,256,642) (19,963,059) $ (41,971,635)
===============================================================================
CLASS R SHARES:
Shares sold ................................. 899,898 $ 1,895,080 2,101,477 $ 4,441,998
Shares issued in reinvestment
of distributions ........................... 78,706 166,301 124,765 262,919
Shares redeemed ............................. (313,655) (662,971) (1,410,510) (2,988,322)
-------------------------------------------------------------------------------
Net increase (decrease) ..................... 664,949 $ 1,398,410 815,732 $ 1,716,595
===============================================================================
ADVISOR CLASS SHARES:
Shares sold ................................. 7,678,313 $ 16,039,892 5,221,125 $ 10,967,289
Shares issued in reinvestment
of distributions ........................... 359,612 755,226 893,034 1,870,196
Shares redeemed ............................. (4,786,129) (9,958,991) (11,171,667) (23,574,282)
-------------------------------------------------------------------------------
Net increase (decrease) ..................... 3,251,796 $ 6,836,127 (5,057,508) $ (10,736,797)
===============================================================================

Semiannual Report | 33

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

3. TRANSACTIONS WITH AFFILIATES

Franklin Resources, Inc. is the holding company for various subsidiaries that
together are referred to as Franklin Templeton Investments. Certain officers and
trustees of the Trust are also officers and/or directors of the following
subsidiaries:

- ---------------------------------------------------------------------------------------------------------
SUBSIDIARY 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

A. MANAGEMENT FEES

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
- -------------------------------------------------------------------------------------

0.625% Up to and including $100 million
0.500% Over $100 million, up to and including $250 million
0.450% In excess of $250 million

B. ADMINISTRATIVE FEES

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

C. DISTRIBUTION FEES

The Fund's Board of Trustees has adopted distribution plans for each share
class, with the exception of Advisor class shares, pursuant to Rule 12b-1 under
the 1940 Act. Under the Fund's Class A reimbursement distribution plan, the Fund
reimburses Distributors up to 0.15% per year of Class A's average daily net
assets for costs incurred in connection with the sale and distribution of the
Fund's shares. Under the Class A reimbursement distribution plan, costs
exceeding the maximum for the current plan year cannot be reimbursed in
subsequent periods.

Under the Fund's compensation distribution plans, the Fund pays Distributors for
costs incurred in connection with the sale and distribution of the Fund's shares
up to a certain percentage per year of its average daily net assets of each
class as follows:

Class B ............................................ 0.65%
Class C ............................................ 0.65%
Class R ............................................ 0.50%

34 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

3. TRANSACTIONS WITH AFFILIATES (CONTINUED)

D. SALES CHARGES/UNDERWRITING AGREEMENTS

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

Net sales charges receiveda ............................. $300,681
Contingent deferred sales charges retained .............. $214,673

(a) Net of commissions paid to unaffiliated broker/dealers.

E. TRANSFER AGENT FEES

The Fund paid transfer agent fees of $1,740,864, of which $1,192,001 was
retained by 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, 2005, the
custodian fees were reduced as noted in the Statement of Operations.

5. INCOME TAXES

At May 31, 2005, the Fund had tax basis capital losses which may be carried over
to offset future capital gains, if any. At May 31, 2005, the capital loss
carryforwards were as follows:

Capital loss carryovers expiring in:
2009.................................................... $126,000,271
2010.................................................... 147,493,159
2011.................................................... 273,783,877
2012.................................................... 273,526,078
2013.................................................... 57,417,407
------------
$878,220,792
============

For tax purposes, realized capital losses occurring subsequent to October 31,
may be deferred and treated as occurring on the first day of the following
fiscal year. At May 31, 2005, the Fund deferred realized capital losses of
$64,785,962.

Semiannual Report | 35

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

5. INCOME TAXES (CONTINUED)

At November 30, 2005, the cost of investments and net unrealized appreciation
(depreciation) for income tax purposes were as follows:

Cost of investments ........................................ $ 2,833,149,013
===============
Unrealized appreciation .................................... $ 136,668,244
Unrealized depreciation .................................... (229,214,558)
---------------
Net unrealized appreciation (depreciation) ................. $ (92,546,314)
===============

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

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments (excluding short term securities) for the
period ended November 30, 2005, aggregated $323,963,256 and $373,189,791,
respectively.

7. INVESTMENTS IN FRANKLIN INSTITUTIONAL FIDUCIARY TRUST 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 and administrative
fees paid by the Sweep Money Fund.

8. CREDIT RISK AND DEFAULTED SECURITIES

The Fund has 93.96% 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, 2005, the value of these
securities was $20,229,473, representing 0.73% of the Fund's net assets. The
Fund discontinues accruing income on securities for which income has been deemed
uncollectible and provides an estimate for losses on interest receivable. The
securities have been identified on the accompanying Statement of Investments.

36 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

9. RESTRICTED AND ILLIQUID SECURITIES

At November 30, 2005, investments in securities included issues that are
restricted and illiquid. Restricted securities are often purchased in private
placement transactions, and cannot be sold without prior registration under the
Securities Act of 1933, unless the sale is pursuant to an exemption under the
1933 Act. The Fund has registration rights for certain restricted securities
held at period end. The issuer generally incurs all registration costs.

A security may 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,
2005, the Fund held investments in restricted and illiquid securities, valued in
accordance with procedures approved by the Fund's Board of Trustees as
reflecting fair value, as follows:

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

24,700,000 Asia Pulp & Paper Co. Ltd., 12.00%, pfd.,
Perpetual ........................................... 2/14/97 $24,700,000 $ 279,110
4,853,892 Cambridge Industries Liquidating Trust
Interest ............................................ 1/09/02 -- 24,269
211,174 (a)Goss Holdings Inc., B ................................. 11/17/99 422,348 --
3,256,502 Pindo Deli Finance Mauritius Ltd., 144A,
FRN, 5.248%, 4/29/15 ................................ 4/29/05 756,681 762,347
8,467,542 Pindo Deli Finance Mauritius Ltd., 144A,
FRN, 5.248%, 4/29/18 ................................ 4/29/05 1,967,518 1,982,252
17,495,011 Pindo Deli Finance Mauritius Ltd., 144A,
zero cpn., 4/29/25 .................................. 4/29/05 4,065,141 4,095,582
1,628,955 Tjiwi Kimia Finance Mauritius, secured
note, 144A, FRN, 5.248%, 4/29/15 .................... 4/29/05 496,505 500,252
4,192,714 Tjiwi Kimia Finance Mauritius, secured
note, 144A, FRN, 5.248%, 4/29/18 .................... 4/29/05 1,277,939 1,287,583
5,386,416 Tjiwi Kimia Finance Mauritius, secured
note, 144A, zero cpn., 4/29/25 ...................... 4/29/05 1,641,780 1,654,168
1,685,375 VS Holdings ........................................... 12/06/01 1,685,375 --
-----------
TOTAL RESTRICTED AND ILLIQUID SECURITIES (0.38% of Net Assets) ......................... $10,585,563
===========

(a) The Fund also invests in unrestricted securities of this issuer, valued at
$0 as of November 30, 2005.

Semiannual Report | 37

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, 2005 were as shown below.

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

NON-CONTROLLED AFFILIATES
Harvard Industries Inc. ................. 793,966 -- -- 793,966 $7,940 $ -- $ --
International Wireless Communications
Holdings Inc. ......................... 1,759,743 -- 1,759,743 -- -- -- (3,229,128)
VS Holdings ............................. 1,685,375 -- -- 1,685,375 -- -- --
---------------------------------
TOTAL AFFILIATED SECURITIES (0.00% OF NET ASSETS)(a) ......................................... $7,940 $ -- $(3,229,128)
=================================

(a) Rounds to less than 0.005% of net assets.

11. OTHER CONSIDERATIONS

Subject to certain terms and conditions, the Fund has agreed to sell its
holdings in Asia Pulp & Paper Co. Ltd., Pindo Deli Finance Mauritius Ltd., and
Tjiwi Kimia Finance Mauritius in November 2006. Until completion of the sale,
the transaction is being accounted for as a secured borrowing with a pledge of
collateral and any preliminary sales proceeds or other interest and cash
distributions received are deferred until the completion of the transaction and
are recorded as part of the net sales proceeds.

Directors or employees of Advisers, as the Fund's Investment Manager, may serve
as members of various bondholders' steering committees, on credit committees, or
may represent the Fund in certain corporate restructuring negotiations. At
January 6, 2006, such individuals serve in one or more of these capacities for
Calpine Corp. As a result of this involvement, such individuals may be in
possession of certain material non-public information. If the Fund's Investment
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

As part of various investigations by a number of federal, state, and foreign
regulators and governmental entities, relating to certain practices in the
mutual fund industry, including late trading, market timing and marketing
support payments to securities dealers who sell fund shares, Franklin Resources,
Inc. and certain of its subsidiaries (collectively, the "Company"), entered into
settlements with certain of those regulators.

38 | Semiannual Report

FRANKLIN HIGH INCOME TRUST

NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

AGE HIGH INCOME FUND

12. REGULATORY MATTERS (CONTINUED)

Specifically, the Company entered into settlements with the Securities and
Exchange Commission ("SEC") concerning market timing (the "August 2, 2004 SEC
Order") and marketing support payments to securities dealers who sell fund
shares (the "December 13, 2004 SEC Order") and with the California Attorney
General's Office ("CAGO") concerning marketing support payments to securities
dealers who sell fund shares (the "CAGO Settlement"). Under the terms of the
settlements with the SEC and the CAGO, the Company retained an Independent
Distribution Consultant ("IDC") to develop a plan for distribution of the
respective settlement monies. The CAGO approved the distribution plan under the
CAGO Settlement and, in accordance with the terms and conditions of that
settlement, the monies were disbursed to the relevant funds. The Trust did not
participate in the CAGO Settlement. The SEC has not yet approved the
distribution plan pertaining to the December 13, 2004 SEC Order. When approved,
disbursements of settlement monies will be made promptly to the relevant funds,
in accordance with the terms and conditions of that order. The IDC continues to
develop the plan of distribution under the August 2, 2004 SEC Order that
resolved the SEC's market timing investigation.

In addition, the Company, as well as most of the mutual funds within Franklin
Templeton Investments and certain current or former officers, directors, and/or
employees, have been named in private lawsuits (styled as shareholder class
actions, or as derivative actions on behalf of either the named funds or
Franklin Resources, Inc.) relating to the industry practices referenced above,
as well as to allegedly excessive advisory fees, commissions, and/or 12b-1 fees.
The lawsuits were filed in different courts throughout the country. Many of
those suits are now pending in a multi-district litigation in the United States
District Court for the District of Maryland.

The Company and fund management strongly believe that the claims made in each of
the private lawsuits referenced above are without merit and intend to defend
against them vigorously. The Company cannot predict with certainty the eventual
outcome of these lawsuits, nor whether they will have a material negative impact
on the Company. If it is determined that the Company bears responsibility for
any unlawful or inappropriate conduct that caused losses to the Trust, it is
committed to making the Trust or its shareholders whole, as appropriate.

Semiannual Report | 39

FRANKLIN HIGH INCOME TRUST

SHAREHOLDER INFORMATION

PROXY VOTING POLICIES AND PROCEDURES

The Trust has established Proxy Voting Policies and Procedures ("Policies") that
the Trust uses to determine how to vote proxies relating to portfolio
securities. Shareholders may view the Trust's complete Policies online at
franklintempleton.com. Alternatively, shareholders may request copies of the
Policies free of charge by calling the Proxy Group collect at 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 Trust's proxy voting records are also made available online
at franklintempleton.com and posted on the U.S. Securities and Exchange
Commission's website at sec.gov and reflect the most recent 12-month period
ended June 30.

QUARTERLY STATEMENT OF INVESTMENTS

The Trust files a complete statement of investments with the U.S. 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.

40 | Semiannual Report

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 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 MidCap Value Fund
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

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(4)
Franklin's AGE High Income Fund
Franklin Floating Rate Daily Access Fund
Franklin Income Fund
Franklin Limited Maturity U.S. Government Securities Fund(4)
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(4)
Templeton Global Bond Fund
Templeton Income Fund

TAX-FREE INCOME(5)

National Funds

Double Tax-Free Income Fund
Federal Tax-Free Income Fund
High Yield Tax-Free Income Fund
Insured Tax-Free Income Fund(6)

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(7)
Colorado
Connecticut
Florida(7)
Georgia
Kentucky
Louisiana
Maryland
Massachusetts(6)
Michigan(6)
Minnesota(6)
Missouri
New Jersey
New York(7)
North Carolina
Ohio(7)

09/05 Not part of the semiannual report

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

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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 S2005 01/06

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

(2) The audit committee financial expert is 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. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT
INVESTMENT COMPANIES. N/A

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END
MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. N/A

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY Holders. There have
been no changes to the procedures by which shareholders may recommend nominees
to the Registrant's Board of Trustees that would require disclosure herein.

ITEM 11. CONTROLS AND PROCEDURES. (A) EVALUATION OF DISCLOSURE CONTROLS
AND PROCEDURES. The Registrant maintains disclosure controls and procedures that
are designed to 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 12. EXHIBITS.

(a)(1) Code of Ethics

(a)(2) 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) 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
------------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date January 23, 2006

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
------------------------
Jimmy D. Gambill
Chief Executive Officer - Finance and Administration
Date January 23, 2006

By /S/ GALEN G. VETTER
------------------------
Galen G. Vetter
Chief Financial Officer
Date January 23, 2006